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If you’re like me, traveling to Iceland feels somewhat unattainable. It’s capital, Reykjavik, is lesser known than, say, Paris, London, or Munich, as Europe goes. And…”everyone” says it’s an expensive country. But, has “everyone” visited Iceland on a (semi) budget?
How much does a trip to Iceland cost?
Well, generally speaking, it is expensive. But, if you asked me, “How much does a trip to Iceland cost?” my response would be, “about $4,100.00 USD for a family of four (2 adults & 2 children).” You could spend more than that for a week at Disney World! I’ll show you our exact cost of 7 days in Iceland on a (semi) budget.
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- How much does a trip to Iceland cost?
- Iceland on a (Semi) Budget
- Currency in Iceland
- Cash vs. Credit Cards in Iceland
- Best Time of Year to Visit Iceland on a Budget
- Family Trip to Iceland Cost Savings
- Travel Insurance for Iceland
- Flights / Airfares to Iceland
- Accommodations / Lodging in Iceland
- Local Transportation / Car Rental in Iceland
- Food / Groceries in Iceland
- Recreation / Entertainment / Activities in Iceland
- Souvenirs from Iceland
- How much should I budget for a trip to Iceland?
- Iceland on a Budget
Iceland on a (Semi) Budget
Is Iceland expensive? Yes, it can be, but so can taking a road trip around North America. When you add up lodging, gas, food, and visiting attractions, it can meet or exceed an Iceland one week trip cost.
We plan semi-budget travel, which is budget-conscious travel, with a splurge here and there. Yep, that’s right. It is possible to plan an affordable trip to Iceland.
But, are you still wondering, “How much does an Iceland trip cost?” Read on to find out how to save money traveling to Iceland, and how you can start planning an affordable Iceland vacation.
Currency in Iceland
The currency of Iceland is the Icelandic Króna (ISK). Many prices will be in the thousands of króna. For a very quick conversion to US Dollars (USD), move the decimal point to the left two spaces. The amount in USD will be less than that number.
For example, say something costs 5,000 ISK. Move the decimal point to the left twice, so you now have 50. The amount in USD will be less than $50.
Obviously, you can use an app or calculate yourself with your conversion rate, but this is just a quick and easy way to get a ballpark figure.
Cash vs. Credit Cards in Iceland
Do I need cash in Iceland? The short answer is: no. Iceland is way ahead of the curve in the availability of credit card usage. Cash is virtually unnecessary in Iceland.
At Keflavik International Airport (KEF), we withdrew 10,000 ISK (less than $100 USD), just to have some cash on hand. Literally, the only place we needed cash was to feed Icelandic horses some “horse candy.” The required fee was 200 ISK ($1.80 USD, at the time). This fee was on the honor system, and if we hadn’t had any Icelandic króna on hand, I would have been totally comfortable leaving a $5.00 USD bill (to cover the fee, exchange rate, and hassle of exchange!), and I would have left with a clear mind.
All that to say, again, credit cards are the way to go in Iceland. Furthermore, at the time, Iceland was also way ahead of the game on accepting Apple Pay at more places than we could in the U.S.
So, what did we do with our unused króna? What else? We unloaded the rest at the airport, buying our favorite Icelandic candy at the duty-free shops and expensive smoothies in the food court!
When choosing which credit card to use in Iceland, make sure you have a credit card that is working FOR you. First off, use a credit card with no foreign transaction fee. Beyond that, try to maximize your points and miles, so you can get a head start on your next trip!
Best Time of Year to Visit Iceland on a Budget
What is the cheapest time to go to Iceland? As with many other places in the world, there is peak season and low season, or off season, or shoulder season. (In other words, avoid high season.)
Summer time is when many families are able to travel, given school and work schedules. The summer months in Iceland bring lots of daylight hours, so seeing the sites when it’s light out isn’t too much of a problem. This also brings lots of other tourists who have similar schedules, and prices reflect the demand.
Winter brings lots of dark hours, which makes it more difficult to see the sights. On the other hand, lots of darkness brings more chances to see the Northern Lights.
I would like to suggest that traveling to Iceland near the March equinox or the September equinox is the best time to visit Iceland. Tourist demand will likely be lower. Daylight and darkness is more equal, giving you lots of time to see the sights, as well as good chances to catch the Northern Lights. And, these factors are likely to impact your Iceland trip cost in a good way.
