Iceland on a Budget: Don’t Miss These $ Saving Tips!

“Iceland on a Budget” saves you money while you tour staggering waterfalls, explosive geysers, massive glaciers, and geothermal baths.

Iceland is the hottest chilly travel destination on Earth right now.  It seems like everyone’s going.  And that popularity has ratcheted up already expensive hotels, restaurants, and tours into the stratosphere.  Iceland is seriously, crazy, alternate-universe expensive.  It is very important that you are fully aware of what things cost here before you visit.  If you show up expecting the same prices as back home in Des Moines, Iowa, you are going to have a miserable trip.  “Iceland on a Budget” will show you what the costs are, so you can make some decisions about what fits within your budget.  If you want or need to make some cutbacks, where do you want to make them?  Maybe you don’t really care about where you sleep, as long as you get good food.  Or maybe you are happy to eat just from the grocery store, as long as you can afford to do some awesome adventures.

To help you bring down all those costs, travel to Iceland on a budget will tell you all the tips and tricks to save money and still have fun in Iceland.  We’ll share ways to cut costs on flights, accommodation, getting around, food, alcohol, and sightseeing.  We’ll let you decide which budget cuts work best for your travel style.

by Worldwide Wilbur July 2019

Iceland on a Budget – Ways to Save in Reykjavik:

I extensively research all my trips, and search high and low to find the cheapest deals on all the best tickets and tours.  Following are the most interesting activities, at the best possible prices.  If you find anything cheaper, please let me know in the comments!

Start your visit with a walk around historic Old Reykjavik, and window shop on the main street of Laugavegur.  The Free Walking Tour, gets you a couple hours of history and stories about Reykjavik.  Meet at the green clock in Lækjartorg square every day at 12:00 and 2:00 PM during the summer.  Look for the tour guide in a green jacket.  Make a donation of your choice at the end.  I really enjoyed this tour, and learned a lot about Icelandic culture.  And the price is right too!

Reykjavik is not a huge city, and most of the top points of interest are easily reached on foot.  But, if your feet start to fail you, you can get everywhere via the City Sightseeing Reykjavik Hop On Hop Off Bus.  A 24 hour ticket is $39.  This is a great choice for older folks, or anyone that doesn’t feel like walking miles and miles.

Explore the interesting street art of Reykjavik (free).

Visit the National Museum of Iceland   The best way to discover the rich history of Iceland.  Plenty of swords, drinking horns, and viking regalia to keep the kids happy.  Open Tues – Sun 10am-5pm.  Entry includes and audioguide and is $17 for adults, $8.50 for seniors 67+, free for kids 17 and under.  This is a great way to keep everyone entertained for several hours.

Get on a whale watching tour from the Old Harbour to see puffins, minke whales, white-beaked dolphins, harbor porpoises and humpback whales on a three hour sail.  Adults $91,  kids 7-15 $45, kids 0-6 are free.  This is a pricey trip, but if you’ve never seen a whale, it might be well worth it.

See the iconic Hallgrimskirkja Church.  The largest church in the country, it towers over the center of Reykjavík at 240 feet high.  Entry to the church is free.  If you want to go up to the top of the tower, there is an elevator and it costs $8 for adults, and $1 for children.  Open 9-5 daily in summer.  I skipped the elevator.  All those great photos you’ll see on the interwebs of the colorful houses of Reykjavik from above, they were all taken from the top of the church.

Penetrate the mysteries of the Phallological Museum.  The what?  The Penis Museum.  This fascinating museum was first erected in 1997.   It’s not hard to see why people are stimulated by the size of the collection.  You’d be nuts to miss it.  Best museum gift shop ever.  Open 9am to 6pm in summer.  Entry is $15 for everyone 14+, kids under 13 free.  This was one of the BIG highlights of my visit to Reykjavik.  I considered bringing along my boys (age 6 and 9), but thought the better of it, as their explosions of laughter would have ruined the library-like silence inside the museum.  The owner takes it all very seriously, and has many, many animal species represented.  But really, everyone is there to see this piece de resistance, the sperm whale.  For perspective, I’m 6’1″ and 180.  Yikes!

