There’s no getting around it, traveling to Iceland is not cheap. In fact, none of the countries in the North Atlantic/Scandinavia region are. Which is a shame, because my cheap-ass dearly loves them. That being said, I spent a week in Iceland right before Christmas 2019 without breaking the bank. Here’s how you can to.
1. Cheap(ish) Lodging
Like just about every other country out there, hostels are the cheapest option for lodging (not withstanding WWOOFing and Workaway, but that’ s a whole other deal). However, hostels will still run you upwards of $50 a night, particularly in Reykjavik.
Iceland also has an abundance of campgrounds to stay in. Do not, DO NOT, camp outside of these campgrounds. This isn’t Alaska, and it sure isn’t Scotland. You cannot just camp anywhere. Iceland has had a massive influx of tourists in the past decade, and they’re doing their damndest to protect their natural wonders (and the sanity of their residents) from visitors. Do not camp unless in a campground. Not sure where they are? Check out this awesome site, with all you could possibly want to know about camping in Iceland.
2. What About a Van?
Iceland seems to be the go-to for van vacations. And when I was first looking into visiting, renting a van seemed like the obvious choice for me given that I, well, live in a van. However, van rentals are not cheap in Iceland. Combined with paying campground fees every night ($20-$30), I was just about going to break even if I got a rental car and paid for hostels. Given the greater comfort of an actual roof over my head, I went with that option.
That being said, I’m a little jaded since I’ve spent the past three years living in a vehicle. If you’ve never traveled by van, Iceland could be a great place to do it for the first time. There’s plenty of infrastructure to support it, and the drives are beautiful.
3. I Hope You Drive Manuals and Like 2WD
Seriously, get a manual car. It will save you so much money. If you don’t know how to drive one, pretty dang easy to learn, especially the newer models most rental agencies have. I hadn’t driven a manual in years, and spent most of the first day stalling my way around Reykjavik. Embarrassing? Yes. Worth saving $150? Hell yes.
I agonized over whether to get 4WD or not before my trip. I ended up going with a 4WD SUV, namely because I wasn’t sure of my itinerary and didn’t know what kind of roads I’d be on. Also, I was traveling alone, and shoveling and pushing a stuck car by yourself is its own special hell. While it was appreciated on some of the back roads, which hadn’t seen a plow or salt all winter, it was overkill on the west and south parts of the Ring Road I was on. If you’re going in winter, and plan on sticking to main roads, 4WD may not be necessary if you’re a confident, safe, winter driver. However, if you plan on haring off on some questionable roads, or don’t have experience driving in winter conditions, get 4WD. And keep in mind that if you’re hoping to head into the highlands (only in the summer), you will need a rental car that’s cleared for “F Roads”. They are, naturally, more expensive.
Lastly, it pays to shop around. There are an abundance of rental agencies serving the Reykjavik airport; do your research to get the cheapest price. I used Lava Cars on my trip and they were not only the cheapest, but the customer service was also incredible. Picked me up at the airport, brought me to their beautiful office (with free WiFi!), and had me driving out the parking lot in ten minutes. They even threw in a Garmin GPS for free, and all of their cars have studded snow tires in the winter.
3. Skip the Tours
You don’t need them (mostly). Unless you want to snorkel between the tectonic plates, glacier walk, or get out on a boat. The tours in Iceland (in my opinion) were vastly overpriced, and often unnecessary. There is SO MUCH to see on the island that you don’t need to hire a guide for. There are hikes to take, caves to explore, beaches to roam, and roads to ramble down… all of which can be done on your own. Do some research, break out some maps, and get off the beaten path. If you’re keen to see the Northern Lights, check out the forecast and head out of town.
My very favorite days in Iceland came from wandering down trails alone, no guide needed. Stay open, stay adventurous, and you don’t know what might fall into your lap.
4. Skip the Iconic Icelandic Sweater
Seriously. Don’t buy in to it. Besides the fact that they are outrageously expensive, what are the chances that you will actually wear it once bringing it home? A better option is to buy some Icelandic yarn (easily found throughout Reykjavik for fair prices), and teach yourself to knit something you’ll actually wear. I bought several balls of beautiful brown and gray wool yarn, and have spent several pleasant (albeit also frustrating) evenings learning how to make scarfs and headbands. I’ll value those items far more than I would a questionably fashionable, itchy sweater.
If you simply must have an Icelandic sweater, do your research. There is also some dispute over where the iconic sweaters are actually made.. if you’re hoping to score a hand-knit-in-Iceland-sweater, good luck. Many of them are made abroad. Your best bet is buying directly from the Handknitting Association of Iceland in Reykjavik (psst, they also have yarn).
4. Don’t Eat Out
Plates in Reykjavik will run you at least $20, even for a casual lunch. Groceries on the other hand, are only moderately more expensive than they are in the States. I hope you like cooking… Grocery stores are a dime a dozen in most of Iceland, and carry all of the favorites from home. Most hostels feature kitchens, so make use of them.
If you do want to eat out, check prices and look for where the locals eat. I splurged on one meal while I was in Reykjavik, at the lovely Icelandic Street Food. It has all you can eat bread bowls of the most delicious soup, with free pastries. Needless to say, I went hungry and left too stuffed to eat for a full 24 hours. The friendly waiter even gave me two free drink tickets. Which leads me to the final point..
5. Skip the Drinks
And lastly, skip the drinks. Yes, alcohol is fun. It’s also absurdly expensive in Iceland, either at a bar or at a store. Do your wallet a favor, and forgo the drinks during the trip. There are other ways to have fun.
And that’s that! How to (kind of) make Iceland affordable. I’m generally a wiz at making travel cheap, but I’ll admit that Iceland was difficult for me. There aren’t many budget options on the island, but with a little creativity and savvy thinking, I made it work. If you have any further tips, please share them in the comments!
Chelsey Cook 