Iceland Vacation Cost: How Much Does a Trip to Iceland Cost? (2024)

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How much does a trip to Iceland cost? Figuring out your Iceland travel budget can be grueling, so I want to make this process as painless as possible by providing specific numbers to help you set realistic spending expectations for your upcoming trip. For this Iceland travel cost breakdown, I’ve hoardedall of my receiptsfrom my 4-day trip, and here’s how much it cost me.Since I’ve visited three times, I also included other fun facts as well.

Depending on your needs and interests, your Iceland budget breakdown may lookdifferent from mine. Nevertheless,this is an excellent resource for figuring out how much you’ll need.

Despite its reputation for being expensive,Iceland is a country brimming with potential for fun and adventure. With the right planning and budgeting, you can turn your trip to this unique destination into an exciting and unforgettable experience. I’m confident that with proper planning, you’ll have a blast visiting one of my favorite places in the world.

How expensive is Iceland relative to other countries? According to Numbeo’s Cost of Living Index by Country, Iceland is the sixth most expensive country, followed by the Bahamas, the U.S. Virgin Islands, the Cayman Islands, Switzerland, and Bermuda.

Money in Iceland

Icelandic Króna (ISK) is Iceland’s official currency.

Since debit and credit cards are widely accepted, Visa and Mastercatd, even for small purchases or in the most remote places, you can travel to Iceland with peace of mind knowing you don’t need cash.

There’s usually no need to exchange currency before your trip. However, if you prefer cash, there are plenty of ATMs at the airport, in Reykjavík, and conveniently located around the island.

Helpful Tip: Foreign transaction fees can add up quickly. Bring credit cards with no foreign transaction fees to avoid unnecessary charges and save money.

Read Next: Financial Things To Do Before Every Trip

Tipping in Iceland

Should you tip in Iceland? When should you tip and how much?

In Iceland, tipping is not necessary. The bill already includes service charge. Plus, unlike workers in the U.S., or other parts of the world, Icelanders earn a living wage.

Feel free to tip for exceptional service.Round up or leave around 10%.

Throughout Iceland, you may notice tip jars in cafes and bars. While this trend grows, especially in touristy areas, tipping still isn’t a big part of Icelandic culture.

How Much Should You Expect To Spend in Iceland?

Is Iceland expensive? How expensive is Iceland to visit?

Iceland is one of the most expensive countries in the world.Expect to pay more for food, accommodation, tours and activities compared to many other destinations.

Based on my three trips to Iceland, the average trip costs between $300 and $400 per person per day,including flights, budget lodging like hostels and Airbnbs, and activities, mainly guided group tours around the country.

This does not include car rentals or gas.

For a detailed breakdown of the cost of a trip to Iceland, keep reading to get a better understanding of the expenses you’ll incur.

Cost of Visiting Iceland: 4-Day Iceland Vacation Cost Breakdown

Round-Trip Flights from NYC + Hostel: $562 USD

I purchased my flight and accommodation package six months ahead of time on Expedia and redeemed a $25 Expedia+ coupon with all my accumulated points.

I flew with Delta Air Lines and stayed at Loft Hostel. Although hostels in Iceland aren’t as cheap as in other parts of Europe, they’re still a cost-effective option. If hostels aren’t your thing, search for hotels and guesthouses in Reykjavík here.

I booked my flight and lodging separately for my second trip to Iceland. I flew with Icelandair and booked my flights three months before departure. My round-trip ticket to Reykjavík from New York City cost $273.45 USD. At the time, this was the cheapest flight I’ve ever seen to Reykjavík on a non-budget airline. Also, flying with Icelandair meant that the first checked bag was free! The average flight to Reykjavík from New York City costs over $400 USD.

During this trip, I stayed at Kex Hostel Reykjavík in a six-bed female dorm for 6,800 ISK or $63.11 USD per night. I saved $36.10 USD this time by finding an amazing flight deal and booking the essentials separately. I recommend signing up for Thrifty Traveler Premium to find incredible flight deals worldwide.

For my third trip to Iceland, I booked flights with WOW Air for $176.76 USD and stayed at Captain Reykjavik Ránargata. Unfortunately, WOW Air went out of business in 2019.

