Iceland, the land of fire and ice, is a dream destination for many. However, it’s also known for being expensive. So, How Much Does It Cost To Travel To Iceland? The answer isn’t simple, as costs can vary widely depending on your travel style, time of year, and priorities. This guide breaks down the expenses of a recent trip to Iceland, offering insights and tips to help you plan your budget.
Understanding the Cost of an Iceland Trip
Is Iceland really that expensive? Yes, it is. Iceland consistently ranks among the most expensive countries in the world, comparable to places like Sweden and Australia. Several factors contribute to this:
- Island Isolation: Iceland’s remote location means most goods, including fresh produce, need to be imported, increasing costs.
- High Cost of Living: Iceland has a high standard of living, reflected in higher prices for goods and services. This is supported by strong labor unions and comprehensive social programs funded by taxes.
- Seasonality: Summer (mid-May to August) is the peak tourist season, leading to higher prices for flights, accommodation, and car rentals. Winter can be cheaper but comes with challenges like shorter days, potential road closures, and limited access to some attractions.
Kate squatting and taking a photo of a rainbow-striped street leading up to a cute pale blue church against a mountain, showcasing the charm of Reykjavik.
Daily Budget Estimates: A bare-bones budget of $100-$150 USD per day is possible if you’re willing to hitchhike, camp, and stay in hostel dorms. However, for a more comfortable trip with decent accommodation and activities, plan on spending $250+ USD per day.
Breaking Down the Costs: A Real Iceland Trip Budget
To give you a concrete idea of how much a trip to Iceland costs, let’s analyze a detailed budget from a 13-day road trip around Iceland in August 2022. This trip, undertaken during peak season, provides valuable insights into various expense categories.
Airfare: $548.20 (Approximate)
Airfare to Iceland can fluctuate significantly based on your origin, time of year, and booking timing. Flying from Europe can sometimes be cheaper due to budget airlines like WizzAir and Play.
Tips to Reduce Airfare Costs:
- Fly Carry-on Only: Avoid checked baggage fees by packing light.
- Travel in the Off-Season: Winter months generally offer lower airfares.
- Book in Advance: For flights from North America, aim to book 3-6 months ahead.
Car Rental and Ground Transportation: $2615.30 for Two
This was the largest expense of the trip, primarily due to a car rental shortage and peak season pricing. The cost includes:
- Car Rental (12 days): $1991.32 (Automatic sedan)
- Extra Driver Fee: $25.65
- Gas: $400.71
- Tunnels: $54.30 (One paid tunnel near Akureyri)
- Parking: $40.77 (Paid parking at specific attractions)
- Ferry: $102.55 (Round-trip ferry to Westman Islands with the car)
A green-gray Toyota sedan parked alone in a parking lot with a glacier-topped mountain in the background.
Tips to Reduce Car Rental Costs:
- Rent a Manual Car: Manual transmissions are typically cheaper than automatics.
- Rent from Off-Site Locations: Car rental companies located away from the airport might offer better deals.
- Optimize Your Itinerary: Minimize travel through the paid tunnel to reduce costs.
Accommodation: $2371.80 for Two
Accommodation costs varied widely, ranging from $82.05 to $347.06 per night, averaging $182.45 per night. The search focused on budget-friendly hotels with decent ratings, often with shared bathrooms.
Tips to Reduce Accommodation Costs:
- Travel in the Off-Season: Prices are significantly lower outside of peak season.
- Consider Hostels or Airbnb: Hostels offer dorm rooms at lower prices, while Airbnb can sometimes provide more affordable options, especially for groups.
- Camping: Camping can be a very budget-friendly option if you’re prepared for it.
Food: $690.60 per Person (Approximate)
Food costs can be managed by making smart choices. Eating at restaurants can be expensive, with entrees often costing $25-$30.
Tips to Reduce Food Costs:
- Self-Cater: Grocery shopping is the most effective way to save money on food. Look for the Bónus supermarket chain.
- Eat at Gas Stations: Many gas stations offer affordable meals like hot dogs and sandwiches.
- Embrace Hot Dogs: Hot dogs are often the cheapest item on menus.
A hot dog and a Collab drink at a gas station, showcasing an affordable Icelandic meal option.
Activities: $1,141.81 for Two
This category includes both paid and free activities. Splurging on activities can greatly enhance your Iceland experience.
- Thermal Baths: $427.04
- Tours and Activities (Whale watching, Horseback riding, RIB boat trip): $541.20
- Museums: $155
- Outdoor Attractions (Stokksnes, Kerid Crater): $18.57
Tips to Reduce Activity Costs:
- Prioritize Free Activities: Iceland offers numerous free natural attractions, including waterfalls, canyons, beaches, and hiking trails.
- Choose Local Swimming Pools: Opt for local swimming pools instead of expensive thermal baths for a more affordable cultural experience.
Other Expenses
- Restrooms: $6.96 (Paid restrooms at certain locations)
- Souvenirs: $0 (Personal preference, photos served as souvenirs)
Summary of Expenses
Based on this trip, the total cost for two people for 13 days in Iceland was approximately $8606.21, or $4303.11 per person. This includes flights, car rental, accommodation, food, activities, and other minor expenses.
A bright yellow speedboat along the craggy cave-covered coast on a sunny day, highlighting the adventure of a RIB boat tour.
Key Takeaways for Budgeting Your Iceland Trip
- Travel Style Matters: Your spending habits greatly influence the overall cost. Prioritize experiences that matter most to you and cut back on less important areas.
- Sharing is Caring: Traveling with a friend or partner can significantly reduce costs, especially for accommodation and car rental.
- Plan Ahead: Booking flights and accommodation in advance, especially during peak season, can help you secure better deals.
Conclusion: Iceland is Worth the Investment
While Iceland is undoubtedly an expensive destination, the unique landscapes, stunning natural wonders, and unforgettable experiences make it a worthwhile investment. By understanding the costs involved and implementing some money-saving strategies, you can make your dream Iceland trip a reality without breaking the bank. So, now that you have a better understanding of how much it costs to travel to Iceland, start planning your adventure today!
