Travel Iceland on a Budget

There are a few things that come cheap in Iceland so let’s start by easing in with those facts:

• Drink tap water—some cultures have embraced bottled water for their daily consumption, especially in Europe and North America. However, the tap water in Iceland is among the purest in the world (maybe the purest), so there is no need to worry about impurities or anything else that you might not like to find in your drinking water! Icelanders consume it daily. Because of this, everyone drinks tap water in Iceland. You can buy a reusable bottle and refill it before every trip. You might even be able to refill at glacial streams or rivers if it’s clear you are good to go!
  
  
• Use swimming pools—Swimming pools in Iceland cost from 1000 to 3000 ISK ( $7 to $21) for adults. All pools have showers, which is handy if you're staying in a tent or camper van.
  
  
• Visit waterfalls—Every waterfall in Iceland is free to visit. Take advantage of this and explore the top 20 most beautiful waterfalls in Iceland at no cost.
  
  
• Take the bus in Reykjavik—Buses are much cheaper than taxis. You can easily buy tickets on board the bus and check the schedule online. The ticket costs about 670 ISK ($4.75) for adults.
  
  
• Hitchhike—According to the Global Peace Index, Iceland is the safest country in the world, so even solo travelers use this method of getting around. Hitchhiking is also a great way to meet locals and get some useful tips.
  
  
• Buy alcohol the smart way—Alcohol is very expensive in Iceland. Expect to pay approximately 2000 ISK ($15) for a beer in a bar. it’s true that bars in Iceland vary in price, from the affordable to the…less so. But there are ways to stretch that beer money. For a start, Icelandic off-licenses (AKA liquor stores) sell alcohol much cheaper than pubs and restaurants do. You can also buy alcohol duty-free, either upon departure or arrival. (If possible, go for the latter – Icelandic beer is world-class.)

• Eat casual—There are ways to enjoy Icelandic dishes without breaking the bank. Street and fast food are great choices. Icelanders love their hot dogs, and if you’re in a city, you’re never too far from one! Sandwiches are also quite plentiful but not quite as cheap. You can find many affordable places to eat in Reykjavik if you know where to look for them.
  
  
• Go on a hike—Hiking in Iceland is free. Most trails around Reykjavík are well-marked and easy to reach. You can take the city bus to the roots of Mt. Esja or Mt. Úlfarsfell and have the best outdoor adventure.
  
  
• Share the cost—Whether you’re traveling solo or with a group, you may want to consider sharing some of the costs. A great example is car rental. It’s significantly cheaper to share a vehicle with friends or fellow travelers heading in the same direction than to rent one on your own.
  
  Many of our tours are either self-driving or begin at a site that you can access yourself. The financial difference between one person renting a jeep and four of you doing it is, as you might imagine, substantial.
  
  
• Hit the flea market—It can be a good idea to check out the Flea Market in Reykjavik called Kolaportid. These are where you can pick up bargains, often ones that you won’t find anywhere else. The Kolaportid Flea Market in Reykjavik offers all kinds of items at affordable prices.
  
  
• Make the most of our deals—Browse through our 2025/2026 special offers and deals to save as much as possible while exploring all there is to see in Iceland.

Most Bónus stores have the following opening hours:

Monday - Sunday: 10:00 AM - 8:00 PM

The opening hours differ according to the region. The earliest the store opens is 10:00 AM, with closing times ranging from 6:00 PM to 9:00 PM.

Website: https://bonus.is/

It’s super fun to visit a grocery store when you travel to a new country. The only thing is that with a new language and new things on the shelves, you don’t always know what to get, let alone if you are trying to keep your budget. Try these affordable snacks, available in most shops, perfect for bringing along on your road trips.

Skyr—A traditional Icelandic yogurt, which usually comes in containers with spoons. It’s perfect for keeping in the car if the temperature outside is not too warm.

Sómi or Júmbó sandwiches—Grab-and-go sandwiches with vegetables, meat, or tuna, perfect for a quick, filling snack. This family-owned company has been making sandwiches since 1978.

Kókómjólk—An Icelandic chocolate milk beverage—every local’s favorite.

Hleðsla—A protein milkshake that comes in different flavors—great option after a hike.

Flatkaka með hangikjöti—A sandwich made with flat-baked bread and hangikjöt (smoked lamb). To prepare it, layer some hangikjöt on a slice of buttered bread, then top it with another slice.

Kleinur (Klenät)—Traditional Icelandic twisted doughnuts fried to perfection and dusted with a light coating of icing sugar.

