Exploring Iceland on a Budget

Iceland has been on my travel list for as long as I can remember. It’s got so much rich history, it’s naturally beautiful, and the people are some of the happiest in the world. I mean who wouldn’t be syked to go there?

I’m going to do a disclaimer here, yes, I know Iceland, like a lot of Scandinavia is expensive and that’s a blocker for a lot of people, but I did try and do this on a budget as much as I could, with Christmas around the corner and travelling solo. Okay, we good?  Good.

So, whenever I’m travelling on a budget, I go into full research mode. I’m looking for the best value for money excursions, transfers and places to stay. Sites like Viator or AirBnB experiences are great for these and they normally have a lot of reviews so you can see what you’re getting. Finally, I settled on the KEX Hostel which was reasonably priced through Hostelworld and pretty central.

What I would say when booking excursions for Iceland, is to try and do a multi-activity one, especially if it’s in a similar area. I knew that I could only reasonably afford a couple of low-key excursions, mostly because I was only there for 4 days total, so I had to prioritise.

Northern lights were non-negotiable and I would definitely book this for your first night, because pretty much all operators will roll you onto the next night’s tour if you don’t see the lights on your tour, so give yourself the most chances of seeing them. I was so lucky to see them on the first attempt (and try Brennivin, the national liquor on the same night – it’s supposed to warm you up?!). I spoke to a couple of Kiwi girls in the hostel who had been all around the island for almost a month and had only seen them once.

So, knowing that this was a must-do, but also that Northern Lights tours tend to start from 9pm onwards, I booked a trip that combined the Golden Circle, the Secret Lagoon and a Northern Lights tour all in one day, that dropped you back in Reykjavik for dinner. This was such a great way when you’re on a time and budget crunch, because driving out to these places can take quite a while if you’re doing them separately, and obviously tour operators have to account for that in the price.

The Golden Circle consists of the Strokkur geyser, Thingvellir National Park, and the Gullfoss waterfall. So in this one section of the tour, you can see geothermal activity, stand on two continents at the same time, and see an incredible waterfall. Follow this up with the Secret Lagoon, and you get to swim in the geothermal waters with a beer in hand and relax. It’s way less busy than the Blue Lagoon and if you’re heading out that way I’d definitely recommend it.

As I’ve said, Iceland is expensive, especially when it comes to eating and drinking out. Knowing this, I stocked up snacks and breakfast bars from the local supermarket for the excursions and to just generally lower the costs.

But the best tips came from locals, particularly a guy from Middlesborough who works in Icelandic Street Food, which you’ll find all over Reykjavik and is a great way to get bottomless, authentic Icelandic soup on the cheap. He gave me some great tips about where to explore, and about a free English language comedy night that happens in the centre of the city most nights – where I met even more strangers and ex-pats willing to share stories and knowledge.

My favourite tip for any beer lover visiting Reykjavik (and there are a lot of great Icelandic beers) is to download Appy Hour. It’s specific to the city and lists every happy hour in the city (and there are A LOT), what times they’re on, what they include, linked to a city map, and tells you if they’re currently going on. The whole time I was there, I don’t think I paid full price for a beer, and my wallet was very happy about it.

As for food, there are lots of great seafood choices, and there are a couple of street food markets, one on the harbour which is a bit more pricey, and one by the Hlemmur bus station which is definitely budget-friendly and really tasty. But if you want a sit-down meal I’d recommend eating your larger meal at lunchtime and benefit from the cheaper prices that way.

Iceland is a beautiful place with beautiful people and Reykjavik is such a walkable city that it really feels like a large town. I’d go back in a second to explore more of the island outside the capital – but don’t believe everything you hear – Iceland can be done on a budget!