How Much Money Do You Need to Visit Iceland (+ Tips How To Travel Cheaper)

How expensive is Iceland - price examples for food, hotels, car rental, activities, and more

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Whether you are traveling to Iceland soon or just starting to plan a trip, you have probably already heard it hundreds of times – Iceland is very expensive. But how expensive is Iceland actually? And how much money do you need for a trip to Iceland?

I often say that the definition of what’s expensive is different for everyone. It depends on where you come from and what you are comparing with. However, when it comes to budgeting for Iceland, no matter where you come from, or what you compare it to, traveling in Iceland is expensive.

Still, to help you budget your trip and get a better idea of how much money a trip to Iceland costs, I want to show you some real-life examples of how much everything costs in Iceland. This article contains lots of real-life examples of prices in Iceland. This way you can better estimate how much money you need to visit Iceland.

READ ALSO: Best Things to Do in Iceland

Disclaimer. Note that the prices indicated here are correct at the time of the last update. The exchange rate is used just for your information, but the currency rate fluctuates quite a lot. You can check current exchange rates on Google.

Budgeting for a trip to Iceland - price examples for food, hotels, activities, car rental and more

Iceland money FAQ

Before we continue with some real-life examples of how much everything costs in Iceland, here are some practical tips and answers to the most frequently asked questions in regards to money and budgeting for a trip to Iceland.

What currency is used in Iceland?

Icelandic currency is the Icelandic króna (ISK). Depending on the current exchange rate, 1000 ISK is about 7-9 USD.

Can you pay in US dollar or in Euro in Iceland? 

No, you cannot pay in US dollars or in Euro in Iceland. Icelandic króna (ISK) is the only currency officially accepted in the country. You could, for example, use these currencies to tip the tour guides. We advise using your credit card for all payments in Iceland.

Do you need cash in Iceland? 

No, you don’t need any cash in Iceland. And yes, you can pay everywhere by debit or credit card. Note that some places (such as unmanned petrol stations) only accept credit cards with a 4-digit pin.

Is tipping expected in Iceland?

No, tipping isn’t common in Iceland. However, it is appreciated. If the service is extremely good, you may tip 10% at upscale restaurants, but it’s really not customary. Tour guides generally expect a small tip.

Can I use American Express or Diner’s Club in Iceland?

While some places will accept these cards, they are not as widely used in Iceland as Visa or MasterCard. So to be sure that you can use it everywhere, better take Visa or MasterCard with you.

Is Iceland expensive?

Iceland has a reputation of being a very expensive country. However, in recent years, the Icelandic currency has weakened a lot and the prices now are very comparable to those in Western Europe. You can find more information and price examples below.

Do you need a credit card with a pin in Iceland?

While credit cards with a pin are widely used in Iceland, you will be able to use your ‘regular’ American credit card at most places as well. If, however, you need to get gas at an unmanned petrol station, you will need a card with a pin. You can avoid this by purchasing a prepaid fuel card from one of the bigger petrol stations upon arrival in Iceland and using it at all the gas stations from the same group throughout the country.

TIP: If you don’t have a good credit card for travel, check out this selection of the best American credit cards for travel. I recommend choosing a card with no foreign transaction fees.

Icelandic krona - you don't need cash money in Iceland, just use credit cards
Cash isn’t widely used in Iceland

FREE things to do in Iceland

Before we continue with the price examples of what food and other things cost in Iceland, you should know that some things are actually free of charge. The best things in Iceland are free of charge!

  • For example, visiting natural landmarks is FREE in Iceland, – there are no National Park fees or similar.
  • There are quite some natural hot tubs in Iceland that are free to use for everyone. Note that most of them require some hiking.
  • Another thing that is free of charge in Iceland is drinking water. Tap water is really tasty, so don’t forget to pack your reusable water bottle to Iceland. You can also ask for tap water at the restaurants and normally they don’t charge for it.
  • There are no toll roads in Iceland, so all the roads are free of charge. The only place where you need to pay (at the time of writing) is Vaðlageiðargöng Tunnel, near Akureyri. However, you can also choose to drive through the mountains (in summer, just 10-15 minutes extra) and skip the tunnel altogether.
  • Bathroom facilities at most petrol stations and at most landmarks are free of charge. Some places ask for a fee and it’s becoming more and more common in the busiest tourist areas.
  • There are also some free attractions. Here you can read more about free things to do in Reykjavik.

LEARN MORE: Top Places to Visit in Iceland

Iceland trip itinerary suggestions - from one day to two weeks
There are no entrance fees to visit Strokkur geyser or other natural attractions in Iceland

How expensive is it to rent a car in Iceland

Renting a car in Iceland can be quite affordable or it can cost you a fortune. A lot depends on the type of car that you rent, the season when you travel, but also on how long in advance you book it.

I just checked a couple of different dates to use as an example. These are base rates, if booked months in advance, not taking into account any additional insurance.

