Is Iceland Expensive to Visit?

Thinking of taking a trip to Iceland but concerned about the cost? You're in the right place. Here, we address that all-important question — is Iceland expensive to visit? — and share cash-saving tips to help you enjoy this extraordinary island to the fullest without blowing your budget. 

Is Iceland expensive to visit??

In a word: yes. Traveling to Iceland can be relatively expensive due to the high cost of living and prices of imported goods. Tourists often face high prices for accommodation, food, transportation and entertainment.

That said, a trip to Iceland doesn’t have to drain your wallet. With proper planning, you can enjoy everything this incredible country has to offer without spending too much money.

The average daily budget for a traveler in Iceland is about $300. This covers essential expenses such as accommodation, food, transportation and entertainment. Among other things, keep in mind that costs may increase if you opt for luxury accommodations or more expensive activities such as whale watching or diving.

Costs of accommodations

A big chunk of your travel budget will likely go toward where you stay in Iceland, so of course choosing accommodation should be approached wisely.

The golden rule of any trip - try to book accommodation in advance, especially during the peak summer months when demand drives up prices. Most accommodations in Iceland are charged per room rather than per person, so traveling in a group can help keep costs down.

If you're staying in remote areas, remember about additional transportation costs such as buses or cabs. And if you're planning a trip in the summer, research the best places to visit during this season to maximize your experience.

Generally, you can choose from one of the following options:

• Hostels: A budget-friendly option, costing around $16–$50 per night. These communal spaces are ideal for meeting other travelers but come with shared facilities.
• Hotels: If you prefer privacy and comfort, expect to pay $80–$200 per night, depending on location and rating. Reykjavik tends to have higher prices than smaller towns.
• Airbnbs: A middle-ground option offering private rooms or entire homes. Prices typically range between $50 and $80 per night, varying by location and amenities.
• Unique accommodation options: there are many unusual options in Iceland, such as staying on a farm or in lodges that allow you to experience the local attractions, often at a higher price.

Cost of food

Iceland’s remote location means food prices are higher due to the costs of importation.
For budget-conscious travelers, self-catering is the way to go. Supermarkets offer much cheaper options than dining out. For instance, a small jar of peanut butter costs around $3.49, while a hotel breakfast can range from $9 to $16.

If you plan to eat out, dinner will typically set you back $25–$40 per person. Prices can vary depending on the restaurant and location, with Reykjavik generally being more expensive.

Airfare and getting there

Airfare is a significant part of your Iceland budget, with prices varying based on your location, when you book, and when you fly.

On average, airfare ranges from $300–$565. Travelers flying through airline hubs or booking with stopovers may snag better deals. For example, some travelers from the US have found cheaper fares by booking flights to Paris or Amsterdam with a two-week stopover in Iceland rather than flying directly. 

Keep in mind that airfares can change depending on the season, day of the week and booking in advance. Research the information carefully and book your tickets in advance to get the best price.

Rough Guides tip: Learn about the best ways to get to Iceland.

Cost of transport: rental cars, taxis, and buses

Choosing the right mode of transport in Iceland can significantly impact your travel costs.

• Car rental: Renting a car allows you to travel at your own pace. Costs start at around $50 per day for a small car, but prices vary depending on the type of vehicle and the season. Also factor in additional costs such as insurance and fuel.
• Taxis: Taxis are common but also expensive. Fares start at 695 ISK (about $5), and most trips around Reykjavík cost between 2,000 ISK ($14) and 5,000 ISK ($35). Note that Uber does not operate in Iceland.
• Public transport: Reykjavík is small enough to explore on foot, but it is possible to get around by bus. For airport transfers, bus 55 costs 2,280 ISK ($16) each way. Consider using KLAPP tickets, which can be purchased via an app, for added convenience.
• Guided tours: If you’re not renting a car, booking guided tours is a good way to reach Iceland’s remote and rugged beauty spots.

Feel free to reach out to our local experts for personalized itineraries and tips!

