Iceland Budget Tips: 10x The Best Money-Saving Tips
Traveling to Iceland doesn’t have to be expensive! Even though Iceland is not a cheap country, there are many ways to save money on your trip. Did you know that there are even a lot of free activities in Iceland? From taking a dip in a free hot spring or exploring one of the many waterfalls to going on a free Reykjavik city tour, there’s something for everyone. Use these Iceland budget tips to plan your next Icelandic adventure!
1. Get Your Rental Car After You Visit Reykjavik
The bus service between Keflavik airport and Reykjavik runs hourly and drop you off at the central bus stop. Heavy luggage or short on time? There are bus-transfers available who can drop you off at your accommodation. The inner-city of Reykjavik is compact, which makes it perfect to explore by foot. This way you will not only save money on rent, but also on the expensive parking fees in Reykjavik! I recommend to rent a car in Iceland through Sunny Cars with free cancellation and all insurance included. This way you’ll be on your way to a worry-free adventure. Book your rental car here.
2. Try Free Activities In Iceland
From a free guided city tour in Reykjavik and puffin and seal spotting to visiting one of the many beaches, waterfalls and national parks. There are so many free activities you can do in Iceland! There are also many tour operators offering these activities, but some of them are much more fun to do by yourself. Not only because you can create your own itinerary, but also because you can stay for as long as you’d like. If you do book a tour in Iceland, I recommend picking one that doesn’t cram too many stops in one day. This will give you enough time to explore and enjoy the beauty of Iceland! Book your tour in Iceland here
3. Visit Iceland During Off-season
Winter in Iceland is an incredible experience! December is the darkest time of the year in Iceland with around four or five hours of daylight. You can find the prettiest skies during the Icelandic winter, and enjoy what seems to be an endless twilight. These dark days also come with a lot of cozy lights, and are often accompanied by a beautiful blanket of snow. Bonus: on clear winter nights, you will have a higher possibility to get to see the Northern Lights! The off-season in Iceland runs from September to April, and prices for accommodations, cars and tours are considerably lower during this time. Read all about travel to Iceland during winter here
4. Iceland Budget Tips: How To Find A Cheap Flight
It is always worth it to search for a good deal on flights to Iceland, even if you’re not travelling in the off-season. There are a lot of budget airlines flying to Iceland, forcing the more expensive airlines to offer more compatible rates. When you visit Iceland during the off-season you can expect the highest discounts on your flights. The Skyscanner website can be a useful tool to help you compare different airlines and times, so you can find the cheapest deal for your trip to Iceland. Book your flight here
5. Going Out In Reykjavik – Iceland Budget Tips
Since Reykjavik is known for its lively nightlife, it’s definitely worth it to plan a night out. Iceland, together with other Scandinavian countries, is famous for its high alcohol prices. When you plan to visit a bar in Reykjavik, or anywhere else in Iceland, it really pays off to check if there’s a happy hour going on. Happy hour is truly a phenomenon in Iceland. The majority of bars and restaurants, including the fancy ones, have a happy hour. Surprisingly, happy hour usually lasts longer than one hour! During happy hour, you can get a discount of up to 60% off, so feel free to buy your friends a drink and get your dance on.
Tip: You can use this website to find an overview of bars and restaurants in Reykjavik with a happy hour. You can also use it to check if there is a happy hour going on near you! Cheers!
6. Find Cheap Hotels In Iceland
Iceland offers accommodations for every budget, from high end hotels and apartments to hostels. If you travel during the off-season you will have a high chance of finding great deals on boutique hotels, B&B’s, and hostels. Locally owned hotels are usually cheaper than international chains, and give a much more authentic experience. Did you know that Iceland has an amazing hostel culture? Hostels in Iceland look like boutique hotels with their minimalist Nordic design, but they also offer hostel-like activities like excursions and yoga classes.
Here are all your hotel options in Iceland
Tip: Staying at a hostel is the most budget-friendly option in Iceland. A lot of hostels in Iceland offer private rooms with your own bathroom, so even if you’re not really a “hostel person” it can still be worth checking them out.
7. Buy your Souvenirs at the Flea Market – Iceland Budget Tips
Looking for a perfect Lopapeysa (Icelandic sweater) that doesn’t cost you an arm and a leg? Then you should definitely visit the Flea Market Kolaportið! From vintage clothing and interesting antiques to delicious food, Kolaportið is the perfect place to spend an afternoon hunting for souvenirs. Apart from being very environmentally friendly, second hand souvenirs also have their own unique story that will make a wonderful memory of your trip to Iceland. Food-wise, look for the licorice and smoked salmon stands, they are amazing! You can find the Kolaportid Flea Market in Reykjavík’s old harbour at Tryggvagötu 19 , Old Harbour Grófin Reykjavík Kvosin. The market is open every Saturday and Sunday from 11:00 to 17:00.
Important note: please don’t buy whale meat or fermented shark (hákarl) here, or anywhere else in Iceland. The number of whales and Greenland sharks that die from these practices is sadly still rising.
8. Visit Iceland’s Free Hot Springs – Iceland Budget Tips
Because Iceland is a volcanic island, it is filled with natural hot springs! Most natural hot springs are free to visit, although sometimes it is appreciated if you put a donation into a designated box. There are also many thermally heated pools on the island, from the fancy spas like the Blue Lagoon to local swimming pools, Icelandic people like to get their swim on. If you’d like to visit the Blue Lagoon, I recommend to book a time slot at night or in the early morning. These times tend to be cheaper, especially if you visit Iceland during low season.
9. Drink All The Free Tap Water – Iceland Budget Tips
The water in Iceland is one of the cleanest and most delicious drinking water in the world. Icelandic tap water is not treated with chlorine or other chemicals, because it’s simply not necessary! Safe to say that there’s absolutely no need to buy bottled water in Iceland. Apart from being absolutely delicious, it’s also the most sustainable way to stay hydrated! Just bring a reusable water bottle. Good for you and for the environment!
10. Enjoy A Free Iceland Safari
The waterfalls and landscapes in Iceland are world famous, but did you know that there are also many ways to spot all kinds of animals during your trip? From Icelandic horses and arctic foxes to seals, puffins and whales, there is something for everyone. A lot of animals are very easy to spot and the best part is that costs next to nothing, so it’s a great way to save money. Read all about going on an Icelandic safari here!
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