Best Hostels in Reykjavík

• Best Overall Hostel in Reykjavík – Loft HI Eco Hostel
• Best Hostel For Fun Party Atmosphere in Reykjavík – Kex Hostel
• Best Hostel For Getting Work Done in Reykjavík – Bus Hostel

Best Mid-Range Hotels Reykjavík

• Best Hotel For Shopping – Sand Hotel by Keahotels
• Best Hotel For Proximity to Downtown Reykjavík – Fosshotel Rauðará
• Best Hotel For Relaxation in Reykjavík – Hotel Borg by Keahotels

Shuttle Bus to/from Keflavík International Airport: $32 USD

Gray Line Iceland Airport Express is one of the most convenient ways to get to Reykjavík from Keflavík International Airport. The bus ride takes 45 minutes, and there’sfree Wi-Fi onboard. You can order your tickets at the counter or confirm your booking online.

Children between the ages of 12-17 pay half price, and children under 11 travel free. Departures are scheduled 25-45 minutes after arriving flights, so even if you arrive late at night or early morning, there’s always a bus available. Flybus is another shuttle bus alternative. It is slightly more expensive.

With Gray Line Iceland Airport Express, you have two options. The “Terminal to Terminal” service takes you to the Gray Line Bus Terminal at Holtagarðar 10. The “Door to Door” service drops you off at your hotel or near your guesthouse.

Airport Express Terminal-to-Terminal Costs

2,400 ISK one-way or $19 USD

3,900 ISK round-trip or $31 USD

Airport Express Door-to-Door Costs

2,900 ISK one-way or $22.86 USD

4,900 ISK round-trip or $45.72 USD

Iceland Transportation Money Saving Tip

I saved 5% on my bus tickets with the promocode “SIGHT5”.

Before booking, Google “Gray Line promo codes” to find other coupon codes and more savings.

Gray Line Iceland also offers promo codes right on their website. During my second trip to Iceland, I booked aSnaefellsnes Peninsula and Cave Exploration tour and saved 10% with the promo code “LABOR10”.

Average Daily Food Cost: $60-$105 USD

What’s the cost of food in Iceland?

Food in Iceland is extremely expensive.

Even though I saved money on breakfast (included inmy hostel stay), I suggest budgeting $20-$35 USD per meal. On the other hand, my roommates bought a lamb stew for $80 USD. I know, crazy, right?

The cheapest lunch I hadcost$15 USD. The most expensive dinner was $34 USD.

Check out my Iceland food prices guide for how much things cost at supermarkets, restaurants, and bars.

How much to tip in Iceland?

Tipping isn’t mandatory in Iceland. Icelanders don’t tip because it’s included in the price and taxes. Feel free to tip your server or bartender if you feel they went above and beyond, but there’s no obligation or expectation. You may see tip jars in coffee shops, but you don’t have to tip them unless you want to.

More Money-Saving Tips in Iceland

Remember that you don’t need to buy bottles of water in Iceland. The water is pure, and you can get it free anywhere. My tour guide encouraged me to drink water from a glacier lagoon—and that’s normal.

Press play to listen to this podcast episode, where I share even more tips for saving money in Iceland. These tips are based on my book Iceland: Nature, Nurture & Adventure.

Listen to this episode on Apple Podcasts and Spotify.

Considering shopping in Iceland? Here’s how you can get up to 14% off items by claiming a tax-free refund.

Average Activity Cost: $120 USD

Iceland has much to offer, especially if you’re looking for adventure. There are waterfalls to walk behind, glaciers to climb, and you can even go inside a volcano or snorkel between continental plates. If you’re feeling really adventurous, try extreme motorsports like formula off-roading.

Things To Do in Reykjavík

• Hallgrimskirkja Church: $8 USD
• Admission to Vesturbaejarlaug swimming pool: $8 USD
• Tip for CityWalk Reykjavik walking tour: $12 USD (set your own price)

CityWalk Reykjavik

CityWalk Reykjavik offers free walking tours in Reykjavík. They also leadpub crawls, running tours, and private tours. The free “History and Culture Walk” is a great introduction to the city, Icelandic culture, and history. Best of all, the tour guides are witty Icelandic historians. During the walking tour, you’ll walk throughthe most historic parts of town,including the oldest neighborhood and the oldest cemetery. I would have missed so many hidden gems if I skipped this tour. At the end of the tour, set your own price and tip in any currency.

Day Trips from Reykjavík

Day trips in Iceland are pricey, but the good news is that I also found plenty of cheap things to do in Reykjavík if you’re on a budget.

• Horseback riding: $106 USD
• Iceland’s South Coastbus tour: $138USD
• Snorkeling at Silfra (including photos): $205 USD

I booked a snorkeling Silfra tour ahead of time with DIV.IS.If you have aGoPro camera, bring it with you. You can save money by not paying extra for photos and videos.