Visit the Tales from Iceland Museum, a cool little museum with 14 different 5 minute videos on Icelandic culture.  Coffee and cookies served while you watch.  A great way to spend an hour learning about the country.  Open 9-5 daily.  Entry: Adults $18, Children $9, Whole family $42.

Iceland on a Budget -Ways to Save Outside the city:

Bathe in the warmth of the Blue Lagoon. 

Hours vary by season, but it is open at least from 8am to 9pm.  Entry starts at $57 for people 14 and over.  It goes up to $97 during peak hours (basically anytime you’d really want to be there).  Children 2-13 are free with an adult.  Babies are not allowed.

We went to the Blue Lagoon solely because Lonely Planet lists it as the 93rd greatest sight on Earth.  Would I agree?  No.

It is very pleasant.  Lovely, in fact.  It is a top notch facility with friendly and helpful staff, and a modern pool well-integrated into a natural volcanic rock background.  But is it one of the 100 greatest sights on Earth?  Or worth $70-$90 just to soak in a glorified hot tub?  Absolutely not.  I have to mark it down as one of the top tourist traps I’ve ever been to worldwide.  It’s right up there with Times Square New York, and the Blarney Stone in Ireland.  It’s one of those places that capitalized on a catchy name, premium service, and Instagram worthy scenery.  A place that no locals ever go to.  But, I am an obsessive list-checker-offer, so I had to go.  If you are visiting Iceland on a budget, let me urge you to NOT feel like it is a must-do.

A good alternative would be to plunge into the Laugardalur geothermal pools.  One of the largest pools in Iceland, it has Olympic size indoor and outdoor pools, seven geothermal hot tubs, a gym, beach volleyball, running tracks, and a 300 foot water slide.  Open 630am to 10pm daily.  Entry is $8 for adults, $1.33 for kids 6-17, free 0-5 and 67+.

Take a full-day Golden Circle Tour

If you only do one tour in your time in Iceland, it should be this one.  See the Geysir area, where geysers bubble and explode, the thunderous Gullfoss waterfall, and visit Thingvellir National Park.  Grey Line Tours can take you to all three sites on a 7 hour tour with an English speaking guide for just $56.

If i was traveling alone, I would have been on the tour bus, but since I was traveling as a family of four, the math said a rental car was the way to go.  None of these sites charge an entrance fee, but the DO charge for parking.  So, if you were traveling alone in a rental car, you’d be paying for the car – $45, and gas – $15, and two parking fees of $4 and $6, for a total of $70.

The Golden Circle is really a fantastic day of sightseeing.  Not just for the three main sights, but getting out and seeing the countryside’s mixture of electric green grass, and jet-black volcanic rock is lovely.  If you do the drive clockwise, you’ll reach Thingvellir National Park first.  It’s quite amazing to think that you can walk in between the North American and European tectonic plates in this narrow canyon.  And then when you learn the history of the location, as the first meeting place of an Icelandic government a thousand years ago, you can almost feel the ghosts of the past.  There is a scenic path to a waterfall, and lots of placards explaining the history.

The next stop is Geysir, which is a…geyser that shoots steaming water 50 feet into the air every ten minutes.  This area is the the home of the “original” geyser (long since extinct).  Europeans had never seen a geyser before the Vikings came to Iceland.  Their word for the phenomenon is now the standard word for it all over the world.

If you’ve never seen a geyser, it is certainly an amazing thing to witness.  If you’ve been to Yellowstone National Park and seen Old Faithful, well, it’s about the same.

The final main stop on the tour is Gulfoss waterfall.  This did not disappoint!  This huge waterfall blasts through several levels culminating in a deep drop into a canyon.  It’s right up there with the best waterfalls I’ve ever seen.  This was the highlight of the Golden Circle.  We stayed here quite a while just watching the water crash onto the rocks.

