Is Iceland an Expensive Vacation?

By Michael Ferguson

Iceland is a popular travel destination known for its stunning natural landscapes, hot springs, glaciers, and Northern Lights. However, one question that often pops up when planning a trip to Iceland is whether it’s an expensive vacation or not. In this article, we’ll explore the different factors that contribute to the overall cost of visiting Iceland.

Transportation Costs

One of the biggest expenses when traveling to Iceland is transportation. The most popular way to get around the country is by renting a car. However, car rentals can be quite expensive with daily rates starting at around $50 and going up to $150 or more depending on the type of vehicle and time of year.

Alternatively, there are also buses that run between major tourist destinations in Iceland. These can be more cost-effective but may not offer as much flexibility as having your own car.

Accommodation Costs

Accommodation costs in Iceland can also add up quickly. The most affordable option is to stay in hostels or guesthouses which can range from $30-$80 per night depending on the location and amenities provided.

If you’re looking for more luxurious accommodation options such as hotels or private apartments, expect to pay anywhere from $150-$500 per night.

Food and Drink Costs

Eating out in Iceland can be quite expensive with a basic meal at a restaurant costing around $20-$30 per person. However, there are cheaper options such as fast food restaurants and food trucks that offer more affordable meals.

To save money on food expenses, consider cooking your own meals if you’re staying in an Airbnb or hostel with access to a kitchen.

Activities and Tours

Iceland offers a variety of activities such as hiking, glacier walks, whale watching tours, and Northern Lights excursions. These activities can range from $50-$200 depending on the type of activity and duration.

It’s important to shop around for the best prices and book in advance to secure your spot as some tours can fill up quickly during peak travel season.

Overall Budget

Overall, Iceland can be an expensive vacation destination but there are ways to save money such as staying in budget-friendly accommodation, cooking your own meals, and opting for cheaper activities.

It’s important to budget wisely and plan ahead to ensure you have enough funds for your trip. For a 7-day trip, a budget of $1,500-$2,000 per person should be sufficient depending on your travel style and preferences.

In conclusion, while Iceland may be an expensive vacation destination, it’s still possible to have a memorable and budget-friendly trip with some planning and research.