Tips and Tricks for Traveling to Iceland

Iceland has become a popular tourist destination and we can understand why. Diverse landscapes with volcanoes, glaciers, and black sand beaches; everyone should be on their way to Iceland right now! There may be one factor holding you back; Iceland is a pricey destination. If you are short on time and money, keep reading to learn our tips and tricks for traveling to Iceland on a budget. Also check out our Ultimate 5-Day Iceland Itinerary for details to make the most of a quick trip to Iceland.

We have broken down our tips and tricks for visiting the the land of ice and fire into 5 categories: getting to Iceland, purchasing alcohol, renting a car, what to eat, and our budget revealed!

Getting to Iceland

We flew nonstop from Boston to Reykjavik on the now defunct WOW Airlines. Without WOW airlines, your main option for visiting Iceland is on Icelandair. We helped save our travel budget by securing a deal on our flights and booking in advance. Other options to save your budget are to use points or visit Iceland as a layover on your way to Europe. 

Alcohol in Iceland

Alcohol is expensive and difficult to purchase in Iceland, but don’t worry it is possible to save your budget and still be able to enjoy an adult beverage after hiking to a natural hot spring. One of our biggest tips for traveling to Iceland is do not exit the duty free area in Keflavik airport until you have purchased your maximum allotment of alcohol. 

Before you start thinking we are raging alcoholics, think of us as wise budget savvy travelers. Purchasing alcohol on arrival in Iceland at the duty free shops is cheaper and the shops are always open for arriving planes. We landed at 4:30am and the duty free shop was ready to go! 

Don’t miss out on purchasing your allotment from duty free, once you leave the airport you can only purchase alcohol from state-owned liquor stores named Vínbuðin (Beer found in grocery stores contain less than 2% of alcohol). These stores have very limited hours. We tried to visit two different stores during their operating hours that we found online, but both were closed when we arrived – leaving us unsure if they are ever actually open.

So why is alcohol expensive and difficult to purchase in Iceland? Quick history lesson: Prohibition went into effect in 1915 and lasted until 1989. Originally the ban included all alcohol and then it changed to only strong beer. Strong beer included anything over 2.25% alcohol. March 1st is now celebrated as Beer Day in Iceland. In a country that can be extremely remote and has a strict history of alcohol laws, it is understandable that purchasing alcohol is expensive and not as easy as other destinations. 

Renting a Car

Now that you have purchased your alcohol and picked up your luggage it is time to find your transportation. We decided to rent a car to give us the most flexibility and freedom during our 5 days in Iceland. If you thought buying alcohol was expensive in Iceland, then you are in for a shock when it comes to rental car prices. Our 4.5 day rental of the most compact car available cost 52.000 ISK ($462.39 USD). The Toyota Argo had just enough room for the two of us and our one piece of checked luggage. We really couldn’t have fit anything else! If you are traveling with more people it may be more affordable to rent a larger car or camper van.

While researching rental cars there are many recommendations to rent a 4×4 vehicle. If you are following our itinerary and traveling in the summer, then you definitely do not need a 4×4 rugged vehicle. Most of the roads we were on were paved, making them an easy drive. We only had one sketchy moment where we couldn’t make it down a road, so we parked and walked (more details here). If you plan on traveling to Iceland during the winter, then a 4WD car is recommended. Be prepared to pay an arm and a leg for one though!

We rented our car from Reykjavik Cars, part of the Blue Car Rental company. As you are signing your already expensive rental agreement, the rental employee discusses all of the worst things that could possibly happen to the car while exploring Iceland; wind damage, rocks hitting the windshield, sandstorms, etc. It is scary to see the prices of what these accidents would cost you, but we felt covered by the credit card that we used to purchase the rental. 

Travel Tip – Check your credit card for their rental car coverage. There are many great travel credit cards available that have excellent coverage for occasional rental accidents.

