Iceland is full of natural beauty that few countries can match. Known as “The Land of Fire and Ice”, its dramatic landscapes attract tourists from all over the world. Exploring volcanoes, glaciers, and black sand beaches comes at a price though. Careful planning and budgeting are crucial, and you can use the following travel tips for Iceland to get the most out of your trip.
Travel Tips For Iceland
Iceland is located halfway between Greenland and Norway, in between the North Atlantic Ocean and the Arctic Ocean. Its remote location makes it a country that imports almost everything, driving prices up. As an expensive destination, you’ll want to save money wherever you can, while soaking in as much of the country as possible. Here’s how to do it:
1. Stay In Cheap Accommodations
The cheapest accommodation options in Iceland are hostels. They can be found in major towns like Reykjavik, Seydisfjordur, and Akureyri. Rates start between 4900 and 6200 ISK ($40 to $50 USD) per day. If you’re in remote areas, you won’t have much choice other than to stay at a guesthouse. Guesthouses provide you with your own private room, though you’ll likely be sharing the rest of the house with others. Guesthouse prices start around 9050 ISK ($80 USD) per day.
2. Choose Your Transporation Wisely
Iceland’s attractions are spread out, so getting to them is going to cost you. You can either go with a tour company or rent a car and do it on your own.
- Tours: Tour companies leave Reykjavik and offer half-day, full-day, and multi-day trips. They have a variety of itineraries you can choose from to suit any budget. The cheapest tours start at $100 USD and can go up to over $1,000 USD. The nice thing about tours is you can relax and let someone else worry about getting you to and from your destinations. The downside is that your time is limited and you can’t really “explore” Iceland, which can be a dealbreaker for some.
- Car Rental: If you want the freedom that comes with discovering Iceland on your own, it comes at a heavy cost. Car rentals are pricey, averaging $70 USD per day for a crossover SUV. However, it’s the price of gas in Iceland that may make you weep. Filling the car costs around $120 USD, and depending on the length of your trip, the tank may need to be filled 3 to 5 times (usually once every 2 to 3 days). You can save money by choosing a smaller sedan model, but these cars aren’t allowed to go “off-roading”. Iceland has a lot of unpaved side roads, and driving a sedan on them isn’t exactly safe. Furthermore, you’ll also need to purchase insurance (roughly $13 USD per day) due to Iceland’s environment. Cars are subjected to volcanic ash, gravel, and sand which can damage their body and paint job. While it’s a somewhat ludicrous requirement, the insurance will save you from paying thousands of dollars for cosmetic repairs.
3. Choose A Reputable Car Rental Company
If you’ve decided to rent a car, make sure you go with a company that has a stellar reputation and amassed excellent reviews.
Iceland has local car rental companies as well as international ones. The easiest way to get a car is by booking it through the company’s website. Upon arrival at Reykjavik Airport, you’ll take a shuttle to the car rental area for pick up.
Local companies include ACE Car Rental, Blue Car Rental, Lagoon Car Rental, and Reykjavik Cars, while international companies such as Thrifty, Budget, and Enterprise also offer vehicles. Local companies are usually a bit cheaper, offer excellent service, and may provide you with discounted rates.
I chose Blue Car Rental and was pleasantly surprised to find they upgraded my SUV at no extra charge. They gave me a sleek-looking Kia Sportage that came with free GPS navigation. I noticed some slight ash and sand wear on the door panels, which I alerted them to before driving off. Additionally, I took “before” pictures of the car just in case they changed their tune when I returned it. I had zero issues. The car was great, the service was professional, and I wouldn’t hesitate to recommend them.
4. Plan Your Itinerary
There are basically 2 routes most people choose from when visiting Iceland: The Golden Circle for short trips, or The Ring Road for long trips.
The Golden Circle (sometimes referred to as The Golden Triangle) is a 300-kilometer triangular route where you can see 3 of Iceland’s most famous sites: Thingvellir National Park, Geysir Geothermal Area, and Gullfoss Waterfall.
The Ring Road refers to the country’s circular national road, Route 1. It spans 1,322 kilometers and is positioned around the perimeter of Iceland. Starting from Reykjavik in the west, you can either head north or south, eventually ending up back at your starting point.
While you can drive both of these distances in a single day, the difference is that the Ring Road allows you to see a lot more of Iceland. It’s usually done between 3 and 7 days. The majority of Iceland’s tourist attractions are in the south, but east and north Iceland also have some stunning vistas and small towns you can explore.
5. What To See In Iceland
Iceland is full of natural wonders that can be appreciated by any traveler. Here’s a brief list of the top places to consider for your trip:
The Blue Lagoon
Attracting over 1 million visitors per year, The Blue Lagoon is the most popular tourist attraction in Iceland, located between Keflavik Airport and Reykjavik. It’s a man-made geothermal spa and filled with runoff water from the nearby Svartsengi power station. With high mineral content and low bacteria, its milky blue water is known to provide therapeutic benefits for psoriasis sufferers. They offer multiple spa package options starting at $75 USD.
