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Iceland

Iceland has quickly become one of the top travel destinations in the world, but it still feels like a well-kept secret. Perhaps that’s because of its stunning natural beauty, or the swaths of open land with nothing but Icelandic horses and occasional waterfalls to remind you that you aren’t completely alone. It is a country of not only natural wonder, but also thriving local culture, known for hospitality and a strong national pride in its history and mythology. 

iceland map silhouette with flag on white background free vector

Best Time To Visit

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The best time to visit Iceland depends on what activities you’d like to do, as some of them are seasonal. For example, you can only explore inland by 4×4 from July, once the snow in the highlands has thawed. Those who hope to see the northern lights should visit between October and March, when the nights are longest.

However, Iceland is a great year-round destination, enjoying a temperate maritime climate. Summers are short and cool, with temperatures between 9°C and 13°C, while winters are long but surprisingly mild, with highs of 3°C and lows of -2°C.

There can be unexpected rain throughout the year, so you should always be prepared for chilly, wet and windy days. Winter blizzards may delay travel plans, and late thaws in the highlands might affect travel in the summer. But, as Icelanders will say: if you don’t like the weather, just wait a bit.

We went in the winter and we absolutely loved it! Snow, snow, snow! We even managed to catch the Northern Lights!

For a month by month look click here

What To Expect

Capital: Reykjavik

Language: The official language of Iceland is Icelandic, as well as English in the touristy areas. You will have no issues speaking English.

Currency: The currency in Iceland is the Icelandic króna, but many places will also accept the Euro and the US Dollar. £1 GBP is 172.00 ISK and $1 USD is equivalent to about 132.00 ISK. Check the latest rates here

Credit Cards & ATMs: Icelanders tend to pay for almost everything with credit or debit card, so you don’t need to worry about carrying too much cash around with you. However, you’ll need a card that uses the chip and pin method. Apple Pay and Google pay are widely accepted. We never used any cash while in Iceland.

Plugs: The plugs in Iceland are Type F. The standard voltage is 230 V, and the standard frequency is 50Hz.. I recommend buying a universal adapter 

Safety: Safest country in the world! It’s safe to walk around by yourself, and crime levels are super low.

Do you have to tip: No, tipping is not expected in Iceland. So you don’t have to tip at restaurants or hotels. However, many foreigners like to tip their tour guides, and it’s always appreciated.

Never ever: DO NOT hike glaciers without a guide, there are so many holes that are covered with snow, some drops can be 200ft.

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Top 5 Things to See and Do in Iceland

Situated in a vast lava field on the Reykjanes Peninsula, the Blue Lagoon is one of Iceland’s most iconic and popular attractions. This geothermal spa is renowned for its milky-blue water, rich in minerals like silica and sulphur. Bathing in the warm waters is not just relaxing but is said to have therapeutic effects, especially for skin conditions like psoriasis. Remember to book in advance, as this spot is quite popular, and consider visiting during off-peak times for a more serene experience.

A must-do route for any visitor to Iceland, the Golden Circle covers three of the country’s most famous attractions: Thingvellir National Park, the Geysir geothermal area, and Gullfoss waterfall. Thingvellir is historically significant as the site of the first Icelandic parliament and geologically unique as it’s where the North American and Eurasian tectonic plates meet. The Geysir area is home to bubbling mud pools and the Strokkur geyser, which erupts every few minutes. Gullfoss, or the ‘Golden Falls’, is a powerful cascade that offers breathtaking views, especially on sunny days when rainbows can form in its mist.

Reykjavik, the capital city of Iceland, is a vibrant urban centre that seamlessly melds modernity with rich history. Explore the architectural marvel that is the Hallgrimskirkja church, whose design is inspired by Iceland’s lava flows. Drop by the Harpa Concert Hall, with its dazzling glass façade, or immerse yourself in the country’s history at the National Museum of Iceland. The city is also known for its quirky art scene, buzzing nightlife, and an array of eateries that offer both traditional Icelandic fare and international cuisine.

One of nature’s most mesmerising displays, the Northern Lights or Aurora Borealis, can often be seen in Iceland between September and April. These dancing lights in shades of green, pink, purple and sometimes red are caused by particles from the sun colliding with the Earth’s atmosphere. To increase your chances of witnessing this spectacle, head to remote areas away from city lights, and keep an eye on aurora forecasts. A Northern Lights tour, guided by local experts, can also enhance the experience.

Located on Iceland’s southern coast, the town of Vik is famous for its dramatic black sand beaches. Reynisfjara Beach, in particular, is renowned for its towering basalt columns, rocky sea stacks, and powerful waves. Nearby, the Dyrhólaey Peninsula offers panoramic views of the surrounding landscape and is a nesting area for puffins during the summer months. While the scenery is undoubtedly captivating, visitors are urged to exercise caution as the waves here can be extremely powerful and unpredictable.

Iceland Travel Costs

Vik, Iceland - What a place!
Vik, Iceland - What a place!

