I've had the absolute privilege of visiting Iceland twice now, and both times I've fallen in love with its amazing landscape and culture. I visited the first time with my parents, when money was a concern, but not nearly as much of a concern as it was the second time I went.
Anticipating our college graduation, my friends and I planned an extravagant vacation, packing four magnificent countries into the short span of two weeks (far less than any of them deserved). Having fallen for Iceland's charms only a few months before, I convinced my friend we simply had to visit if we wanted to make this trip a real adventure.
The actual adventure was budgeting. On top of planning for three other countries, we had to consider the sky-high prices Iceland has become nearly as known for as it is for its volatile scenery. Additionally, we had to keep to our strict budget once we landed on the island -- a feat far harder than it may sound, especially once you're surrounded by breathtaking waterfalls and the friendliest natives you'll ever encounter.
So, before you naïvely begin your planning, here are a few tips I've picked up from my time in the land of fire and ice from a traveler on a post-college budget.
1. Take a budget airline.
I flew from Ireland to Iceland on WOW Air, but the budget airline flies from multiple destinations to Iceland, including the States. After taking a mix of Lufthansa and Ryan Air, I wasn't sure what to expect. Plastic seats? No overhead compartments? No and nope. It was actually fairly comfortable, and very similar to Ryan Air. They charged you for food and drinks (as expected), and the seats are fairly narrow, but unless you're a 7 ft. football player, I wouldn't worry about it.
Alternatively, you could pay a little more for Icelandair, a nice in-between with far more comfortable seats and flights attendants who exude just as much charm and politeness as the Icelandic natives.
2. Rough it.
If you enjoy the chilly night air and are looking to avoid accommodation costs, bring a tent or rent one from anywhere around $8/day. Plus, you'll get to see some of Iceland's most popular sites while the rest of the island's tourists snooze comfortably in their hotel beds.
3. Work for it.
Alternatively, you could work for your accommodation. Certain trusted websites will connect you to people, families, couples, etc. around Iceland who need help for either a couple weeks to a few months. Whether it be lending a hand on a farm or cleaning rooms at a hostel, you'll get free accomodation, come into daily contact with the true Icelandic people, and even sometimes receive free meals.
4. Book a hostel or a guesthouse.
Don't feel like roughing it or working on your holiday? Don't worry, neither did I. Instead, choose from one of many hostels the island has to offer, and for fairly low costs (upwards from $30/night). Or, pay a little more for a guesthouse. Both have their pros and cons, and it just depends on your desired comfort level. Just a tip: most hostels here will likely charge you for the use of sheets, blanks, and towels.
Personally, I stayed with one of my friends in a lovely family-run guesthouse two minutes from Reykjavik's city center. We snagged a room with two beds and a shared bath in the hallway, and paid around $150/night (a luxury compared to the hostels we'd stayed in previously). While we paid more than we would have at a hostel, we had comfortable and warm beds, our own room, a clean bathroom, and a wonderful kitch. The latter brings me to my next point...
5. Make your own meals.
Food is kind of, sort of, seriously expensive in Iceland, and budgeting meals here can be extremely difficult. One of the perks of staying in a hostel or a guesthouse is that most will have a working and readily available kitchen, and I suggest you use it for at least half of your meals -- especially breakfast (if you're looking for an easy fix, try skyr). For lunch, grab some bread, cold cuts, and call it a picnic. The roadside eateries can get pricey, since they're pretty scarce, so you'll definitely want to pack your own lunch if you're going out on any kind of an excursion.
Additionally, you could always opt for an Icelandic hot dog, or a pylsur. Delicious and a less costly choice for lunch or dinner (or drunk food).
By saving on those few days when you make your own meals, you'll be able to indulge in some of the famous Icelandic lamb stew or shark.
Oh, and bring a water bottle. The streams make for wonderful free water fountains.
6. Don't get too crazy with the drinks.
Just like the food, the drinks are expensive, so don't let yourself get carried away one night or you could just break the bank. Try the Icelandic basics, such as a shot of brennivín or a pint of Gull, but don't go for any crazy mixed drinks.
7. Visit in the winter.
Just like most countries, Iceland has an off-season. In their case, it's winter. You'll find most prices are practically slashed in half. Plus, unlike the name, it doesn't actually get too cold. You'll need to bundle up (especially if you're from the sunny beaches of Miami or the like), but it's really not as bad as you might expect. However, be aware that certain attractions (such as the Icelandic ponies) will be unavailable during the colder months.
8. Rent a car.
Don't get me wrong, I love tours, I just don't love the prices. Instead, book a rental car and cash in on a few guidebooks.
On my first visit to Iceland with my parents, we rented an automatic-transmission car and relied on guidebooks (re: my mother) to get us around. We had a couple problems getting out of Reykjavik the first day, but once you're out in the wild nordic wilderness, it's really hard to take a wrong turn (there's not that many roads). The second time, my friend and I booked a couple different tours, and while the necessity to drive was relinquished, the desire to stop longer at some sites rather than others was unfulfilled.
So, not only will this travel method save you a lot of money, but you'll get to see more of what you really want to see and not get rushed like cattle from one place to the next.
9. Blue Lagoon vs. Secret Lagoon.
Decide if you really, really, really, want to stand in a hot pool with dozens and dozens of other tourists. If you still do, considering opting for the Secret Lagoon. It's slightly cheaper, less crowded, and attracts more natives than tourists, making the experience far more genuine. Just don't forget your swimsuit and a towel! You can rent either on location for around $5, but it's still a charge you can easily avoid.
10. Plan ahead of time.
This is pretty basic and universal, but it's still a good thing to keep in mind. While it can be exhausting planning every activity day-by-day weeks or even months in advance, it'll help you decide what activities you want to do and what you'll have to sacrifice. Deciding everything last minute could cause you to make spontaneous and pricey decisions. That being said, make sure to allow yourself a morning, afternoon, or day off to either relax or to sightsee the town you're visiting.
11. Talk to the natives.
The Icelandic people, in general, are extremely welcoming to tourists. Plus, a lot of them speak English. Use their familiarity with their homeland by asking questions -- most will be incredibly obliging! Examples: Where's the best affordable food? What grocery store should I go to? What places do you suggest visiting? What's the cheapest beer?
Iceland is easily my absolute favorite country I've ever visited. The warm and friendly people mixed with the breathtaking landscape make for adventurous bliss. Budget and plan ahead of time, and you're sure to have a stress-free vacation. Less checking your bank account, more checking the scenery!
