Iceland: Fire, Ice, and Zero Small Talk
Volcanoes, glaciers, hot springs, and some of the most dramatic scenery on Earth. Here’s how to actually plan it.
Iceland looks like another planet. That’s not hype, it’s just what happens when you put volcanoes, glaciers, black sand beaches, and boiling hot springs on an island the size of Kentucky. The whole country has about 380,000 people in it, and most of them live in Reykjavik. The rest is wide open space, and that space is absurdly photogenic.
You can drive the entire Ring Road in about a week. You can soak in a geothermal pool while snow falls on your head. You can stand behind a waterfall, walk on a glacier, and eat a hot dog that somehow became a national institution, all in the same day. It’s expensive, absolutely. But the kind of expensive where you look at the Jokulsarlon glacier lagoon at sunset and think yeah, fine, take my money.
This guide covers costs, transport, the best things to do, and how to plan a trip to Iceland without going broke. All prices are listed in GBP, USD, EUR, and ISK.
3–3.5 hrs
From the UK
Jun–Aug / Sep–Mar
Best time
Icelandic
Main language
ISK (Króna)
Currency
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Best Time To Visit
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.
For a month by month look click here
What To Expect
7°C
- Temperature
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.
Iceland Travel Guides
From Reykjavik’s coffee shops to glacier lagoons on the south coast. Guides, itineraries, and trip planning for every kind of Iceland visit.
City Guides
Itineraries + Maps
Best Places to Visit & Things to Do
Best Time to Visit
Travel Tips
Everything Else
How Much Does Iceland Cost?
Iceland is one of the most expensive countries in Europe. No way around that. But with the right planning, it doesn’t have to wreck your budget.
🎒
Backpacker
~£85/day - $110/day | €100/day | ~15,000 ISK/day
- Hostel dorms from £35/night ($40/€40)
- Supermarket meals and self-catering
- Public buses and hitchhiking
- Free hot springs, hiking, and waterfalls
🍜
Mid-Range
~£170/day - $215/day | €200/day | ~30,000 ISK/day
- Private rooms and budget hotels
- Casual restaurants and cafes
- Rental car for the Ring Road
- Blue Lagoon, whale watching, day tours
🏨
Upscale
~£400+/day - $500+/day | €460+/day | ~70,000+ ISK/day
- Boutique hotels and luxury lodges
- Fine dining and tasting menus
- Private tours and helicopter rides
- Exclusive hot spring experiences
Detailed Cost Breakdown
Budget
- Hostel dorm: £35–50 / $40–70 / €40–65 / 6,000–9,000 ISK per night
- Campsite: £11–23 / $15–30 / €13–26 / 2,000–4,000 ISK per night
- Budget hotel: £115–230 / $140–280 / €135–260 / 20,000–40,000 ISK per night
Mid–Luxury
- Airbnb private room: £85–170 / $110–210 / €105–195 / 15,000–30,000 ISK per night
- Airbnb apartment: £170+ / $210+ / €195+ / 30,000+ ISK per night
- Boutique hotel: £230+ / $280+ / €260+ / 40,000+ ISK per night
City Travel
- Local bus (Straeto): £2.80–3.40 / $3.50–4.50 / €3.20–4 / 490–590 ISK
- Taxi base fare: £4 / $5 / €4.70 / 700 ISK
- Taxi per km: £2–2.30 / $2.50–3 / €2.30–2.70 / 350–400 ISK
Long Distance
- Intercity bus: £35–70 / $40–85 / €40–80 / 6,000–12,000 ISK per journey
- Car rental per day: £57–115 / $70–140 / €67–130 / 10,000–20,000 ISK
- Campervan Iceland per day: £85–170 / $110–215 / €100–200 / 15,000–30,000 ISK
- Domestic flight: £70–170 / $85–215 / €80–200 / 12,000–30,000 ISK one way
Eat Cheap
- Fast food / food court meal: £10–14 / $12–18 / €11–16 / 1,700–2,500 ISK
- Supermarket meal prep: £5–9 / $7–11 / €6–10 / 900–1,500 ISK
- Coffee (latte): £3.50–4.50 / $4.50–5.50 / €4–5 / 600–750 ISK
- Hot dog (Baejarins Beztu): £3.50 / $4.50 / €4 / 600 ISK
Eating Out
- Casual restaurant main: £17–28 / $22–35 / €20–32 / 3,000–5,000 ISK
- Mid-range restaurant: £28–45 / $35–55 / €32–50 / 5,000–8,000 ISK
- Pint of beer (bar): £8–11 / $10–14 / €9–13 / 1,400–2,000 ISK
- Fine dining: £55+ / $70+ / €65+ / 10,000+ ISK
Budget Fun
- Museum entry: £8.50–17 / $10–21 / €10–20 / 1,500–3,000 ISK
- Public hot spring: Free–£6 / Free–$7 / Free–€6.50 / Free–1,000 ISK
- Hiking (most trails): Free
- Reykjavik walking tour: Free (tip-based)
- The Volcano Express –
$21 = 2,585 ISK / 17.98 EUR / 15.64 GBP
Big Experiences
- Blue Lagoon: £65–105 / $80–130 / €75–120 / 11,000–18,000 ISK
- Whale watching: £70–105 / $85–125 / €80–120 / 12,000–18,000 ISK
- Glacier hike tour: £70–115 / $85–140 / €80–130 / 12,000–20,000 ISK
- Northern Lights tour: £50–85 / $60–105 / €55–95 / 8,500–15,000 ISK
Tips for Saving Money in Iceland
🚰 Iceland’s tap water is some of the cleanest in the world. Bring a reusable bottle and skip the bottled stuff entirely.
