How to visit Iceland on a budget
To keep costs down in Iceland, you must shop at discount grocery stores like Bónus, rent a campervan to combine transport and accommodation, and skip the alcohol. Budget about $120 USD per day if you are doing a self-drive trip with a campervan.
- Shop at Bónus or Krónan. Avoid expensive restaurants and convenience stores. Locate a Bónus (look for the pink piggy bank logo) or Krónan immediately upon arrival in Reykjavik. Buy staples like oats, pasta, canned goods, and skyr for every meal.
- Drink the tap water. Never buy bottled water. Icelandic tap water is some of the cleanest in the world. Bring a reusable 1L bottle and fill it up at any faucet or mountain stream.
- Prioritize free sights. Don't pay for expensive guided tours. The Golden Circle, most waterfalls (Skógafoss, Seljalandsfoss), and black sand beaches are free to access. You only pay for parking at some sites.
- Fuel up smart. Gas is a massive expense. Download the N1 or Olís app to get discounts on fuel. If you have a rental car, use a loyalty key fob if provided by the rental agency.
- Limit alcohol consumption. Alcohol is heavily taxed in Iceland. Buy your beer and wine at the Duty-Free shop in Keflavík Airport *before* exiting into the arrivals hall. Do not buy it at bars.
- Is it worth buying a dining pass?
- No. Most dining passes for tourists offer poor value compared to just cooking your own meals.
- Can I hitchhike to save money?
- It is common in Iceland, but only during summer. It is not recommended in winter due to extreme weather risks.
- Do I need a 4x4 vehicle?
- Only if you plan to drive on F-roads (highland roads). If you stay on the Ring Road, a standard 2WD vehicle is sufficient and cheaper to rent/fuel.