  • The cheapest tiny rental car in the low season will cost from about 300-400 USD/week. Renting the same car in high season will cost from 800 USD/week.
  • A small 4WD (Dacia Duster or similar) will cost from about 350 USD/week in the low season, and about 1,000 USD/week in high season.
  • Estate cars (large cars, ideal for 4-5 people and luggage) cost about 400 USD/ week in the low season, and over 1,000 USD/ week in the summer.

TIP: Make sure to read the small letters and compare different providers. Additional insurance costs and all kinds of extras might mean that the cheap car rental turns out to be more expensive than you first thought.

How to save money when renting a car in Iceland:

  • Book well in advance. In general, the earlier you book, the cheaper your rental car will be. On top of that, when booking online in advance, you can compare the prices, what’s included, and find the best car rental deal for your trip to Iceland. We use and recommend this website for all car rentals anywhere in the world, also in Iceland AND we always take full insurance offered by them (this is much cheaper than paying it at the counter in Iceland).
  • Pick up your car at Reykjavik airport. This will save you some expensive airport transfers to town. Reykjavik is not the place where you need to stay longer than half a day or a day, so if you are already renting a car, rent it for the whole duration of your trip.
  • You don’t really need a 4WD if you are only driving the Ring Road in Iceland in the warm months. It’s nice to have a car that is higher, so an SUV might be advisable, but in general, you can visit the main landmarks of Iceland in summer by regular car.

Good to know: If you are planning on visiting Icelandic highlands and driving on the F roads, or if you are driving in Iceland in winter, then you should definitely hire a 4WD or a 4×4.

Just remember, no matter which car you have, driving in Iceland in winter is dangerous and requires caution and skill. The weather changes quickly and so do driving conditions. 4wd might be very useful in case of snowstorms, but it doesn’t automatically mean you will be safe. Don’t let money be the main deciding factor in which car you rent for your trip and DRIVE SAFELY.

Renting a car in Iceland is not cheap
Renting a car in Iceland is not cheap, but make sure you rent the right car for your trip – Photo © Daniele Buso via Unsplash

How expensive is petrol in Iceland

At the moment of the last update, petrol prices in Iceland are around 320 ISK per liter (+-2.3 USD/liter or 8-9 USD/ gallon).

With the Icelandic krona being weaker, the exchange rate is quite good, and the fuel price is quite comparable to what it costs in Western Europe.

Small petrol station near Icelandic highlands - fuel prices in Iceland are similar to UK and Western Europe
A small petrol station on the road towards the Icelandic highlands

How expensive is car parking in Iceland

Car parking used to be free pretty much everywhere in Iceland, but this has changed.

Most natural landmarks still have free parking, some others charge a small fee. For example, car parking at Seljalandsfoss Waterfall costs 900 ISK (6.5 USD) for a regular car.

Parking costs in Reykjavik city depend on where exactly you want to park your car. Parking inside the most expensive zone in the city center will cost you about 3 USD per hour, a bit further – about half the price, but outside of the city center, you can still park your car for free.

TIP: Download the Parka app – it makes paying for parking in Iceland simpler.

Car parking at Seljalandsfoss waterfall in Iceland is no longer free
Car parking at Seljalandsfoss waterfall is no longer free

How expensive is public transport in Iceland

Public transport is, in general, not the best option to get around Iceland. There is a good bus network in Reykjavik town, and a regular fare inside the city costs about 630 ISK (4.5 USD). A one-way ticket on bus 55 that connects Keflavik airport to Reykjavik town costs 2280 ISK (17 USD). It’s much easier and faster to book a shuttle bus.

There are public transport connections between major towns in Iceland, but, once again, it’s not the best way to see the country since the most beautiful places and natural landmarks cannot be reached by public transport.

You can find all the practical information about public transportation on the website of Straeto, the Icelandic public transport company.

View over Reykjavik from Hallgrimskirkja - visiting the church tower is one of the cheaper activities in Iceland
View over Reykjavik from Hallgrimskirkja church tower

How expensive is a taxi or airport transfer in Iceland

A local once told me that taking a taxi isn’t all that expensive in Reykjavik. But the few times we took we found that it was expensive – like 20 USD for a 5-minute ride. I also heard people complain that they were charged about 200-250 USD for a taxi ride from Keflavik airport to Reykjavik (about 45 minutes)… So we never tried it for bigger distances…

I guess it all depends on what you compare it with and also with how many people you share the cost.

TIP: It’s cheaper to book a taxi ride or a private transfer online in advance than just hop in a taxi, especially if you are traveling long distances. Most companies display the rates for airport transfers or other popular destinations around Reykjavik on their websites, so you know in advance how much it will cost.

If you are looking for cheap airport transfers, you should know that most shuttle bus transfers cost around 25-30 USD – see here. Private transfers around 150-200 USD (up to 4 people), but you have to book in advance!

READ ALSO: Reykjavik Airport Transfers

Taxi is quite expensive in Iceland
Taxi is quite expensive in Iceland, especially for long distances

How expensive are hotels in Iceland

The price of accommodation in Iceland highly depends on the place and on the period when you are visiting. Here are just a few examples:

  • A night in a double room at a really nice Fosshotel near Jokulsarlon glacier lagoon costs about 200-250 USD in November and about 500-600 USD in July. Breakfast not included (+-32 USD/ person if paid at the hotel, less if booked in advance).
  • A night in a double room at Fosshotel Reykjavik costs 200-300 USD in November and 350 USD in July (+ breakfast).

