For years, Iceland has had a reputation as one of the most expensive travel destinations in the world. From high accommodation prices to costly restaurant meals, visitors often find themselves spending more than expected.
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But a growing trend is helping budget-conscious travellers experience Iceland without breaking the bank: hiring a camper.
How hiring a camper makes Iceland more affordable
Instead of booking expensive hotels and rental cars separately, many travellers are now choosing to hire a camper in Iceland. This cost-effective solution combines transportation and accommodation into one, offering flexibility, freedom, and significant savings.
Camper Rental Iceland is a great way to cut down on travel costs while exploring Iceland’s breathtaking landscapes at your own pace.
Is Iceland expensive to visit?
In a word: yes. Travelling to Iceland can be relatively expensive due to the high cost of living and prices of imported goods. Tourists often face high prices for accommodation, food, transportation, and entertainment.
However, with proper planning, you can enjoy everything this incredible country has to offer without spending too much money.
The average daily budget for a traveller in Iceland is about £240 ($300). This covers essential expenses such as accommodation, food, transportation, and entertainment.
Costs may increase if you opt for luxury accommodation or expensive activities such as whale watching or diving.
Costs of accommodation
A big chunk of your travel budget will likely go toward where you stay in Iceland, so choosing accommodation wisely is crucial.
- Hostels: Budget-friendly, costing around £13-£40 ($16–$50) per night. Ideal for meeting other travellers but with shared facilities like bathrooms and kitchens.
- Hotels: Privacy and comfort, ranging from £64-£160 ($80–$200) per night, with hotels in Reykjavik being more expensive.
- Airbnbs: Private rooms or entire homes ranging between £40 and £64 ($50 and $80) per night.
- Unique stays: Lodges, farm stays, or remote accommodation that offers a local experience but at a higher price.
Cost of food
Iceland’s remote location means food prices are higher due to importation costs. Budget-conscious travellers should consider self-catering as supermarkets offer much cheaper options than dining out.
- Supermarket meals: A small jar of peanut butter costs around £3 ($3.49), while a hotel breakfast ranges from £7 to £13 ($9 to $16).
- Dining out:A typical dinner costs between £20-£32 ($25–$40) per person, with Reykjavik being the most expensive place to eat.
Airfare and getting there
Flights to Iceland can be a major expense, with prices varying based on location, booking time, and season.
- Average airfare: $300–$565 in the US. From the UK, flights are relatively cheap and are available from around £50, depending on when you travel.
- Cheaper fares: Some travellers from the US book flights to Paris or Amsterdam with a stopover in Iceland to reduce costs.
Cost of transport: rental cars, taxis, and buses
Choosing the right transportation can significantly impact your travel costs:
- Car rental: Starts at £40 ($50) per day for a small car, with additional costs for insurance and fuel.
- Taxis: Taxis are expensive, with fares starting at 695 ISK (£4 or $5) and most trips within Reykjavik costing between 2,000 ISK (£11 or $14) and 5,000 ISK (£28 or $35).
- Public transport: Reykjavik’s bus system is affordable, and airport transfers cost 2,280 ISK (£13 or $16) each way.
- Guided tours: Guided tours are a good option for visiting remote locations if you’re not renting a car.
Entrance fees and attractions
Iceland is filled with unforgettable sights, some free and others requiring admission fees:
- Hallgrímskirkja Church:Free entry, but the tower view costs 1,000 ISK (£6 or $7).
- Perlan Museum: Admission is 2,900 ISK (£16 or $20), with discounts for children.
- Blue Lagoon Spa: Entry starts at 6,100 ISK (£35 or $44), excluding transport.
- The Golden Circle: Free to explore if self-driving.
How to see the northern lights for free
- DIY viewing: Rent a camper and drive to remote areas with low light pollution for free.
- Guided tours: Guided tours range from £40 to £80 ($50 to $100) per person, often including transport and expert guidance.
- Luxury experiences: Exclusive dinner packages or stays in glass igloos can cost £120-£400 ($150–$500) per person.
Free and budget-friendly activities in Iceland
Some of Iceland’s most stunning sights are free to visit:
- Thingvellir National Park
- Seljalandsfoss & Skogafoss waterfalls
- Geysir geothermal area
- Hiking trails like Laugavegur
- Northern lights viewing (if conditions allow)
Average cost per day for travelling in Iceland
- Backpackers: £52-72 ($65–$90) per day (hostels, self-catering, public transport)
- Comfort travellers: £80-£120 ($100–$150) per day (budget hotels, occasional dining out, car rentals)
- Mid-range travellers: £150-£200 ($185–$250) per day (hotels, guided tours, eating out more often)
- Luxury travellers: £295-£495 ($370–$620) per day (high-end hotels, fine dining, private tours)
The best time to visit Iceland for budget travellers
- High season (June–August): Most expensive, but best weather, explore under the midnight sun.
- Shoulder season (May, September): Fewer crowds, slightly lower prices.
- Winter (November–March): Most budget-friendly, with cheaper accommodation and a chance to see frozen landscapes and northern lights.
Travel smarter: how to save money in Iceland
Flights & accommodation
- Book early: Secure flights and stays well in advance for discounts.
- Travel off-peak: Avoid summer months to get better rates.
- Stay in guesthouses/hostels: More affordable than hotels.
- Stay outside Reykjavik: Lower accommodation costs, but factor in transport.
Dining tips
- Shop at supermarkets: Bónus and Krónan offer budget-friendly groceries.
- Eat local street food: Try affordable Icelandic favourites like skyr and hot dogs.
- Takeaway & lunch specials: Many restaurants offer cheaper lunch menus.
Save on activities
- Focus on free attractions.
- Book tours early for discounts.
- Self-drive where possible to avoid guided tour costs.
Enjoy Iceland without overspending
Despite Iceland’s expensive reputation, hiring a camper is proving to be one of the smartest ways to explore the country affordably. More travellers are discovering this budget-friendly, adventurous alternative, making it a trend that’s here to stay.
