ICELAND TRAVEL GUIDE

Table of Contents

Iceland is a magical place. It’s the land of sheep, northern lights, volcanoes with unpronounceable names (try saying “Eyjafjallajökull”), rugged landscapes, waterfalls, mountains, and natural hot springs. Its stunning, scenic landscape feels out of this world.

Iceland quickly became one of my favorite countries after my first visit. It’s such a beautiful island filled with warm, welcoming people and sweeping vistas you won’t find anywhere else in the world. I love not only the landscape but the people too and have relished every subsequent visit to the country.

However, Iceland is expensive. Traveling here on a budget is difficult as Iceland is definitely not a cheap country. However, it is possible to see a lot without going broke if you are smart. You won’t be living large if you’re here to backpack, but Iceland is worth the expense.

This travel guide to Iceland can help you travel the country and see the sights without breaking the bank!

1. Visit the Mývatn Nature Baths

Mývatn is quieter and less expensive than the famous Blue Lagoon. The water from the underground hot springs reaches 37–39 °C and is beneficial for your health and skin (I spent over an hour relaxing here). Grab some local geyser-baked bread that they sell at the little cafe and relax! Admission is 5,700 ISK.

2. See the Northern Lights

Seeing this natural phenomenon was one of the most awe-inspiring things I have ever witnessed. The lights are best admired in remote places away from city lights. The best time to catch them is from mid-September to mid-April. However, it depends on the weather. The longer you stay, the better your chances.

3. Tour Reykjavik

Reykjavik is awash in cozy cafes, high-energy clubs, friendly pubs, and a brightly colored wooden row houses. It’s super small and worth a few days to get a feel for the art and cafe culture of the city. If you’re a night owl, you’ll love the party scene here but be warned: they don’t go out until about midnight and drinks aren’t cheap!

4. Check out the Jökulsárlón glacier lagoon

Located in the southeast of Iceland, this ice flow is one of the most popular attractions in the country. I enjoyed just sitting down and listening to the ice crash into each other on its way out to sea. For an up-close look at the glaciers, consider exploring the lagoon by boat.

5. See the waterfalls

Iceland is the king of waterfalls: Dettifoss is the most powerful waterfall in Europe; Gullfoss is one of the biggest waterfalls in Iceland; Seljalandsfoss is beautiful and you can walk behind it. And then there’s Skogafoss, Svartifoss, and Goðafoss — all worth seeing too.

Other Things to See and Do in Iceland

1. Soak in the Blue Lagoon

While I found the Mývatn baths to be a more relaxing and less expensive option, you cannot deny that Iceland’s most famous geothermal pool is the country’s top tourist attraction. It might be crowded and expensive, but there’s nothing like it in the world. This huge, milky-blue spa is fed by mineral-rich heated seawater from the nearby geothermal plant. Add the silvery towers of the plant, rolling clouds of steam, and people covered in white mud, and you’ll think you’re in the twilight zone – in a good way! Admission starts at 6,400 ISK.

2. Take a Game of Thrones tour

The harsh climate north of the Wall in HBO’s hit series was predominantly filmed in Iceland. Explore the film locations on a guided tour, with both single- and multi-day options available, to get a behind-the-scenes look at this epic series. An 8-hour day tour starts at 13,000 ISK.

3. Explore Thingvellir National Park

This national park and UNESCO World Heritage site is interesting for two reasons: it’s the original site of the longest-running parliament in the world (Vikings held political meetings here in the 10th century), and it’s also where the North American and European continental shelf plates are being torn apart (you can actually scuba dive between the plates for 1,500 ISK). It’s one of the main stops in the Golden Circle and has several trails if you want to get out and stretch your legs. There are also some campgrounds here if you want to stay the night. Admission is free.

4. See Maelifell Volcano

Found in Myrdalsjökull Glacier Park north of Vik, Maelifell’s perfect cone shape gives this volcano that ‘classic’ volcano look. During the summer, snow melts to reveal a lavish green surface covered with moss. There is plenty to do and see in the surrounding park which is full of volcanoes, hot springs, and hiking trails. During the winter, a lot of the roads in the park close, so the summer season is the best time to go if you want to see the volcano up close. You can get to the volcano in 90 minutes by car from Vik.