In general, in the low season, you should count at least 200 USD per night for a 2-person room in a mid-range hotel in rural Iceland, and 250-300 USD in the more popular places and in Reykjavik. In the high season, expect to pay much more.

Of course, there are many more expensive options and also some budget accommodations.

You can find more suggestions and prices for your trip in our Iceland accommodation guide and also in our guide to Reykjavik hotels. Check it out!

ION Adventure Hotel in Nesjavellir Iceland
ION Adventure Hotel © Roan Lavery via Unsplash

How to save money on accommodation in Iceland:

  • Book in advance! I cannot stress this strongly enough. The earlier you book, the more choice you have, and the better deals. The moment you know your travel dates, book your hotels.
  • Check for the best available deals. We book 99% of all our accommodations on Booking.com. It’s so easy to find the best available deals for the location you’re looking to stay at. They have hotels, B&Bs, and self-catering accommodations all in one place.
  • Travel in the low season. As you could see from the examples above, hotels in Iceland can be twice as expensive in summer.
  • If you stay in hotels, book a room with breakfast included in the rate. It’s much cheaper than having to pay for breakfast afterwards.
  • Book self-catering accommodation and save not just on accommodation, but also on food. Cooking, instead of dining out, will save you a lot of money in Iceland (you can find what food costs further down in this post). You can book an Airbnb, but in rural Iceland, you can find more self-catering accommodation options on Booking.com. Instead of hotels, try guesthouses, apartments, or cottages and cabins. Another option is just to go on the Booking.com website, bring in your travel dates and Iceland as location, then in the ‘filter by’ section under ‘room facilities’ choose ‘kitchen/kitchenette’. Then click on the map and you’ll see all the available self-catering accommodation options.
  • If renting apartments or houses from private owners, check for any hidden fees. Often, you have to pay a cleaning fee, bed linen fee, sometimes even wi-fi, etc. So unless you’re staying in such a place for a longer period of time, it might not be much cheaper than staying in hotels.

TIP: Using the map below, you can quickly get a good idea of how much your accommodation in Iceland would cost and compare all the best options. Simply insert your travel dates, location, and travel dates, and you’ll get an overview of what’s available. Check it out!

 

How expensive is camping in Iceland

The costs of camping in Iceland depend a lot on when you travel and how you decide to camp – using a tent, a small campervan, or a big motorhome.

Prices for a campervan vary a lot depending on the season, soaring from June through August. You can expect to rent a very small campervan from about 70-100 EUR per day; you’ll pay twice or even three times that price for a big motorhome or a 4×4 mountain camper.

Campsites in Iceland cost around 15-20 EUR per person per day, but you can also get a 28-day card for 2 adults and 4 kids for 179 EUR…

LEARN MORE: Camping in Iceland

Camping in Iceland - the most complete guide with practical tips
Camping in Iceland

How expensive are tickets for museums, pools, and other attractions in Iceland

As already mentioned, the most beautiful natural landmarks of Iceland are completely FREE to visit for all (please also see the section about free things in Iceland above). Also, children under 7 are often free of charge, older kids usually pay a seriously discounted rate, and some places also offer family tickets.

Here are some examples of entrance ticket prices of some popular attractions in Iceland:

  • Hallgrímskirkja church tower (great views over Reykjavik): about 10 USD for adults and 2 USD for kids.
  • Perlan in Reykjavik: around 40 USD for adults, kids between 6 and 15 – half price, free under 6.
  • Skogar Museum (turf houses along Iceland’s South Coast): about 20 USD for adults, kids under 12 free of charge, older kids half the price.
  • Husavik Whale Museum: around 20 USD for adults, kids free of charge.
  • The Herring Era Museum in Siglufjörður: 16 USD.
  • Blue Lagoon. There are different packages. A standard ticket with round-trip transfers from Reykjavik is about 150 USD (and you absolutely have to book in advance!).
  • Sky Lagoon in Reykjavik – about 130 USD (also here, book well in advance!).
  • Myvatn Nature Baths. Again, lots of different prices, starting from around 45-50 USD in the low season. Discounts for kids and seniors. You can check prices and book here.
  • Local community pools usually cost around 5-10 USD, often very cheap or even completely free of charge for the children.

How to save money on activities in Iceland:

  • Visit free attractions.
  • Spend more time in nature. Seeing the most beautiful places in Iceland doesn’t cost anything.
  • Visit community pools and skip expensive touristy baths. Not only are they cheaper and less busy, but they also have hot tubs, special kids pools and often even slides for the children.
Public swimming pools in Iceland cost just a fraction of the popular places like the Blue Lagoon or Myvatn Nature Baths
Public swimming pools in Iceland are a bargain

How expensive are organized tours in Iceland

It’s difficult to put a price on tours in Iceland, there are so many different choices. In general, organized day tours cost around 100 – 200 USD per person, depending on the tour and activities.

