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Saving in One of Europe’s Most Expensive Countries, Iceland

Every other week, we’ll take you around the world from the comfort of your couch and give you tips and tricks for saving while traveling and making the most of your trip. So whether you’re taking a quick weekend getaway or gearing up for an around-the-world adventure, we’re here to help!

Iceland- the land of waterfalls, sheep, volcanoes and high price tags. Thanks to a boost in tourism, getting there is actually pretty easy with cheap air fare. Once you’re there keeping to a budget is difficult.

Difficult, but not impossible. With these tips your trip to Iceland can be a dream come true. And you will think you’re in a dream between the landscapes you’ll see and the money you’ll save. (Good thing you just have to pinch yourself and not pennies!)


IcelandAir / Via icelandair.us

Stopover central

Many airlines are now offering layovers in Iceland at little to no extra cost. So while en route to another destination, you can plan a day (or seven) in Iceland to sightsee.

Two more things to make sure you get the cheapest flight? Track flight prices and use Gumdrop to find discounts automatically for you.

Bundle up

You can also bundle your airfare and hotel into a travel package and save even more than booking everything separately. Check out the offers from IcelandAir through Expedia or search for deals on Groupon. While deals may be more difficult to find in the non-peak winter travel season (when airfare is lower!), there are still some out there.

Shop online? Get our free automatic coupon finder Gumdrop!


Embrace the ice

Speaking of off-season travel, winter is definitely the cheapest time to go. While putting up with the cold saves you half the cost, the trade-offs are obvious. (Beware of frigid temperatures and ice. You are in the northernmost capital after all.) Be aware that daylight hours are shortest in winter (about 4 hours total), so aim for travel either between October and November or February and March. Once again, be sure to bundle up!

Don’t drink

Yep, really. We get you’re on vacation, but it’s pretty expensive to drink thanks to high taxes. Okay maybe once or do some searching for a happy hour, because the nightlife in Iceland is famous. But no one wants to hike a glacier with a hangover.


Or search for their pet whale. Rachel Sacks, Instagram / Via Instagram: sacksfifthave

Also take advantage of the pure glacier water and bring a reusable water bottle! Columbia Sportswear can set you up along with some great cold weather and hiking gear.

Eat the hot dogs

Of all the cuisine to try, Icelandic hot dogs were at the top of the list. Turns out Icelanders have an obsession with hot dogs, oddly enough. Cheap because they’re technically streetfood, you can at least eat like the locals.

Do it yourself

The capital Reykjavik can be seen within a day typically, so if you want to see the rest of what Iceland has to offer (and there’s a lot) be sure to plan on renting a car. Tours can get pricey but with your own set of wheels you can control your schedule and split costs between passengers.

Have you been to Iceland or are planning a trip? If so, what are you planning to see and do while there? Have you started a budget or are you saving up to splurge?