Iceland is one of the most expensive countries in the world. Here are 8 ways I saved money during my trip. (2024)

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I booked Icelandair's cheapest red-eye flight.

I paid $852.65 for my round-trip economy ticket on Icelandair. My flight took off from New York City at 11:15 p.m. and landed in Reykjavík at around 9 a.m. local time. I'm not usually a fan of red-eye flights, but it allowed me to maximize my first day in Iceland and save around $100.

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I booked a rental car further away from the airport.

I made my rental car reservation through Hotwire, a third-party booking site where I tend to find lower prices. I paid $348.66 for five days.

When I landed in Iceland, I found that only four rental car companies had counters in the arrivals terminal: Avis, Budget, Europcar, and Hertz. To get to the Economy Rent A Car counter where I'd made my reservation, I needed to take a 10-minute ride in a shuttle that only came every 30 minutes.

While it took a little longer to pick up my car, it was several hundred dollars cheaper than the other more conveniently located companies.

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I brought some food from home.

Packing some basics like granola bars and trail mix allowed me to avoid paying steep prices for snacks during my trip. I was also grateful to have brought an instant soup cup when I stayed at a remote bubble hotel located in a forest along the Golden Circle. Buubble by Airmango offered a kettle to heat water for coffee or tea, but no restaurant or lobby.

I supplemented my snacks from home with items from Icelandic grocery stores.

Throughout my visit, I stopped at Icelandic grocery chains like Hagkaup and Krónan to stock up on to-go items like sandwich ingredients and snacks. The prices were higher than the US, but it was still cheaper than eating at restaurants for every meal.

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Booking inexpensive hotels that included breakfast also helped keep my meal costs low.

I'm a hotel breakfast enthusiast. I love starting my travel days with a filling meal and sampling local morning staples in different cities and countries. In Iceland, the continental breakfast included in my hotel stay was another meal I didn't have to pay extra for.

I ended up spending a total of $154.16 on food over the course of my five-day trip — about $30 per day.

I saved money on bottled water by drinking it straight from the source.

I was surprised to learn that it's safe to drink straight from many clear rivers and streams in Iceland. On one hike, I filled my reusable bottle with water from melting glaciers instead of paying for bottled water. On other occasions, I filled my bottle with Icelandic tap water, which is widely regarded for its high quality.

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I visited non-touristy recommendations from locals, where prices were lower.

One local recommended that I visit the Secret Lagoon, located about 62 miles from Reykjavík, as a non-touristy alternative to the Blue Lagoon. The cheapest ticket to the Blue Lagoon cost 13,228 ISK, or about $93, while the Secret Lagoon cost 3,300 ISK, or about $23.18.

The Blue Lagoon featured more luxurious amenities and included perks like a face mask and drink, but the more rustic Secret Lagoon also provided an enjoyable geothermal pool experience and would be a great option for budget travelers.

I asked another Iceland local to meet at her favorite cafe in Reykjavík. She took me to the Flóran Garden Bistro located inside the Grasagarður Botanical Garden, a gorgeous setting adorned with flowers, string lights, and bubbling fountains. There, a sandwich and a bowl of soup cost 2,490 ISK, or about $17.60, which was one of the most delicious and least expensive meals I purchased during my trip.

I took advantage of Iceland's free natural wonders.

While some of Iceland's tourist attractions charge admission fees, many of the country's natural wonders are free to enjoy. While driving south, I happened upon the incredible Seljalandsfoss waterfall on the side of the highway. The site had a free parking lot and bathrooms, plus incredible views that didn't cost a króna.