Prices in Iceland: What Every Traveler Needs to Know

Iceland, known for its breathtaking landscapes, vibrant culture, and unique experiences, is often regarded as one of the most enchanting travel destinations in the world. However, it is no secret that Iceland is also one of the more expensive countries to visit. If you are planning your dream trip to the Land of Fire and Ice, understanding the costs can help you budget effectively and avoid surprises.

In this guide, we’ll break down the costs of key travel essentials in Iceland to ensure you’re well-prepared.

1. Accommodation Costs

Accommodation in Iceland varies widely depending on your preferences, but overall, expect prices to be higher than in many other destinations.

Budget Options:

• Hostels: Prices range from $40 to $80 per night for dormitory beds.

• Campsites: Camping is a popular option, costing around $10 to $20 per person per night. Many sites offer basic facilities like toilets and showers.

Mid-Range Options:

• Guesthouses: Expect to pay between $100 and $200 per night for a private room with shared or private bathrooms.

• Airbnbs: Prices start at around $150 per night, depending on location and amenities.

Luxury Stays:

• Hotels: Upscale hotels charge between $250 and $500 per night, with premium lodges and resorts exceeding $1,000 per night during peak seasons.

2. Food and Drink Costs

Dining out in Iceland can be pricey, but there are ways to keep your food expenses in check.

Dining Out:

• Fast Food: A simple meal like a burger or pizza will cost $15 to $25.

• Casual Dining: Expect to pay $25 to $50 per person at a mid-range restaurant.

• Fine Dining: A three-course meal at a high-end restaurant can easily exceed $100 per person.

Groceries:

• Budget-conscious travelers often opt for groceries. Supermarkets like Bónus and Krónan are popular for their relatively affordable prices.

  • Milk (1 liter): $1.50 to $2

  • Bread (loaf): $3 to $5

  • Local lamb or fish: $10 to $20 per kilogram

Drinks:

• Coffee: A cup of coffee typically costs $4 to $6.

• Alcohol: Due to high taxes, alcohol is expensive. A beer at a bar costs $8 to $12, while a bottle of wine in a store may set you back $20 to $30.

3. Transportation Costs

Exploring Iceland’s natural wonders often requires some form of transportation, and the costs can vary significantly.

Car Rentals:

• Economy Cars: Prices start at $50 to $100 per day.

• 4x4 Vehicles: Necessary for accessing highland roads, costing $150 to $300 per day.

• Gasoline: Fuel is expensive, averaging $2.50 per liter.

Public Transport:

• Buses: Local buses cost around $4 to $10 per ride, while long-distance bus routes can cost $30 to $100.

• Airport Transfers: A round trip from Keflavík International Airport to Reykjavík is around $50 to $60 per person.

4. Activities and Attractions Costs

While many of Iceland’s natural attractions are free to visit, organized tours and activities come at a price.

Free Attractions:

• Natural landmarks like waterfalls, glaciers, and beaches usually have no entrance fees.

Paid Activities:

• Blue Lagoon: Entry fees range from $50 to $100, depending on the package.

• Glacier Hikes: Organized tours start at $100 per person.

• Whale Watching: Prices range from $80 to $150 per person.

• Northern Lights Tours: Cost between $50 and $150 per person.

5. Miscellaneous Costs

• Travel Insurance: Essential for Iceland’s unpredictable weather, costing around $30 to $70 per trip.

• Souvenirs: Icelandic wool sweaters (lopapeysa) cost between $100 and $200. Smaller items like magnets or keychains range from $5 to $15.

• Wi-Fi and SIM Cards: Tourist SIM cards with data start at $15 for a basic plan.

6. Tips for Saving Money in Iceland

1. Travel Off-Season: Prices drop significantly during the shoulder seasons (spring and fall).

2. Self-Catering: Opt for accommodations with kitchen facilities to save on dining costs.

3. Use Public Hot Springs: Instead of pricey spas, visit free or low-cost hot springs.

4. Book in Advance: Secure better deals on accommodation, car rentals, and tours by booking early.

5. Avoid Bottled Water: Tap water in Iceland is clean and free.

Final Thoughts

Iceland’s beauty and unique experiences are worth every penny, but understanding the costs upfront ensures a stress-free and enjoyable trip. Whether you’re a budget backpacker or a luxury seeker, proper planning can help you make the most of your Icelandic adventure.

 PRICES IN ICELAND IN 2022