Thingvellir National Park
A designated UNESCO World Heritage Site, Thingvellir National Park is situated in a rift valley between North American and Eurasian tectonic plates. The park has important historic significance, being the site of Iceland’s parliament from the 10th to 18th centuries (the name literally translates to “fields of parliament”). It’s also where Iceland declared its independence from Denmark in 1944. Adventures seekers can snorkel or dive the Silfra rift inside the park, which allows you to swim between two continents. This can only be done through a local company, with snorkeling starting at $130 USD and diving at $230 USD. As for the park, there’s no entry fee but it will cost 500 ISK ($4 USD) to park your car.
Geysir
Located in Haukadalur geothermal area, Geysir is a popular tourist attraction in the Golden Circle. A geological phenomenon, it’s highlighted by two geysers: Geysir and Strokkur. Geysir was the original Icelandic geyser mentioned in historical texts but it stopped erupting in the year 2000. However, it had an unpredictable eruption in 2016. It’s now roped off to provide protection to visitors. Strokkur is a highly active geyser and the main attraction here. It erupts every 6 to 10 minutes and shoots water an average of 50 feet in the air. Geysir is free to visit.
Waterfalls
Iceland is famous for its breathtaking waterfalls. Gullfoss (pictured) is the most visited, as it’s part of the Golden Circle. In the south, you’ll find two waterfalls with 200-foot drops: Seljalandsfoss, and Skogafoss. Tourists can walk behind Seljalandsfoss (bring a raincoat and towel), although the wet and rocky terrain gets very slippery. A trail on the eastern side of Skogafoss allows you to view the falls and surrounding area from on top. Honorable mention goes to Svartifoss (located in the south of Vatnajökull National Park), Kirkjufellsfoss (in the Snæfellsnes Peninsula), and Dettifoss (in the north of Vatnajökull National Park). There are no fees for waterfalls, but you’ll have to pay to park.
| Waterfall | Location | Cost |
| Gullfoss | Golden Circle | Free |
| Seljalandsfoss | South Iceland | Parking 700 ISK (5.70 USD) |
| Skogafoss | South Iceland | Free |
| Svartifoss | Vatnajökull National Park (South) | Parking 700 ISK (5.70 USD) |
| Dettifoss | Vatnajökull National Park (North) | Parking 700 ISK (5.70 USD) |
| Kirkjufellsfoss | Snæfellsnes Peninsula | Free |
Vik
Fans of dramatic landscapes will want to travel to the south Icelandic village of Vik (pronounced Veek). Just west of the village you’ll find the black sand beach of Reynisfjara, basalt stacks of Reynisdrangar, and the dramatic seaside cliff Dyrhólaey. Wandering around you can visit lighthouses, churches, caves, and other mountainous terrains. Vik and its surrounding area are very popular with photographers and many blockbuster films have been shot here.
Svínafellsjökull Glacier
Vatnajökull National Park contains some of the most amazing landscapes in Iceland, with massive ice glaciers being the main attraction. I’d highly recommend doing a glacier tour, where you’ll trek the Svínafellsjökull Glacier. I went with Icelandic Mountain Guides and it cost roughly $100 USD for a 2 to 3-hour hike. For the best photos, book an early morning tour so the glacier is empty of people. Icelandic Mountain Guides have a variety of tours, and their Ice Cave tour is another popular choice among adventurers.
Jökulsárlón & Diamond Beach
Jökulsárlón is situated on the outskirts of Vatnajökull National Park. This lagoon is characterized by its still waters and large icebergs which have broken off the Breiðamerkurjökull glacier. It’s an extremely popular attraction and you can tour the lagoon by boat. Amphibian boat tours last 30 to 40 minutes and cost $50 USD, while private Zodiac boat tours last an hour and cost close to $100. The Jökulsárlón icebergs empty into the ocean, where waves smash them apart. Diamond-like fragments of ice then wash up on the shore of the black sanded Diamond Beach (pictured). There is no entry fee for the lagoon or beach, but you’ll have to pay 500 ISK ($4 USD) to park at Jökulsárlón.
Fjallsárlón Glacier Lagoon
Somewhat of a well-kept secret in Iceland is Fjallsárlón, another glacier lagoon which is a 10-minute drive west of Jökulsárlón. Fjallsárlón is a lot less crowded and offers the same stunning views of Vatnajökull’s glaciers and floating lagoon icebergs. The main difference is that Fjallsárlón is smaller and the icebergs melt in the lagoon rather than empty into the sea. The starting price for Zodiac boat tours here is 7900 ISK ($65 USD), and there’s no entry or parking fee to pay.
Volcanoes
Volcanoes can be found all over Iceland. One of its newest attractions is Fagradalsfjall, a volcano that erupted in March 2021 after lying dormant for 800 years. It’s located 15 minutes away from The Blue Lagoon and its eruption is ongoing. A dormant volcano that can easily be hiked is Hverfjall (pictured), which measures 1 kilometer in diameter and is located off the Ring Road in northern Iceland. For thrill-seekers, check out the Inside the Volcano tour (approx. $360 USD), where you’ll descend hundreds of feet into the magma chamber of Thrihnukagigur, a dormant volcano that sits 30 mins south of Reykjavik.