Some things you can do on your own or with a tour – seeing the Nothern Lights in Iceland is a good example of that. However, some other tours require a guide and cannot be done on your own. Some examples are glacier hiking, ice caving, whale watching, lava caves, etc.

Here you can find some of my hand-picked Iceland tours for all seasons and the best winter tours in Iceland. Here you can also find some really nice ideas for half-day tours from Reykjavik.

TIP: Also tours are best booked in advance. That way you can save money by comparing the best deals (and read customer reviews!) rather than blindly booking a tour suggested by your hotel.

For our own trips, we book pretty much all our day tours and organized activities via GetYourGuide. It’s our favorite one-stop-shop for all organized tours because they have the best customer service and cancelation policy we have ever seen.

Booking directly with a local company usually means that you can’t cancel for free, let alone get a refund in case something goes wrong (as recent events and a few user-unfriendly local Icelandic companies have shown time and again…). For that, it’s always helpful to have a strong intermediary and GetYourGuide is the best one we know and personally use for all our trips.

READ ALSO: Iceland Itinerary for a Self-Drive Trip

Glacier hiking guides in Iceland
Glacier hiking or ice caving can only be done with a guide

How expensive is dining out in Iceland: food, drinks, alcohol

The sky is really the limit when it comes to restaurant prices in Iceland. Let’s just say that you can praise yourself lucky if you manage to find a hamburger or a pizza under 25 USD.

Most meals at dinner will be at least 40-50 USD. It’s not uncommon to find a 3-course menu that costs 150-200 USD in a restaurant in Reykjavik.

Hotels often have a set menu price, which will often start from 5000 ISK (45 USD).

That being said, we noticed that there is a very big difference in prices at the restaurants in Reykjavik, around the Golden Circle, and along the South Coast and those in the less popular areas like northern Iceland. While we could have a decent dinner for less than 100 USD for our family of 5 in the north of Iceland, it would often cost at least 50% more in the south…

Meat dish usually costs around 35 to 50 EUR in Iceland
Meat dish like this chicken breast usually costs 35 to 50 EUR

Here are some food prices you can expect in Iceland’s restaurants. Remember, that restaurant prices can vary a lot, depending on the place. The prices indicated below come from non-fancy restaurants in Iceland.

  • Hamburger: 2500-3500 ISK (20-25 USD).
  • Small courses and appetizers: 1500 – 3000 ISK (13-26 USD).
  • Pasta or pizza: 2300-4000 ISK (20-35 USD).
  • Fish or meat dish: 4000-7000 ISK (35-60 USD).
  • Dessert: 1200-2300 ISK (10-20 USD).
  • Children’s meal (if you can find it): 1600-2500 ISK (14-22 USD).
Menu of Fridheimar tomato restaurant along Iceland's Golden Circle
Fridheimar tomato restaurant menu

Here are some average prices you can expect to pay for the drinks and alcoholic beverages at the restaurants in Iceland:

  • Tap water is delicious and is FREE.
  • Tea or coffee: 400-600 ISK (4-5 USD).
  • Cappuccino, latte, and similar: 500-800 ISK (5-7 USD).
  • Soft drinks and juice: 400-600 ISK (3.5-5 USD).
  • Beer: 1050 – 1700 ISK (9-15 USD).
  • Glass of wine: 1500-1700 ISK (13-15 USD).
  • Bottle of wine: from around 5000 ISK (40 USD).
Prices of hot drinks and waffles at a small roadside cafe in Iceland
Prices of hot drinks and waffles at a small roadside cafe

How expensive is food in the supermarkets and petrol stations in Iceland

Buying food in supermarkets in Iceland can save you a lot of money. Here are just some examples of what food costs in the shops and petrol stations. It’s mostly fruit and snacks, but it gives you an idea of what to expect.

Food prices in Iceland:

  • A hot dog costs 300-600 ISK (3-5 USD).
  • Sandwiches cost about 990 ISK (8.5 USD).
  • Bananas (1kg/ 2,2 lbs) cost 220 ISK (2 USD).
  • Apples: 500 ISK (4.5 USD) for 6 apples.
  • Small Skyr (Icelandic yogurt): 180-220 ISK (1.5-2 USD).
  • Small pack of cheese: 700-800 ISK (6-7 USD).
  • Small bag of cinnamon cookies: 480 ISK (4 USD).
  • Sliced dark bread: 700 ISK (6 USD).
  • Small pack of sliced meat: 400-700 ISK (3-6 USD).
  • Orange juice: 360 ISK (3 USD)/ litre.
  • Small bottle of water or soda: 260-300 ISK (2.5 USD).
  • Small ready-to-eat snacks and salads: 1000 – 2000 ISK (8-17 USD).
Sandwiches, small snacks and drinks for sale at Keflavik airport in Iceland
Snacks and drinks at the airport. 990 ISK for a sandwich, 210-315 ISK for Skyr, 450-590 ISK for a drink

How to save money on food in Iceland:

  • Book accommodations with breakfast included.
  • Buy food at the supermarkets and have picnics during the day. Not only does it save money, but also lots of time.
  • You can find some small meals at the petrol stations along the Ring Road – usually much cheaper than in the restaurants.
  • Pack a thermos and fill it with coffee or tea at your accommodation in the morning.
  • Pack a reusable water bottle and refill it with tap water whenever you get the chance.
  • Cook at your accommodation, order takeaway meals (in big towns only), or look for cheaper restaurants.
  • Don’t drink alcohol. It will save you a fortune. Come on, you can do a week without it! You’ll be too tired after the whole day exploring outdoors anyway.
Picnic for lunch is one of the easiest ways to save time and money in Iceland
Picnic for lunch – it’s one of the easiest ways to save time and money

How much money would a trip to Iceland cost

How much would a trip to Iceland cost? As you can see from the examples above, this is a really tough question to answer. So much depends on when you travel, what kind of car you rent, which accommodations you choose, and how often will you be dining in restaurants. Also, traveling with 4 people will cost much less per person compared to traveling alone.

Nowadays, I would count at least 2000 USD per week per person in Iceland, not including the flights (and with at least 2 people sharing the room/car). A few years ago, my 1-week winter trip to Iceland cost about 1500 USD, staying in mid-range accommodations, dining out every evening, and doing just two paid excursions: Iceland glacier hiking and Blue Lagoon. These days, this budget is too low, unless you don’t do any paid activities and don’t go to restaurants every day.

If you travel in summer, stay in somewhat cheaper hotels, and dine out less, you’ll probably need at least $2500 per person for a week. In winter, you might be able to do it for a bit less. But if you want to stay at nicer hotels, visit several hot springs, and dine out every evening, it will probably be more like $3000-3500.

The best way to budget for your trip is by checking the cost of accommodations, rental cars, and guided excursions. Then add +-500 USD per week for food and other expenses. It won’t be exact, but it will give you a pretty good estimate of how much your trip to Iceland will cost.

TIP: One of the easiest ways to take a trip to Iceland without worrying about going over the budget, is to join an organized multi-day tour. That way you know exactly what the trip will cost; you just need to budget for the food. I wouldn’t necessarily do this in summer, as driving is easy and a self-drive trip is advisable. But if you are traveling to Iceland in winter, you can save yourself so many headaches by going on a multi-day tour.

Make sure to read what’s included before comparing tours, as some included excursions like glacier hiking, ice caving, or similar can make a big difference in price.

How much would a trip to Iceland cost depends on so many factors- season, accommodation and rental car choices, etc.jpg
How much would a trip to Iceland cost depends on so many factors: the season, accommodation and rental car choices, etc.

Shopping in Iceland

And finally, one last note and an often asked question by people planning an Icelandic trip – shopping in Iceland. Iceland is expensive and is really not the most suitable place to do shopping, especially if you are traveling on a budget.

Many tourists consider buying traditional wool Icelandic sweaters. Quality Icelandic sweaters can easily cost 200-250 USD and more in Iceland.

Note that souvenir shops are full of sweaters that are made in China and the quality doesn’t resemble much. If you want to get an authentic Icelandic sweater, check the store of Handknitting Association of Iceland in Reykjavik downtown. Another option is to look for sweaters from Farmers Market (it’s an Icelandic brand that has two stores in Reykjavik).

Amazon also sells some really nice Icelandic sweaters from ICEWEAR. Often, they are cheaper than in Iceland, and sometimes, you can also find hand-knitted sweaters online.

If you decide to buy an Icelandic sweater, do it at the beginning of the trip (or before even going there) – you’ll definitely need it in Iceland. For more suggestions on what to wear in Iceland, please check our Iceland packing tips for summer (June-September) and our Iceland winter packing list (end of September-May).

TIP: If you buy any souvenirs or clothing in Iceland, don’t forget to ask for a Tax-Free receipt. You can claim the VAT back when leaving the country at the airport. Just keep in mind that it can take several months to get that money back. My latest tax-free claim took almost 5 months; I had long given up on it…

Colorful winter hats for sale in a shop in Iceland
Some shops in Iceland are hard to resist, but prices are really high

So, here you go. I hope that seeing these examples of prices in Iceland helps you budget for your trip to Iceland and know what to expect. Do you have any questions? Check our Iceland travel guide for more information! If you still don’t find an answer to your question, feel free to leave a reply below.

READ ALSO: Top Travel Tips for Iceland

Planning a trip to Iceland, but are not sure where to start? Check out these itineraries:

Some of our favorite lesser-known places in Iceland:

Also the popular areas are full of hidden gems that most people never see. Here are some of our favorites with the detailed guides on what to see:

If you found this post helpful, don’t forget to bookmark it and share it with your friends. Are you on Pinterest? Pin this image!

