Ways to Save money travelling Iceland

Iceland can be an expensive country but there are a couple things we can do to keep it reasonable.

High season vs low season costs swings.

Not everything is affected by the season but hotels and car rentals definitely are.

Here is an example of High vs Low season typical costs

High Season 🚐 Campervan $220–$320

🚗 Car + Hotel $300–$550

Low Season 🚐 Campervan $150–$230

🚗 Car + Hotel $180–$320

Keep in mind the Car + Hotel cost does not include eating out!

When You Go

High season (June - Aug)  - Rent a Camper

Shoulder season (May & Sept) - Rent a Camper

low season (Oct - April) - Hotels + Car

Our take on the seasons is that Iceland's weather is so unpredictable anyway you might as well go in shoulder season and save a couple bucks. We particularly like May/June as you get super long midnight sun, but it's not super busy yet.

On our last trip in the center of the High season in August we literally drove the entire island looking for good weather so it doesn't always work out.
Flights

If your vacation period isn’t fixed you can watch for flight deals. The shoulder seasons of May and Sept can offer deals.

Flight hack

Iceland air offers a stopover program in Reykjavik for up to 7 days with no extra charges.  This is a great way to have a quick look into the country on your way to Europe or North America.

Hotels

By far the biggest expense when visiting Iceland is the hotels. Some of the accommodations are quite unique and beautiful but also equally pricy. Your average stay is going to be $150 -$300 per night and that really adds up over a week + Trip.

We recommend picking a couple special stays that are worth it and using one of our options below. Don’t worry we will tell you the stays we loved in the main guide.

Bikepacking

This is the true budget option for Iceland but you need to be well prepared. Most of the camping sites have a dedicated tent section and all the facilities you need. Downside are unpredictable weather, howling wings and long periods exposed to the elements. If you are choosing this option you probably know what you are up for. 

Rent A Car

We 100% recommend renting a vehicle in Iceland. It is possible to take buses and tours for the main attractions but it would not be cost saving. 

If you are planning on moving past Reykjavik and the Golden Circle you 100% need your own vehicle.

Car Rental + Camping

If you are willing to car camp or pack a tent with your vehicle costs can be quite manageable. Rental cars that are not set up for sleeping are often half the cost of an equipped camper.

Car Rental + Hotel

If you are not a camping person travelling in Shoulder or low season is far more reasonable. Costs for a rental car and hotel stays can be quite similar to a van. If you choose winter there will be no crowds and great chances to see the Aurora Borealis.

Camper Van

This is our recommended option in everything except winter.

 Almost all the camper options include your whole cooking set so all you need to do is show up, go shopping and you are ready to explore. The extra costs of the camper over the car really pay off when the weather isn’t great. We highly recommend this option in everything except the heart of summer high season. 

No 4x4

If you choose to get a vehicle that is not rated for the F roads they can be a great deal cheaper. There is a ton of stuff you can see on the paved roads so make sure you actually want the 4x4 before you commit.

Meals

Cook your own meals! Iceland's food is great but very expensive. The average restaurant meal for 1 comes in at (3500-7000 ISK) Coming from western Canada the cuisine felt quite familiar to us so we didn't feel like we were missing out. 

What we would eat most days

Breakfast - Greek yogurt with protein powder, dried fruits and bananas. 

Soft boiled eggs and cheese for snacks

Lunch - usually a wrap / sandwich or dehydrated meal. If really on the go a hotdog.

Icelandic chocolate and licorice

Dinner - Chicken with vegetables or a pasta

Bring your own food

We paid extra for a checked bag and literally brought pre prepared dehydrated meals from home! It wasn’t all about cost, being able to boil some water and have a great meal ready in 10 minutes on the go was amazing!

Things that we brought we thought were great,

Dehydrated meals

A whole box of protein bars from Costco

Beef jerky

Protein powder (with yogurt for the mornings)

Trail mix and dried fruits for hiking snacks

Peanut Butter ( for PB and Banana sandwiches)

Coffee

Tea

Where to find budget meals

The campsites almost always have a free shelf, if you look during checkout time there is often lots of stuff.

Eat hotdogs! Joking not joking, Iceland is famous for its hot dogs and you can find them everywhere. They are usually 600-800 Isk and fairly tasty. 

Many of the grocery stores have great little packaged sandwiches, pies, and salads to go aswell.

The gas stations often have cafeterias that will serve diner style food or takeaway for $20 a meal. 

Shopping

The stores Bonus and Kronan have substantially cheaper groceries and are worth the detour.

Alcohol

There is a duty free liquor store as you leave the airport that is by far the cheapest in the country. I highly recommend pre-planning and getting your drinks here in advance!

If you miss this, everything else is sold in government run Vinbudins which are very pricey.

You can buy low alcohol beers  2.25% ABV affordably in grocery stores.

Water

Tap Water is some of the cleanest in the world so bring a water bottle!

Phone Plan

Iceland is part of the EU so if you have a European sim you can use your device like normal. Coming from everywhere else I would recommend an E Sim.

Book A camper with perks

Our car rental company CampEasy included a tablet with unlimited Wifi hotspot that made cell connection unecessary.  They also had zero cleaning charge, these were great perks so make sure you compare the total package.

Do the free experiences- Iceland is blessed with endless beauty and aside from parking it's almost all free. All those hikes, waterfalls and lookouts won’t cost you a penny!