Gas for Rental Car

If you are following our 5-day itinerary we recommend filling up your rental car with gas in larger towns. We filled up our car in Vik, which was a great decision as getting gas was not that easy! In order to purchase gas you need a chip and pin credit card. Chip and pin cards are common in most countries, but in the US we are still using chip and signature cards. 

Our US chip and signature credit card did not allow us to purchase gas directly at the pump. Thankfully larger towns have gas stations with a store attached. We purchased a prepaid gas card at the counter and were able to use it to pay for the gas at the pump. Many of the smaller towns that we passed, had small gas stops with no stores attached.If you are traveling with only a chip and signature card, we recommend stopping in populated towns for gas and planning ahead to make sure you don’t find yourself out of gas!

Internet in Iceland

The internet is easily accessible in Iceland, but we planned on camping and spending limited time in unpopulated areas, so we opted to rent a mobile MiFi device from Trawire. This mobile device allowed us to connect our phones to WiFi anywhere in Iceland. With the MiFi we could use GoogleMaps and didn’t have to worry about getting lost or being completely cut off from the world. We picked up our MiFi device from an electronic Postbox at a gas station. Trawire emailed us the code to use to access our package. When we were finished with the device we dropped it in a mailbox using the envelope with postage provided. The cost for a Mifi during our 5 days in Iceland was $64 USD.

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What to Eat

We planned to camp during most of our trip in Iceland, so one of our first stops was to a grocery store to stock up on supplies. We stopped at a local Hagkaup (grocery store) which was conveniently open 24 hours a day. Another grocery store option is Bonus, which arguably has cheaper groceries. While we purchased mostly sandwich supplies, we did try some of the local cuisine. Below is what we recommend and don’t recommend tasting!

Skyr Yogurt

Take our advice and eat as much Skyr Yogurt as possible! This Icelandic yogurt is unlike any yogurt you have ever tried. It is the perfect combination of thick and creamy without being too heavy. This is the perfect road trip snack as it comes with a collapsible spoon on the lid (though we recommend packing your own reusable spork). Be sure to try as many flavors as possible, the chocolate flavor was our favorite.

Icelandic Hot Dogs

Organic, free range, grass fed, hormone free are all words that describe Iceland hotdogs. The hotdogs are made mostly of Icelandic lamb. They are traditionally topped with raw white onions, crispy fried onions, ketchup, sweet brown mustard, and remoulade (a sauce made with mayo, capers, mustard and herbs). You can buy these hotdogs called Pulsa almost anywhere. Gas stations and convenience stores were the best place for us to stop during our road trip. Icelandic Hot Dogs are probably the best hot dogs in the world (and that recommendation comes from a couple of now vegetarians)!

Dried Cod Fish

There is nothing like snacking on some hard, dry cod fish to really spark your appetite. A couple that we met at our AirBnB kindly shared the dried cod fish with us. We quickly realized why they were so willing to give up their food. As soon as you opened the bag the pungent fish smell was overwhelming. The smell combined with the texture and consistency was too much for us. One small taste and we were ready to share the bag with other travelers. Oh well, it’s part of the experience!

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Our Iceland Budget Revealed

You may be wondering, how much does a 5-day trip to Iceland cost? Even with our budget minded planning this was still an expensive trip. Check out our breakdown of our expenses for two people: 

• Flights: $1,050
• Car Rental & Gas: $517
• 1 Night in AirBnB: $128
• 3 Nights Camping: $76
• ½ Day Glacier Hike: $260
• Food/Alcohol: $168
• Entrance to Attractions: $47.50
• MiFi to-go Internet: $64
• Souvenirs: $18

Total: $2,328.50 ($1,164.25 per person) 

Breaking down the cost per person/per day and it is a whopping $232.85. Not cheap at all, but one of our favorite travel experiences and the memories are priceless. 

For more details on our Iceland trip check out our Ultimate 5-Day Iceland Itinerary and our experience in Gjáin the most beautiful place in Iceland.