How much money do you need for a trip to Iceland

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46 Comments

  1. I live in Iceland and my family is coming to visit from UK. This is the best and most update article I could find. All the prices and details are rwally helpfull. Thank you

  2. Can you take a large suitcase for in the planes hold hall as it’s me and my grandaughters so was thinking of putting most of our stuff together and just taking back pack for under seats plz

    1. Hi Angela, yes, you can always check-in large suitcases and just take hand-luggage with you on the plane. However, how many bags you can take, size, weight, etc. depends on the airline you’re flying with and the ticket conditions that you chose. So you have to check your ticket conditions and the website of the airline for more information on what you can take with you.
      Also, most airlines allow you to buy additional hold luggage online before your trip, so if it’s not included in your ticket, you can always do that. Best to arrange this online in advance since it costs much more if you have to do it at the airport.
      Hope this helps.

    2. @Jurga, Thank you I’m not flying till Oct but wud I be best contacting the airline now to arrange one large suitcase or arrange it thru the tour operator that I booked with
      Thank you

      1. Hi Angela, you can arrange luggage through your airline booking. If you used a travel agency for that, yes, it’s best to contact them with any questions you have about your trip.

  3. I may have missed this information in one of your responses. Can you let me know which supermarkets you recommend? I know there is one that’s open 24 hours a day that is very expensive.

    1. We personally just go to the supermarket that is closest to our accommodation when we need to get something. If you are on a really tight budget, you may want to check BONUS supermarkets, but in general, the choice of a supermarket shouldn’t have such a huge influence on your overall travel budget.

    2. Perfect. Thank you so much for your reply. I don’t have a tight budget but I don’t want to overspend on groceries if there are better options.

  4. Question,

    how much currency would you recommend an individual should bring with them for a 7 day trip. Breakfast and dinners are provided, accommodation and transportation is already paid for. So I would only need cash for lunch and some small souvenirs.

    1. Hi Angela, as already mentioned in the article, unless you absolutely want to feel Icelandic money in your hands, you really don’t need cash in Iceland. Everything can be paid by card. It’s so much easier and you don’t have to worry about how much cash to take from an ATM or how to spend it all at the end of your trip.
      Some people like to take some cash for tips for tour guides, but tipping isn’t that customary in Iceland, and if you tip in USD or Euro, the guides will probably be just as happy as with local currency.

      1. Of course, your Canadian credit cards should work. I wouldn’t see why not. The best credit cards to use in Iceland are VISA or MASTERCARD, so as long you have one of those, you should have no problems.
        Ideally, your card has a chip with a 4-digit pin, but I hear from our American readers that they use cards without a chip as well. The only difficulty without a pin can be at the unmanned petrol stations.
        If you are not sure about the cards that you have, it’s best to contact your bank and ask if they will work abroad. Some banks have to be notified in order to activate the cards, so it can never harm to double-check.

  5. Oops! One more question. I wanted to buy some Icelandic Sweaters – do you have any suggestions of reputable stores? And what is your thought about buying them online so I can have them when I am there. I don’t really like shopping, I would rather be sightseeing! Thanks again

    1. The best place to buy the original handmade Icelandic sweaters is the store of The Handknitting Association of Iceland in the center of Reykjavik. That’s also where I got mine. It’s not cheap though. I also asked for tax-free papers and filed them at the airport. It took about 5 months to get about 30 EUR of taxes back. 🙂
      BUT – the last time I was in Iceland, I saw fantastic Icelandic sweaters at the Icewear store in Reykjavik airport and they were about 20% cheaper than in the city. They say that they are handmade too and I really couldn’t tell the difference. They looked and felt just as good as the one I have and the ones I saw Icelanders wear.
      I see that you can now buy Icewear Icelandic wool sweaters on Amazon, and the prices are very comparable. So if you want to get one before your trip, this would be the easiest way to do it! Indeed, it’s nice to just bring the right clothing with you and not have to plan time for shopping upon arrival, also because the nicest places in Iceland are natural wonders, far away from any shops.

  6. Hello! Thank you for all of your useful information! We are planning a self drive tour – and I became very worried when you stated “one very user unfriendly local tour company.” We are planning on using a local tour company and I want to make sure I avoid “unfriendly and unhelpful” people. Can you give me a hint as to who to avoid? And if you don’t want to say – please email me! Thank you!

    1. Hi Patricia, I prefer not to mention company names on my website, but it’s all over the internet and also has been mentioned in our Iceland and Scandinavia travel Facebook group a few times. Also, if you read the customer reviews on TripAdvisor, you’ll quickly realize if that’s the company I was talking about. Most of their recent reviews start with ‘no refund’, ‘unprofessional’, ‘liars’, and similar. If you don’t see that in the reviews, then it’s likely not that one :).
      And yes, you’ll see many great reviews too because the tours they offer are very good. But it’s when things go wrong that you get to know who is worth your trust and who isn’t, and that’s why we recommend our readers booking their trips via GetYourGuide which has the best cancelation policy and unparalleled customer service. In the end, you get the same tour and you pay the same price. But you get that extra protection in case things go wrong that you never have when booking with a small company directly.

  7. Hey Jurga, how you doing? Well, me and my brothers are planning on a trip to Iceland during early September, 2021. I read your article about “september. the best time to travel to iceland” however, i’m concerned about the climate change and expense during early September. As you mentioned 1500 USD’s per head for a week is expensive (dine out every eveing). More suggestions on places which are hidden, not often visited, about credit card uses and unpredictable climate during September??

