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How Much Does A Vacation To Iceland Cost


Modified: December 28, 2023

by Carilyn Alcaraz



Welcome to Iceland, the land of glaciers, hot springs, volcanoes, and breathtaking natural beauty. Whether you’re a nature enthusiast, an adventure seeker, or simply looking for a unique and unforgettable travel experience, Iceland has something for everyone. As you plan your vacation to this Nordic island country, one important aspect to consider is the cost.


Iceland is known for being an expensive travel destination, but with careful planning and budgeting, you can still have an amazing trip without breaking the bank. This article will provide you with a comprehensive overview of the costs involved in a vacation to Iceland, including transportation, accommodations, food and drink, sightseeing and activities, shopping, and miscellaneous expenses.


While the actual cost of your trip will depend on various factors such as the time of year you visit, the duration of your stay, and your personal preferences, having a general understanding of the expenses involved will help you create a realistic budget.


So, let’s dive into the details and discover how much a vacation to Iceland might cost!


Transportation Costs

Getting to Iceland is the first step in your journey, and transportation costs can vary depending on where you’re coming from and the time of year. The two main options for reaching Iceland are by air or sea.


If you’re flying to Iceland, the biggest expense will likely be your airfare. The cost of flights can fluctuate greatly depending on the time of year, demand, and how far in advance you book. It’s advisable to use flight comparison websites to find the best deals and sign up for price alerts to stay informed about any potential discounts. Additionally, consider flying into Reykjavik’s Keflavik International Airport, as it is the main gateway and offers the most flight options.


Another transportation cost to consider is getting around within Iceland. One popular option is to rent a car, allowing you the freedom to explore the country at your own pace. Car rental prices can vary, so it’s recommended to compare several rental companies and book in advance. Keep in mind that during the winter months, a 4×4 vehicle may be necessary due to snowy and icy conditions.


If driving isn’t your preferred mode of transportation, fear not. Iceland has an extensive bus network that can take you to popular destinations and attractions. The prices for bus tickets will depend on the distance and the specific route you choose.


For those traveling on a tight budget, another option is to hitchhike. Hitchhiking in Iceland is relatively common and safe, with many travelers willing to give rides to fellow adventurers. However, be aware that this may not always be a reliable or predictable option, especially in remote areas.


To reduce transportation costs further, consider planning your itinerary strategically and grouping activities and sights that are in close proximity to each other. This way, you can minimize travel time and expenses.


Ultimately, the amount you spend on transportation in Iceland will depend on your chosen method of travel, the duration of your stay, and the distances you plan to cover. It’s essential to factor in these costs when budgeting for your trip.


Accommodation Costs

When it comes to accommodation in Iceland, there are a variety of options available to suit different budgets and preferences. However, it’s important to note that accommodation prices in Iceland tend to be on the higher side compared to other destinations.


One popular and relatively affordable option is staying in hostels. Hostels offer dormitory-style rooms where you can share with other travelers, providing a social atmosphere and a chance to meet like-minded individuals. Prices for hostel beds can vary depending on the location and facilities offered.


If you’re looking for a bit more privacy or traveling with a group, guesthouses or budget hotels might be a better fit. These types of accommodations typically offer private rooms with shared or en-suite bathrooms. Prices for guesthouses and budget hotels can range depending on the location and amenities provided.


For those seeking more comfort and luxury, Iceland offers a range of higher-end hotels and resorts. These accommodations provide well-appointed rooms, top-notch service, and additional amenities such as spas and fine dining restaurants. However, be prepared to pay a premium for these options.


If you’re on a tight budget or prefer a more unique and adventurous experience, you can consider camping in Iceland. The country has numerous campsites with facilities and stunning natural surroundings. Just make sure to check the camping rules and regulations beforehand, especially if you plan to camp in remote areas.


It’s worth noting that accommodation prices can vary throughout the year, with peak season (typically between June and August) being the most expensive. To save on accommodation costs, consider visiting during the shoulder season (May, September) when prices are generally lower, and there are still plenty of activities and attractions to enjoy.