Harðfiskur—A dried fish. This is another Icelandic delicacy, best served with a lot of butter. But be aware, this smells. Like a lot! While some people don’t like the smell, others find it delicious.

And for those who have a sweet tooth check out The Ultimate Guide to Icelandic Candy.

The cheapest gas in Iceland is at Costco gas stations. If you have a membership, load up before leaving Reykjavík. 

The second cheapest option is the self-service station. The golden rule for buying gasoline for the best price around Iceland is going to the gas stations that don’t have any other service, no shop, no employees, or anything.

This usually means:

Hotels are usually expensive especially in summer so if you are looking to save a little money with accommodation these are your options:

Airbnb—This is a popular choice, and they are available everywhere! Just try booking with notice.

Couchsurf—If staying at a local’s house and meeting new people seems like a great idea, this hospitality exchange service like Couchsurf is the ultimate cheap option.If you are okay with sleeping on a random person’s coach do! This is the ultimate cheap option.

Home Exchange—This economical way of travel is becoming very popular among Icelandic people. You can swap houses with another family and arrange your stay depending on what works best for you.  My sister does it all the time and loves it but again with this option, you need to start planning with a good notice.

Camper vans—A great idea when visiting Iceland in summer. You get 2 for 1—a car and accommodation. Just be careful to park where it’s allowed!

Camping—Iceland has a wonderful camping culture, and if you do it right, it can slash accommodation costs.

This is something to consider even if you’ve never camped before: Icelandic campsites are among the best you will ever encounter, and many of them have excellent facilities (bathrooms, showers, kitchens, and sometimes even stores). Thanks to some glorious nature (possibly the reason you’re considering visiting in the first place), camping is hugely popular among locals and visitors alike. Discover the best camping opportunities and enjoy a cheap stay in nature!

Hostels—Instead of a fancy hotel, consider one of the country’s many hostels. These accommodations range from quite rustic to surprisingly comfortable and luxurious. These characterful spots tend to reflect their owners’ charming tastes and oddities—from 70s-style décor to quirky uses of space.

Hostels also tend to have good kitchens for cooking and eating your own meals, which is beneficial for those who want to avoid eating out and keep costs down.

HI Iceland is a non-profit organization with a chain of hostels throughout the country. It’s worth registering as a member, as there is great value to be found here.

If you’d like to treat yourself to a hotel stay, Arctic Adventures offers a variety of options at various prices.

Traveling on a budget in Iceland is all about finding the right tour for you. Many guided day trips cover must-see attractions and exciting activities at a relatively low cost. Visit the legendary Golden Circle, go on a whale-watching adventure, or explore the colorful lava caves—all for under 15,000 ISK ($106.50).

Explore three wonders of Iceland: Thingvellir National Park, the Great Geysir, and Gullfoss Falls. This day tour from Reykjavik includes pick-up, drop-off, and visits to additional attractions such as Kerið crater and the town of Hveragerði.

The royalty of the sea. There are few things in this world as breathtaking as seeing a whale in its natural habitat—an experience you will never forget. Join a boat tour from Reykjavik, Dalvik, Olafsvik or Akureyri.

Explore the magic of the lava chambers. If you thought Iceland was beautiful above ground, try going under. Here, you will get to experience the charm of Iceland's volcanic activity. This half-day tour is one of the most budget-friendly tours in Iceland.

Iceland is one of the most popular destinations for wellness travel, which doesn’t have to be expensive. Various geothermal spas and wellness centers provide all kinds of rejuvenating procedures with mineral-filled spring water from the springs.

Learn everything about the vibrant capital of Iceland. An affordable Reykjavik bus tour takes you to famous sites like Hallgrímskirkja Church and the hidden gems of beloved Iceland’s biggest city.

Oh, the magic of riding an Icelandic horse. There is a reason Icelanders are so fond of these animals. The Icelandic horse has the fifth gate that no other horse breed has, it’s called tölt, and it’s the softest out there. They are also known to be friendly, passionat,e and have big personalities. You just must try riding one!

Perfect for first-time visitors, a volcano hike on Reykjanes Peninsula is like a walk on the Moon. This affordable and engaging activity reveals the beauty of Icelandic lava fields and volcanically active areas.

This is a great way to explore Icelandic ice wonders like the Sólheimajökull glacier in the south. The most affordable glacier hike is in Skaftafell, about 5 hours drive from Reykjavik. It’s a nature reserve and, for many Icelanders, the most beautiful place in Iceland. Here, you will find Vantajökull the biggest glacier in Europe, and its outlet glacier called Falljökull.