Iceland is notoriously costly and when we shared that we were going there, the first reaction that we seemed to get was “Wow! That will be an expensive trip!” While some costs on the trip were more than we were used to we did find a few ways to save money:
1. Shop smart
I made a quick stop at the local grocery store in downtown Reykjavik in order to price out some essentials – milk, eggs, produce, bread, pasta and sauce. We compared the prices there to prices just outside the city centre at the chain grocery store called Bonus. We found the prices outside of downtown were almost ½ those at the downtown shop. If you have access to a vehicle, take a little drive and find a grocery store a little further afield and you’re sure to save money!
Another way we saved on our grocery costs was to shop at Costco. If you are a member of Costco in your home country, you are entitled to shop at Costco’s around the world. We found eggs, cereal, milk and other staples were much less expensive than we expected and were able to get some produce like tomatoes and spinach for not significantly more than we are used to paying at home.
2. Pack What You Can
In order to save some money on items we knew that we would need while we travelled we opted to take advantage of our luggage allowance (Icelandair allowed us one checked piece of luggage for each adult passenger free of charge). We brought enough diapers and wipes for our entire trip knowing they would likely be quite expensive in Iceland. When I checked briefly at Costco I found that the boxes of diapers were more than twice the price of our local Costco and I breathed a sigh of relief that we had all we needed.
We also packed prepackaged snacks for ourselves and our toddler. This allowed us to shop sales at home and plan well in advance.
If you have any special dietary restrictions or need formula, diapers, feminine hygiene products or other items that may be significantly more expensive in Iceland you may want to consider purchasing them in your home country and packing them in your checked luggage. Be sure to check if you plan on bringing any perishable foods or items that may be prohibited to take through customs prior to leaving!
3. Shop Around for Wheels
The roads in Iceland, especially the ring road that goes around the entire country, Highway 1, is well paved and safe. Smaller roads can be unpaved or narrow but we didn’t encounter any roads in our adventures that would have required 4 wheel drive or where we felt that our compact vehicle felt unsafe. If you’re traveling during the spring, summer and early fall prior to when the snow starts to fly consider renting a small and fuel efficient vehicle. Manual transmission vehicles are significantly cheaper than automatic transmission so if one driver is able to manage manual transmission, definitely put them in charge! Finally, shop around for your rental! We have had great luck renting through a broker and find that prices are significantly less expensive than renting directly through the company.
1. Shop smart
I made a quick stop at the local grocery store in downtown Reykjavik in order to price out some essentials – milk, eggs, produce, bread, pasta and sauce. We compared the prices there to prices just outside the city centre at the chain grocery store called Bonus. We found the prices outside of downtown were almost ½ those at the downtown shop. If you have access to a vehicle, take a little drive and find a grocery store a little further afield and you’re sure to save money!
Another way we saved on our grocery costs was to shop at Costco. If you are a member of Costco in your home country, you are entitled to shop at Costco’s around the world. We found eggs, cereal, milk and other staples were much less expensive than we expected and were able to get some produce like tomatoes and spinach for not significantly more than we are used to paying at home.
2. Pack What You Can
In order to save some money on items we knew that we would need while we travelled we opted to take advantage of our luggage allowance (Icelandair allowed us one checked piece of luggage for each adult passenger free of charge). We brought enough diapers and wipes for our entire trip knowing they would likely be quite expensive in Iceland. When I checked briefly at Costco I found that the boxes of diapers were more than twice the price of our local Costco and I breathed a sigh of relief that we had all we needed.
We also packed prepackaged snacks for ourselves and our toddler. This allowed us to shop sales at home and plan well in advance.
If you have any special dietary restrictions or need formula, diapers, feminine hygiene products or other items that may be significantly more expensive in Iceland you may want to consider purchasing them in your home country and packing them in your checked luggage. Be sure to check if you plan on bringing any perishable foods or items that may be prohibited to take through customs prior to leaving!
3. Shop Around for Wheels
The roads in Iceland, especially the ring road that goes around the entire country, Highway 1, is well paved and safe. Smaller roads can be unpaved or narrow but we didn’t encounter any roads in our adventures that would have required 4 wheel drive or where we felt that our compact vehicle felt unsafe. If you’re traveling during the spring, summer and early fall prior to when the snow starts to fly consider renting a small and fuel efficient vehicle. Manual transmission vehicles are significantly cheaper than automatic transmission so if one driver is able to manage manual transmission, definitely put them in charge! Finally, shop around for your rental! We have had great luck renting through a broker and find that prices are significantly less expensive than renting directly through the company.
4. Find Alternate Accommodation
In my opinion, the best way to save money in Iceland is to book a vacation rental. There are lots of great affordable options to choose from. We found a two-bedroom apartment, walking distance to downtown that was baby friendly and was around 120 Canadian Dollars per night. Having our own space cut down significantly on the cost of food meaning we could eat breakfast and almost all of our dinners at home. Having a full kitchen also allowed us to prepare lunches for our daily outings. The other thing that we love about vacation rentals is having a local contact in our destination city. Our host was able to give us tips on where to find free parking, and choosing local restaurants that helped us avoid tourist traps.
5. Take Advantage of Nature
There are so many things to see in Iceland that are completely free. Beautiful hikes, natural hot springs, waterfalls and beaches are easily accessible by car and stunning, showing you all the best parts of Iceland without spending a cent. By combining free or inexpensive sight seeing with one or two splurges you will keep costs down and still see experience so much of what Iceland has to offer.