Entrance fees and attractions

Iceland is filled with unforgettable sights, some free and others with admission fees. Here’s what to expect:

• Hallgrímskirkja Church: Entry to this architectural gem in Reykjavik is free, but access to the tower for panoramic city views costs 1,000 ISK (around $7).
• Perlan: Admission to the exhibitions, planetarium and observation deck costs 2,900 ISK (about $20), with discounts for children.
• Blue Lagoon Spa: This famous geothermal spa is a must-visit. Prices start at 6,100 ISK (approx. $44), excluding transportation.
• Skógar Museum: Featuring traditional Icelandic turf houses, admission is 2,000 ISK (around $15), while kids under 12 go free.
• The Golden Circle: If you self-drive, you can explore Tingvellir National Park, Geysir Geothermal Zone and Gullfoss Waterfall without spending a dime.

What does it cost to see the Northern Lights?

Witnessing the Northern Lights, or Aurora Borealis, in Iceland can come with varying costs.

• Free viewing: If you have rented a car and it is convenient for you to go to remote areas, you can observe the northern lights for free. This depends on weather conditions and solar activity.
• Guided tours: Organized tours to see the northern lights usually cost between $50 and $100 per person. These tours often include hotel pick-up, transportation, and a guide who’ll explain the phenomenon and help you spot it.
• Luxury experiences: For something more exclusive, options like dinner in a remote setting, overnight camping, or staying in a glass igloo can range from $150–$500 per person.

Keep in mind that seeing the northern lights is not guaranteed. However, many tour operators offer the option of rebooking for another night if the aurora borealis does not appear, which adds to the thrill of the trip.

Incredible activities that cost nothing

Some of Iceland's most awe-inspiring experiences cost nothing. Here are a few examples:

• Admire nature: Many of Iceland's natural wonders are free to visit. See attractions such as Thingvellir National Park, Skougafoss and Seljalandsfoss waterfalls, and the Geysir geothermal area without spending a dime.
• Hiking: Explore Iceland’s breathtaking landscapes on foot. Trails like the Laugavegur offer an unforgettable way to experience the country’s raw beauty.
• Northern Lights: With the right timing and location, you can witness this magical phenomenon for free.

While many of Iceland’s experiences are budget-friendly, some community pools charge a small fee. These facilities often include hot tubs or slides, making for an affordable and relaxing soak.

Average cost per day for traveling in Iceland

• Backpackers: On a tight budget, you can get by with $65–$90 per day by staying in dorms, eating locally, and using public transport. This works best if you avoid unnecessary splurges.
• Comfort seekers: If you prefer private rooms, enjoy socializing, and want to join a few tours, plan for $100–$150 per day.
• Mid-range travelers: Staying in tourist-oriented accommodations and enjoying a balance of comfort and exploration will cost around $185–$250 per day.
• Luxury travelers: For a more indulgent trip, expect to spend $370–$620 per day, depending on your preferences and activities.

The most budget-friendly time to visit Iceland

Iceland’s high season runs from June to August, when most tourists flock to the country. Prices for accommodation and excursions are highest during this time.

If you want a more affordable option, visit the country during the shoulder season (May to September). You'll avoid the crowds of tourists during peak season, enjoy milder weather, and get slightly lower prices.

If low temperatures don't deter you, winter is the most budget-friendly time to visit. Accommodation costs are lower and the snow-covered landscapes, frozen waterfalls and northern lights all offer sides unique to this time of year.

The average cost for organized travel in Iceland

Iceland's stunning landscapes and unique experiences are often best explored through organized tour operators. It's a win-win for families, those traveling to Iceland for the first time and not sure where to start, and those looking for a hassle-free adventure.

Customized travel is another step forward, allowing you to create a personalized trip based on your interests and requirements. For example, your Iceland itinerary might include highlights like the Golden Circle’s breathtaking waterfalls and the mesmerizing fjords.

Organized tours typically cost $80–$150 per person per day, with prices increasing for more exclusive or complex itineraries. These tours offer several benefits, including local expertise, the convenience of pre-arranged bookings, and a completely personalized experience — well worth the investment.

Cost of traveling independently in Iceland

Independent travel is all about flexibility and the freedom to explore Iceland at your own pace. Without a pre-determined itinerary, you can spend more time on the sights you like and quickly abandon those that don't thrill you.

