Iceland is renowned for its stunning landscapes and unique experiences, but it's also known for its high cost of living. However, with some careful planning and budget-conscious choices, you can still have an incredible Icelandic adventure without breaking the bank. We share how we made the most out of our 4 day trip to Iceland on a budget.
Planning your trip with a budget
Before planning our road trip, we knew that Iceland could be an expensive destination. However, we were determined not to let that deter us from exploring this beautiful country. One of the key ways we saved money was in our choice of accommodation. We opted for a cozy studio apartment, which not only provided comfort but also allowed us to cook our own meals.
On the first day, we headed to Bonus supermarket to buy all our groceries for the week. Stocked up with ingredients, we could prepare dinners in our apartment's kitchenette, cutting down significantly on restaurant expenses. We also enjoyed making breakfast in the apartment and packing sandwiches for lunch to take on the road. This saved us a substantial amount of money.
Most importantly, we found that many of Iceland's daily activities were free or required minimal fees, such as hiking, exploring natural wonders, and visiting national parks.
Recommendation: Consider staying in apartments or guest houses with kitchen facilities to prepare your own meals, and stock up on groceries at budget-friendly supermarkets like Bonus.
Day 1: Pick Up the Car and visit Blue Lagoon
We kicked off our road trip by picking up our rental car. It was pretty important to us to have a rental car for this trip as we wanted to do several packed days, visiting multiple stops. There was probably tours going to some of these stops, perhaps not all of them, and having the car allowed us to go at our own pace.
Recommendation: Remember to bring a credit card to pay your car rental deposit, some rental companies will not accept debit cards.
Our first stop of the road trip was the world-famous Blue Lagoon. From our route planning we noticed that this was very close to the airport and where we collected our car from. To save time and petrol we opted to visit the blue lagoon on our way past as we headed from the airport towards Reykjavik. This allowed us to pack more into our other days without doubling back on ourselves, so we definitely recommend doing this as you arrive or before you are flying home.
Day 2: Yoda Cave, Black Sand Beach, Sólheimasandur Plane Crash and Skógafoss
Day two was filled with adventure and natural wonders. First on the list was the Hjörleifshöfði Yoda Cave. As an avid star wars fan, this was a must for Rob, despite the fact that it was around a 3 hour drive and just slightly further East along the south coast than the small village of Vik. The cave is also down a gravel road for the last past of the drive so we recommend getting "gravel insurance" if your car company offers this, to cover any small dents.
After our visit to the Yoda cave we headed back towards Reykjavik. Following a petrol stop in Vik, we visited Reynisfjara Black Sand Beach, where the basalt columns and Reynisdrangar sea stacks create a hauntingly beautiful backdrop. It's a place where the raw power of the North Atlantic Ocean meets the volcanic beauty of Iceland.
The next stop was the famous Sólheimasandur Plane Crash site. Although the walk from the car park is around 7km/4miles it is more than worth it to get to the plane. Surrounded by desolate, black sand, it feels almost otherworldly.
The day ended with a visit to three majestic waterfalls. First up was Skógafoss, the tallest and most powerful, which allows you to get close up shots at both the bottom and the top, with a short 10 minute walk to reach the top.
Our last two waterfalls (for the day) were Seljalandsfoss and Gljufrabui. This car park had a food truck and a nice little souvenir shop, where we picked up some cork puffin coasters. For these waterfalls you'll definitely need a waterproof jacket!
Recommendation: Take advantage of Iceland's natural attractions, most of which are free to explore. Hiking and sightseeing offer budget-friendly ways to experience the country's incredible landscapes.
This day was a bit mad. The total time for this itinerary, including driving and stopping was probably around 11-12 hours. If you’re staying in Iceland longer you may want to break up these stops over a couple of days.
Day 3: Thingvellir National Park, Gullfoss Falls, Friðheimar Tomato Restaurant, Kerid Crater, Geyser, Exploring Reykjavik
Another day, another day on the road. Today's aim was to check out the "Golden Circle" of sites to see in Iceland. This is a much more achievable day trip from Reykjavik than yesterday and even left us with some spare time to explore the city when we returned.
Firstly we headed to Thingvellir National Park, where the Eurasian and North American tectonic plates meet. The park also houses some interesting history, being the birthplace of Iceland's parliament, which is the longest standing in the world, as well as the customary waterfall.
Next, we visited the majestic Gullfoss waterfall, before stopping for our lunch. A very rare occasion on our budget trip of Iceland but we couldn't miss the chance to check out Friðheimar Tomato Restaurant. All dishes use fresh tomatoes that are grown on site and we highly recommend getting the soup. Although the meal was a bit on the expensive side, we enjoyed the fresh tasting tomato soup and unique Bloody Mary and tomato beer.
On our way back towards Reykjavik we made a couple of stops. We explored Kerid Crater, formed by a volcanic explosion thousands of years ago with rusty-red walls and bright blue water. Then, we headed to Strokkur, a geyser in the Haukadalur geothermal area, known for its impressive eruptions every 5-10 minutes.
We ended our day with an evening in Reykjavik, where we explored the city's street art, visited a bustling local market and strolled along the waterfront. As we wandered the streets, we admired the creative street art that adorned the walls, adding a unique charm to the city's character. The local market was a treasure trove of handmade crafts and fresh produce allowing us to immerse ourselves in Icelandic culture. A leisurely walk along the waterfront and up the rainbow road leading to Hallgrímskirkja was a perfect way to round off an adventure packed day.
With only having 4 days to explore this beautiful country we wanted to prioritise visiting the natural wonders of Iceland. Although we only spent a couple of hours exploring Reykjavik city we found it was plenty of time to smears ourselves in the city. However we would recommend spending more time in Reykjavik if you would like to visit the museum.
Recommendation: While indulging in a nice meal can be a splurge, it's essential to savor Icelandic cuisine at least once during your trip. Balance your budget by saving on other meals and activities, we often took sandwiches out with us for lunch and had breakfast and our evening meal in our apartment.
Day 4: Gerðuberg Cliffs and Ytri Tunga Seal Beach
On our final day we faced very stormy weather. Determined to see the seals at Ytri Tunga Seal Beach, we braved the elements. While the seals didn't come ashore, we could spot their curious heads popping out of the water, a heartwarming and wild encounter despite the challenging conditions.
Recommendation: Be flexible with your plans and embrace unexpected adventures, even in challenging weather conditions. Nature's surprises are often the most memorable.
Travelling through Iceland on a budget is not only possible but can enhance your experience by encouraging creative solutions and meaningful interactions with the stunning natural surroundings. By choosing cost-effective accommodations, preparing your meals, and prioritising free or low-cost activities, you can explore the Land of Fire and Ice without compromising on the magic of the journey. Iceland may be expensive, but it should not deter you from visiting this extraordinary destination.
Comments