The Average Iceland Trip Cost: How to Travel on a Budget

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Is Iceland Expensive to Visit?

There’s no question that Iceland is a stunning destination, but it’s also known for being one of the most expensive countries to visit – the fifth most expensive country in the world, to be precise. So, is it worth the high price tag? Absolutely, but it’s important to understand why Iceland can be so expensive.

One of the main factors contributing to Iceland’s high costs is its remote location. Being situated in the North Atlantic Ocean, Iceland heavily relies on imports, which can drive up the prices of goods and services. Furthermore, Iceland’s small population and limited infrastructure mean that operating costs are higher, adding to the overall expense.

Another factor is the surge in international tourism that Iceland has experienced in recent years. With the increasing number of people looking to explore its unique landscapes and attractions, the demand for everything from accommodations to tours has increased.

However, with some careful planning and budgeting, you can significantly lower your Iceland trip cost. For instance, you could consider renting a campervan instead of paying for hotels at every location you visit. There are plenty of ways to make your Icelandic adventure more budget-friendly without sacrificing the experience.

Airfare Prices

The first thing to keep in mind when budgeting your trip to Iceland? Cost of airfare. Your airfare fees will depend entirely on where you’re coming from. For example, how much does it cost to go to Iceland if you are already in Europe? If you’re flying out of countries like France, Germany, and Spain, you can expect to pay anywhere from $100 to $700 for a round-trip ticket. It depends on the season and the country of origin.

On the other hand, our North American cousins can expect to pay anywhere from $700–$1,000+ for a round-trip ticket.

You can occasionally find some fantastic deals on airfare, though!

Accommodation Costs

How expensive is Iceland’s accommodation? Again, the answer depends. Accommodation costs will depend on the type of lodging you choose, the location, and the time of year you visit. Taking seasonality out of the equation, let’s take a look at the average accommodation prices.

We estimate that the average accommodation cost ranges from between $55-$150 per night in shoulder season and $60-$300 per naight in high season.

This assumes you’re staying in hostels or splitting a private room as a couple in a basic hotel or guesthouse.

For travelers who prefer hotels or more upmarket accommodation, expect to pay anywhere from $200-$600+ a night.

Luckily, you have a more affordable (and more fun) option. If you decide to rent a camper van, your accommodation costs can decrease significantly. A fully-equipped camper, which you can use to visit some of the most beautiful and remote places in the country, can cost you as little as $80 per night! This option not only provides a place to sleep but also gives you the freedom to explore Iceland at your own pace, without the constraints of hotel bookings or fixed itineraries.

Renting a camper van in Iceland is not just a cost-effective accommodation choice — it’s also an adventure in itself. With the flexibility to travel wherever the road takes you, you can wake up to breathtaking views, whether it’s alongside a serene fjord, beneath towering mountains, or overlooking a rugged coastline.

Plus, many campervan rental companies offer 4×4 SUVs and campers equipped with essential amenities such as a bed, cooking facilities, and even heating systems, so you can have a comfortable experience no matter the weather.

Transportation Cost

Sadly, public transportation is severely lacking in Iceland. Most tourists choose to rent a car and drive around the island. Basic insurance and a standard car will cost $40-$50 per day per person. You can reduce the cost of visiting Iceland by taking advantage of big discounts during the shoulder season.

You also need to take into account fuel costs.

As of early 2024, average prices in Iceland hovered around $2.28 per liter.

Car Rental vs. Guided Tour Costs

Guided tours are typically cheaper than renting a car. Bus tours are advertised everywhere in Reykjavik, and this competition drives prices down. Tours can be 20%-50% cheaper than the daily costs of renting a car. However, to reduce the cost to travel to Iceland, you will sacrifice a level of freedom.

Alternatively, why not get the best of both worlds by renting a camper van instead?

Many budget travelers choose to rent camper vans so they can cut out their accommodation costs. Camper vans are not that much more expensive than cars, and there are plenty of places to pitch up for the night.

Food Expenses

A big part of your Iceland trip cost will come from food. It should not surprise you that food is expensive here. Everything is imported, which drives up costs, and these costs are passed on to you.

The best piece of advice is to cook your own meals. Groceries are significantly cheaper than restaurant meals. In Reykjavik, they’re up to 20% cheaper than they are in the rest of the country.

Eating out may be desirable, but prepare to pay $25-30 per person per meal in a budget restaurant.

Your Iceland trip cost will be heavily impacted based on where you choose to eat.

Day Tours/Activities

Thankfully, the majority of Iceland’s natural attractions are completely free of charge to enter. Budget travelers don’t need to pay for any extra activities to make the most of their Icelandic adventure.

The cost of day tours depends on the provider, where you are going, and what you want to do. Competition in this business is fierce.

Expect to pay anywhere from $20-$50 per day per trip, on average.