Stokksnes
Stokksnes is a peninsula in southeast Iceland where black sand beaches meet Vestrahorn. Vestrahorn is a spikey-looking mountain range that reaches 1500 feet in elevation. It’s a majestic sight to behold and instantly captivates visitors. Stokksnes is located right off the Ring Road so it’s not hard to miss.
Hverir
Located in North Iceland, Hverir is a geothermal area that resembles Mars. The terrain is basically dirt and mud, and the site is highlighted by bubbling mud pools and fumaroles. Hverir emits a pungent sulfurous odor, which can be overwhelming for some people but is manageable for most. It’s located at the base of Mount Namafjall, a hikeable mountain located on the Ring Road. Visiting Hverir is free.
Seyðisfjörður
Seydisfjordur is a small fishing village in east Iceland. It’s accessible by traveling off the Ring Road and through the Fjarðarheiði mountain pass. The views on this drive are pretty incredible so you may want to pull over and take photos. While it’s a well-maintained road, it’s steep with sharp turns at certain points so drive carefully. Once you descend into Seydisfjordur you’ll find a quaint town with small shops and cafes that cater to the simple life.
Snæfellsnes Peninsula
Snæfellsnes (pronounced Snigh-fiss-niss) is located in west Iceland, about 2 hours north of Reykjavik. It’s known for its interesting landscapes; a mixture of volcanoes, lava fields, mountainous terrain, coastal cliffs, and black sand beaches. Aside from the previously mentioned Kirkjufellsfoss, one of the most popular spots is Arnarstapi, which was once a fishing village located at the base of Mount Stapafell. Here you’ll find some amazing seaside scenery such as Hellnar’s rock formations, and the dramatic arch Gatklettur (pictured).
6. Schedule Your Days Properly
When planning, make sure you account for drive time, meal duration, as well as exploration time. Though the sun never sleeps in Iceland, driving long distances, walking, and dealing with unpredictable weather will wear you out. Give yourself enough time to recuperate so you’re fresh for the next day.
As an example, here’s the itinerary of my 4th day in Iceland. The distance between my starting point and endpoint was only 4.5 hours, but it was a full day of travel.
6:30 am: Wake up / Shower / Breakfast
7:30 am – 8:30 am: Drive to Skaftafell for Glacier Hike
8:30 am to 1 pm: Glacier Hike
1 pm to 2 pm: Lunch
2 pm to 6:30 pm: Visit Fjallsárlón / Jökulsárlón / Diamond Beach
6:30 pm to 10 pm: Drive to Seydisfjordur (brief stop in Stokksnes)
7. Pack For All Weather
Iceland has four seasons, but its weather can change on a dime. Depending on what time of year you visit, you may experience all four of them in a single day! You should pack for every season even if you’re visiting in the summer. The average summer temperature in the country is 10°C, and rain is almost guaranteed. Dress in layers and bring waterproof outerwear so you don’t get soaked. Traveling to Iceland in the winter is a whole other beast, as fierce snowstorms make driving extremely dangerous. Many parts of North Iceland are inaccessible during the winter months.
Pro Tip: Iceland is nicknamed “The Land of the Midnight Sun” because the sun stays out for an abnormal amount of time. While most accommodations have blackout shades, bring a sleep mask just in case.
8. Eat Cheap
Dining in Iceland can be expensive. I’d recommend hitting up Bónus for your food, which is Iceland’s no-frills supermarket. For a week, I lived on bread, peanut butter, bananas, apples, granola bars, and instant ramen noodles. Sure, it wasn’t my finest moment making food out of the trunk of my car, but it did the job and saved me a lot of money. You can also pick up ready-made sandwiches if you need to change things up. I’d also recommend bringing a reusable water bottle. You can fill it up almost anywhere, as Iceland’s water is very safe to drink. Additionally, most hostels and guesthouses have a shared kitchen you can use to make meals.
9. Be Safe
Part of discovering new places is doing it responsibly. If you have any sort of accident while in Iceland, you’ll pay through the nose for medical bills. People have scalded themselves on geysers, slipped on rocky terrain, and been injured on glacier treks. Sudden weather changes have caused hiker deaths, and multiple tourists have been swept out to sea by the sneaker waves of Reynisfjara Beach.
My point is, travel insurance is a must. I chose World Nomads for my trip, and my 8-day bill was $44 USD. For $5.50/day I was covered in case of emergencies and the peace of mind allowed me to focus on enjoying my time in Iceland.
10. Book Early
If you can, pre-plan your trip and book things at least a month in advance. This will save you money on your flight, accommodations, car rental, and any tour(s) you want to go on. Also, if you’re camping in Iceland you should pre-book your campsite to avoid setting up your tent in the parking lot.
Iceland: Full of Wonder
Iceland will take your breath away, but it should be because of its natural wonders, not its price tag. By implementing these travel tips for Iceland, you’ll see the entire country at a reasonable price and have memories to last a lifetime.
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