Iceland has earned its reputation as Europe’s priciest destination, and it’s not undeserved — restaurants, hotels, and organized tours really do carry steep prices. The way around it isn’t skipping the trip; it’s changing how you organize it.
A camper van instead of hotel + rental car
Renting a camper van bundles transport and accommodation into one cost, sidestepping the high hotel prices outside Reykjavik. Organized campsites around the island give you access to a kitchen, showers, and power for far less than a hotel room — while giving you total freedom over your route.
Free and cheap hot springs
The famous Blue Lagoon costs a fair amount — but Iceland has dozens of natural hot springs that are free or nearly free, like the Reykjadalur river (a short hike leads to a naturally warm stream) or small-town municipal geothermal pools, with entry costing just a few euros. Locals go to these, not the Blue Lagoon.
Grocery shopping instead of restaurants
The Bónus and Krónan supermarkets are noticeably cheaper than other shops and are found in nearly every town. Cooking your own meals — even just breakfast and one meal a day — cuts the trip’s cost dramatically. N1 gas stations also offer cheap, hot meals all along the Ring Road.
When to go for better prices
Flight and rental prices drop noticeably outside the June–August window. September and May still offer long daylight hours with significantly lower prices, while winter adds the chance of seeing the northern lights.
A few more tips
- Tap water is some of the cleanest in the world — don’t buy bottled water.
- Avoid the Highlands’ F-roads unless you have a 4×4 — they’re not covered by basic rental insurance and can be dangerous.
- Book flights early — airfare to Iceland swings significantly depending on when you book.
We know this firsthand
At Penguin Travels & Tours, we’ve organized several Iceland road trips for our travelers, and we know exactly where it’s worth spending and where you can save without losing anything from the experience.
Thinking about a trip to Iceland? Stop by our office in Kalamata (Vasilissis Olgas 4) or call us at +30 27210 80701 — we’ll plan a route that fits your budget.
