Iceland is known for its stunning landscapes, active volcanoes, majestic waterfalls, and otherworldly natural wonders. However, many travelers are put off by the island’s reputation for being expensive. The good news? It’s entirely possible to experience Iceland on a budget.
With the right planning, you can explore Iceland’s breathtaking beauty without breaking the bank. This guide will help you organize an affordable Iceland vacation by offering tips on transportation, accommodations, activities, and more.
How to Plan a Trip to Iceland on a Budget
If you’re looking for an affordable Iceland vacation, start by planning ahead. Here’s a step-by-step breakdown on how to travel Iceland cheap:
- Visit During the Off-Season
The cheapest way to travel Iceland is to go during the off-season. The months of September to November and February to April are ideal for budget travelers. You’ll avoid the summer crowds, and prices for accommodations and flights tend to be significantly lower.
2. Book Flights in Advance
Flights to Iceland can be one of the biggest expenses of your trip, but there are ways to reduce costs. To score the cheapest time to fly to Iceland, aim to book your flights 3-6 months in advance. Budget airlines like Play and Icelandair often have promotions, so keep an eye on airfare deals.
3. Choose Affordable Accommodation
Iceland’s accommodation options can range from luxury hotels to affordable guesthouses and campgrounds. If you’re traveling on a tight budget, camping is one of the most affordable ways to stay in Iceland. The country has numerous campsites, many of which are located near popular tourist attractions. Hostels and guesthouses are also great choices for budget travelers.
4. Rent a Car for Flexibility and Savings
While Iceland has a public bus system, the most efficient way to explore the country is by renting a car. If you’re traveling with friends or family, splitting the cost of a rental can make it more affordable. Look for budget-friendly car rentals or consider renting a campervan to save on both accommodation and transportation.
5. Save Money on Food
Eating out in Iceland can be expensive, but there are ways to cut down on food costs. Shopping at supermarkets like Bónus or Krónan will help you save money. Opt for simple, local foods like skyr (Icelandic yogurt) and sandwiches, or pack a lunch for your day trips. Also, many hostels and guesthouses have communal kitchens where you can prepare your own meals.
6. Enjoy Iceland’s Natural Beauty for Free
One of the best things about Iceland is that its natural wonders are free to enjoy. Visiting waterfalls, national parks, and scenic viewpoints won’t cost you anything. Some of the most affordable things to do in Iceland include visiting iconic sites like Seljalandsfoss, Skógafoss, and the geothermal areas around Lake Mývatn.
7. Find Cheap Iceland Tours
While Iceland has plenty of free natural attractions, you may want to join a tour to explore remote areas or unique experiences like glacier hikes, whale watching, or the Blue Lagoon. Look for cheap Iceland tours by comparing different tour operators, or consider booking a combo package that includes multiple activities at a discount.
8. Use a Budget-Friendly Travel Itinerary
To make the most of your trip, plan an itinerary that minimizes transportation costs and maximizes your time at affordable destinations. Consider sticking to one region of the country, like the Golden Circle or South Coast, to reduce fuel and travel expenses. A well-organized itinerary will help you experience Iceland’s top attractions on a budget.
Cheap Things to Do in Iceland
Contrary to popular belief, it’s possible to find cheap things to do in Iceland that will still leave you in awe. Here are some budget-friendly activities you won’t want to miss:
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Explore Reykjavik on Foot
Reykjavik is a compact city that’s easy to explore on foot. Wander the streets, visit the Harpa Concert Hall, and take in the view from the Hallgrimskirkja Church tower. Many of the city’s museums offer discounted entry fees or free admission on certain days.
2. Visit Iceland’s Waterfalls
Iceland’s waterfalls are a must-see, and fortunately, most are free to visit. Seljalandsfoss, Skógafoss, and Gullfoss are all within easy driving distance of Reykjavik and can be enjoyed without any entry fees.
3. Go Hiking
Iceland offers incredible hiking opportunities, and the best part is that it’s completely free. Some popular hiking spots include the Laugavegur Trail, Landmannalaugar, and the area around Þingvellir National Park.
4. Relax in a Hot Spring
While the Blue Lagoon is a popular tourist destination, it’s also one of the pricier attractions in Iceland. For a more affordable Iceland vacation, check out natural hot springs like Reykjadalur or Seljavallalaug, which are free or have minimal entrance fees.
5. Chase the Northern Lights
If you’re visiting Iceland between September and April, you have a good chance of witnessing the northern lights. You don’t need to pay for a tour to enjoy this magical experience—just find a dark spot away from the city lights and watch the sky light up with vibrant colors.
Cheap Tours in Iceland
If you’re looking for ways to experience Iceland’s unique attractions without overspending, there are plenty of affordable Iceland tours available. Some popular cheap tours in Iceland include:
- Golden Circle Tours: This popular route includes stops at Þingvellir National Park, Geysir, and Gullfoss. Many tour operators offer budget-friendly day trips from Reykjavik.
- South Coast Tours: Explore Iceland’s southern coastline, including Seljalandsfoss, Reynisfjara Black Sand Beach, and Vík. Some tours also include stops at glaciers and volcanic landscapes.
- Northern Lights Tours: While you can see the northern lights on your own, joining a budget tour ensures you’ll be guided to the best spots with minimal light pollution.
Frequently Asked Questions
What is the cheapest month to visit Iceland?
The cheapest month to visit Iceland is typically November, as it falls during the off-season when accommodation and flight prices drop.
Is Iceland an affordable vacation?
While Iceland can be expensive, it’s possible to have an affordable vacation by planning ahead, booking in the off-season, and choosing budget-friendly accommodations and activities.
What is the cheapest time to fly to Iceland?
The cheapest time to fly to Iceland is usually from late autumn through early spring, particularly in November and March.
How to plan an affordable trip to Iceland?
To plan an affordable trip to Iceland, travel during the off-season, book flights and accommodation in advance, opt for budget-friendly transportation like car rentals, and prioritize free natural attractions.
Enjoy more, pay less!
By following these tips, you can enjoy a memorable budget trip to Iceland without sacrificing the incredible experiences the country has to offer. From breathtaking waterfalls to relaxing hot springs, Iceland’s beauty is accessible to every traveler, no matter their budget.
Don’t forget to check out more affordable travel options on Camping Iceland—your go-to resource for budget-friendly camping and touring experiences in Iceland.