Lastly, if you’re open to alternative accommodation options, you might consider renting a private apartment or a vacation home. This can be a cost-effective choice, especially if you’re traveling with a group or plan to stay for an extended period.


Remember to book your accommodation well in advance, especially during the peak season when availability can be limited. By considering the different types of accommodation and planning ahead, you can find the right option that suits your budget and preferences while enjoying a comfortable stay in Iceland.


Food and Drink Costs

Exploring the culinary scene in Iceland is a must during your trip, but it’s important to be aware that dining out can be quite pricey. However, there are options to suit different budgets.


Eating at restaurants in Iceland can be a memorable experience, with a focus on fresh, local ingredients. The cost of a meal at a mid-range restaurant typically starts at around 3500-5000 ISK per person. Higher-end restaurants can be significantly more expensive.


If you’re looking to save money on food, consider opting for budget-friendly alternatives such as food trucks, cafes, or bakeries. They often offer delicious and affordable options, including sandwiches, pastries, and Icelandic specialties such as hot dogs and seafood soup. Another economical option is to visit supermarkets and grocery stores to purchase ingredients for picnics or to cook your meals if you have access to kitchen facilities.


Icelandic cuisine is known for its seafood, lamb, and traditional dishes like fermented shark and Icelandic meat soup. Trying local delicacies can be a unique and adventurous experience, but keep in mind that specialty dishes may be pricier.


When it comes to drinks, alcohol prices can be particularly steep in Iceland. Whether you’re buying a beer at a bar or purchasing alcohol from a liquor store, expect higher prices compared to other countries. If you enjoy a drink or two but want to stick to a budget, consider purchasing alcohol at duty-free shops at the airport when you arrive in Iceland. Drinking tap water is safe and readily available, so there’s no need to spend money on bottled water during your stay.


Lastly, be mindful of tipping customs in Iceland. While tipping is not as prevalent as in some other countries, it’s still appreciated for exceptional service. It is common to round up the bill or add an additional 10% to show appreciation, but it is not obligatory.


By being conscious of your dining choices and exploring different options, you can still experience Icelandic cuisine without breaking the bank. It’s all about finding a balance between indulging in local flavors and being mindful of your budget.


Sightseeing and Activities Costs

One of the highlights of a vacation in Iceland is immersing yourself in its stunning natural beauty and engaging in various outdoor activities. From exploring waterfalls and geothermal hot springs to hiking glaciers and spotting the Northern Lights, there’s no shortage of exciting adventures to embark on. However, it’s essential to consider the costs associated with these experiences.


Entrance fees to popular attractions and national parks can vary. Many of Iceland’s natural wonders can be visited free of charge, such as waterfalls like Seljalandsfoss and Skógafoss. However, some attractions may require an entrance fee, such as the Blue Lagoon or certain private nature reserves. It’s best to research the specific attractions you plan to visit beforehand to understand if there are any associated costs and plan your budget accordingly.


If you’re interested in guided tours or activities, such as glacier hikes, whale watching, or snorkeling in Silfra, prices can vary depending on the duration and level of service. It’s advisable to compare prices and read reviews to ensure you’re choosing a reputable tour operator. Keep in mind that some activities may only be available during specific seasons, so plan accordingly.


Exploring the Icelandic countryside is a popular activity, and there are many designated hiking trails and camping sites to choose from. While hiking is generally free, it’s important to stay on marked paths and respect the environment. If you plan to camp overnight, there may be fees associated with using camping facilities or staying at designated campsites.


One activity that is often considered a must-do in Iceland is chasing the elusive Northern Lights. However, keep in mind that this natural phenomenon is unpredictable, and there’s no guarantee of spotting them. If you choose to go on a guided Northern Lights tour, prices can vary, and it’s advisable to book with a reputable company that offers a high chance of success or offers a rebooking option if the lights don’t show up on the scheduled tour.


