7 TIPS FOR BUDGET TRAVEL TO ICELAND
If you’re planning on visiting Iceland, it’s very easy to get caught up in the awe-inspiring natural beauty of the country and to splurge on tourist attractions, Akureyri hotels, and expensive meals out. But if you want to travel on a budget, and still see all the natural wonders Iceland has to offer, here are seven tips that will help you save money while still having an amazing trip.

Photo by Vladimir Riabinin on Unsplash
Shop Around for Flights
Flights are where most people who aren’t getting paid to travel suffer huge hits in their budget. As an example, say a trip from New York City to Reykjavik, Iceland costs $1,000 round-trip on one airline and $600 on another. This is a guaranteed way to shave a few hundred dollars off your trip and you should do it if at all possible. Make sure to use a platform like Skyscanner to look for cheap tickets.
Check Hostels Before Hotels
Hotels are great, and they’re a quick and easy option for visitors, but if you’re looking to save money, hostels are usually much cheaper. Sites like HostelWorld provide listings of hostels all over Europe. But make sure you read reviews before booking; it may be more affordable than you think, but it doesn’t mean it’s not uncomfortable. While in Reykjavik, you can stay at an Airbnb instead of a hotel because it was one third the price. You will often find them in residential areas so there are not many restaurants or shops nearby, but if you are only spending a couple of nights there it will not be much trouble.
Consider Group Accommodation
There are various affordable options for Icelandic hostels and B&Bs, but one of the most affordable options is group accommodation. If you’re travelling in a group of four or more, consider splitting an apartment or renting out a whole house. Not only is it cheaper than renting private rooms in hotels and guesthouses, but it also comes with all your basic needs – kitchen facilities, WiFi etc. – already included.
Choose Best Season for Big Savings
If you want to visit Iceland, choosing a season other than peak summer will be your best bet. Spring and fall are good alternatives, as many Icelandic businesses take winter and summer holidays. Even if you do plan a trip during these seasons, it’s important to book in advance—and keep in mind that demand is high during these times. The best time for booking flights from North America is in February or March; from Europe, October through December works well.
Use the Bus System (it’s good!)
The bus system in Iceland is extensive and very affordable. Not only does it get you from A to B, but some routes also give you a tour of local attractions, like Thingvellir National Park or Gullfoss Waterfall. And, if you ride along with an experienced guide who speaks English (which they all do), they can answer your questions and provide insight into Icelandic culture and history. If you’re thinking about travelling on a budget to Iceland, think buses.
Visit in Small Groups (for savings and a better experience)
One of the best travel hacks is travelling in small groups (such as with a tour group or even just two other people). Not only does it cut costs, but also you make new friends and have a better overall experience. Tours are also available for virtually any travel interest, making them a great option if you want to learn more about your travel destination along with saving money.
Where to Stay in Reykjavik?
Renting a room or an apartment in Reykjavik is one of your best options if you’re travelling on a budget. Downtown Hostel is one of the best recommendations for budget travellers. This backpacker’s paradise is located right by Hallgrímskirkja Church and has affordable dorm rooms, as well as private rooms with shared bathrooms. You can also try to go camping. If you want to save money and aren’t planning on staying in any specific place for long, then camping might be a great option for you.