Accommodation

  • Hostel Dorms – 6,000–9,000 ISK / £35–50 GBP / $40–70 / €40–65
  • Hostel Private Rooms – 15,000–25,000 ISK / £85–140 GBP / $110–180 / €105–175
  • Budget Hotels – 20,000–40,000 ISK / £115–230 GBP / $140–280 / €135–260
  • Airbnb Private Rooms – 15,000–30,000 ISK / £85–170 GBP / $110–210 / €105–195
  • Airbnb Apartments – 30,000+ ISK / £170+ GBP / $210+ / €195+
  • Campsites – 2,000–4,000 ISK / £11–23 GBP / $15–30 / €13–26

Transportation

  • Local Bus – 490–590 ISK / £2.80–3.40 GBP / $3.50–4.50 / €3.20–4
  • Intercity Bus – 6,000–12,000 ISK / £35–70 GBP / $40–85 / €40–80 per journey
  • Taxi (per km) – 300–400 ISK / £1.70–2.30 GBP / $2–3 / €2–2.60
  • Car Rental (per day) – 10,000–20,000 ISK / £57–115 GBP / $70–140 / €67–130

Food

  • Budget Meal – 2,500–4,500 ISK / £14–26 GBP / $18–33 / €17–30
  • Mid-Range Restaurant Meal – 6,000–12,000 ISK / £35–70 GBP / $40–85 / €40–80
  • Coffee – 600–900 ISK / £3.50–5 GBP / $4–7 / €4–6
  • Beer – 1,200–1,500 ISK / £7–9 GBP / $9–11 / €8–10

Activities

  • Museum Entry – 1,500–3,000 ISK / £8.50–17 GBP / $10–21 / €10–20
  • Thermal Baths (Day Pass) – 8,000–11,000 ISK / £46–65 GBP / $55–80 / €53–73
  • Guided Tours – 15,000–30,000 ISK / £85–170 GBP / $110–210 / €105–195
  • Whale Watching Tours – 12,000–18,000 ISK / £70–105 GBP / $85–125 / €80–120

Iceland Suggested Budgets

Backpacker – 15,000–20,000 ISK / €100–135 / £85–115 / $110–150 Per Day

Iceland is expensive, but a backpacking budget allows you to stay in hostel dorms, cook your own meals, and use affordable transportation options like public buses or hitchhiking. You can enjoy free or low-cost activities such as hiking, exploring Reykjavik’s landmarks, and visiting public hot springs.

If you plan to drink, add an extra 1,500–3,000 ISK (€10–20 / £8.50–17 / $11–21) per day for alcohol expenses. To save more, shop for groceries and prepare meals instead of dining out.

Midrange – 30,000–45,000 ISK / €200–300 / £170–260 / $215–325 Per Day

A mid-range budget offers the comfort of staying in private hostel rooms, budget hotels, or Airbnbs. You’ll have the flexibility to dine at casual restaurants, enjoy a few drinks, and participate in popular activities like whale-watching tours or visiting the Blue Lagoon.

This budget also covers car rentals for exploring outside the cities, including the Golden Circle or South Coast. It’s perfect for those who want a balance of adventure and comfort without overspending.

Upscale – 70,000+ ISK / €460+ / £400+ / $500+ Per Day

A luxury budget ensures a stay in boutique hotels or high-end Airbnbs with spectacular views, often in prime locations like Reykjavik or along the fjords. You can enjoy fine dining at Iceland’s renowned restaurants, indulge in cocktails at upscale bars, and explore the country with private tours or helicopter rides.

This budget covers seamless transportation, such as rental SUVs for off-road adventures or private transfers, and exclusive experiences like glacier hiking, Northern Lights tours, or private hot spring visits. It allows for a fully immersive and comfortable Icelandic adventure.

Iceland Money-Saving Tips

Iceland is stunning in any season!
Iceland is stunning in any season!
  1. Bring a Reusable Water Bottle – Tap water in Iceland is among the purest in the world, so there’s no need to buy bottled water. Carry a reusable water bottle and refill it from any tap to save money and reduce waste.

  2. Cook Your Own Meals – Groceries in Iceland are more affordable than dining out. Shop at budget-friendly stores like Bonus or Krónan and prepare your meals at your accommodation. Many hostels and Airbnbs come equipped with kitchens.

  3. Stay in Hostels or Campsites – Hostels from Hostelworld are a cost-effective way to stay in Iceland, and many offer shared kitchens and common areas. Campsites in Iceland are even cheaper and are available across the country, making them a great option for outdoor enthusiasts.

  4. Travel in Groups – Sharing costs like car rentals, fuel, and accommodations with friends or fellow travellers can significantly reduce your expenses. Carpooling is particularly effective for road trips around Iceland.

  5. Use Public Hot Springs – Instead of paying for expensive spas like the Blue Lagoon, visit free or low-cost natural hot springs such as Seljavallalaug or Reykjadalur. These spots offer the same relaxation without the hefty price tag.