5. Check out the geysers

Volcanic activities underneath the surface of Iceland have created a lot of geysers, underground springs, and thermal pools. Strokkur, in the southwest of Iceland, is currently the most popular geyser in the country. It erupts every 15 minutes and shoots a spray of water over 10 meters (32ft) into the air. Geysir (from which the English word geyser is derived), was the first popular geyser known to tourists, though it no longer erupts frequently (you can still visit it though). There is no admission to see Strokkur (or Geysir, which is nearby). Arrive early to beat the hordes of tourists that come by bus as this is a main Golden Circle tourist stop.

6. Drive the Golden Circle Tourist Trail

The Golden Circle is a 230km (140mi) route that includes some of the most popular sites near Reykjavik, including Gullfoss, Thingvellir, and Geysir/Strokkur. This is the main route for tourists visiting for just a day or two and lots of tourist buses drive this route. Other stops include the Kerið volcano crater, Hveragerði greenhouse village, Skálholt church, and the Nesjavellir or Hellisheiði geothermal power plant. If you have a vehicle, start your day early to beat the buses. You can drive the whole route in a few hours.

7. Hike the Laugavegur trail

This 55km trail runs between Landmannalaugar and Þórsmörk is as popular a hike for locals as it is for foreign visitors. It’s considered one of the most extraordinary hiking trails in the world. It offers a gorgeous variety of landscapes, including mountains in various colors, hot springs and glaciers, rivers, and lakes. Its well-worn trail, cozy huts, steady stream of trekkers, and frequent signposts make it a relatively safe and logistically easy venture. You can stay in huts for around 9,500 ISK per night, or camp in the designated areas outside the huts for just 2,000 ISK. You can hike the entire trail in 3-5 days.

8. Hike the Fimmvörðuháls Trail

If 55km is too much, try your hand at the shorter (but equally as stunning) Fimmvorduhals trail. Stretching between Þórsmörk and Skógar, this trail can be done in a day or broken up into a two-day adventure. You can either camp or book one of the mountain huts located along the route. Just be aware: the huts sell out fast! The trail is moderately challenging so you’ll need to have solid footwear and be in good shape. Make sure you have rain gear as the weather can change quickly. Hiking is free if you don’t camp and there is a bus that can take you from Þórsmörk back to Skógar if you parked your car there (it’s 8,000 ISK each way).

9. Go fishing

Iceland is famous for its fish. With tons of salmon, trout, cod, and haddock, fishing here is incredibly popular and a big part of Icelandic culture and cuisine. You can find fishing tours from Reykjavik as well as more remote destinations like the Westfjords. They’re pretty much available everywhere! Expect to pay around 14,000 ISK for a 3-hour fishing tour.

10. See the Skaftafell Ice Cave

These beautiful ice caves in Vatnajökull National Park attract adventurers from around the globe. The caves are part of the largest ice cap in the country and the second-largest in all of Europe. They are only accessible in winter. Guided tours take you into the caves where, armed with an ax and crampons, you can explore this otherworldly landscape. Tours start at 18,700 ISK per person and last around 4 hours.

11. Go whale watching

Iceland is home to some 20 different species of whale, as well as dolphins and harbor porpoises. Minke, fin, and humpback whales are the most commonly seen, and orcas and sperm whales appear regularly as well. The prime whale-watching season is from April to September, with most tours leaving from the south (Reykjavik) or north (Akureyri). Tours start at 7,300 ISK and go up from there. They usually last 2-3 hours.

12. Visit Landmannalaugar

Located in the interior highlands, these multicolored rhyolite mountains, lava fields, and volcanoes are a popular tourist destination for anyone looking to get off the main tourist trail. The striking landscapes look like a different planet. Horseback riding trips can be done here, starting at 9,000 ISK for a one-hour guided tour. For a short day hike, try the Sulpher Wave Trail. It takes around two hours. Note: to get here you need to drive on F-roads, which means you’ll need a 4×4 vehicle.

