It may be the land of ice and fire, with stunning scenery and traditional culture oozing out of every volcanic rock, but one thing’s for sure: Iceland isn’t cheap. Whether it’s a loaf of bread in the supermarket, or entrance to the world famous Blue Lagoon, be prepared to see several zeros ring up on the cashier’s monitor. But with all the doom and gloom around the exchange rate, the fact everything is imported and the general exploitation of the 2 million tourists that visit the island each year, we wanted to know if it was possible to travel in Iceland on a budget.
My husband and I visited Iceland in June 2018, the week after we’d just bought our first house so as you can imagine money was on our mind. We had a little brainstorm, and came up with some money saving tricks which helped us keep our week’s holiday in budget, without compromising on the experience we wanted to have.
Here’s our top ten tips for saving money while travelling in Iceland:
1. Bring your own water bottle
Iceland has some of the best drinking water in the world, probably due to the volcanic rock which the entire island is made up of. It’s safe to drink and totally free from the tap, so bringing your own water bottle is a quick and easy way to save money on buying bottles when you’re there. And it’s better for the environment – less plastic. We found that everyone we asked was more than happy to fill up our bottles for us when we were out and about, so don’t be afraid to ask.
Also,
top tip: a lot of people throw away bottles on their way through airport security, but if you drink the liquid before going through the barriers, and keep the bottle, all UK airports provide water fountains where you can fill up your bottles for free – another way to save on overpriced airport water! The best bottles we’ve found are
these ones from Thermos – they’ve got a meter on the top so you can keep track of how much you’ve had to drink in the day, or simply the bottles from the
Breville blender we absolutely love.
2. Bring a thermos flask, tea and coffee
Overpriced coffee and tea has become part of our normal routine, but for that morning hit, or when you’re travelling nothing beats a good cuppa and it doesn’t have to cost the earth (Costa, Starbucks, I’m looking at you). Josh and I are as addicted to caffeine as the rest of the world, and to help shave a few pennies here, we brought our own transportable
tea,
coffee and
thermos flasks with us (Josh is a Star Wars fan!).
The problem we had was milk – hot water we were pretty sure we would come by, but milk is a little different. But after some internet research, we found that as long as it’s pasteurised, it’s ok to bring milk in to Iceland so it was back to the world wide web for some
transportable options which were small enough to pack. Result: hot drinks every morning for a fraction of the price of finding local cafes!
3. Plan for some home catering – and shop at Bonus Supermarket
The most obvious way to save money is to not eat out for every meal. Restaurants and cafes are expensive in Reykjavik, as owners make the most of the tourist trade, but they are a little cheaper the further North you get. That said, shopping for groceries in Iceland isn’t exactly cheap either. It’s a bit of a balancing act, but we found that planning for breakfast and lunch to be self-catered every day and then two of our five nights to be home based saved us an absolute fortune.
To do this, we brought some snacks from home (you can bring up to 3kg of food into Iceland as long as it’s all cooked – so no raw meat etc. but crisps/chocolates/biscuit bars and dried fruit for example are all fine), our trusty
tupperware and then made a trip to the supermarket on our first day. Hunting out a
Bonus is well worth it as they are by far the cheapest supermarket around. A loaf of bread, some butter, cheese, pesto, some filled pasta, 2 x ready meals and a few extra nibbles came to around 3100 Krona - roughly £25 - and whilst in the UK that would be an insane amount of money for what we purchased, it did set us up for the week and saved us splashing out on eating out.
Another top tip is to try and find out if there is a particular discount day. In the North of the island, deliveries are only once a week and the day before the delivery, prices can be up to 70% reduced. Ask a local to see if this happens in the area you’re staying.
4. If you do fancy a bit of a treat, order a takeaway and go collect it
We had a night stopover in Reykjavik but with an early start and a packed day behind us, we didn’t fancy cooking, or heading out to a restaurant. After a little help from our good friend Google, we stumbled on
Castello’s. We couldn’t get the online ordering system to work, so we braved the phone number and ordered 2 twelve-inch margaritas to collect. The total came to 3150 Krona which is roughly £25 and they were delicious! And it was packed with locals picking up their orders too (it was a Friday night) which is always a good sign. We were slightly out of the centre, so this worked perfectly for us, but I’m sure there are other similar places all over the city.
