There are so many things written about Iceland what to do and what not to do. Everyone has a different idea and expectation when they get there. We visited Iceland in January. We were told it was an expensive place to visit but we were still not prepared for the cost of things that we needed. We were told it was beautiful but we never imagined it was going to be so different from place to place. We have been to places that keep us wanting to travel and Iceland is one of them.
So we have put together a little easy post of some things that we think may come in handy when you are traveling in Iceland.
Do– Save some extra money.
People told us that Iceland was expensive but they did not tell us just how expensive everyday items could be. While we had enough money for me it was still a worry. If you can save a little extra to have in the kitty I highly recommend it. With this, you can have an extra meal out or pick yourself up an extra souvenir to take home. The prices in Iceland are expensive for everything.
Don’t– Leave Iceland without trying the lamb.
No Iceland Visit is complete without eating the lamb
Use some of that extra cash you saved up to sample the famous Icelandic lamb. It is highly recommended when you visit and we finally had some on our last night and it was magnificent but it was very expensive. I think one serve was $60 AUS and there are 4 of us that needed to eat.
Do– Buy the vouchers booklet if you fly Icelandic Air.
This is a little book worth 8 Euro that you can buy on your Iceland Air flight that provides you with discounts within Reykjavik and some surrounds at bars, restaurants, and some other places. Some range from 10% off up to 30%, others have buy one get one free or a discount off entry. It does have a limited use by date so just check that it will cover your entire stay. We found this great to use when we ate out as our apartment wasn’t the easiest to cook in.
Don’t– Forget to read the small print.
Some of the places in the voucher booklet will have certain times or set days where you can use the voucher. It pays to mark the places you would like to go and check if the discounts are available then or plan ahead using the booklet as a guide. You can save a good amount of money if you plan ahead and use your vouchers.
Do– Have faith your fellow travel companions don’t smell that bad in the bathroom!
Traveling in Iceland you will see things you have never seen before
On our first night, I got very upset with Mark for not closing the door with the smell that was wafting out of the bathroom. What I did not know was that he was only having a shower and nothing more. The hot water comes straight from the geothermal pools and smells like rotten eggs. Poor Mark got a few dirty looks until Willow showered next and we read the sign on the bathroom door! The water does not make your skin or clothes that you wash smell.
Don’t– Waste your money on buying bottled water.
It was the one thing that we were constantly told when we got there. So we finished off the bottled water we already had from the airport and topped it up from the tap in our room. They say it is one of the freshest purest water sources in the world!
Traveling in Iceland – Do get a bus transfer from the airport
Pre-book convenient and economic bus transfers between Keflavik Airport and your hotel in Reykjavik city. Let the driver negotiate the Icelandic roads while you relax in our modern and comfortable coaches. The airport is 45 minutes from Reykjavik so a taxi will cost you an arm and a leg
Book your transfer HERE.
Do– Find the barcode scanner in the Supermarket.
While we were wandering around trying to figure out how much some meat was going to cost us in the supermarket called Bonus a local came up to us and showed us the bar code scanner. This was a life saver for us as it was starting to get hard to find prices on some things, especially in the large fridge section. We ended up using the scanner to check everything and add it as we went. This also helped us stick to a budget when we were buying.
Don’t– Go crazy at the supermarket or at the little convenience stores.
On our first night, we arrived late and the weather was turning bad so we just bought quickly. It was a very expensive exercise and one we learnt from. If you have to go only buy small bits at a time and then pick it up as you need it. But know your prices. We paid nearly 4 times the amount at the convenience store than we did at the supermarket.
Do– Take a change of clothes.
We rented a car for a couple of days and on the first day, I did not take any extra clothes with us for the day. It was a decision that I would regret later on in the day after going to two waterfalls and a beach! They would have been used a few times and the next day when we were out they came in very handy for three of us…I won’t name names!
Don’t- Think that waterfall will allow you to stay dry.
Waterfalls are everywhere while traveling in Iceland
If it has even the slightest chance of drenching you within seconds it absolutely will. We thought we were totally safe, no wind, no splashing, no access to the water (to keep Marley dry) and BAM a gust of wind picks up out of nowhere at the perfect moment and we are all drenched! The poor car heater just could not dry that amount of water, the perils of traveling Iceland with kids. Just another amazing Iceland tourist spot to visit.
Do– Read the fine print if you are renting a car
The best way to travel Iceland is by Hire Car
If you are unsure of anything do not leave the office until you know or understand exactly what you can and can’t do. I asked plenty of questions before we left and I was very nervous that we had missed something.