Remember to allocate a portion of your budget for additional expenses such as transportation to and from the activity sites, equipment rentals if needed, and any necessary permits or passes for certain areas.


While sightseeing and activities can add up to your overall expenses, they are often the highlights of your trip and well worth the investment. By planning ahead, prioritizing your must-see attractions, and considering alternative options, you can strike a balance between experiencing the best of Iceland while staying within your budget.


Souvenirs and Shopping Costs

Bringing back a piece of Iceland as a memento of your trip is a wonderful way to cherish the memories. However, it’s important to consider the costs associated with souvenirs and shopping in Iceland.


Iceland offers a wide range of unique and locally made products that make for fantastic souvenirs. From traditional Icelandic wool sweaters (known as lopapeysa) to handcrafted ceramics, jewelry made from volcanic stones, and Icelandic skincare products, there’s something for everyone. It’s worth noting that these items can be on the pricier side due to their quality and craftsmanship.


Reykjavik, the capital city, is known for its boutique shops and galleries, where you can find one-of-a-kind pieces by local artists and designers. Exploring these shops can be a delightful experience, but be prepared for higher price tags. If you’re looking for more budget-friendly options, consider visiting local markets or craft fairs, where you may find unique handmade goods at more affordable prices.


When it comes to food, Icelandic specialties such as smoked salmon, Icelandic chocolates, or locally produced spirits and liquors can make for excellent edible souvenirs. Be sure to check customs regulations and restrictions on bringing certain food items back to your home country.


Another popular shopping experience in Iceland is browsing for Icelandic literature, including books of Icelandic sagas, contemporary novels, and poetry. If you’re a book lover, visiting a local bookstore can be a delightful way to immerse yourself in Icelandic literature.


While shopping for souvenirs can be an enjoyable part of your trip, it’s important to set a budget and prioritize the items that hold the most meaning for you. Consider the weight and size of the items you intend to purchase, both for practical travel purposes and potential baggage fees on your return journey.


Lastly, if you’re looking for more affordable options, consider purchasing smaller and locally made items such as postcards, magnets, or other small trinkets that can serve as reminders of your Icelandic adventure.


Remember, the true value of souvenirs is the sentimental value they hold. It’s not about the price tag but the significance they have to you personally. With thoughtful planning and a focus on meaningful keepsakes, you can strike a balance between enjoying the shopping experience and staying within your budget.


Miscellaneous Expenses

Aside from transportation, accommodation, food, sightseeing, and shopping, there are miscellaneous expenses to consider when planning your vacation to Iceland. These expenses can vary depending on your personal preferences and circumstances.


One significant miscellaneous expense is travel insurance. It’s highly recommended to have comprehensive travel insurance that covers medical expenses, trip cancellations or interruptions, and lost or stolen belongings. The cost of travel insurance will depend on factors such as your age, the duration of your trip, and the coverage you choose. It’s crucial to read the policy carefully to understand what is and isn’t covered.


Another potential miscellaneous expense is renting specific equipment for activities. For example, if you plan to go on a glacier hike or ice climbing, you may need to rent specialized gear such as crampons, ice axes, or helmets. The cost of renting equipment can vary depending on the duration of the rental and the specific gear required.


If you plan to use your mobile phone or stay connected while in Iceland, consider the cost of international roaming or purchasing a local SIM card. Check with your mobile provider to understand the charges and consider options for affordable international data and call packages.


Public restrooms in Iceland are not free, and there is usually a small fee to use them. It’s a good idea to have some loose change or small bills with you for these restroom fees.


It’s essential to factor in the cost of gratuities, as tipping is not mandatory but appreciated for exceptional service, especially in restaurants and for tour guides. Plan to allocate a portion of your budget for tipping, usually around 10% of the total bill.


Lastly, unexpected or emergency expenses can occur while traveling. It’s advisable to have some extra funds available for any unforeseen circumstances, such as lost belongings, flight delays or cancellations, or changes to your travel plans.