  6. Plan Ahead for Car Rentals – Book your rental car well in advance to secure lower rates, especially during peak seasons. Opt for a fuel-efficient vehicle to save on petrol costs.

  7. Use Public Transportation in Reykjavik – Reykjavik’s bus system is efficient and affordable. A single ticket costs about 490 ISK (€3.20 / £2.80 / $3.50), making it a budget-friendly option for getting around the city.

  8. Pack Snacks for Road Trips – Eating at gas stations or restaurants along Iceland’s scenic routes can add up quickly. Stock up on snacks and pre-made meals before you hit the road.

  9. Avoid Alcohol in Bars – Alcohol in Iceland is expensive due to high taxes. To save money, consider buying drinks at government-run liquor stores (Vínbúðin) or skip drinking altogether.

  10. Visit Free Natural Attractions – Iceland’s greatest treasures—waterfalls like Seljalandsfoss, national parks, glaciers, and beaches—are often free to access. Spend your time exploring the outdoors to enjoy Iceland’s beauty without spending a fortune.

  11. Travel Off-Season – Visiting Iceland during the shoulder seasons (spring or fall) means cheaper accommodations, lower rental car prices, and fewer crowds. The weather is still suitable for most activities.

How to Get Around in Iceland

Walking

Walking is a great way to explore Iceland’s towns and cities, especially Reykjavik, which is compact and pedestrian-friendly. Many of the city’s main attractions, such as Hallgrímskirkja and Harpa Concert Hall, are within walking distance of each other. However, due to Iceland’s vast landscapes, walking is not a practical option outside urban areas.

Public Transportation

Public transportation in Iceland is limited to buses within Reykjavik and a few regional routes.

  • City Buses (Strætó): Reykjavik’s bus system is reliable and affordable. A single ticket costs about 490 ISK (€3.20 / £2.80 / $3.50), and you can save with multi-day passes.
  • Regional Buses: Long-distance buses connect towns and attractions, but they can be infrequent and expensive. Tickets from Reykjavik to major destinations like Akureyri or the Golden Circle range from 5,000–15,000 ISK (€33–100 / £28–85 / $36–110).

Airport Transfers

  • Keflavik International Airport to Reykjavik: The Flybus is the most convenient option, costing 5,500 ISK (€37 / £32 / $40) one way and taking about 45 minutes.
  • Taxis: A taxi from the airport to Reykjavik costs around 20,000 ISK (€135 / £115 / $145), so it’s best for groups or emergencies.
  • Recommended Airport Transfer: Welcome Pickups

Taxis and Ridesharing

Taxis are available but expensive in Iceland.

  • Base Fare: 700 ISK (€4.70 / £4 / $5)
  • Per Kilometre: 350–400 ISK (€2.30–2.70 / £2–2.30 / $2.50–3)
    There are no ridesharing apps like Uber, so taxis must be booked through local companies.

Car Rental

Renting a car is the best way to explore Iceland’s breathtaking landscapes, from the Golden Circle to the South Coast.

  • Cost: Rentals start at 10,000–20,000 ISK (€67–135 / £57–115 / $70–140) per day, depending on the season and vehicle type.
  • Requirements: An International Driving Permit (IDP) is not required but recommended. Drive cautiously, especially on gravel roads and in unpredictable weather.
  • Recommended Car Rental: DiscoverCars Iceland

Campervans

Campervans are a popular option for saving on both accommodation and transport. Costs range from 15,000–30,000 ISK (€100–200 / £85–170 / $110–215) per day. Campsites are widespread and affordable, usually charging 1,500–2,500 ISK (€10–17 / £8–15 / $11–18) per night.

Cycling

Cycling is possible but challenging in Iceland due to the unpredictable weather and long distances. However, it’s a unique way to explore areas like Reykjavik or the Ring Road. Bike rentals start at 4,000 ISK (€27 / £23 / $29) per day.

Ferries

Ferries connect some of Iceland’s islands and remote areas.

  • Vestmannaeyjar (Westman Islands): The ferry costs 1,800–4,000 ISK (€12–27 / £10–23 / $13–29) one way, depending on the season and type of ticket.
  • Other Routes: Ferries to places like Grimsey Island or the Westfjords are less frequent but offer incredible scenic experiences.

Domestic Flights

Domestic flights are available to reach distant areas like Akureyri or Egilsstaðir quickly.

  • Cost: Tickets range from 12,000–30,000 ISK (€80–200 / £70–170 / $85–215) one way, depending on the route and season.
  • Airlines: Icelandair and Air Iceland Connect operate most domestic flights.

Tips for Getting Around

  • Plan Ahead: Public transport options are limited, so plan your routes carefully, especially for rural areas.
  • Budget for Fuel: Fuel prices are high, averaging around 310 ISK (€2 / £1.70 / $2.20) per litre.
  • Weather Awareness: Always check weather conditions and road closures before traveling, especially in winter.

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