Some tours also stop at the Kerio Crater, a colorful remnant of a volcanic explosion.  Entry is just 400 krona for folks 12 and older.  You can walk all the way around the rim on a little trail.

Iceland on a Budget – Tour The South Coast of Iceland

After the Kerio Crater, instead of turning back to Reykjavik, we continued to the coast, via Selfoss.  Selfoss is a decent sized town of 8000, with a Kronor grocery store, which we used to stock up on food for the next few days.  We did not eat out at a single restaurant the entire time we spent in Iceland, but we made excellent dinners at the AirBnB’s we stayed at, with reasonably priced food from Kronor and Bonus stores.

We spent our second night in Iceland at a gorgeous horse farm in the sleepy seaside fishing village of Eyrarbakki.  Our AirBnB here was $260 for the night, and that was actually the cheapest place in the region with enough beds for four!

I bundled up in the 49 degree afternoon summer weather, and enjoyed a Viking Stout on the porch.  I listened to the thunder of horses hooves, while I caught up on what Rick Steves says we should do next.  Rick is always right.

Lindso attempted to get through a $10 bottle of Brennivin mixed with Sprite.  Brennivin is just awful.

Iceland on a Budget – Visit the Westmann Islands

After a day in Reykjavik, and a day doing the Golden Circle, we headed east on day three to visit the Westmann Islands.  Our first stop, an hour into the drive, is the excellent Seljalandsfoss waterfall.  You can walk BEHIND the falls if you don’t mind getting soaked.  It’s a really beautiful waterfall, and easy to get to.  It’s just a mile or so off the Ring Road.  The parking fee is 700 krona ($6)

After the waterfall, it’s just a short drive to the ferry port at Landeyjahöfn.  The Westman Islands ferry is surprisingly cheap by Icelandic standards.  For $91, we got round-trip tickets for two adults, two children, AND could take our car on board!  The ferry is big and comfortable.  You can sit up top in the open air and see the steep cliffs of the islands as they pass.  Or, you can sit below in a dark movie theater and watch Friends re-runs.  There is a cafe with beer and burgers.  The ride only takes 35 minutes.  Be sure to go up top to see the stunning entry into Vestmannaeyjar harbor.

We absolutely LOVED the island of Heimaey.  After driving off the ferry, we walked around the tiny town.  There’s not a whole lot going on.  Only 4,500 people live on the island, but 8 million puffins!

We spent two days here, just driving around the island, and stopping at every photo opportunity, of which there were soooo many.  We stopped to pet sheep, to walk on black sand beaches, and to pick wildflowers.  It’s a mountainous, volcanic island, with a high point of 700 feet, so there are lots of amazing views.  It’s like a mini-Iceland, where you can do a little bit of everything within ten miles.

In 1973, a volcanic eruption began on Heimaey.   The ground split open and lava shot into the sky.  Lava headed toward the harbor, and threatened to close it forever.  During the night, all 5,000 inhabitants of the island had to be evacuated.  A few remaining townspeople sprayed the lava with cold seawater, causing some to solidify and be diverted, thus saving the harbor.   Half of the town’s houses were crushed and the island expanded in length.   Today, you can visit the excellent Volcano Museum and see how it all happened.  My boys really enjoyed seeing an actual house covered by ash.  It’s $19 for adults, and free for kids under 10.

On Heimaey Island we stayed in yet another AirBnB.  This one was a tiny cabin outside of the town, with a million dollar view.  It had three comfy bunk beds wedged perfectly into one tiny bedroom.  At $200 a night it wasn’t a bargain, but it was our favorite place of the trip.