NOTE: It really is possible to see the Northern Lights during this time period. We caught the Northern Lights in early October. Look for apps that will help you determine when there will be strong solar activity. Then, get outside the city, to minimize light, and hope for clear skies. We actually saw the Lights in the backyard of our Airbnb, just outside of Reykjavik proper!
Family Trip to Iceland Cost Savings
Is Iceland a good place for a family vacation? YES!
Many things in Iceland are FREE (or offer heavily reduced pricing for children). We were able to take advantage of this in many ways, which you will see in detail below.
Travel Insurance for Iceland
Total Trip Insurance for Iceland = $196.00 USD
If you think trip insurance isn’t necessary for you, think again…especially when those nonrefundable fares and room rates are calling your name!
Trip insurance, or travel insurance, is worth its weight in gold if one of a variety of things happens before or during your trip. It should be the first thing, or one of the first things, you purchase after making your initial reservations and bookings.
Also, seriously consider adding “Cancel for Any Reason” coverage, because you can then, literally, cancel for any reason. It’s usually not 100% reimbursement of costs, but it’s a great option to have and way better than nothing!
Flights / Airfares to Iceland
Total Airfare to Iceland (round trip, including bag fees) = $1,572.68 USD
Flights to Iceland have become more mainstream and plentiful in recent years. With the introduction of budget airlines, fares have been reduced, too.
WOW air was one of the most well-known budget airlines flying to and from Iceland and the U.S. I say “was,” because WOW air is no more. Nonetheless, our experience flying WOW air can be translated to other budget airlines.
Many budget airlines offer such low fares, because they nickel and dime you for everything else. WOW air was no exception. We had to pay for each checked bag, seat assignments, and any food or drink that we didn’t bring with us.
With the departure of WOW air, flights to Iceland are definitely not as affordable. This is the one category where costs will probably be higher than what we experienced.
You can, however, subscribe to travel services such as Dollar Flight Club or Scott’s Cheap Flights. You enter a few parameters about your closest airport and places you’re interested in traveling to, and they will send you emails with the best deals on airfare.
That’s what started the whole idea of Iceland on a budget for us. One day I received an email from Dollar Flight Club advertising ridiculously great airfares to Iceland, and four days later we booked our trip!
Another option to save money on airfare to Iceland is to use points and miles. This article gives some great detail on just how to do that.
Accommodations / Lodging in Iceland
Total Lodging Cost in Iceland (6 nights) = $822.03 USD
A large portion of your Iceland vacation cost is for lodging (unless you’re a camper or stay in hostels). A quick check of hotels in Reykjavik showed rates that were beyond what we were willing to pay for our accommodations in Iceland.
Instead, we found a lower floor apartment in a quiet neighborhood on Airbnb, for about half the price! With separate sleeping areas for parents and kids, as well as a full kitchen and free parking, it was our best option. There was easy access to the main roads, and we also saw the Northern Lights from the backyard one night!
Local Transportation / Car Rental in Iceland
Total Car Rental in Iceland (one week) = $453.71 USD (48,520 ISK)
Car rentals in Iceland are also notoriously expensive (but, public transport wasn’t going to work for us). One of the major components of the rental fee is often the corresponding insurance coverage.
Given all the possible natural hazards in Iceland, even apart from the infamous F-roads (or the full distance of ring road), we did our research on which coverages would be a good idea.
When it all came down to it, we chose Blue Car Rental. Blue Car Rental is one of the more expensive car rental companies overall. However, many of the insurance coverages were included (we added the optional SAAP coverage), and we didn’t have to worry about sand, snow, wind, and whatever else Iceland could throw at us and our rental car.
Booster seats (but not car seats) are free of charge at Blue Car Rental.
Before booking, I hunted around online and found a coupon code! Hey, why not? It’s worth a try!
We ended up with a Toyota Corolla. While that’s not super fun or exciting, it was the perfect size for our day trips around Reykjavik and South Iceland. It even got us through a little bit of snowy weather. While we were in Iceland in early October, Blue Car Rental equips all of their vehicles with studded winter tires from November 1 through April 15.