13. See Kirkjufell Mountain

Near the small town of Grundarfjörður in western Iceland, this iconic mountain juts out from the landscape. Surrounding this striking mountain are a bunch of waterfalls. If you come in the winter it’s a gorgeous place to spot the northern lights. The mountain is one of the most photographed sights in all of Iceland (you’ve probably seen it on Instagram).

14. Hike the Snaefellsnes peninsula

Stretching out from the west coast, this peninsula is topped by a large national park. It’s a great place to take a hike or a stroll along the windy and winding coast. There are numerous hills and mountains to climb, including Snæfellsjökull. If you’re feeling adventurous (and have the money!) book a glacier walking tour for 22,000 ISK. These tours take you out over the remote glacier where you can hike, peer into crevasses, and learn about this martian landscape.

15. Search for puffins

Puffins can be spotted nesting all over Iceland between mid-April and mid-August. The larger populations are found on the Westman Islands and in the Westfjords, as well as in certain parts of the East Fjords. While you can try and spot some yourself (ask locals for help!) you can also book a tour to see them up close. Tours cost 8,900 ISK for a 2-hour tour.

16. Take a culinary tour

If you want to learn more about Icelandic cuisine and try some local favorites, take a culinary tour in Reykjavik. Companies like The Reykjavik Food Walk take you to 5-6 local restaurants for a 3.5-hour tour for 139,950 ISK. You can try local dishes, learn how they are made, and get first-hand experience of Iceland’s unique cuisine.

17. Visit the National Museum of Iceland

This museum in Reykjavik contains informative exhibits about the first settlers to the island, Christianity in Iceland, the island under both Norwegian and Danish rule, and the independence movement. While not terribly large (you can probably get through it in a couple of hours at the most) it’s a great visit if you are interested in knowing more about the history and culture of the people. General admission is 2,000 ISK.

18. Take a course at the Icelandic Elf School

While not many locals actually claim to believe in elves, trolls, and hidden people in Iceland, there are few people in Iceland who categorically do not believe in them. The Icelandic Elf School is a school that teaches students and visitors about Icelandic folklore. They teach about the “hidden people” and the 13 different kinds of elves that the school believes inhabit the country of Iceland. This is probably one of the strangest things to check out while in Reykjavik, which makes it one of the best. While the 7,737 ISK cost might be a little high, you also get a meal of pancakes and jam, teas, and chocolates to go along with the 3-4-hour lecture!

19. Visit the Penis Museum

The Phallological Museum, colloquially known as the Penis Museum, is a small institution home to the world’s largest collection of penises and penis-themed art. There are almost 300 items in the museum, including whale penises and (allegedly) troll penises! It’s a small museum but it’s incredibly informative — if you’re not too shy! Admission is 2,500 ISK.

(Hey there! Wait one second! Did you know I also wrote an entire guidebook to Iceland filled with – not only even more detailed information on the things included on this page but also itineraries, practical information (i.e. hours of operation, phone numbers, websites, prices, etc), cultural insights, and so much more? It has everything you want in a guidebook – but with a focus on budget and cultural travel! If you want to go into more depth and have something to take on your trip

Iceland Travel Costs

Hostel prices – A bed in a hostel dorm with 8-10 beds costs around 3,200 ISK per night. Private rooms cost 12,600 ISK. Free Wi-Fi is standard and most hostels also have self-catering facilities.

Many hostels in Iceland charge extra for linens/blankets. You can bring your own, however, you cannot use a sleeping bag instead. Additionally, many of the hostels around the country are HI hostels which offer 5-10% discounts to members.

For those traveling with a tent, campgrounds are available all around the country costing 1,600-2,400 ISK for a basic plot for two people without electricity. Wild camping, while technically legal, is frowned upon by locals.

Budget hotel prices – Expect to pay between 12,500-17,250 ISK per night for a double room with a private bathroom (usually with breakfast included). Free Wi-Fi is usually included, as well as other basic amenities like AC and a coffee/tea maker.

Since hotels are so expensive in Iceland, I much prefer to rent a room or apartment on Airbnb. Private rooms can be found for around 9,000 ISK (though they average double that) while entire homes/apartments cost at least 18,000 ISK.