5. Fly WOW Air rather than Iceland Air
Kinda like flying Easyjet or Ryan Air,
WOW Air is Iceland’s equivalent to a budget airline. Yes you have to pay more for luggage etc., but you still get a screen, plenty of leg room and save a fortune in the process!
6. Drive when travelling around the island, don’t fly
There are many ways to travel round the island and the most obvious way might seem to fly – it’s quicker and with direct transfers from Keflavik to destinations such as Akureyri in the North, it can be a quick, hassle-free way to get to the more hard to reach areas of the island. The problem is Islanders know this and the prices of internal flights can be up to double of the cost it takes from the UK to Reykjavik. We were visiting Husavik up in the North and drove up from Reykjavik – a trip which took 6hrs, a third of a tank of fuel and gave us the opportunity to see some of the stunning scenery on the way. We took the slightly more direct route on the western side of the island, but for an even more scenic route, you can go round the western road, stopping off on the way in around two days. Don’t worry about getting lost either – I put the 500km route into google and it came back with 3 instructions – get on the route 49 to route 1, follow route 1, arrive in Husavik!
7. Car hire – hunt out local deals
The big brand names will hike up the prices so it’s well worth spending time hunting round for a good deal. The cheapest deal we found was with
Lava cars. They pick you up from the airport after meeting you at arrivals, take you to their offices round the corner and give you your car. Ours was a Dacia Duster which was functional, but did the job! Top tip: take out gravel insurance. Yes, it’s an extra expense, but on Iceland’s roads – it’s well worth it!
8. For single night stays, look to Air bnb rather than hotels
This might be second nature to most people out there, but it’s worth reiterating.
Air bnb offers a wide range of accommodation and on our first and last nights, we needed to be close to the route up north and the airport so it was perfect for a place to crash before our onward journeys.
9.Want to get the Blue Lagoon experience but want to save a few pennies? Try the Myvatn Nature Baths instead
Just as glorious, but much less touristy, the
Myvatn Nature baths offer the same experience of bathing in naturally heated bright blue water, but without the extortionate price tag. Located in the north of the island, it wouldn’t be worth the trip there alone but if you’re in the area, they’re well worth checking out. Prices range from 4200 ISK in low season, to 500 ISK in peak season, but they do offer lots of discounts for students and senior citizens so take your ID with you.
10. Plan to visit some nature
The most spectacular sights in Iceland are part of the natural landscape. Fortunately for visitors this means most are absolutely free to visit. There will more often than not be a decent car park, a visitor’s centre with a shop and some toilets which may or may not ask for a small charge for use. If you have a hire car, simply drive, park up and follow the trails to the sights. The Golden Circle tour in the South is a must-see trip taking in the hot springs of Geysir, Gullfoss waterfall and the Þingvellir National Park where two continental plates meet and you can walk between then in ‘no man’s land’. Most tour companies will offer day trips ranging from around 5hrs to slightly longer full day trips and my top tip would be to get there early. The route is very popular and everyone is doing the same thing hopping from one place to the next so the locations fill up very quickly as more and more busses from the city arrive.
In the north east of the island you have the
Diamond Circle and again most tour operators will offer trips from Akureyri, but to get the full benefit of these sights, we would recommend hiring a car and exploring for yourself. The Circle describes some 260km of land, covering the towns of Akureyri (Island’s second largest city with 18,000 inhabitants after Reykjavik’s 240,000) and Husavik (a hotspot for whale watching) as well as a wealth of natural phenomena. Our favourites were the Dettifoss and Goðafoss waterfalls, the geo-thermal area of Hverir, Myvatn with its massive lake and natural baths, the hiking area of Dimmuborgir and finally the stunning horse shoe shaped canyon at Ásbyrgi.
All in all we took around 70,000 ISK with us for a 7 day stay, and came home with around 35,000 ISK which we were pretty pleased with! In GBP terms this equated to roughly £500 at the time, and coming back with a few spare pennies really helped us in the coming months.
Got any other tips for saving money in Iceland you want to share? Comment below and I’ll add them to the post!