Iceland: How much does it cost? (and how to save money)

Liked this post? Save it for later!

Before I went on my trip to Iceland, one thing I heard the most was how expensive it was.   So, I thought I was prepared just knowing this bit of information.  Welll… this wasn’t the case.   

The million dollar question is (no pun intended!):  “Is Iceland Expensive?”  And yes, it is!   When I saw the cost of a meal I nearly fell down.   

BUT there are ways you can save money so that it isn’t as painful for you or your bank account.  I’ll break down the cost of my trip, and how we saved money, to give you an idea of what to expect, so that you can actually be prepared!

 

Flights

This will vary greatly, depending on deals at the time and where you are flying from.  I like to use an app called “Hopper” which watches flight prices for you, the cheapest days to fly, and tells you if you should book a flight or keep waiting.   The cost for my flight from Halifax, Nova Scotia to Iceland was $701 CAD roundtrip (although, I have seen deals for as low as $500).

 

Accommodation

My first choice for accommodation is AirBnb, I love it. Depending on where you stay, you can get a lot more value for your money (like a kitchen, laundry, etc.). Make sure to read the reviews, so that you know what to expect and if the apartment fits your needs.

We stayed in a very central neighbourhood in Reykjavik (read this post for the best areas to stay in), so that we could be within close walking distances to what we wanted to see.

Prices will fluctuate during high and low seasons. We went in September, when the cost for accommodations was a bit lower. For 5 nights the total cost was $576 CAD.

 

Food – is it expensive in Iceland?

Ah, the food. Now this is where it can get expensiveeee! Before my trip, I heard that it would be expensive, but nothing could prepare me for how expensive it actually was.   The cost for one meal is, on average, $30 CAD (at an inexpensive restaurant) to $65 CAD.   Tipping is not expected in Iceland.

If you’re eating 3 meals a day this can definitely add up fast. We saved money by buying breakfast foods and snacks from a local grocery store so that we wouldn’t be eating out for every meal. 

You can try and cook supper too, but if you’re anything like me the last thing you want to be doing on vacation is slaving away in a kitchen and missing out on local dishes (and more exploring!).  I don’t mind breakfast foods because they are quick and easy.

The cost for food can vary in each grocery store, and some are more expensive than others. Check out Bonus for the better deals, or Krónan which is slightly more expensive but has more of a selection.

 

Drink

Alcohol is also really expensive in Iceland.  On average the price for a beer in Iceland is $13 CAD.   I know,  I almost fell down writing that!  If you want to save money, a good tip is to buy it duty-free at the Airport when you arrive.

And whatever you do, don’t waste your money on bottled water. The water is so clean. Bring a water bottle with you and fill it up from the tap.

 

Transportation To and From the Airport

This can also vary depending on if you are renting a car or not. We didn’t rent a car, so to get to and from the airport there are a couple of different options.

The first option is if you want to head directly to Reykjavik. If you do, then you can take the Flybus. They have Wi-Fi on board and comfy reclining seats. You can opt to be dropped off at your hotel when you purchase your ticket, or at the Reykjavík BSÍ Bus Terminal.  If you choose to be dropped off at your hotel, they will take you to the bus terminal anyway, and you will be transferred onto a minibus which will take you to your hotel. The bus terminal is really small, and very organized, so it isn’t too overwhelming once you are there.

If you are staying in an AirBnb, check Google Maps to find the closest hotel to your accommodation and ask to be dropped off there. A return bus voucher (with hotel drop off) starts at 4000 ISK ($50 CAD).

The second option is if you want to go to the Blue Lagoon before (or after) Reykjavik. For convenience, we booked our transportation through the Blue Lagoon’s website. When you buy your Blue Lagoon ticket you can add on transportation.  This costs an additional 5500 ISK ($70 CAD), and includes return vouchers and pick ups/drop offs at your hotel.

 

Excursions

Now time for the fun part – exploring!  But is Iceland expensive to explore?  This all depends on how you explore it.  A big decision before going to Iceland is whether to rent a car, or take day trips.   

The cost to explore using a rental car, or going on day trips will all depend on how long you are staying in Iceland, what you want to do, and what your budget is like.   For us, during our 5 days in Iceland it was much cheaper to go on day trips than to rent a car.     

 

Day Trips

If you decide to go on a day trip, there are SO many tours available.  Like riding an Icelandic horse, or going inside a volcano!   Are these tours in Iceland expensive?  It all depends on what you want to do, and also how much time you have. 

The cost for the most popular day tours are:

• Hot Golden Circle Tour: 10.900 ISK (or $140 CAD) – this includes admission to the Secret Lagoon!
• South Coast Tour: 10.900 ISK (or $140 CAD)
• Reykjanes Tour: 9.900 ISK (or $130 CAD) 
• Northern Lights: 9.900- ISK (or $130 CAD)

We traveled with the following tour companies, and really liked how small the groups were:

• GeoIceland Tours
• Guide to Iceland Tours

 

 

 

Blue Lagoon Costs

We booked the comfort package for 6.990 ISK (or $90 CAD). This includes Entrance to the Blue Lagoon, Silica Mud Mask, a towel, and a drink. Compared to the other packages, the main things that are missing is a robe, slippers and an algae mud mask. To save money, we brought our own robes and slippers (flip flops). For a complete guide to the Blue Lagoon, check out this post.

 

Reykjavik Costs

In Reykjavik, you can go up to the top of Hallgrimskiirkja church for under $10 CAD dollars. Well worth it for those iconic views of the city!

 

Museums

The average price to go in a museum is about 2.000 ISK. However, if you plan to go to a lot of museums you can save money by purchasing A City Card. This gives free (or discounted) admission to museums, pools, and shops, and public bus transport.

We personally did not use this card while we were there, but if you are planning to check out a lot of museums, and want to go swimming in the local pools, then it may be worthwhile.  The prices vary depending on how long you want the card to be valid for. For more details, check out their website.

 

Shopping

Usually when you go somewhere new, you might want to go shopping and buy a souvenir or something to remind you of the country. One popular thing to buy is an Icelandic Sweater.  They are on average $200 CAD.

A tip for shopping in Iceland: If you are not from there, you can take advantage of Tax Free Shopping. If you purchase something that is over 6.000 ISK (about $75 CAD), you can claim up to 14% and get money back! This doesn’t apply for food, accommodation or tours, though.

Claiming your refund is REALLY easy and is done in the following 3 steps:

• In the store: When you buy something, ask the store clerk to fill out a tax free form. They will stamp or sign it and give the form back to you.
• Fill in your name, address, country, passport number, signature and credit card number.
• At the airport: BEFORE you check into your flight, follow the “Tax Free Refund” signs to a counter. There will probably be a line, but it moves quickly. They may ask to see what you purchased. Then, they will then ask if you want your refund by cash or credit card.  Easy peezy. You are then ready to check in to your flight and go home!

 

Hopefully these tips and cost breakdowns of my trip to Iceland will help you with your trip!  Are there any tips that you would recommend on how to save money on a trip?  Let me know in the comments below.

Liked this post? Save it for later!