    -Amith Georgy

    1. Hi Amith,
      First things first – the weather is always unpredictable in Iceland. Even if you go in summer, you can have wintery days. September is, in principle, not winter yet and chances for snow are low. But it will be windy, it will rain, and if you’re lucky, you’ll have some sunny weather as well. You can never be sure that you’ll have fantastic weather in Iceland. It hardly ever happens.

      As for the costs, so much depends on your choices. What kind of a car you rent, how many people will share the car and accommodation costs, how often you’ll eat at the restaurant and which restaurants will you choose. The most expensive in Iceland are organized tours. But all the natural attractions are free of charge, so you can see a lot, most actually, without having to pay any entrance fees or similar.

      On our last trip to Iceland, we went with the whole family (2 adults and 3 kids). We were there for 11 days/ 10 nights and visited more off the beaten path areas (see our North and West Iceland 10 day itinerary). We had a rather expensive 4WD car (because we visited the Westfjords and the Highlands), which was about 1500 EUR with all-in insurance (so about 28 EUR per person/ day). If you just stick to the Ring Road, in September, you can just rent a regular car.

      For the rest, accommodations for 5 people cost us, on average around 275 EUR/ night (so 55 EUR per person/ night). We stayed at some nice accommodations, not the budget ones.
      Food in those parts of the country was also cheaper than along the South Coast and we often had dinner for under 100 EUR for the 5 of us.
      We also took an expensive ATV tour once, went to geothermal pools almost daily, and ate at a restaurant at least once a day. For food, fuel, and activities, we spent about 225 EUR/ day (so about 45 EUR per person/ day).
      So not counting the flights and the rental car, we spent about 100 EUR per person per day. With the car, about 130 EUR/pp/day. So, in this case, we didn’t spend 1500 EUR/pp even for an 11-day trip.

      Hope that this helps you a bit. Once again, costs divided among 2 travelers or 4-5 people sharing the same car and accommodation, cannot be compared. 4WD car or a small 2WD – a huge difference. Big apartments or nice hotels vs. hostels or Airbnb’s – another big difference. But it gives you an idea. That 1500 EUR/ week is just to give people a good estimate and in most cases, it’s about correct if people stay at nice hotels, take a few tours, and dine at the restaurants. But your trip can cost 500 EUR or 2000 EUR/ week, depending on your group size and the choices you make.

      As for credit cards, you can use credit cards everywhere in Iceland. We didn’t even take cash on our last trip, not at all.
      Please also read this article with Iceland travel tips for more information.

  8. I love all this helpful and practical info. I want our family of 5 to go and this specific info is a must to help me budget! Thank you! I’ll be reading all the other info for the trip as well. I specifically would LOVE to go for the Viking festival the second week of June 2021. Any hints and tips for me regarding that? I don’t want that to be our only experience. We must see all the beauty of the Golden Ring, and we will rent a car, I just think my three boys will find that festival such fun. I’m open to your feedback 🙂

    1. Hi Brenda, I have never heard of this festival so I can’t help you there. But I can imagine that it would be interesting to attend, also for kids.
      As for what to see and where to go in Iceland, Golden Circle is just a very small and overly popular part of Iceland with huge crowds. It’s worth a visit, but one day is enough for it. If you are traveling in summer and have at least 10-12 days, you could try to do the entire Ring Road and explore more. We have lots of itinerary suggestions and detailed guides for a variety of destinations in Iceland. Please check our Iceland travel guide for the entire selection of articles.
      Hope this helps.

  9. I am travelling to Iceland with my partner in February, and I can not wait! Your article has been really helpful, thank you 🙂

    1. Hi Patricia, this article includes lots of examples of what everything costs in Iceland focusing on things that travelers would find interesting to know (food, hotels, rental cars, etc). I’m not sure what kind of ‘stuff’ you refer to, so it’s hard to help you any further.

  10. Many thanks for all this wonderful information it has been so informative and makes planning a trip to Iceland much easier.

    Gerry

    1. Glad to help. It’s actually a bit cheaper in Iceland at the moment, because Icelandic currency is quite weak. Also, we are just back from yet another trip and found that food prices at the restaurants were really affordable in the North and often much too expensive in the South. So it really depends on where you go. The good news is that there is more and more choice when it comes to dining options and it’s getting easier to make a trip to Iceland somewhat more affordable.
      Enjoy your trip!

  11. This sight was very insightful. My daughter and I leave in a few days for Iceland for a 6 day trip. I adjusted what I am packing based on some notes. We booked our Air BnB, flights, rental car, and most of our day trips in advance. We heard that it is best to shop for any alcohol right at the airport, or likely only drink beer. We plan to shop in the grocery stores for most of our breakfast, snacks and a few lunches and only dine out for dinner as we want to experience native Icelandic food. Thanks so much for the great tips.