🛒 Shop at Bonus or Kronan for groceries. Most hostels and Airbnbs have kitchens, so cooking your own food saves a fortune compared to eating out.
🏕️ Campsites run about £11–23 per night and they’re all over the country. If you’ve got a campervan, that’s your accommodation and transport in one go.
👥 Split a rental car with other travellers. Fuel, tolls, and car hire between 3–4 people makes the Ring Road surprisingly affordable.
♨️ Skip the Blue Lagoon (or go once for the photo). Free hot springs like Seljavallalaug and Reykjadalur give you the same soak without the £65+ entry fee.
📅 Book your rental car as early as possible. Summer prices double if you leave it late, and availability dries up fast.
🍺 Buy alcohol at Vinbudin (the state liquor store), not at bars. A pint in Reykjavik runs £8–11. A bottle of wine from Vinbudin is half that.
🚌 Reykjavik’s Straeto bus system costs about £2.80 per ride. No need for taxis within the city.
🎒 Pack snacks before every road trip day. Service stations charge tourist prices and the gaps between them can be huge.
🌊 Most of Iceland’s best stuff is free. Waterfalls, beaches, hiking trails, geothermal areas. Your biggest spend should be getting between them, not getting into them.
Getting Around Iceland
Iceland doesn’t have trains. No Uber either. The country is basically one road in a circle and everything branches off from it. Here’s how to work with that.
Domestic Flights
Useful for reaching Akureyri or the East Fjords quickly. Icelandair and Air Iceland Connect run most routes.
✅ Saves days of driving
✅ From £70/$85/€80 one way
❌ Limited routes and schedules
Car Rental
The default way to see Iceland. Route 1 circles the whole country and most of the big sights are right off it.
✅ Total freedom and flexibility
✅ Access every corner of the island
❌ £57–115/day ($70–140/€67–130) plus fuel
Ferries
Connects the mainland to the Westman Islands and a few other spots. The Vestmannaeyjar ferry is the one most visitors use.
✅ Only way to reach some islands
✅ From £10/$13/€12 one way
❌ Weather-dependent, limited routes
City Bus (Straeto)
Straeto runs Reykjavik’s bus network. Cheap, reliable, covers the capital area well. That’s about the extent of it.
✅ £2.80/$3.50/€3.20 per ride
✅ Day passes available
❌ Only covers Reykjavik and suburbs
Intercity Bus
Connects Reykjavik to major destinations. Not the fastest option, but gets you there without a car.
✅ No car needed
✅ Reaches Golden Circle, South Coast, Akureyri
❌ Infrequent schedules, especially off-season
Campervan
Accommodation and transport combined. Park up at campsites across the country and wake up next to glaciers.
✅ Saves on accommodation costs
✅ Ultimate road trip freedom
❌ £85–170/day ($110–215/€100–200)
Which Is Right For You?
Just doing Reykjavik
Walk + city bus. You don’t need a car.
Golden Circle + South Coast
Rental car or join a guided tour
The full Ring Road
Rental car or campervan, minimum 7 days
Tight budget, short trip
Bus tours from Reykjavik + Straeto
Quick Tips
📅
Book Cars Early
Summer rentals sell out fast. 2–3 months ahead is the sweet spot. Reykjavik Cars is the best we have used!
⛽️
Budget for Fuel
Petrol averages about £1.85/litre ($2.30/€2.15). The Ring Road is 1,322km. Do the maths.
❄️
Check Road Conditions
road.is is your best friend. Roads close without warning in winter, especially in the north and highlands.
⚠️
Get Proper Insurance
Rental car gravel insurance is not optional. One loose rock on a highland road and you’re paying for a new windscreen.
Iceland Partnerships:
Book Tours & Tickets
Related Resources
Travel Problems
Missed flights, lost luggage, dodgy hotels. It happens. Here’s how to handle all of it without losing your mind.