Food – Fish, lamb, and dairy are the main staples of Icelandic cuisine. Food here is very similar to what you’ll find across Scandinavia. Smoked lamb, cured meat, dark bread, and skyr (a local yogurt) are all incredibly popular. Haddock and herring are some of the most widely eaten fish. Shrimp is very common too. If you have a sweet tooth, be sure to try snúður (a cinnamon roll with chocolate on top).

If you are going to eat out here, expect to pay around 2,500 ISK for a cheap meal of local cuisine. You can find kebabs, soups, and other quick eats for around 1,500 ISK or less. Fast food (which is rare here) usually costs around 1,800 ISK for a combo meal.

For cheap meals, consider grabbing a hot dog (you can find them in every city and at gas stations). They cost around 500 ISK. Surprisingly, a decent place to eat cheaply in Iceland is at the gas stations. Most gas stations sell everything from deli sandwiches, pizzas, Icelandic soups, hot meals, fruit, and they have whole aisles of candy! It’s decent fast food and some of the cheapest you’ll find (albeit not the healthiest).

If you want to splash out, a three-course meal with a drink costs around 6,500 ISK.

Beer costs around 1,000 ISK. A latte/cappuccino is around 600 ISK. Bottled water (which you won’t need here) is around 250 ISK.

If you plan on cooking your own food, a week’s worth of groceries costs around 8,700 ISK. This includes basic staples like pasta, rice, seasonal produce, and a little bit of meat.

Backpacking Iceland Suggested Budgets

On a bare-bones backpacker budget of 5,600 ISK per day, you can camp, cook all your meals, hitchhike to get around, skip drinking, and do free activities like hike or visit waterfalls. If you plan on drinking, add 1,000-,2000 ISK per day to your budget.

On a more reasonable backpacking budget of 9,400 ISK per day, you can stay in hostel dorms, cook most of your food and have a couple of cheap fast food meals, enjoy a drink here and there, take public transportation to get around and do a couple paid activities like museum visits in Reykjavik.

On a mid-range budget of 21,700 ISK per day, you can stay in a private Airbnb, eat fast food with the occasional traditional meal, split a car rental to get around, drink a little more, and do more paid activities like a puffin tour or whale watching.

On a “luxury” budget of 35,000 ISK per day, you can stay in a budget hotel, eat out at cheap restaurants serving local cuisine, drink out at the bar a few times, rent your own car, and do more expensive excursions like glacier hikes or scuba diving. This is just the ground floor for luxury though. The sky is the limit!

You can use the chart below to get some idea of how much you need to budget daily, depending on your travel style. Keep in mind these are daily averages — some days you’ll spend more, some days you’ll spend less (you might spend less every day). We just want to give you a general idea of how to make your budget. Prices are in ISK.

Iceland Travel Guide: Money-Saving Tips

Iceland is an expensive country to visit. Almost everything is imported, taxes are high, and there’s not a lot of local industry. But that doesn’t mean the country has to break the bank. In fact, there are many ways to save money in Iceland! Here are a few hacks to cut down your costs:

Hitchhike – Iceland is one of the easiest and safest countries in the world for hitchhikers (in fact, it’s THE safest country in the world!). You can find rides throughout the country, though it’s especially easy in the southern part of Iceland. While harder, it’s also not impossible to find a ride in the off-season or in the less populated northern regions. One way to find rides is by asking around in hostels — people are usually driving the main Ring Road (M1) that circles the country. That’s how I found my rides.
Bring a water bottle – The water in Iceland is incredibly clean and drinkable. In fact, you can fill up directly from streams and rivers! LifeStraw is my go-to company for reusable water bottles as their bottles include built-in filters to ensure your water is always clean and safe.
Camp – Camping is available everywhere in Iceland. You can camp in designated campgrounds for under 2,400 ISK per night and some hostels allow you to put up tents too. You’ll need to have your own gear and sleeping bag. If you plan on camping often, consider purchasing the Campingcard as it can save you quite a bit of money.
Bring your own sheets – Like in other Scandinavian countries, many hostels in Iceland charge you a fee for bed sheets if you don’t have your own (pillows are free!). Linen fees usually begin at 1,350 ISK; however, some hostels are starting to include them for free. Usually, they will allow you to bring your own blankets but not a sleeping bag.
Don’t drink – Due to high taxes, it’s very expensive to drink in Iceland. Save money, don’t drink. Ok, maybe once in Reykjavik since its nightlife is world-famous. But other than that, don’t. You’ll save a bundle and feel a lot better. No one wants to hike a volcano with a hangover!
Cook your own food – With dining out being so pricey, I found the best thing to do is go grocery shopping. Buy everything you need (such as eggs, cereal, pre-made sandwiches, and pasta) and cook it yourself. Most hostels, guesthouses, and campsites have kitchens. Shop at BONUS food stores as they have the cheapest prices.
Eat hotdogs – If you are going to eat out, eat at the sandwich and hotdog stalls you find throughout the cities. They offer the cheapest (although, not the healthiest) food in the country. You can also find cheap hotdogs at many gas stations, too.
Couchsurf – Iceland has a very active Couchsurfing community. I stayed with hosts in Reykjavik and Akureyri. Getting involved with the community here is a sure-fire way to save money, get local insights, meet wonderful people, and get a free place to stay.
Use Samferda – This website can help you find passengers (or rides). It’s especially popular between the larger cities and it’s cheaper than the bus.

How to Get Around Iceland

Public Transportation – The larger cities of Reykjavik and Akureyri both have a reliable public bus network, although both cities are small enough that you can walk just about everywhere. Strætó is the public bus network and you can plot your route on their website. Bus fare is 470 ISK.

Bus – Using buses to travel around the country is the best option if you don’t have a car. The Strætó bus network goes all around the country (though some regions aren’t covered and routes can be a little infrequent).

A bus from Reykjavik to Akureyri costs 6,680 ISK, while Akureyri to Husavik is around 2,429 ISK. Reykjavik to Vik is 3,747 ISK. Keep in mind though that these are public buses that will get you from point A to point B — there are no stops at attractions. You can look up routes and schedules on the Strætó website or download their app.

There are other bus/tour companies geared specifically towers travelers in Iceland, however, including:

Reykjavík Excursions
SBA-Norðurleið
Sterna
Trex Hiker

Reykjavík Excursions departs from Reykjavík and offers tours and day trips, but they also have an “Iceland On Your Own” deal where you can buy passes and be more flexible with your route (prices depend on where you’re going).

SBA-Norðurleið runs between Reykjavik and Akureyri with stops at attractions along the way. Prices depend on where you end up, but the full trip from Reykjavik to Akureyri is 17,900 ISK.

Sterna has a hop-on/hop-off pass with prices starting at 14,000 ISK while Trex Hiker is catered specifically for hikers and runs people between Reykjavik and popular hiking routes like Landmannalaugar and Þórsmörk.

Air Travel – The two main domestic airlines within Iceland are Air Iceland Connect and Eagle Air. Destinations covered include Reykjavík, Akureyri, Grímsey, Ísafjörður, and Egilsstaðir (among others). The biggest airport outside of Reykjavík is in Akureyri. A flight here would allow you to cross the entire country in about 30 minutes. If you’re short on time but still want to visit the north, flying is your best option. Expect to pay 15,000-17,500 ISK for a one-way ticket.

Hitchhike – Iceland is one of the easiest and safest countries in the world for hitchhikers. It’s especially easy in the south. One way to find rides is to ask around in hostels — people are usually driving the main Ring Road (M1) that circles the country and there are only two ways to go on that! You’ll get the best results hitchhiking solo or in pairs; groups are rarely picked up as cars here are small. Hitchwiki has a lot of information on hitchhiking in Iceland.

Car Rental – Renting a car is the best way to travel Iceland. Small cars cost as little as 6,200 ISK per day you can split the costs with traveling companions. SADcars and Iceland Car Rental are two of cheapest car rental companies in the country.

When to Go to Iceland

Your experience in Iceland will be largely influenced by the time of year you visit. June to September is the best time to visit, as temperatures are pleasant and average between 50-59°F (10-15°C). The days are long and the sun only sets for a few hours. This is also when tourism is at its busiest.

