How to Visit Iceland Without Spending a Fortune
2025-04-05 · 7 min read
Iceland has a reputation as one of the most expensive travel destinations in the world, and it's not entirely unearned — a casual restaurant lunch in Reykjavik can easily run 30 to 40 dollars per person. But smart planning can cut costs dramatically without sacrificing the experience that makes Iceland worth visiting in the first place.
Rent a campervan instead of booking hotels. Companies like CampEasy and Happy Campers rent fully equipped vans starting around 100 to 150 dollars per night in shoulder season, which covers both your accommodation and transportation. Iceland's network of affordable campsites — typically 15 to 20 dollars per night — includes locations adjacent to major attractions along the Ring Road.
Cook your own meals using groceries from Bónus, the budget supermarket chain identifiable by its pink pig logo. Icelandic lamb, skyr, bread, and fresh fish are all affordable at grocery stores. Every campsite and most guesthouses have kitchen facilities. Save restaurant meals for a single splurge — try Grillid in Reykjavik for a memorable dinner or the lobster soup at Saegreifinn by the old harbor.
Skip the Blue Lagoon's premium pricing — entry fees start at roughly 75 dollars — and visit one of Iceland's many free or cheap natural hot springs instead. Seljavallalaug is a hidden pool in the southern highlands accessible via a short hike. Reykjadalur in Hveragerdi features a hot river in a geothermal valley. Myvatn Nature Baths in the north offers a Blue Lagoon-like experience for about half the price.
Fly in the shoulder season — May, early June, or September — when flights and vehicle rentals drop significantly from peak summer pricing. Icelandair and PLAY airlines compete on transatlantic routes, and WOW air's collapse has kept fares competitive. Book flights from secondary US hubs like Baltimore or Minneapolis where Icelandair offers direct service at lower fares than from JFK or Boston.
The Golden Circle — Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall — is completely free to visit. Most of Iceland's natural attractions charge nothing for access. Your biggest expenses are fuel, food, and accommodation, all of which the campervan strategy minimizes. A full week in Iceland can be done for under 1,500 dollars per person with this approach.