Theft & Scams
Pickpockets, tourist traps, and cons you won’t see coming. We break down the most common ones and how to avoid every single one.
Travel Insurance
Don’t skip this one. Especially travelling solo. We compare the best policies and explain exactly what you actually need.
FAQs
Do I need a visa to visit Iceland?
UK, US, Canadian, Australian, and most EU passport holders don’t need a visa for stays up to 90 days. Iceland is part of the Schengen Area, so the 90-day limit applies across all Schengen countries combined, not just Iceland. Your passport needs to be valid for at least three months beyond your planned departure date. One thing to flag: the EU’s ETIAS pre-travel authorisation system is expected to launch in late 2026. Once it goes live, visa-exempt travellers (including UK and US citizens) will need to apply online before travelling. It’s not a visa, more like the US ESTA system. Should cost around €7 and last three years. Check the official ETIAS site for updates before you book.
Is Iceland safe?
Extremely. Iceland has topped the Global Peace Index for years. Crime against tourists is basically non-existent. The real dangers are environmental: sudden weather changes, powerful waves at black sand beaches (Reynisfjara in particular has warning signs for a reason), glacier crevasses, and unmarked geothermal areas. Don’t hike glaciers without a guide. Don’t get close to the waves at Vik. And always check weather and road conditions before driving anywhere.
How long do I need in Iceland?
Depends what you want to see. Reykjavik plus the Golden Circle can be done in 3–4 days. The south coast (waterfalls, glacier lagoon, Vik) adds another 2–3 days. The full Ring Road loop takes 7–10 days at a comfortable pace, longer if you want to explore side roads and the Westfjords. Most first-timers do a week and wish they had two.
When is the best time to visit Iceland?
Summer (June through August) gives you the Midnight Sun, warmer temperatures (10–15°C), accessible highland roads, and puffins. It’s also peak season, so everything costs more and books out faster. Winter (October through March) is when you get the Northern Lights, ice caves, and dramatic snow-covered landscapes, but shorter days, rougher weather, and some roads close entirely. Shoulder months like May and September offer a good middle ground. Both are worth it, they’re just very different trips.
Is Iceland really that expensive?
Yes. Eating out, drinking, accommodation, and car hire all cost more than most of Western Europe. A mid-range dinner for two can run £80–110 ($100–135/€90–125). A pint in Reykjavik is £8–11. But the expensive bits are the human-made ones. Most of Iceland’s best experiences, the waterfalls, the hiking, the beaches, the hot springs, are free. Budget travellers can get by on around £85/day ($110/€100) with hostels and self-catering. It’s doable if you plan for it.
What currency does Iceland use?
The Icelandic krona (ISK). As of March 2026, £1 GBP is roughly 167 ISK, $1 USD is about 126 ISK, and €1 EUR is about 144 ISK. But honestly, you can get through an entire Iceland trip without touching a single banknote. Card payments are accepted everywhere, including tiny rural petrol stations and roadside food trucks. Apple Pay and Google Pay work widely too. Always check live rates at xe.com before you go.
Do I need travel insurance for Iceland?
Yes. Iceland has no reciprocal healthcare deal with the UK or most other countries. Medical costs are paid out of pocket, and a helicopter rescue from a glacier or remote highland area will cost you thousands. UK EHIC/GHIC cards work in Iceland for emergency treatment at public facilities, but they won’t cover everything, and they definitely won’t cover medical evacuation or trip cancellation. Get proper travel insurance. Non-negotiable.
Can I drink the tap water?
Yes, and you should. Iceland’s tap water comes from natural springs and glacial sources. It’s some of the cleanest drinking water you’ll find anywhere. The cold tap is perfect. The hot tap might smell slightly sulphuric (that’s the geothermal heating) but it’s safe. Bring a reusable bottle and save yourself a fortune.
Do I need a 4x4 to drive in Iceland?
For Route 1 (the Ring Road) in summer, no. A standard 2WD car handles it fine. But for F-roads (highland mountain tracks), a 4×4 is legally required, and they only open from roughly late June to September depending on snow. In winter, a 4×4 is strongly recommended even for Route 1, especially in the north. If you’re sticking to the south coast and Golden Circle in summer, a regular car is all you need. Grab your rental here.
What should I pack for Iceland?
Layers. The weather changes multiple times a day and can go from sunshine to sideways rain in minutes. A waterproof outer shell is the single most important thing. Thermal base layers, a fleece mid-layer, good waterproof hiking boots, and a buff or scarf for wind. Sunglasses and sunscreen in summer (the Midnight Sun is relentless). Bring swimwear for the hot springs. And a reusable water bottle.
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