The spring and fall months (shoulder season) are both excellent times to visit as well. The crowds have thinned out, and although temperatures are chilly — ranging from 40-45°F (4-7°C) — there’s still a lot of sunshine. You’ll also get cheaper accommodation too.

Winter (from October to April) can be harsh, but it’s still an interesting time to visit. The days are short and temperatures drop below 32 °F (0 °C). However, there’s plenty of opportunities to see the northern lights! Driving conditions are hazardous though so this isn’t a good time to rent a vehicle.

How to Stay Safe in Iceland

Iceland is the safest country in the world — literally! Your biggest concern here is the elements. Iceland’s environment can be harsh and unpredictable, especially in the winter. The Iceland Meteorological Office and the Icelandic Road and Coastal Administration are two valuable websites to check in with as you travel.

Traveling solo (even as a female) is perfectly safe here. Hitchhiking is super common and safe as well.

While Reykjavik is very safe, it never hurts to be prepared. Avoid wandering around alone at night if you’re intoxicated and always keep an eye on your drink at the bar. Pickpocketing and theft are extremely rare, but that doesn’t mean you should wave around crash or flashy valuables.

If you go out hiking, bring water, sunscreen, and rain gear. The weather can change rapidly.

If you rent a vehicle, make sure you are careful with the doors. The wind here is extreme and can rip car doors right off your vehicle (this is surprisingly common). Always make sure you have comprehensive insurance coverage when you rent a car.

F-roads (rugged dirt roads) should only be driven on with a 4×4 vehicle. Don’t try driving on them without one!

If you experience an emergency, dial 112 for assistance.

The most important piece of advice I can offer is to purchase good travel insurance. Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it as I’ve had to use it many times in the past. You can use the widget below to find the policy right for you:

Iceland Travel Guide: The Best Booking Resources

These are my favorite companies to use when I travel. They consistently have the best deals, offer world-class customer service and great value, and overall, are better than their competitors. They are the companies I use the most and are always the starting point in my search for travel deals.

Skyscanner – Skyscanner is my favorite flight search engine. They search small websites and budget airlines that larger search sites tend to miss. They are hands down the number one place to start.
Hostelworld – This is the best hostel accommodation site out there with the largest inventory, best search interface, and widest availability.
Booking.com – The best all around booking site that constantly provides the cheapest and lowest rates. They have the widest selection of budget accommodation. In all my tests, they’ve always had the cheapest rates out of all the booking websites.
HostelPass – This new card gives you up to 20% off hostels throughout Europe. It’s a great way to save money. They’re constantly adding new hostels too. I’ve always wanted something like this and glad it finallt exists.
Intrepid Travel – If you want to do group tours, go with Intrepid. They offer good small group tours that use local operators and leave a small environmental footprint. And, as a reader of this site, you’ll get exclusive discounts with them too!
Get Your Guide – Get Your Guide is a huge online marketplace for tours and excursions. They have tons of tour options available in cities all around the world, including everything from cooking classes, walking tours, street art lessons, and more!
Eurail – If you are going to Europe and taking a lot of high speed or long distance trains, get a rail pass. I’ve used a rail pass three times and saved hundreds of dollars each time. The math just works.
The Man in Seat 61 – This website is the ultimate guide to train travel anywhere in the world. They have the most comprehensive information on routes, times, prices, and train conditions. If you are planning a long train journey or some epic train trip, consult this site.
Rome2Rio – This website allows you to see how to get from point A to point B the best and cheapest way possible. It will give you all the bus, train, plane, or boat routes that can get you there as well as how much they cost.
FlixBus – Flixbus has routes between 20 European countries with prices starting as low 5 EUR! Their buses include WiFi, electrical outlets, a free checked bag.
SafetyWing – Safety Wing offers convenient and affordable plans tailored to digital nomads and long-term travelers. They have cheap monthly plans, great customer service, and an easy-to-use claims process that makes it perfect for those on the road.
LifeStraw – My go-to company for reusable water bottles with built-in filters so you can ensure your drinking water is always clean and safe.
Unbound Merino – They make lightweight, durable, easy-to-clean travel clothing.

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