Don’t- Think you will be covered for everything
There were so many things that I thought you would be covered for that you just weren’t, even though we got the highest possible coverage. We were lucky that I asked a heap of questions and our provider was more than happy to go over all the little details with us. You may not be covered for
- Wind damage
- Hitting an animal (which apparently is more common in summer)
- Damage to the chassis of the car
- Any driving on gravel including car park
We also discovered after a couple of adventures that our car was not suitable for two of the main tourist roads out of Reykjavik. These two roads were the main tourist roads as well which I thought was quite strange. Car rental Iceland is available in Reykjavik and from Iceland Airport Keflavik.
Do- Get a place where you can cook or prepare some meals.
As I have said above Iceland is very expensive, so I would recommend staying in a place where you will be able to make some of your own food either at night or to take with you during the day. We stayed Downtown Reykjavik Apartments where we had a fridge and some cooking facilities. We were in Iceland during winter so we were able to leave things in the car without worrying that they would get hot or go bad.
Traveling in Iceland with one of the many tour companies means you will see more
Don’t- Think fast food will be the cheaper option.
After a day of sightseeing, we decided that going to KFC for dinner would probably be a cheaper option and a quick one too. I was really impressed at how quickly we got served our food but yet again the cost was crazy. We got a family meal there which was 12 pieces of chicken, 2 medium chips (fries), a 1.5l Pepsi, 2 small coleslaw and a pot of gravy. Marley had a small popcorn chicken and Willow and I had a piece of corn each. This meal in Australia would cost between $25 and $30. With the conversion from Australian dollars into Icelandic Krona it ended up costing $100 Australian dollars…I nearly choked on the piece of chicken I was eating. I thought that this may give you a real idea of the true cost.
Also, another tip if you are at a fast food restaurant sometimes you have to get a number to be served
Do- Book a tour.
How to get around Iceland? A tour is a great way
While we were in Reykjavik we took advantage of the free city walking tour with Eric. It was a brilliant 
way to see the city and it was an easy walk for the kids. Eric was a brilliant guide and we learnt so much about the history of Reykjavik.
We also went on a Grayline City tour that took us out of Reykjavik and to some of the surrounding towns. This was an amazing tour as we were in a small mini bus and our guide Tanja was absolutely brilliant. She spoke to us as we cruised around and answered any questions we had. For the people up the back of the bus we just passed down their questions and Tanja answered them over the little pa system she had.
Luckily we visited at the best time to visit for the Northern Lights Iceland. Hence we did an Iceland Northern Lights Mystery Tour as well. This was a brilliant tour and the best bit is if you do not see or have what is deemed not a great view of the lights you are given the option of returning until you do get a good viewing! We had 2 nights available on our stay, You can read about our experiences HERE.
Don’t- Think you will be the only ones on the tour.
The crowds gather around the statue of Leif Eriksson
Best time to visit Iceland? We visited in winter and it was still so busy. We think winter is the best time to visit Iceland. Everywhere we went there was a minimum of 5 large busses. When we were on the walking tour it was also one of the largest groups Eric had ever had. In saying this though it did not stop us from going to all the places we wanted to and had seen in other people’s photos. Yes, we did most of the touristy places and we really enjoyed them despite being there with a lot of people. Our guides did tell us in some places we were lucky as there were only about another 50 people there at the time we were there. So I can only imagine how crazy it would be visiting Iceland points of interest during the summer months.
Traveling In Iceland – Where do we stay in Reykjavik
Down Town Reykjavik Apartments have accommodation for doubles and families. The apartments are fully self-contained with your own cooking facilities. You are located just on the edge of the city centre and close to food and transport options.
For more information and booking click HERE.
Iceland is a beautiful country and we don’t want to scare anyone off visiting there as it is one of the most beautiful, unique places on the planet. But we hope that these tips will help you manage your money better so you are able to see more, do more and experience more while you are there.
Here is another Iceland article you may like:
Northern Lights Tour reviewed
Great tips thank you! How long did you stay and how much was your budget for the trip?
Was the length of the stay good enough?
We stayed for 6 days and we had a spending budget of $300aud per day plus accommodation and car rental
Try the whale meat.
What did it taste like?
Stick to the speed limits, even if the locals are blasting past you. Photo radar are located everywhere and your rental company will charge you credit card when you get home.
Yes they are but at least they tell you when the camera are approaching
One of the nice things about living in an expensive city is that there’s no price shock when going to Iceland!
I’m always fascinated to see the prices of groceries in different places, as they vary so much from country to country and you can get an idea of what industries are subsidized and which rely on imports.
You make some great points about renting a car! I’m always worried about the fine print, although luckily my credit card provides extra insurance.
It’s defenitely true that people have so many mixed opinions about Iceland! Since I’m working at a travel agency, I hear a lot more from people who’ve been there. On one side, it’s better to travel there in summer (because then you can go into the inland of the country), but on the other side It’ll be less crowded in winter. However, now I’m reading your article it’s actually very crowded with tourists in winter as well, haha.