How Much Does a Trip to Iceland Cost?

If you’re planning a trip to Iceland, the first thing you need to do is familiarize yourself with Icelandic currency. The official currency of Iceland is the Icelandic króna (ISK), which is used for most transactions in the country. However, credit and debit cards are widely accepted, especially in urban areas like Reykjavik and popular tourist destinations. That being said, it’s still a good idea to carry some cash with you for smaller purchases or in more remote areas where card acceptance may be limited.

When exchanging currency, it’s important to be mindful of exchange rates and fees. Rates can vary depending on where you exchange your money, with airports and tourist areas often offering more expensive rates. To save money, it’s often best to withdraw cash from ATMs or use credit cards for purchases since they usually offer more competitive exchange rates.

Now, let’s talk about how much money you’ll actually need to cover your vacation to Iceland:

The following numbers are based on two people traveling on a budget, cooking their own meals, avoiding expensive hotels, and not taking into account guided tours. Airfare costs are also not included.

Accommodation – $88-$155 per night

Transport (rental car)– $65-$120 per day.

Transport (campervan rental) – $80-$300 per day.

Groceries – $15-$35 per day.

Activities – $0-$30 per day.

An Iceland trip can be done cheaper if you choose to camp, hitchhike, or even couchsurf, but most travelers should expect to spend at least $150 per day during shoulder season or up to $300 or more a day during peak season.

How Much is a Trip to Iceland for a Week?

A week in Iceland is the ideal amount of time to explore this breathtaking country and take in all the sights. Of course, if you have more time and money to spare, two to three weeks in Iceland will allow you to drive the entire Ring Road, which is the main road that circles around the perimeter of the island.

To give you an idea of the cost of a week-long trip for two people, here’s a breakdown of some of the expenses you can expect:

Accommodation costs in Iceland, as we mentioned above, can vary depending on your preferences. If you’re on a budget, hostels or camping can be great options, with prices starting at around $55 per night. Mid-range hotels range from $100 to $200 per night, while luxury hotels can cost upwards of $300 or more per night.

Renting a car or campervan will give you the flexibility to explore the country on your own, without the need for a guided tour. Car rentals start at around $65 to $100 per day, while campervan rentals range from $80 to $200 per day, depending on the size and amenities of the vehicle.

When it comes to food, dining out at local restaurants can be expensive in Iceland, but you can save money by cooking your own meals with a budget of $10 to $20 per day for groceries. Entrance fees to attractions vary, but most are relatively affordable or even free. Some may range from $10 to $30 per person. And don’t forget to consider travel insurance, which is essential for any trip and typically costs around 5% to 10% of your total trip cost.

Tips for Traveling to Iceland on a Budget

Here are some additional tips to keep your Iceland trip cost down:

Travel during the shoulder seasons.
Skip the expensive tourist attractions such as the Blue Lagoon, which can cost upwards of $450 for a few hours’ visit.
Look for flight deals in advance. Being flexible on dates can also help you find cheaper flight prices.
Travel Iceland in a camper van instead of paying for accommodation.
Cook your own meals.
Choose group tours instead of private guides.
Stay in hostels or guesthouses instead of splurging on hotel rooms.
Purchase the Reykjavik City Card. This pass grants you free entry to many museums and attractions, as well as unlimited use of public transport.
Take advantage of free walking tours.
Bring your own reusable water bottle to save money on bottled water.
Stock up on snacks like granola bars, nuts, and fruit before hitting the road.
Accommodations in Reykjavik tend to be more expensive than those in smaller towns and rural areas. Consider staying outside of the capital city to save on lodging costs.
Many cafes, restaurants, and accommodations offer free Wi-Fi to customers. Take advantage of these hotspots to stay connected without racking up data charges on your mobile phone plan.
Alcohol can be expensive in Iceland, especially when dining out. Consider limiting your alcohol consumption or purchasing drinks from duty-free shops at the airport upon arrival to save even more money.

Explore Iceland with Rent.is

We understand how difficult it can be to keep your Iceland trip cost down. But doesn’t mean you can’t find ways to travel the Land of Fire and Ice on a budget.

Our top recommendation is to consider renting an Iceland camper van for your journey Just choose a camper and travel from place to place. Explore at your own pace and sample the sights of which you’ve dreamed. to explore at your own pace and save big money on food and accommodation.

Here at Rent.is, we’re committed to making your Icelandic adventure as enjoyable and affordable as possible. We take pride in offering a range of campervan options that cater to all budgets, preferences, and group sizes. Our campervans come equipped with all the necessary amenities to ensure a comfortable and memorable journey, including sleeping facilities, cooking amenities, heating, and camping essentials.

So, whether you’re chasing waterfalls, soaking up the hot springs, or hiking up a glacier, we’re here to help you make the most of your Iceland road trip.