How to Travel in Iceland on a Budget

Hi Friends,

So there is no pretending that Iceland isn’t an expensive destination to travel to… however, there are still things you can do to cut your costs. Doing Iceland on the cheap is still possible!

The Following are my Personal Tips to Travel on a Budget in Iceland:


Limit dining out – even to places that are normally reasonably priced in your country. For example, even the cheapest Subway footlong (I just have vegetables and cheese) was $14AUD (VS. normally $8AUD in Australia). The supermarket needs to become your best friend and for the cheapest supermarket, go to ‘Bonus’, they have the lowest prices. A guy in my dorm paid $37 AUD (!!!!!!!) for a seafood soup in a restaurant and he said it was the most disgusting meal of his life – the taste aside, that price is INSANE.


Stay in budget accommodation – even staying in a hostel in a 12-bed dorm is super expensive for hostel price standards, at $40AUD per night.


-Do individual tours instead of one big all-inclusive tours. When I researched doing a multi-day all-inclusive VS. 3 individual all-day tours (+ hostel accommodation + flights) the latter equated to about half the price.

-There are tours running every day when the weather permits (read my blog post regarding the unpredictability of Icelandic weather) if you are on your own there is always the chance you might meet someone who is driving, as I did and you could pitch in for petrol or cover their sightseeing or food expenses. So you could maybe even hold back on booking until a few days in (depending on how long you are staying).

-If you are planning to go to lots of museums consider getting the city card, it includes lots of bonuses like free public transport and access to thermal pools in Reykjavik.


Take the bus to and from the airport – this is still quite expensive, to be honest, but taking a taxi is apparently insanely expensive, so don’t even think about that! You can also purchase the ticket from the airport.

Currency: Cash or Card?

Similarly to my last blog post on saving money while travelling in Sweden – card is also king in Iceland so make sure you have a credit or debit card that allows you to have free or low-fee transactions in-store internationally (I use both a 28 Degrees credit card and Citibank debit card for this purpose).

How Much Did I Spend / My Daily Budget

I spent between $60AUD- $325AUD on a daily basis (the most expensive day included a flight from Sweden for $209AUD and transportation from the airport).

I hope you found this blog post helpful. If you have any tips for saving money while travelling in Iceland please comment down below.).

Mikki 🙂

7 thoughts on “How to Travel in Iceland on a Budget

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