More and more people are booking flights to Iceland due to the attractive prices offered by airlines, however, once they get there they realise that their spending costs are high. Is it possible to travel to Iceland on a small budget?
The answer is mixed. Yes, we can travel to Iceland "cheaply", but it involves a lot of organisation and flexibility - if you want to participate in excursions, go to the highlands, hike on a glacier, fly over a volcano and stay in a hotel, your trip will end up being expensive. There is no secret, it is not possible to see and do everything on a tight budget, but with planning, you can still see and do quite a lot.
The popularity of Iceland has led many airlines to offer direct flights, and more and more low-cost carriers are available: Wow air from Europe and North America, EasyJet or Transavia (subsidiary Air France). By booking in advance, you can find very good deals. The Icelandic airline, Icelandair, also has occasional flash deals where you can book a round trip to Iceland for less than 250 euros.
On-site car rental is a good way to travel -this is certainly not cheap, but it gives you a flexibility that you will not get with public transport; for example, car rental may suit families or groups more as they will spend more on bus fares collectively to travel from place to place. Moreover, domestic flights are incredibly expensive. If you are travelling alone, consider getting a bus passport, or try to find fellow travellers to rent a car together. The carpooling website samferda.is can also be a good idea.
Accommodation is certainly expensive in Iceland. Travel out of the high tourist season (June-August) to get lower prices, use airbnb, save a few euro by staying in a guesthouse with shared bathroom facilities, camp if you are travelling in the summer time, or try Couchsurfing - even though this is difficult in Iceland. The hostels have fairly reasonable prices but it is imperative to book several months in advance if you go in the summer.
Forget the traditional restaurants and opt to eat out in a cafe where you can avail of various lunch offers. Expect to pay around 15 euros for soup or salad. Eating out is an expensive element of travelling in Iceland. If it is possible to prepare your own food, do it and you will save a lot of money.
Going on tours can be difficult if your budget is tight, even if some agencies have quite competitive prices. But do not worry - Iceland is full of wonders, whether your wallet is empty or full.
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