Iceland on a Budget- Drive out to the Jokulsarlon Glacier

On day five, we left the lovely Westman Islands behind for the long drive out to the Jokulsarlon Glacier.  And it really is a loooong drive.  Iceland only has 340,000 people, and 140,000 of those are in or around Reykjavik.  That leaves only 200,000 people for a large island the size of the state of Maine.  Now, for reference,  Maine is far from urban, but it packs 1.3 million people into its hinterlands.  Iceland feels very empty.  You can drive an hour without passing a single village or gas station, or anything.  And Jokulsarlon is a good 5-6 hours drive from Reykjavik.

We passed several waterfalls early on in the drive, some little ones, and some big ones, like the stunning Skogafoss.

Not much further along is the unusual Reynisfjara Beach, and its basalt columns.

And we stopped in the tiny town of Vik for lunch.

Finally we reached the glacier!  Jokulsarlon is a glacier melting into a large lake, which opens to the ocean.  Icebergs the size of houses float towards the sea and break into smaller chunks.

The main tour everyone does here is an Amphibious Boat Tour.  You climb onto this contraption, and it drives straight into the glacial lake.  You motor around, and the guide grabs a tiny iceberg from the water for everyone to hold, and even taste.  The boat doesn’t get too close to the big icebergs for safety reasons.  The whole thing only lasts about 20 minutes.  For my family of four it cost $130.  Pricey, but the kids enjoyed it.

After your boat tour, there are food trucks lined up where you can get soup, seafood, fish n chips, burgers.  There isn’t a town nearby, so you better fill up here if you are heading back to Reykjavik.

At the opening of the glacial lake to the ocean is Diamond Beach.  It’s called that because the smaller chunks of icebergs float up onto this black sand beach like little diamonds.  What an amazing sight!  Seals were cavorting just offshore as the ice washed up.  The kids had fun chucking the ice back into the ocean, and calling out to the seals.

After a long day of driving, we opted for a nearby place to sleep, before heading back to the airport on our last day.  There are VERY few lodging options around Jokulsarlon, and what there is, is VERY expensive.  The only reasonable deal we could find was the Hvoll Hostel.  It was clean, comfortable, and located in an open field with mountain views.  We paid an outrageous $230 for a tiny “family room” with 4 beds, and a shared bathroom.  But, hey, what can you do, that’s Iceland for you.

We really enjoyed the whole trip out to Jokulsarlon, but it was one heck of a tiring drive.  It took up the better part of two days stuck in a little car.  It might be worth considering the Jokulsarlon Glacier Lagoon Full-Day Tour, which takes you to all these sights, and includes the boat tour for $136.  If I had it to do over again, I would not have done the drive, it was just too much for a five day trip.

Iceland on a Budget – Know Before You Go:

Backpacker Daily Budget: 

$95.  Gulp.  Really.  Reykjavik is among the ten most expensive cities in the world to visit.  Everything here is downright PAINFULLY expensive.  $32 for a hostel bed.  $20 for a hamburger.  $10 beers.  It’s the perfect place to go on that diet you’ve been considering, or to finally take up camping.

Cheap Beer Index:

$6.02  It is possible to get a beer for as little as 750 kroner in some places at happy hour.  Download the Appy Hour app which lists active happy hour times and prices at over 30 locations.  It’s not 100% accurate, but it will give you a general idea of what’s on offer.  Sadly, a more usual price for a beer is at least 1200kr or $10US!

Many Icelanders opt to “pre-game” by drinking at home before going out to the bars and clubs late.  You can do the same by hitting the duty free shop in the airport on your way in, or visiting the government owned liquor stores “Vin Budin”.  There is a Vin Budin in any major town, and prices are the same countrywide.  They are closed on Sundays, and in small towns often open only a few hours a day, so check ahead of time.  Here you can get a 12oz can of local beer for $2-3, and  a bottle of wine starts at $10.

Iceland on a Budget – When to visit: 

Iceland is a completely different destination in summer than in winter.

Reykjavik summers are short, cool, and cloudy. July and August are the warmest months with average highs peaking at only 57 degrees.  June and September are still nice, getting into the 50’s.  You’ll have amazing amounts of daylight each day, with a sunset at midnight, and a 3am sunrise, for over 21 hours of sun on June 21!  Of course everyone else also wants to be here in summer, so prices are at their peak, and booking lodging ahead is essential.

