Iceland is generally considered an expensive travel destination. For tourists, an average daily budget tends to be around £240 or $300 USD.
Understanding the Average Daily Cost
This estimated daily budget, equivalent to approximately 41,000 ISK, is comprehensive. It covers the essential elements of a typical tourist's trip, ensuring a comfortable experience that includes:
- Accommodation: Your lodging, whether it's a hotel, guesthouse, or hostel.
- Meals: Food and drink throughout your day.
- Transportation: Getting around, from local travel to transfers.
- Activities: Engaging in popular Icelandic experiences and excursions.
Here's a quick overview of the average daily expenditure:
| Currency | Average Daily Budget | What it Includes |
|---|---|---|
| GBP | £240 | Accommodation, meals, transportation, activities |
| USD | $300 | Accommodation, meals, transportation, activities |
| ISK | 41,000 | Accommodation, meals, transportation, activities |
Factors Influencing Travel Costs
While the average provides a good baseline, your actual expenses can fluctuate significantly based on various choices:
- Time of Year: Peak season (summer, particularly July and August) sees higher prices for flights, accommodation, and tours due to increased demand. Traveling in the shoulder seasons (spring and autumn) or winter can often result in lower costs.
- Accommodation Style: Opting for luxury hotels versus guesthouses, hostels, or camping can drastically alter your lodging expenses. Self-catering apartments or accommodations with kitchen facilities often provide an opportunity for significant savings on food.
- Dining Habits: Eating out at restaurants for every meal, especially in Reykjavik, adds up quickly. Purchasing groceries from local supermarkets and preparing some of your own meals can lead to substantial savings.
- Activities and Excursions: While Iceland offers breathtaking natural beauty that is free to explore (e.g., hiking, visiting waterfalls like Seljalandsfoss and Skogafoss, exploring black sand beaches like Reynisfjara), guided tours, glacier hikes, whale watching, and entry to popular geothermal lagoons (such as the Blue Lagoon or Sky Lagoon) are significant expenses.
- Transportation Method: Renting a car offers flexibility but comes with fuel costs, insurance, and potential parking fees. Relying on tour buses, public transport for city travel, or combining specific tours can be a more economical choice for some travelers.
Tips for Managing Your Budget in Iceland
Despite the perception of high costs, smart planning can help you enjoy Iceland without overspending:
- Embrace Self-Catering: Make frequent use of local supermarkets like Bonus or Krónan. Preparing your own breakfast, packed lunches, and even some dinners can lead to considerable savings compared to dining out.
- Seek Free Natural Attractions: Iceland's most stunning sights—its waterfalls, geysers, national parks, and unique geological formations—are often free to visit. Prioritize these natural wonders in your itinerary.
- Book in Advance: Especially for accommodation and popular tours, booking several months ahead can often secure better rates and ensure availability, particularly during peak travel times.
- Travel During Shoulder Seasons: Consider visiting in May, early June, September, or October. These months often offer a good balance of milder weather, fewer crowds, and typically lower prices for flights and accommodation than the peak summer period.
- Consider a Campervan or Guesthouse with Kitchen: A campervan can combine accommodation and transportation costs, while guesthouses or apartments with kitchen access allow for convenient meal preparation, reducing dining expenses.
- Pack Appropriately: Bringing good quality, layered clothing and waterproof gear means you won't need to purchase expensive items upon arrival, ensuring you can comfortably enjoy Iceland's diverse weather conditions.