The Corolla obviously wasn’t a 4×4, and it didn’t have automatic transmission. Which leads me to the next question…
How much is gas in Iceland?
Total Gas for Rental Car in Iceland (one week) = $134.85 USD
If you want to explore Iceland in your rental car, gas prices are another expense to consider. Living in SoCal, we experience high gas prices. But, Iceland’s gas prices take the cake.
During our week in Iceland, we purchased gas for the rental car four times…twice at Costco Iceland, and twice elsewhere. When I crunched all the numbers, gas purchased at Costco Iceland was more than a dollar cheaper per gallon than gas purchased at other gas stations!
Check out my Costco Iceland post, where I discuss the gas prices in more detail.
In order to save a little on gas, rent a 4×2 vehicle (or 2wd vehicle) with manual transmission. Yes, driving stick shift is a necessary life skill, and in this case, it could save you a little cash!
Total Parking Fees in Iceland = $20.12 USD
The only places we had to pay for parking were:
- Harpa for symphony concert
- downtown while at Viking Settlement Exhibition
- Thingvellir
- Seljalandsfoss
Detailed Map of Iceland = $11.59 USD
One thing I purchased ahead of time to pack and take with was a detailed map of Iceland. It came in handy for seeing the roads and terrain as a whole.
Food / Groceries in Iceland
Is eating out expensive in Iceland? Yes, food and drink prices in Iceland are higher than you are used to at home. We did, however, eat out a bit.
I know some people advise to never eat out in Iceland when you’re trying to visit Iceland on a budget. For me, however, part of the fun of traveling is eating new things in new places, often times with the locals.
As such, while we purchased groceries for most of our breakfasts, we did eat out a few times. In turn, in order to economize when eating out, we only purchased a couple of entrees for the four of us to share. If we were still hungry (which we generally weren’t), we supplemented with snacks that we brought or purchased.
Total for Dinners Out in Iceland (4 dinners) = $125.57 USD
Total for Lunches Out in Iceland (6 lunches, including one splurge) = $182.59 USD
Total for Groceries in Iceland (Bonus & Costco) = $70.79 USD
Is eating in Iceland on a budget even possible? Well, yes, especially if you go grocery shopping. I repeat, in order to save money on food in Iceland, the best way is to head to the grocery stores.
I love walking the grocery store aisles in other countries anyway. It always turns up some fantastic finds, and it uncovers some of the unique flavors of other places.
Iceland supermarket prices, at least the prices at Iceland’s Bonus grocery store, are really quite good. We bought 24 (6 breakfasts x 4 people) individual servings of skyr (Icelandic yogurt), and they averaged $1.66 USD each. That’s fairly comparable to prices in the U.S.
Here are a few other prices to compare:
- carton of apple juice = $1.65 USD (187 ISK)
- small jar of honey (some of the best honey I’ve ever tasted!) = $3.50 USD (398 ISK)
- Prince Polo candy bar = $0.59 USD (67 ISK)
- bag of Icelandic candy, which we named “licorice M&Ms” = $2.79 USD (317 ISK)
So, as you can see, Bonus is the best place save on food costs in Iceland. For sure, if we had packed lunches each day and cooked our own dinners, we could have saved even more money.
NOTE: Some days, Bonus stores can even close at 6:00 p.m.! So, make sure you plan to grocery shop during opening hours.
Costco could also save you money, if you need to buy larger quantities of some food items. Plus, their food court has the famous hot dog combo!
The one major thing we didn’t buy at the grocery store was bottled water (as we do in many other parts of the world, for water safety reasons). The tap water in Iceland is terrific, so take your reusable water bottle, and stay hydrated (yes, even in the cold!).
Total for Snacks in Iceland = $103.97 USD
If you have room in your checked bags and/or carry-on bags, pack some snacks to bring with you. They will come in handy when you don’t want to purchase expensive airport/airplane food. You will also be thankful for your packed snacks when you’re driving through the otherworldliness of Iceland, and you just need something to eat!
And, your snacks could very well supplement your dinner, so you only have to order two entrees, instead of four (thus saving a lot of Icelandic krona).
Snacks purchased in Iceland can also be reasonably priced. Whether it’s at Bonus grocery store, or at small bakeries all around the country, inexpensive snacks are definitely available.
