Cost of travel in Iceland
The horror stories that you may have heard about the cost of travelling to Iceland are all (more or less) true. But as with any country, you can easily spend thousands if you want to experience the creme de la creme of Iceland. Eating every meal in nice restaurants, hiring a private guide and taking expensive excursions. But it can also be done on the cheap (ish!) side by buying part or all of your food from supermarkets. We expect the average daily spend (excluding accommodation) for a budget traveller to be around $50 - $60 USD a day. For a midrange budget, we suggest $70 - $250. And if you have a high / luxury budget, take at least $280 per day. If you want to keep a record of your budget as you go, Trailwallet is a great app.
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Food & drink
Due to the country being a very isolated island, the majority of their goods and produce is imported, which bumps the prices up, especially for fresh fruit and vegetables. If you plan on buying a few meals in supermarkets to keep your costs down, shop wisely! Vegetables and fruit are especially pricey - it costs about $2.50 for a pepper. Most items have a range of cheap to expensive. For example, ham slices can be around $2.50, but beef slices, can cost up to $10.
Dining at restaurants is particularly expensive so a lot of people tend to have a sitdown meal only occasionally. If you were to pick the cheapest thing on the menu (probably a soup) it would set you back about $12 - $17. Burgers and sandwiches float around the $18 - $25 mark, and a traditional Icelandic dish (such as roasted lamb, potatoes and salad) can cost $34 - $60. A soft drink, coffee or tea is around $3 - $5.
A pint of beer at a local bar will cost around $7 - $9. A glass of wine or a spirit mix will be around $10 - $13. -
Admission fees
Most of the natural sites in Iceland do not charge any entrance fees. National parks, volcanic beds, glaciers and waterfalls are all free. More tourist destinations such as the Blue Lagoon, museums and spa pools will charge. There are also a lot of free natural, hot springs, you just may need to hike a little for these. Entrance to museums can range from $4.50 - $18.
Top Tip!
If you'd like to have a few drinks on your holiday to Iceland, pick up some alcohol from the duty free shops. Alcohol is mostly imported to Iceland making it very expensive.
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Transport
Many people opt for hiring a car hire as it generally works out cheaper and is much more convenient than using public transport. The transportation in Iceland does leave a lot to be desired. If you’re planning on travelling the ring road you can buy a ticket for around $400. But if there are two or more of you, it works out much cheaper to hire a car.
Hiring a car is very easy to do in Iceland, however local companies tend to be much cheaper than international brands. Depending on the car and spec, expect to pay anything from $40 - $80 per day. That is not including petrol, which comes in at around $1.76 per litre.
A bus ticket for travel around Reykjavik city costs about $4.
Tipping etiquette and costs
Tipping is not expected in Iceland as nearly all bills include a service / gratuity charge. If you would like to provide a tip because the service was particularly good, that is fine, they will not be offended. In many other countries, tipping is expected partly because the waiters don’t make a good salary. However in Iceland, wages are decent and fair.
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Restaurants
You may tip if you really want to, but bear in mind, a service charge is already included. (The same rule applies for bar staff.) If you do tip, it is only really done in expensive restaurants - up to 10% is ok. -
Hotels
The service industry - for example, maids, salon workers, concierges or bellmen do not expect a tip, their fee is included in the overall price.
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Taxis
Taxi drivers also do not expect a tip. A service charge is included in the overall amount. -
Tour guides
Again, you do not need to tip your tour guide. However, if it was a truly exceptional experience then you can allow 10%.
Can you haggle in Iceland?
Unlike many other destinations, haggling is NOT a common practice in Iceland. The people are generally reserved and quiet, and will likely get offended if you try to bargain with them. The only exception to this rule is at the Kolaportið flea market. Here it can be seen as rude if you DON’T haggle.
Duty-free allowance
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Gifts can be taken to / from Iceland up to the value of ISK 10,000.
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There is no restriction on the amount of money you can bring into the country.
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You are allowed 200 cigarettes or 250g tobacco.
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1 litre of spirits & 1 litre of wineOR 1 litre of spirits / wine + 6 litres of beer.
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