Iceland travel cost

Iceland is a dream destination for nature lovers, offering breathtaking landscapes, dramatic waterfalls, and vast wilderness. However, Iceland is also known for being one of the more expensive countries to visit. Proper budget planning is essential to ensure you enjoy your stay without financial surprises. This guide breaks down the main expenses of a trip to Iceland, helping you estimate your total budget for everything from transportation to food, accommodation, and activities.

Transportation: flights and car rentals

Cost of flights to Iceland

Flight prices to Iceland can vary depending on the time of year, the airline, and how far in advance you book.

• Average cost of a round-trip flight from Europe: Between $150 and $450, depending on the season. Flights are often cheaper from major cities like Paris, London, or Berlin.
• Average cost of a round-trip flight from North America: Between $400 and $900, depending on the season and departure city (New York, Toronto, etc.).

Car rental in Iceland

Renting a car is highly recommended if you want to explore Iceland at your own pace. The cost depends on the type of car, the season, and additional services like insurance or GPS.

• Economy car (2WD): Between $40 and $110 per day.
• SUV or 4x4: Between $80 and $220 per day, which is essential if you plan to drive on the F-roads (mountain tracks).
• Campervan: From $100 per day, a budget-friendly option as it covers both transportation and accommodation.

Tip: Book your rental car several months in advance, especially for the summer season (June to August), to secure the best rates.

Fuel

With long driving distances between attractions, fuel is a significant part of the budget.

• Average fuel price: Around $9 per gallon (2.10 € per liter). Filling up your tank can cost between $70 and $100, depending on your vehicle and travel distances.

Accommodation in Iceland

Accommodation in Iceland ranges from budget-friendly hostels to luxury hotels. The cost varies depending on the season, location, and type of lodging.

Youth hostels and guest rooms

• Price per night: Between $35 and $70 for dormitory-style rooms.
• Private rooms: Between $90 and $160 per night.

Hotels and guesthouses

• Average cost for a double room: Between $110 and $330 per night, with Reykjavik generally being more expensive than rural areas.

Camping

Camping is a great way to save money in the summer months. Several campgrounds across Iceland accept the Camping Card.

• Cost per night at a campsite: Between $12 and $22 per person.
• Camping Card: Around $170 for 28 nights, valid at many campsites across the country.

Tip: Wild camping is strictly regulated in Iceland and is prohibited in many areas. Always camp at designated sites.

Food and drinks

Eating out in Iceland can be costly, but there are ways to manage your food budget by making smart choices.

Restaurants

• Meal at a budget restaurant: Around $16 to $35 per person.
• Meal at a mid-range restaurant: Between $35 and $60 per person.
• Dinner at a high-end restaurant: Expect to pay more than $75 per person.

Supermarkets

Shopping at supermarkets is the best way to cut down on food expenses. Iceland’s main supermarket chains are Bonus, Kronan, and Netto.

• Daily food cost (self-catering): Around $12 to $18 per person.
• Local products like skyr (Icelandic yogurt) and rye bread are affordable and delicious options.

Alcohol

Due to high taxes, alcohol is expensive in Iceland. To save money, buy alcohol at the Duty-Free shop at the airport when you arrive.

• Beer at a bar: Between $8 and $13.
• Bottle of wine at the government-run liquor stores (Vinbudin): Between $14 and $28.

Activities and excursions

While many of Iceland's natural attractions are free to visit, some excursions and activities can be pricey.

Paid excursions

• Northern Lights tour: Between $50 and $110 per person.
• Entry to the Blue Lagoon: Between $65 and $110 per person, depending on the package.
• Whale watching tour: Between $80 and $130 per person.
• Glacier hiking: Between $110 and $170 per person.

Free activities

Thankfully, many of Iceland's most famous attractions are free to visit. Some of these include:

• Visiting the waterfalls (Gullfoss, Seljalandsfoss, Skógafoss).
• Exploring the black sand beaches at Reynisfjara.
• Seeing geysers at Geysir or Hverir.
• Bathing in natural hot springs, such as those in Reykjadalur (free access).

Insurance and unexpected costs

Iceland is known for its unpredictable weather and challenging roads, so it's essential to consider travel insurance and car rental coverage.

Travel Insurance

Travel insurance is recommended to cover unexpected events such as flight cancellations, accidents, or medical issues.

• Average cost of travel insurance: Between $35 and $80 for a week.

Car rental insurance

In addition to basic insurance, it is advisable to purchase extra coverage, especially if you plan to drive on gravel roads or in winter conditions.

• Collision Damage Waiver (CDW): Around $10 to $20 per day.
• Gravel Protection (GP): Around $10 to $15 per day.

Total budget for a trip to Iceland

Here’s an estimate of the total cost for a 7 to 10-day trip to Iceland, depending on your travel style.

Budget Traveler

• Round-trip flight: Around $200 to $350.
• Car rental (2WD): Around $450 to $700 for a week.
• Accommodation (camping or hostel): Around $12 to $60 per night.
• Food (supermarkets): Around $12 to $20 per day.
• Free activities: Hiking, visiting natural sites.

Total budget for 7 days: Between $900 and $1,400 per person.

Mid-range traveler

• Round-trip flight: Around $250 to $500.
• Car rental (SUV or 4x4): Around $700 to $1,100 for a week.
• Accommodation (guesthouse or mid-range hotel): Between $110 and $160 per night.
• Food (restaurants): Around $25 to $45 per day.
• Paid activities: Some excursions (e.g., Blue Lagoon, whale watching).

Total budget for 7 days: Between $1,600 and $2,800 per person.

Luxury traveler

• Round-trip flight: Around $400 to $800.
• Car rental (luxury SUV): Around $1,200 to $1,600 for a week.
• Accommodation (luxury hotel): Around $200 to $400 per night.
• Food (fine dining): Between $50 and $100 per day.
• Paid activities: Several organized tours and experiences.

Total budget for 7 days: Between $3,000 and $5,000 per person.

Conclusion

Iceland offers an unforgettable travel experience, but careful budgeting is crucial. Whether you’re planning an adventurous camping trip or a luxurious getaway, knowing what to expect in terms of costs will help you enjoy the island’s natural beauty without worrying about your finances. Plan your trip, book in advance, and prioritize what matters most to you to make the most of your Icelandic adventure!