Late May or early September are excellent times to come if you need to save money.  Lodging prices drop a little, but the weather is still pretty good with highs of 50.

Winters are long, dark, cold, wet, and windy. The coldest average high in the winter is 36 for all of December, January and February.  Not too much snow sticks around, more rain.  It’s going to be dark.  On December 22, you’ll only have 4 hours of daylight!  The one big draw for coming here in winter is the Northern Lights.  They can be visible October through April, with the best opportunity in December and January.  Another plus is that lodging is much cheaper.  If you are on a really tight budget, and don’t mind cold, you can save a lot in winter.

What languages are spoken?  

Icelandic is the national language, but English is also spoken by literally everyone.

Do you need a visa?

Visas are not required for nationals of USA, UK, Australia, and Canada.  You can stay for 90 days visa-free.

How to Travel to Iceland on a Budget – Getting in, getting out:

There are two ways to get to Reykjavik, by air and by sea:

By Airplane: 99% of visitors fly into Iceland.  Reykjavik-Keflavik International Airport (KEF) has flights to cities all over Europe and North America.  Airfare might be the only thing that is cheap about your Icelandic vacation.  The best option for cheap flights to Iceland is Icelandair, now that WOW Air has gone bankrupt.  You can also get a FREE stopover here on Icelandair.  That way you can incorporate a few days in Iceland into a longer European trip.  This saves you a separate dedicated round-trip flight.

But even if you are buying a ticket just to Iceland, the fares are quite reasonable, usually cheaper than any other European destination.  Last I checked, fares were going for as low as $220 from Boston, $250 from Newark, $378 from Washington.  Consider booking with a cheap direct flight with one of these two airlines, and then booking a separate domestic fare to get to the Icelandair departure city from your home airport.  Learn how to get to Iceland for free on my page:  Nine Steps to Free Flights Worldwide.

Pro Tip:  Keflavik has a duty free store right in baggage claim!  It has the cheapest prices on alcohol of anywhere in Iceland.  If you can juggle any extra bags, you should shop here.  There is also a legit ATM after you exit customs, and a coffee shop/convenience store.  Avoid the airside ATMs!!  They are the dreaded Euronet rip-off exchange rate ATMs.

By Smyril Line Ferry: A passenger & car ferry called the Norröna sails from Hirtshals in northern Denmark to Torshavn in the Faeroe Islands & Seydisfjördur in Iceland, roughly once a week between April & October.  The voyage from Denmark to Iceland aboard the Norröna takes 2 or 3 nights depending on the sailing schedule.  Note: The port of call is Seydisfjördur, on the west end of Iceland, a 9 hour drive from Rekjavik.  The ship has bunk beds, cabins and restaurants.

How to Travel to Iceland on a Budget – Getting around:

Keflavik Airport Shuttle It is a 45 minute drive from Keflavik Airport into the city.  Do NOT just hop in a taxi, unless you want to be presented with a $200+ bill at the end!  There are transfer buses available:

Flybus shuttles depart 35-40 minutes after the arrival of each flight.  If your flight is delayed, the bus will wait for it.  Your ticket is valid on any bus, so if you do somehow miss a bus, you just take the next one. There is no luggage restriction.  When you purchase your ticket online, you want to choose a drop-off at your hotel.  A one-way transfer from Keflavik direct to your hotel is $33 for adults 16+, $17 for kids 12-15, and free for kids 11 and under.  You can get a cheaper ticket for $24, but that only gets you to the BSI bus station on the edge of the city, and then you’ll still have to spring for an expensive taxi ride.

Public bus #55 goes from KEF to the city, but on an infrequent schedule that might not match up with your flight.  A ticket is $16.

