Planning Your Icelandic Adventure: A Guide to Costs and Currency for Visitors
Getting a rough idea of how much your trip is going to cost is good practice
Before you book anything, run a few broad estimates for elements of your holiday such as accommodation, getting around and eating out. Once you have a ball park figure you can work out whether your ideas are feasible on the budget you have. Making a few adjustments to the style of accommodation, trip dates or the way you’ll get around can make all the difference. Let’s look at a few comparables.
- Flights
Flying to Iceland can be surprisingly cheap, thanks to a number of established budget airlines that offer a pared-down product for a lower cost. You can pick up a return flight with easyJet or Play from London for under £100 so long as you book early enough, while flights from North American cities such as New York can be picked up for less than $300. It’s important to factor in the cost of extras such as luggage, seat assignments and priority boarding as this can make a significant difference. National carrier Icelandair also offers layover packages where you can stop in Iceland for a few days as you travel between mainland Europe and North America. Note that if you are flying internally in Iceland, such as to Ísafjörður in the Westfjords or Egilsstaðir in East iceland, domestic flights depart from Reykjavik Airport in the city and not Keflavik. This means you’ll need both time and transport to connect.
- Accommodation
There’s an enormous variation in accommodation in Iceland, from swanky hotels to budget campsite pitches. Think about a few things before making your booking. Do you need a private bathroom or are you happy to share? What kind of weather can you expect and will the type of lodging you’re considering be suitable? How important is location, for instance, being right in the heart of Reykjavik or having an incredible view of mountains, waterfalls or the coast? In general, you’ll get a lot more for your money if you come outside of peak season. Shoulder season travel (in April, May, September and October) are more likely to be better value than if you visit during June, July or August. The amount of daylight you’ll have is still ample for sightseeing but the risk of inclement weather increases. As with airline tickets, the earlier you book the better, especially out in the countryside where summer demand outstrips supply.
- Getting around
Where you need to be and how you travel to get there can vary considerably in price. Let’s take your arrival journey as an example. The popular FlyBus takes about 45 minutes to the Reykjavik terminal; there, travellers disperse onto feeder minibuses and in general can expect to be at their hotel in another 15 minutes or so. Fares cost 3999ISK one-way (approximately £23/$29/28EUR). In comparison, a single fare on the Strætó public bus costs just 670ISK, though the journey will take longer. Taxis will be more expensive, but quicker. The cost of renting a car can be cost effective, especially if there is more than one of you; prices vary considerably according to the season and the type of vehicle you choose. Note that long-distance buses are good value but departures are often infrequent; while it might work out fine between, say, Reykjavik and Akureyri, you could find yourself reliant on tours for your sightseeing.
- Tours
Whether you opt for organised tours or not depends a lot on the time of year you plan to come and what you intend to do. For example, some activities can only be done as part of an organised tour. These would include those in dangerous environments such as glacier hikes, ice cave tours and descents into lava tubes. Similarly, you’ll need to look for a qualified provider to go whale watching, horse riding or get the adrenaline racing on an ATV. However, many of Iceland’s most iconic sights are free to view – its waterfalls, glacial lagoons (though you’ll probably want to take a boat trip out on the water), beaches and canyons can be accessed by anyone. To visit these, you can arrive and depart under your own steam. Tourist attractions such as the unique LAVA Show are also worth the splurge, so hold back some of your budget for those.
- Geothermal baths
Taking a dip in a geothermal bath is a quintessentially Icelandic activity. In recent years many luxurious spas have opened across the country: Forest Lagoon and GeoSea in the north, Lagoon and Hvammsvik Hot Springs within easy reach of Reykjavik and Vök in the east, for starters. Blue Lagoon in Reykjanes remains as popular as ever, perhaps due to its iconic status and as well because it is conveniently situated between Reykjavik and Keflavik Airport. But there are also a plethora of more basic geothermal baths that cost a lot less to use, including Secret Lagoon, possibly the oldest in the country. In Iceland there’s even a geothermal river if you’re up for a gentle hike there and back. Every town has a swimming pool too, and these often have hot tubs. They’re not only affordable but also a great place to meet the locals and listen to their recommendations for the where to go and what to do nearby.
- Eating out
The cost of eating out is another variable when planning your Icelandic adventure. Trying one of Bæjarins Beztu Pylsur’s famous hot dogs at the stand in Reykjavik is a must. Expect to pay about 700ISK for this snack food from a cart in the city – there’s a branch at Keflavik too. Another place you can eat well on a small budget is at one of Reykjavik’s many food halls. Some of the capital’s historic buildings such as the Grandi fish factory and the old Post Office have been converted to house a number of food outlets. Not only are they an affordable place to eat, all members of your party can enjoy their favourite food even if that’s different from everyone else. Even if you’re keen to eat in a traditional restaurant, some of Iceland’s most popular dishes are hearty and filling, but also inexpensive. Try Icelandic lamb soup, for instance, or a tasty fish stew called plokkfiskur.
An important note about the way Icelandic currency is written down
When you’re looking online, you may have seen a full stop used within the currency amount. For instance a FlyBus ticket costs 3.999ISK. But this isn’t a decimal point, so the actual figure is nearer to 4000 than 4. If things appear to be too cheap to be true, then make sure you have read the figure correctly.
How to pay
Iceland is a largely cashless society and you’ll be able to pay for most things – even a hot dog – by tapping your credit or debit card. Online booking is the norm for tour providers and though prices may sometimes be displayed in US dollars you’ll usually pay in Icelandic króna. It’s handy to convert the króna amount into a currency with which you’re more familiar to make sure you feel it’s good value for money for the memories you’ll make.