Speaking of bakeries in Iceland, make sure to stop at the Jon Kokulist Bakery on your way to and from the Keflavik Airport. Their kleina is the best we had, they are reasonably priced, and there’s no better way to say hello and see you next time to Iceland.
A quick mention about food at the Blue Lagoon. Much is written about the (expensive) Lava Restaurant at Iceland’s Blue Lagoon. Much less (er, nothing) is written about the Café at the Blue Lagoon. Check out my review of our visit to the Blue Lagoon, including insider information about the Café!
Recreation / Entertainment / Activities in Iceland
Total for Activities, Recreation, & Entertainment in Iceland = $395.96 USD
First off, if you’re looking to travel to Iceland cheap and not break your Iceland travel budget, steering clear of lots of expensive guided tours would be wise.
Here are the details of what we spent for activities in Iceland:
- children’s orchestra concert at Harpa = $109.02 USD (11,600 ISK)
- Viking Settlement Exhibition = $28.76 USD (1,650 ISK per adult; kids free)
- Viking World = $23.26 USD (1,350 ISK per adult; kids free)
- Blue Lagoon = $187.34 USD (19,980 ISK; kids free)
- horse candy (to feed Icelandic horses) = $1.80 USD (200 ISK)
- Kerid Crater = $7.20 USD (400 ISK per adult; kids free)
- Hallgrimskirkja observation tower = $18.95 USD (1,000 ISK per adult; 100 ISK per child)
- night swim at Laugardalslaug = $19.63 USD (980 ISK per adult; 160 ISK per child)
Lots of sites around Iceland are free, such as many of the famous waterfalls. Only a nominal parking fee is required.
We also visited one of the local neighborhood pools. Our evening swim at Laugardalslaug was fabulous. Well, okay, showering naked in the locker room was a little outside my comfort zone, but when in Reykjavik…
The hot springs pools were fantastic, and my family enjoyed the water slides immensely. Visiting these pools after a day of work and school is a family affair in Iceland. It’s a hangout for friends. It really is kind of amazing to lounge in the steaming waters, with the cold, crisp air and dark sky above.
There are a half dozen or so of these pool complexes throughout the greater Reykjavik area. They offer a variety of huge pools, hot tubs, water slides, kiddie slides, wading pools, mini golf, and other fitness endeavors. Next time, I’d like to experience more of them!
Souvenirs from Iceland
Total for Souvenirs from Iceland = $19.50 USD
This is one area where we are really very minimal. I have souvenirs from my first trip to Greece (in 1988) and subsequent trips to Europe that are neatly packed away in the garage. They’re neat and all, but…
We’ve found that an awesome magnet from each place we visit is our favorite kind of souvenir. They’re inexpensive, don’t take up much space to bring them home in your luggage, and we can see them every day on our refrigerator!
Another perfect souvenir we found in Iceland was something from the Bonus grocery store. Reusable Bonus shopping bags! They cost approximately $1.22 USD each, and every time we use them to bag our groceries at home, it reminds us of our fantastic trip to Iceland!
How much should I budget for a trip to Iceland?
Grand Total for One Week in Iceland on a (Semi) Budget = $4,109.36 USD
Plan for an overall Iceland 1 week trip cost of $4,500-$6,000 USD for a family of four, depending on which U.S. coast you’re starting on.
Given that WOW air’s budget fares are no more, airfare is the biggest variable.
It is possible to stick with our trip to Iceland cost of around $4,100 USD…if you fly from the U.S. east coast. New York area airports, Boston, D.C., or even Toronto, have comparable fares to what we paid on WOW air. West coasters (like us) don’t have the same deal on this one anymore.
If you’re not using points and miles for airfare, or using points and miles to get from the west coast to east coast, and then pay the lower fares from the east coast to Iceland, your trip cost will be on the higher end.
Iceland on a Budget
Here’s a short list of ways you could save even more money on your trip to Iceland:
- If your travel dates are completely flexible, look for the lowest prices and travel then.
- Eat most of your meals by bringing food from home and grocery shopping in Iceland.
- Limit your planned activities to mostly free or inexpensive offerings, or decide on just one bigger splurge activity.
- Use a master packing list to pack all. the. things. Even incidentals like Kleenex and Band-Aids can add up fast if you forget to pack enough (or forget to pack them at all).
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