I really like the tip about buying the vouchers booklet from Icelandic Air. That can be so handy! Especially since Iceland is very expensive.
These are really great tips! I just got back from a trip to Iceland and so many of these points I though, yes, absolutely! The fine print on the car is a big one. We were sure to get the extra insurance with our rental because people had told us that they rented a car and got some gravel damage, but they counted it as wind damage and charged them a lot extra for it. I don’t often get the extra-extra coverage, but it was great to have the peace of mind. I loved our time in Iceland and am already planning another trip in the summer! Cheers!
It was strange that you could not get total coverage, but hay this is Iceland. We opted for all the coverage we could pay for
It is awful when you go somewhere and discover that your expectation of prices is totally off. I have just returned from Korea and some things were super cheap (local food) but other stuff was totally rip off. The skiing, whilst admittedly the venues for the 2018 Winter Olympics was seriously expensive!
I think there is expensive surprises know matter where you go, minimizing these surprises is the best option
Great tips. Similar to Scotland with the fresh tap water and delicious lamb. I’ve heard it is expensive, but wow your examples blew my mind. Better save more before I book the trip.
The exchange would be better against the pound than the australian dollar
You are right, Iceland is not cheap. However, coming from another Nordic country, nothing feels too expensive. Hahaha! I recommend renting a car from the airport and returning it back there. It gives you freedom to go wherever you want and you don’t have to worry about public transport or booking a tour for example to Blue lagoon or Golden circle.
I love how you wrote in detailed for the do’s and donts in Iceland. I also heard its expensive but never thought how expensive it is after reading your post, Man that KFC food is expensive seems like I should bring more from outside the country to Iceland.. hahahaha.. I will definitely try Lamb! it must be the must for food
Thanks Ferna the lamb is amazing
We’ve just come back and adored Iceland but the tourists are mad, there are so many. We explored South and West and found out of the golden circle route there were less. Great tips, it is so expensive isn’t it? We took a flask with us for day trips an ended up saving nearly £4 for every coffee.
Great Idea Melissa anything to save a few coins in Iceland os a bonus
I especially love your trip about DO NOT buy the bottled water. It is a very rare place where I will do that. I always carry a refillable water bottle with a filter. Anyway, Iceland’s water is the clearest on Earth and so fresh.
Thanks Charles anything to save a dollar in Iceland is helpful
Great tips, guys! We came very close to making it there this winter (brrrr! say Californians), but hope to another time. I will bookmark these for future reference!
Thank you for these great tips. I haven’t been to Iceland yet even tho I am from Norway. It looks so nice and I completely agree with your tips here on what I know about Iceland. Iceland and Norway have their similarities, especially when it comes to prices and yes it is not needed to spend money on bottled water 😀
Thanks Vibeke appreciate your comment, Norway we are coming for a visit one day soon
Great tips I will file away if I ever make it to Iceland. Cool to know about the bar scanners in the stores. Also, reading the fine print. Helpful in any case. Especially when renting a vehicle.
$100 for KFC! That is super crazy. I knew Iceland was expensive, and these sound like great ways to save some money while you are there, or at least, spend it more wisely. Thanks! Saving!
Love the concept of this post! Agree to go on the Reykjavik City Walk tour with Eric (you can tip in any currency)! Also hadn’t heard about the coupon booklet with Iceland Air. Did you save more than the 8 euros you bought it for? I’m always afraid that when I get coupon booklets I won’t really use them.
We absolutely loved Iceland when we visited but the cost of certain things definitely dented the bank balance. We also hired a car and learnt early on that if you got a coffee from the garage you were entitled to as many free top ups as you wanted which meant we started going there for our morning coffee as I could have a couple of cups. We also read up on places that did things like botttomless stew and soups which mean, should we wish we could get second helpings and fill ourselves up for less.
Great ideas Tam. I believe the petrol card we got with our hire vehicle entitled us to free coffee
Which ones are the tourist roads you couldn’t go to with your car? Were they F roads?
Yes they were the F roads even some of the golden circle was a F road
Hey Rebecca,
Thanks for this blog post. My wife and I are trying to figure out what to do on our next trip. Morocco is on the list and Europe but were trying to narrow it down. Iceland has been on the list for sometime but the costs are insane! We’ve just opened up a hotel so are needing a vacation but not one that will kill us on the budget. A lot of this I didn’t even know about such as the convenient store versus supermarkets, and the coupon book! Solid post, very much appreciated.
Cheers,
Mark
Mark thanks for the feedback we appreciate it and glad we could help. Where is your hotel located?