Rental Car: if you don’t mind driving, a rental car is almost certainly the way to go.  Tiny micro-compact cars start at about $40 a day.  Gas is the same price at every gas station in Iceland, currently a shocking $7.20 per US gallon!   However, a Golden Circle bus tour is $56 x 2 people = $112, so you can rent a car, with gas, for cheaper than that.  Rentalcars.com has the best deals for rentals in Iceland.  I found this little Hyundai i10 with manual transmission for $200 for five days.  Not cheap, but not too far off what you’d pay elsewhere. The thing had only 66 horsepower, and couldn’t make it up hills except in 3rd gear, BUT it got 48 miles per gallon, which was VERY appreciated with Iceland’s gas prices. I ended up going with ACErebsjwd

• • You should be aware of some special insurance situations in Iceland, they’ll try to sell you sandstorm insurance, which I guess happens a lot on the South Coast.  I declined it and lucked out.
  • Speed limits throughout Iceland are lower than in many other countries.  The fastest limit is 90kph (56mph).  I only ever saw 2 or 3 police cars my whole trip.
  • Headlights must be on at all times.
  • No right turns on a red light.
  • You must yield to the driver on the right at four-way intersections.
  • You must give way to drivers in the inside lane in roundabouts.  This will happen often in Reykjavik.
  • Seatbelts are required for all passengers, even those in the back seat.
  • Cell phones cannot be used without a hands-free headset.
  • Iceland has a very low accepted drunk driving blood alcohol level; .05 per cent. If you’re caught above that, you’ll have your drivers lisence confiscated, and be forced to pay a $600 fine.  Police who are suspicious of a driver give a breathalyzer test, followed by a blood test, which cannot be refused.

Uber and all other ride sharing companies are banned in Iceland.

Public buses will get you to all the towns of Iceland, but they won’t get you to any of the geysers, waterfalls, or fjords.  They aren’t really a viable option for tourists with no other form of transport.

Tour buses are the best option for single travelers, or any folks who really don’t want to get behind the wheel.

Local Currency and how to get it:

Icelandic Krona (124 ISK = $1 as of July 2019) are available at numerous ATMs.   However, Iceland is a cashless economy, so there is no need to withdraw much (or any) Krona.  Credit cards can be used for all purchases.  In fact, many purchases can ONLY be done by credit or debit card.  I sat at a bar and watched customer after customer order a single drink and pay by simply holding a contactless credit card up to a purchase point.  No tipping.  No signatures.  Not even a pin entry.  Iceland is a bit ahead of the US.  For more info on your cash-versus-credit card options when travelling, check out my post on How to Access your Money in Foreign Countries.

Stay Connected:

Iceland has three telecom operators:

• Síminn – priciest and best coverage countrywide.  They sell a voice & data starter called Síminn Prepaid Starter Pack for 2900 ISK ($24). It contains 50 domestic minutes, 50 domestic SMS and 5 GB of data.  Available at the duty-free shop close to the baggage claim in Keflavík airport.
• Vodafone – cheaper but still sufficient if you stick mainly to populated areas.  Their voice & data prepaid SIM is sold for 2,000 ISK ($17) containing unlimited domestic calls plus 1 GB of data for 30 days.  You can get it in Keflavik airport at the 10-11 shop in the arrival hall, and the Elko stores.
• Nova – cheapest and good if you only stay around Reykjavik.  No shop at the airport.

If you have a European SIM, you are all set.  Iceland is not part of the EU, but IS in the larger EEA, where from June 2017 new international roaming rules are enforced. In most European countries you can now ‘roam like at home’ at domestic rates rather than excessive roaming rates.

Free Wi-fi is readily available all over Iceland.  Try downloading the app Wiman to find it.  For more info on your telecom options, check out my post on How to Get Cheap Mobile Phone Service Worldwide.

How to Travel to Iceland on a Budget – Where to stay in Reykjavik:  

When dorm beds start at $32 a night (and go up to $95), you know you are in a pricey place.  Icelandic hostels don’t even include sheets, usually charging $10 extra for them!  Bringing a sleeping bag could save you the price of the bag within a week.  Breakfast is almost never included, but may be offered for $10 to $20.   Camping is a cheaper option, even right in Reykjavik.