  12. Thanks for the advice. I am planning on a 10 day trip with a friend in June. We will be getting a rental car. I was confused about where should we stay. So should we stay all 10 days in Reykjavik or divide or stay between Reykjavik and other places.

    1. You definitely shouldn’t stay in Reykjavik! Half a day – a day is enough for the city and this time of the year you can easily drive on your own and see a lot since the days are endless.
      Make a road trip around the island or at least part of it. Here you can find some itinerary suggestions. Just make sure you book accommodations asap – it’s already really late for June, especially along the South Coast. Here you can find some suggestions for where to stay in Iceland, but as I said, it will be more a matter of finding what’s still available.

  13. Wow, thank you for your great blog! I’m looking at going to Iceland in the winter of 2019 to celebrate our 40th wedding anniversary. Seeing the Northern Lights would be a dream come true! You have answered many questions that I had about traveling to Iceland.

  14. Its really bad advice that you don’t need 4WD in Iceland if you mean in winter. I strongly suggest you revise that statement to reflect seasonality.

    1. This statement is based on the current law, as well as experiences of quite a lot of people who I know safely explored Iceland in winter in a regular car. So it is not a must to have a 4WD in Iceland in winter.
      That being said, I agree with you that it’s probably wiser to rent a 4WD. Just hope that people realise that 4WD in itself is not enough for driving in Iceland in winter. No matter which car you have, you still have to know what you are doing and be very careful.

  15. Hi Jurga!

    Thanks for sharing your experiences in Iceland. Can you recommend any tours that includes blue lagoon and northern lights? Also, Is reykjavik near to the blue lagoon and other touristy spot? Thanks!

    1. Hi Stanley, I’m not aware of any tours that combine the Blue Lagoon and Northern Lights, usually they can be done separately. Here you can find our suggested winter day trips from Reykjavik.
      Blue Lagoon is actually quite far from Reykjavik, some 50min drive, but there are shuttles that can bring you there. Alternatively, you can look into a tour that e.g. combines the Golden Circle and the Blue Lagoon in one day. But there are also other cheaper geothermal pools – you’ll find all these options in the above mentioned post.
      Reykjavik is ok as a place to base yourself if you are just visiting Iceland for a few days, especially in winter. You can make quite some nice day tours, most popular options are Golden Circle and the South Coast, also geothermal pools, Northern Lights, also ice caving or glacier hiking. In summer, I would rather recommend to rent a car and explore further – Iceland’s most beautiful treasures are in its nature, not in the city.
      Hope this helps.

  16. Thanks for the article. Its really helpful! I’m thinking of going in January for 3 days. Can you recommend any tours that would include northern lights and husky riding that are only for 3 days and possibility of staying in a unique place for one night? Thank you!

    1. Hi Sophia, there are so many options for tours, from day tours to multiple-day tours. However, you won’t easily find husky riding in Iceland – I haven’t seen any tours like that, but if you look well, maybe there are some. No idea. It’s a big thing in Norway and Finland, not so much in Iceland…
      For some suggestions for the best day trips, please check this – best winter day trips from Reykjavik.
      If you haven’t booked hotels yet, then I really suggest looking into 2 or 3-day tours. That means sleeping somewhere along the South Coast, so less driving in the dark and more daylight hours for actual sightseeing. Here are some options:
      2-day tours: Glacier Lagoon, Blue Ice Cave & Waterfalls: 2-Day Tour or 2-Day South Coast Tour with Blue Ice Cave
      3-day tours: 3-day winter touror Golden Circle, Glacier Hike, Ice Cave, Northern Lights Tour
      I don’t know if any of these tours include any special accommodation, but I don’t think so. If that’s your main focus, then you’d need to rent a car and do self-driving, but I can’t even think of that many unique places to stay…
      Maybe hotel Ranga in Hella, 360° Boutique Hotel & Lodge in Selfoss, also Fosshotel Glacier Lagoon near Jokulsarlon or hotel Magma in Kirkjubæjarklaustur. But they aren’t really unique as such, just really nice places to stay…
      Also, self-drive trip in Iceland in January isn’t for everyone and if you add it all up it’s more expensive than just taking day trips or an organised 2-3 day tour.
      Hope this helps!

  17. All of your advise is spot on. I was in Iceland for three weeks in May of this year. I did all the math on car rentals, camper rentals, tours I wanted to take, hotels and food for a single traveler and ended up going on an organized tour that ended up being less expensive than single travel. Don’t purchase food at 10/11 as it’s about twice as expensive as Kroger’s or Bonus grocery stores. While I was there the shuttle from the airport went from $25 to $35 per person. I had reservations for shuttle at a specific time but that didn’t matter because my luggage was lost and I missed my pickup time by almost two hours. There were only five people on the shuttle bus. They take you to a transfer station where’s van takes people to various hotels. Fantastic trip do much to see and do. With tour saw many places not in guide books.

    1. Thank you for sharing your experience, DeeDee. It’s indeed worth it to do some math and research before booking your trip to Iceland. Especially as a single traveler, I think small group tour has so many advantages, so it’s good to hear your story. I’m sure it will be very helpful to our readers.