Since the arrival of low-cost airlines, you can fly to Iceland relatively cheap, but once there, the cost of living is quite high.
Here’s a rough idea of what a trip to Iceland will cost you.
If booked well in advance, flight tickets from Europe to Reykjavík, cost about 300 euro return. It’s good to be aware of the price ranges; flights can cost as low as 150euros with low-cost companies or on special offer with Icelandair, and can reach as high as 600-800 euros if booked at the last minute.
When flying inland with Icelandair from Reykjavík to another town in Iceland, prices can range from 50euros, when booked in advance (check the internet for special prices) and up to 140 euros if you book the day before your departure. A bus from Reykjavík to the second largest city in Iceland, Akureyri costs 62 euros. Carpooling to Akureyri is the cheapest way to travel there and costs around 20euros per person sharing.
If travelling in the summer time, you can choose from many of the ‘passport’ buses available by Reykjavík Excursions and Sterna. To travel around the ring road (route one) by bus, tickets costs 240 euros and if you wish to go through the highlands it can cost from 70 euros up to 140 euros added to the original cost.
You could also consider renting a car or a camper van to go around Iceland; prices vary depending on the season and the rental companies. To give an idea of prices: you can rent a small city car for 370 euros a week at Cars Iceland or a 4X4 for 490euros.
A camper van for two costs about 700 euros per week at Campervan Iceland, and a motorhome for four people costs 1330 euros per week. Petrol in Iceland costs around 1.40 or 1.60 euros per litre - diesel and unleaded petrol costs around the same price.
As for supermarket shopping, you can easily get by on 250 euros for food per week, for two people. If hanging out in a coffee house or bakery, you could easily spend 20 euros for two people. A cup of coffee costs on average 2.80 euros and a pastry will cost on average 4 euros. A complete dinner with three courses in a good restaurant can cost between 150 euro to 200 euros depending on whether you had alcoholic beverages or not. A beer (50cl) in a bar costs 6 to 7 euros. In the local Icelandic off-license, a very nice bottle of alcohol can cost around 50 euros and the lowest price for a bottle of wine is around 9 euros.
It’s wise to include cash in your travel budget for some day trips; a return bus trip to the Blue Lagoon including entrance fee, costs 70 euros and a bus trip to the Golden Circle costs the same (70 euros). A bus tour at Landmannaglaugur with guide costs 140 euros. There is a wide range of wonderful excursions and activities available in Iceland and the prices for each vary.
A week’s trip for two around Iceland, with city car rental, accommodation in guesthouses, a tour and alternating meals between picnics and small restaurants, and a few extras (entry to the pool, souvenirs), your travel will cost at least 3,000 euros. We strongly recommend you allow yourself a generous travel budget so you are guaranteed to have a wonderful trip.