How to Experience Iceland on a Budget: A Family Travel Guide

Iceland, known for its breathtaking landscapes, can seem like an expensive travel destination at first glance. However, with careful planning and savvy choices, families can explore this otherworldly country without breaking the bank. Here’s your guide to enjoying Iceland on a budget.

1. Travel During the Off-Peak Season

The cost of flights and accommodations in Iceland can vary significantly with the seasons. Peak tourist season, from June to August, sees the highest prices. Consider traveling during the shoulder seasons (late April to May and September to October). You'll not only save money but also enjoy fewer crowds and still catch either the tail end of the Northern lights season or the beginning of summer’s midnight sun.

2. Be Smart About Flights

• Compare Prices: Use flight comparison tools to track and compare prices. Be flexible with your dates to find the best deals.

• Consider Stopovers: Airlines like Icelandair offer free stopovers in Reykjavik when flying between North America and Europe, which can be a cost-effective way to split your trip and save on airfare.

We booked our flights in December for a 5 day trip in March and paid less than $400 a piece for the round trip flights. Make sure you are looking for flight deals online and shop around!

3. Opt for Budget Accommodations

• Camping: Iceland boasts numerous well-equipped campgrounds, providing an affordable and immersive way to experience the natural beauty. Remember to follow all camping regulations and stay only in designated areas.

• Hostels and Guesthouses: These are cheaper alternatives to hotels and often offer family rooms with shared kitchens, helping you save on meals.

• Airbnb’s: We stayed in affordable airbnb’s and rented a car to avoid paying any fees for transportation.

4. Cook Your Own Meals

Eating out in Iceland can be very expensive. Most accommodations offer access to kitchen facilities, and cooking your meals can be a significant cost-saver. Shop at local supermarkets like Bónus or Krónan for the best prices, and try local delicacies like Skyr or freshly baked bread that won’t hurt your wallet. For the 3 full days we were in Iceland we only ate one or two real meals and the rest of the time ate cheese, meat, and sandwiches from local grocery stores.

5. Explore Free Natural Attractions

One of Iceland’s biggest draws is its natural wonders, which are mostly free to visit. Plan your itinerary around stunning yet cost-free attractions like:

• Waterfalls: Seljalandsfoss, Skógafoss, and Gullfoss are spectacular and don't cost a dime to visit.

• Geysers and Hot Springs: The Geysir Geothermal Area and numerous natural hot springs offer unforgettable experiences at no cost.

• Beaches and Parks: Don’t miss the black sand beaches of Vik or the Snaefellsnes Peninsula.

7. Look for Free City Tours

In Reykjavik, take advantage of free walking tours offered by local guides. These tours are a great way to learn about the city’s history and culture from a local perspective. While the tours are free, tipping your guide is customary and appreciated.

8. Use Discount Cards

If you plan to visit multiple museums or attractions, consider a discount card like the Reykjavik City Card, which offers free entry to many sites and unlimited public transportation.

Final Thoughts

Visiting Iceland doesn’t have to break the bank. With some strategic planning and smart choices, your family can enjoy all that this incredible country has to offer while staying within a budget. The key is to prioritize experiences over conveniences and always keep an eye out for opportunities to save.