If there are more than two of you, you should look into AirBnB options.  AirBnB has really taken off here, as locals are getting in on the tourism bonanza (much to the consternation of their neighbors).  Book early.  Iceland is a hot destination now, and things fill up months ahead of time.

Here are the absolute cheapest places to sleep in Reykjavik (with one insane $95 hostel thrown in for comparison.)

• Reykjavik Campsite is the cheapest option in the city at $20 per person, per night.  Children under 13 stay free with adult supervision. Reservations are not required in advance and space can not be reserved.  This massive field is just a mile out of the city center, can hold 900 people, and is next door to one of Iceland’s largest and most popular geothermal swimming pools.  You get free WIFI in the hostel lounge, hot showers 24hrs, access to kitchen and hot water, bookings and pick up for excursions and car rentals.
• Bus Hostel is located next to the main bus station, which is actually very convenient for going on tours.  They provide bikes so you can ride into downtown in 15 minutes.  They have dorm beds for $32.
• Reykjavík Hostel Village dorm rooms have a mini fridge, desk and shared bathroom. Dorm beds are $33.
• Retro Hostel is in the East Reykjavik neighborhood and has dorm beds for $39.
• Galaxy Pod Hostel is a futuristic hostel with Japanese-style pod sleeping capsules.  The pods have flat screen tv’s, wi-ri, locking curtains for privacy.  Pods are $60.
• At Reykjavik Downtown Hostel bed linen is included and an organic breakfast buffet is served every day.  Fair-trade coffee is available in the bar.  Dorm beds are a steal at just $95 a night!!!!  Seriously.  Hostel beds.  For $95. (I’m including this just for laughs)

How to Do an Iceland Trip on a Budget – Where to eat: 

All restaurants are going to be ludicrously expensive by most standards.  A meal for two with appetizers and no alcohol can easily run you $100, killing your Iceland budget.  Your best bet for budget travel is to stock up in a supermarket and do some home cooking.  Among the store options, two chains stand out for value and selection.  The Bonus supermarket chain with the pink pig sign has the cheapest prices, and even has the same prices out in the smaller towns.  The other option is Kronan chain with the dancing coin mascot, which has less stores nationwide.  Expect to pay twice as much for anything from the ubiquitous 10/11 convenience stores.

We ended up shopping at Kronan several twice, and found everything we needed for snacks and dinners at reasonable prices.

While any sit-down restaurant bill is going to dent your wallet, there are some fast-food options that are tasty but reasonably priced.  Here are some of the most popular:

• Subway – You can get a 12 inch sub starting at $11 for a veggie.
• Bæjarins Beztu Pylsur, which means “the best hot dog in town”. Icelanders love hot dogs.  Bill Clinton ate one here.  Ask for the ‘the works’ and get ketchup, sweet mustard, onions, and remolaði, a mayonnaise-based sweet relish.  A hot dog and coke combo is $6.  With all the interesting sauces they have here, it was delicious.
• Noodle Station  a noodle soup dish with vegetables costs $12
• Hlölla bátar makes the best subs for $5 to $8, and burgers for $12-$14.
• Aktu Taktu sells good fast food burgers for $10.
• Mandi has cheap middle eastern food.  You can get kebabs, falafel and hummus for under $10
• Vöffluvagninn sells belgian waffles with whipped cream for $5-$8.
• Grocery stores such as Bonus, Netto, Kronan sell pre-made sandwiches, wraps and Skyr yogurt for cheaper than anywhere else.
• IKEA – Yes, the furniture store!  It has a cheap and popular diner inside that even serves beer.