If you want to seeIceland’s landscape, it’s worth visiting the countryside.Lots of people recommend renting a car in Iceland, but taking a guided tour was informative and convenient.I would have missed so much if I were on my own!

I also booked a last-minute South Coast sightseeing tour with Sterna Travel.Sterna Travel offered the cheapest South Coast bus tour,and the value was incredible! I saw many waterfalls and a glacier tongue, and I even learned about the effects of volcanic eruptions and global warming on the island.

Average Daily Alcohol Cost: $18 USD

Getting a drink or two in Iceland adds up quickly. A beer costs roughly $11 USD.

Loft Hostel has one of my favorite barsin Reykjavík. They offer a variety of Scandinavian beers, andyou can jam out to live music on Fridays. Their rooftop patio is also a great place to scope out the city skyline.

A friend introduced me toÖlsmiðjan Bar, a dive bar where beer costs only $5.48 USD or 590 ISK!

Lastly, use the Appy Hour app to find cheap drinks in town. Appy Hour conveniently lists every happy hour in Reykjavík in real-time.

Total Cost of Trip to Iceland

How much does it cost to go to Iceland? When I totaled all of my expenses, I spent $1,240 USD for my 4-day trip.Iam bothshocked and relieved I decided to spend only four days in Iceland. The more time you spend in Iceland, the more you’ll spend. An average trip to Iceland costs approximately $300 per day, including flights and lodging.

Food, alcohol, and activities werethe most expensive budget categories, butI’m amazed Natasha over at The World Pursuit spentaweek in Iceland and only spent $100 USD! Nevertheless, I have no financial regrets whatsoever about my trip. I’m happy I got to visit one of the top destinations on my travel wish list.

Would I go back? Ugh….duh!I’m already planning my fourth trip.

How To Save Money In Iceland

Although visiting Iceland isn’t the cheapest, it’s still worth it. With that in mind, here are some quick pointers to help you and your wallet make the most of your Iceland vacation.

1. Shop Duty-Free. While you can buy alcohol at a local bar or restaurant, alcohol is pricey in Iceland because of taxes. To make matters even worse, alcohol taxes are levied based on the volume of alcohol in a drink. The first piece of advice is: buy your drinks at the airport. If you’re flying into Keflavik International Airport, Iceland’s main airport, stop by Duty-Free Iceland. It has a wide selection of alcoholic and non-alcoholic beverages from Argentina to New Zealand and almost anywhere else in between. Keep in mind that each traveler is only permitted six units of alcohol. If it sounds confusing, use this alcohol allowance calculator to see how much beer, wine, and liquor you can purchase at the airport.
2. The second piece of advice is to make the most of local happy hours. To find out which bars have discounted happy hours, download Appy Hour. This app sorts out bars and happy hour deals based on proximity and price.
3. Bring a refillable water bottle. While you can buy bottled water in Iceland, Iceland’s tap water is unbelievably pristine, safe, and never chemically purified. Iceland’s tap water is reported to originate from springs and mountains that are naturally purified through molten rocks, which not only cleanse the water of any bacteria or chemicals but also add minerals and nutrients. So why spend your coin on some of the world’s best water when you can get it from the tap for free?
4. Ditch cash. Like most countries, Iceland prioritizes plastic, with no need for ATM visits and fees.
5. Claim your tax refunds through tax-free shopping. Tax-free shopping is a way to save money when traveling to expensive countries such as Iceland. For more on how to claim your tax refund, check out my article, “Tax-Free Shopping in Iceland,” on how to save money and receive a tax refund.
6. Unlike the U.S., where tipping can go a long way, tipping is not necessary in Iceland. Gratuity is already included in the bill, so while tipping isn’t required, it is always appreciated.
7. Regarding finding reasonably priced items to stock your temporary fridge, Iceland has several options for affordable grocery stores. Of these grocery stores, I suggest Bónus and Krónan for household items, food, drinks, and anything else you may need to enjoy your time in Iceland.
8. Prioritize local swimming pools over fancy hot springs. Here, you’ll meet locals and partake in their traditions and customs while also saving money!

For even more helpful tips not covered on the blog, grab a copy of my Iceland travel guide!

In this book, we cover:

• What to expect
• Things to do in Iceland
• Things to pack
• How to save money in Iceland
• How to save money duty-free shopping in Iceland
• The best times to visit Iceland and more!

Continue planning your Iceland vacation. Read these Iceland articles next:

Caving Adventure in Vatnshellir Cave

Top Blue Lagoon Alternatives

Best of Iceland South Coast Tour

Grab copies of my books on Amazon.