While miscellaneous expenses can add up, it’s important to account for them in your overall budget. Considering these costs beforehand will help you avoid any financial surprises and allow for a smoother and more enjoyable vacation experience in Iceland.


Tips for Saving Money

While Iceland can be an expensive travel destination, there are several tips and strategies you can utilize to help save money and make your vacation more budget-friendly. Consider the following tips:

  1. Travel during the shoulder seasons: Visiting Iceland in the offseason, such as May or September, can offer lower prices for accommodations, flights, and activities compared to the peak summer months.
  2. Book accommodations in advance: By booking your accommodations well in advance, you can often secure better deals and have a wider range of options to choose from.
  3. Prepare your own meals: Eating out every meal can quickly add up. Utilize the kitchen facilities if available in your accommodations or opt for budget-friendly food options such as sandwiches or shopping at supermarkets for picnic supplies.
  4. Shop at local markets: Instead of buying souvenirs from touristy shops, explore local markets and craft fairs for unique handmade items at more affordable prices.
  5. Make the most of free attractions: Iceland is filled with breathtaking natural wonders that can be enjoyed for free. Spend time exploring waterfalls, hiking trails, and beaches without paying entrance fees.
  6. Utilize public transportation: Consider using public transportation, such as buses, to get around instead of renting a car. This can save on fuel costs and car rental fees.
  7. Stay outside of Reykjavik: Accommodations in Reykjavik tend to be more expensive compared to rural areas. Consider staying outside of the city and renting a car to explore various parts of the country.
  8. Drink tap water: Iceland’s tap water is safe to drink and of excellent quality. Save money by refilling your water bottle instead of purchasing bottled water.
  9. Plan your activities strategically: Research and plan your itinerary to group activities and attractions that are in close proximity to each other. This can minimize travel time and expenses.
  10. Take advantage of discounts and deals: Look for special offers, discounts, or bundled packages for activities and attractions. Keep an eye out for promotions on websites and social media.

Remember, enjoying Iceland on a budget doesn’t mean missing out on incredible experiences. It’s about being mindful of your expenses, making smart choices, and prioritizing your must-do activities. With careful planning and these money-saving tips, you can have an amazing and memorable trip to Iceland without breaking the bank.



Planning a vacation to Iceland requires careful consideration of the costs involved. While Iceland has a reputation for being an expensive destination, with proper preparation and budgeting, you can still have an incredible experience without overspending.


Transportation costs will vary depending on your chosen method of travel, whether it’s by air or sea. Researching flight options and considering alternatives such as bus travel or hitchhiking can help save on transportation expenses. Similarly, choosing the right accommodation option for your budget, such as hostels or budget hotels, can significantly impact your overall expenses.


Food and drink costs in Iceland can be high, but exploring budget-friendly alternatives like local cafes, bakeries, or grocery stores can help you satisfy your taste buds without breaking the bank. Balancing dining out with self-catering options can also help reduce food expenses.


When it comes to sightseeing and activities, understanding entrance fees and comparing prices for guided tours or rentals can help you make informed decisions. Taking advantage of free attractions and planning your itinerary strategically can also save you money while still allowing you to experience the natural wonders of Iceland.


When shopping for souvenirs, considering affordable alternatives and prioritizing meaningful keepsakes can help you stay within your budget. Being mindful of miscellaneous expenses, such as travel insurance and equipment rentals, is important for avoiding unforeseen financial burdens.


Ultimately, by following money-saving tips, such as traveling during the shoulder season, utilizing public transportation, and taking advantage of discounts, you can make your dream vacation to Iceland more affordable. Remember that the true value of your trip lies in the experiences and memories you create, rather than the amount of money spent.


So, go forth and explore the breathtaking landscapes, immerse yourself in the unique culture, and create unforgettable moments in the land of fire and ice. With careful planning and budgeting, your Icelandic adventure can become a reality without breaking the bank.