Iceland is truly an incredible place, however, it can also be a very expensive place. This means we often come across travellers trying to explore the spectacular beauty of Iceland but for as little money as possible.

And we get it, Iceland does have one of the highest costs of living around the world, so it’s nothing new to us. 

Thankfully, we have put together 5 simple tips to help you be able to explore Iceland on a budget this year. You’re welcome!

Cook your own meals

As good (and unique) as the food here in Iceland is, it can also be very expensive, especially if you’re eating out in restaurants and bars every night. You can find some cheap places to eat here and there, particularly when you’re open to trying Iceland’s street food, but this can be tricky.

We’d recommend cooking your own food where possible, particularly if you're visiting Iceland on a budget. Most accommodations you choose to stay at, especially apartments and Airbnbs, will come equipped with some kind of kitchen. They may be quite small, but you’ll always be able to cook something, so maybe stop by a grocery store and pick up some bits to cook instead of eating out. 

Road through Akureyri landscape in Iceland.

Travel in a group

Groups will normally always help to make things a little cheaper, so if you’re thinking about where you can stay cheap in Iceland, an Airbnb shared across a group could be a great way to keep the costs down. If the alternative is staying alone in a single room in a more expensive hotel, then travelling with friends or family can save money while also being more fun!

Being able to split the cost of things amongst everyone is a huge help in being able to keep the cost of things down, especially if you’re visiting Iceland on a budget - you may be able to take advantage of some group saving discounts on things like attractions, too!

Choose Free Activities 

If you want to save money, free attractions will always be a great place to start. Thankfully, Iceland is one place that is full of incredible landscapes and natural sights, which are all free to take in. 

There are so many free things to do in Iceland, from visiting the Skatafell National Park, seeing the geysers, wandering the black sandy beaches of Vik, to Jökulsárlón Lagoon, Seljalandsfoss Waterfall, Thórsmörk Valley and so much more. 

When we say the list is endless, it really is. Obviously, if you want more touristy or luxurious attractions such as the Blue Lagoon or guided tours, you’re going to have to pay more. But with the beauty that is so natural to Iceland, the free attractions really are worth seeing during your stay. 

Someone cooking in a small kitchen.

Book in Advance 

Make sure you take the time out to plan what you want to do and see before visiting Iceland, as we strongly suggest booking activities and attractions in advance. This will more than likely allow you to book most things at a slightly cheaper price than if you were to turn up on the day and pay entry or for a ticket. Planning can be a lifesaver!

Use a Rental Car

If you travelling in a group then we’d strongly recommend sharing the cost of a rental car - and not only because we’re extremely biased! Hiring a car really can help you out massively when it comes to cost. So if you’re thinking about how to get around Iceland for cheap, then splitting the cost across 3 or 4 people really will make an enormous difference to how much money you’ll be spending each day. 

Rental cars are always our suggested way of transport across Iceland because they offer you the flexibility to be able to stop as and when you wish to, giving you the freedom that group tours just don’t allow. Driving is always the best way for you to explore Iceland and we’ll always help you get the best deal for your rental car.

If you are interested in hiring a rental car and have any questions, please feel free to get in touch, we'd be more than happy to help talk you through anything.