Your overall costs will depend on the choices you make. For instance, renting a car, staying in hostels, and cooking your own meals can help you save significantly. However, independent travel does require careful planning.

You’ll need to:

• Calculate transportation costs, including car rentals, fuel, or public transport.
• Research and budget for accommodation at each stop.
• Set aside funds for activities and excursions you want to experience in different areas.

While traveling independently might be more affordable than organized tours, unexpected expenses can still arise, no matter how thoroughly you’ve planned.

Travel smarter: Iceland on a budget

How to save money on flights and accommodations

Want to save money when traveling to Iceland? Here are some tips to help you cut costs:

• Book early: Lock in flights, accommodation, and tours as far in advance as possible. Many companies offer early-bird discounts.
• Travel off-peak: Visit during the shoulder seasons (May and September) or winter for lower rates on flights and accommodations. Keep in mind that some activities may be weather-dependent.
• Compare prices: Use price comparison sites to ensure you’re getting the best deal on flights and places to stay.
• Use flight rewards: If you’re part of a rewards program, redeem points to offset travel costs.
• Stay in guesthouses or hostels: These are often more affordable than hotels and still offer a cozy experience.
• Stay outside the city: Accommodation further from Reykjavik is usually cheaper. Just be prepared to budget for transportation costs.
• Read reviews: Cheaper doesn’t always mean better — check reviews from other travelers to ensure a good experience.

Money-saving tips for dining in Iceland

Use these tips to enjoy Icelandic cuisine without stretching your budget:

• Shop for groceries: Save a significant portion of your budget by cooking your meals. Supermarkets like Bónus and Krónan offer a good selection of affordable products.
• Eat local: Try affordable local favorites like skyr (Icelandic yogurt), pulsar (hot dogs), and lamb soup for an authentic taste of Iceland.
• Take out: Skip sit-down dining by grabbing take-away items from bakeries or supermarkets. It’s a budget-friendly way to enjoy a meal.
• Carry snacks: Bring your own snacks and a refillable water bottle while sightseeing to avoid splurging on pricey snacks.
• Happy hours: Take advantage of discounted drinks during happy hour at local bars.
• Set menus and lunch specials: Many restaurants offer reduced-price lunch specials or set menus, letting you sample local dishes without breaking the bank.

Save on activity costs without missing out on fun

Saving money doesn’t mean you have to miss out on the best of Iceland. Here's how to optimize your adventure without overpaying:

• Free activities: Take advantage of the countless free activities in Iceland. Many natural wonders don't require an entrance fee.
• Get a city card: If you're staying in Reykjavik, consider a city card. It provides free access to museums, swimming pools and public transportation.
• Take your pick: Guided tours can be expensive, but they offer convenience and experience. Favor them when visiting places like glaciers, caves, whale watching and diving. For less challenging experiences, opt for self-guided tours if it's safe and practical.
• Book early: Many excursions and activities offer discounts for booking months in advance, so plan ahead to save money.

Make smarter transport choices

Getting around Iceland can be part of the adventure, and choosing economical transport options can help stretch your budget.

• Bus passports: Iceland offers various bus passports for unrestricted travel within certain areas. This is an economical option if you plan to stay for a while.
• Carpooling: Use apps like Carpool Iceland or hitchhiking sites to find ride-sharing and cost-sharing opportunities.
• Rental cars: Renting a small car is a convenient way to cover a lot of ground. To save on gas (which can be expensive), plan your route carefully and avoid unnecessary detours.
• Walking and biking: In cities, walking or renting a bike is an affordable and eco-friendly way to explore.
• Public transport: Reykjavik’s public transport network is reliable and budget-friendly for getting around the city.

By making informed transport choices, planning, and booking early, you can enjoy unforgettable experiences in Iceland without overspending.

Summing up: Enjoy Iceland without spending a fortune

Despite Iceland's reputation as an expensive country, it is quite possible to have an unforgettable experience here without going broke.

In short, saving money in Iceland is not only about making an informed choice, but also about planning and booking well in advance. By following our tips, you will make your trip to Iceland even more unforgettable without spending too much money.