How to Travel Iceland on a Budget – Nightlife: 

Reykjavik has loads of nightlife.  You’ll find bars with craft beer, wine bars, cocktail bars, and many clubs that pump until 5am.  (Be sure to try Brennivin!)  There is ZERO nightlife outside of the capitol.  Don’t be fooled into thinking the city is dead because the bars are empty at 11pm.  Many people “pre-game” by drinking at home, and don’t hit the bars until midnight.  It’s common for bars and clubs to still be packed at 4 am on Friday and Saturday, with most closing around 5-6am.   Sunday to Thursday bars will close around 1am.  I wished I had been in town on the days that the Beer Tasting and Tapas Tour is offered, but I missed it.

There are far too many great venues to list, but here are a few that i visited on my own personal pub crawl:

Bravó at Laugavegur 22 has a small bar seating area, and lots of cushiony table seating along big windows facing the main street.  I really enjoyed sitting here with a couple of Viking Stout beers for 800 krona during happy hour.

Kaffibarinn  on Bergstaðastræti 1  I had an excellent Kaldi Dark Lager here for 800 kroner.  It’s a bright, friendly place with a DJ spinning subdued house music.

Lebowski Bar has happy hour from 4-7, where I got a pint of Guinness for 850 krona and watched some Women’s World Cup soccer on their massive TV in the back.  The entire bar is decked out in The Big Lebowski movie themed memorabilia.

Dillon Whiskey Bar has happy hour from 4-8.  For 850 krona I got a tasteless Gull lager, and sat outside in their backyard.

The Dubliner has an endless happy hour from Noon til 10pm.  In this boisterous bar with a pool table and lots of TV’s, I got another crummy Gull Lager for 750 Krona.

My last stop was the Drunk Rabbit. They had excellent live music in a packed little space, and I enjoyed a fantastic Einstok Toasted Porter for a painful 1200 krona.

Get a guidebook:

I really liked the Rick Steves Iceland guidebook.  Rick knows Europe.  And he knows budget travel.  He makes very specific itinerary recommendations and isn’t afraid to tell you what stuff is worth skipping.  I appreciate the honesty.

How to Travel to Iceland on a Budget – What to pack:

Here is what to wear in Iceland:  You are going to need some extra layers for the cold and rain, and you REALLY don’t want to have to buy them in Iceland at crazy prices.

• A rain jacket.
• A sweater or coat
• Some decent hiking shoes.  Flip flops aren’t going to cut it here.
• A knit hat for windy cold days.
• swimwear and a towel for thermal baths
• a drybag or waterproof cover for your electronics that are going to be around waterfalls, rain, or ocean.
• An eye mask for trying to sleep when its very bright out at 4am.

To learn how to pack light and be prepared for anything, check out my post The Worldwide Travel Packing List.

Is it safe?

Yes, Iceland has one of the lowest crime rates in the world.

Be sensible around geysers, which erupt and can burn you.  Avoid stepping or falling into a hot spring or boiling mud pool which can burn or kill you.

People have slipped to their death near rocky waterfalls, and have been swept into the ocean trying to get wave selfies at rough beaches.

Traveling Iceland on a Budget – Roundup of Top Travel Tips:

• Consider visiting in the shoulder season: May or September.
• Look for cheap flights on Icelandair.
• Pack everything you’ll need, so you don’t have to buy anything in Iceland.
• If there are two of you, rent a car rather than paying for multiple tours.
• Consider camping, check out hostels, try AirBnB.
• Buy your food and alcohol at Bonus or Kronor grocery stores.
• Try some good fast-food options.
• Bring a water bottle, to refill for free and save 10, 000 ISK on drinks
• Download the Appy Hour app which lists active happy hour times and prices at over 30 locations.

THANKS FOR READING

Full Disclosure: Some of the links in this post are affiliate links.  This means that if you buy anything, I’ll earn a small commission at no extra cost to you. I only link to stuff I use, love, and recommend.  I don’t accept bribes to endorse garbage. Your clicks help keep this site alive.

THANKS FOR YOUR SUPPORT!

If you enjoyed “Iceland on a Budget“, please share with your friends: