Are you ready for an epic adventure amidst dramatic landscapes and awe-inspiring natural wonders? Look no further than the breathtaking land of fire and ice—Iceland! Picture yourself traversing rugged terrains, chasing waterfalls, and immersing yourself in the magic of the midnight sun. In this ultimate guide to backpacking Iceland, we’ll unveil the secrets to crafting an exhilarating itinerary that won’t break the bank. So, grab your backpack, pack your sense of wonder, and let’s embark on an extraordinary Icelandic escapade together!
Backpacking Iceland: plan your itinerary
Hey there fellow backpacker! If you’re trying to ball on a budget and make the most of your trip to Iceland, be prepared to do some serious planning and legwork. But trust us, it’s all worth it for the breathtaking sights and unforgettable experiences that await you.
The first crucial decision you need to make is how long you’ll be staying and whether you want to embark on a full-blown ring road adventure or base yourself in Reykjavik and take day trips from there. If you’ve got a good chunk of time, hitting the entire ring road is a must-do, but if you’re a bit more strapped for time, setting up shop in the capital and exploring the surrounding areas is still a fantastic option.
Here are some of the most popular options to build your Iceland itinerary:
1) Iceland Ring Road
The ring road is a 1322 km (820 mile) loop that circumnavigates Iceland, hitting up all the country’s most iconic spots along the way. This is a journey you’ll never forget.
To tackle this legendary route, you’ll need to set aside at least 7 to 10 days of your precious time. Keep in mind that some of the most stunning sights require a little detour here and there, so you’re likely to rack up even more kilometers than the official count. But trust us, every extra mile is worth it for the breathtaking vistas and unforgettable experiences that await you.
To travel around the ring road you’ll need to rent a car, but luckily there are many options available. See our next chapter to know everything about it.
2) Day trips from Reykjavik
Just visiting for a few days? No worries, you can still soak up the stunning sights and sounds of Iceland by setting up shop in Reykjavik and taking day trips to the nearby landmarks. Many of the country’s most awe-inspiring attractions are located in the southern region, so you won’t have to venture too far to experience the magic of Iceland.
To explore the sites outside of Reykjavik, you’ve got a few options. Renting a car for the day is a great way to have the freedom to go where you want, when you want. Alternatively, you can join one of the many tours on offer or make use of the public transport system, especially during the peak season of July and August. The choice is yours!
3) An alternative itinerary
You don’t have to drive the whole ring road to have a glimpse of Iceland. If you’re short on time but still have about a week, consider exploring a part of Iceland and enjoy the many sights it has to offer.
For example, you could easily combine the Golden Circle with the Snaefellsnes Peninsula and the Southern coast for an amazing 7-day adventure. Or maybe, rent a 4×4 and explore the Highlands and the Westfjords, for an off-the-beaten-path experience.
Don’t waste time driving. There is more to see and there are better roads to hit than the ring road if you don’t have much time.
How to get around Iceland?
While group tours and public transport can get you to some of Iceland’s top spots, the most popular and flexible option for exploring the country is by renting a car. With your own set of wheels, you can hit the open road and discover all the hidden gems that Iceland has to offer at your own pace.
Renting a car gives you the freedom to take spontaneous detours, linger at your favorite spots, and avoid the crowds at peak times. Plus, with stunning scenery at every turn, you’ll want to have the flexibility to stop and snap some pics whenever you please. Here is everything you need to know in order to rent a car in Iceland.
Renting a car in Iceland
When it comes to renting a car in Iceland, the options are endless. There are countless rental companies offering a range of packages, from 2-wheel drive to 4X4, limited miles to unlimited miles, and everything in between. Some cars even come with a rooftop tent, which is a fantastic way to save on accommodation costs and experience Iceland’s stunning landscapes up close.
If you’re willing to splurge on a more luxurious camping road trip, you can opt for a van with all the amenities you need for a comfortable journey. Just keep in mind that these fancier rides come with a higher price tag. No matter which option you choose, renting a car is definitely the most convenient way to experience the beauty of Iceland on your own terms.
Things to keep in mind when renting a car in Iceland
With so many car rental options available in Iceland, it can be tough to decide on the perfect vehicle for your adventure. To help you make the right choice, here are some questions you should ask yourself before renting a car:
- DO YOU NEED A 4X4?
For most Iceland itineraries, a regular 2-wheel drive car will suffice and take you to the majority of the country’s top attractions. However, if you’re planning to venture off the beaten path and explore some of the more secluded spots, you’ll need to hit the “F-Roads” – and that’s where a 4X4 vehicle comes in handy.
F-Roads are unpaved gravel roads that wind through some of Iceland’s most rugged and remote landscapes. While they offer incredible scenery and adventure, they are only accessible to 4X4 vehicles. So if you’re itching to explore the highlands and conquer the backcountry, be sure to rent a sturdy 4X4 and get ready for an epic off-road journey.
- HOW MANY PEOPLE ARE IN YOUR GROUP?
If you’re booking rooms for every night of your road trip, you can typically fit up to 4 people and their luggage in a car comfortably. However, if you opt for a car with a rooftop tent, keep in mind that generally it’s only suitable for 2 people. While it’s a more budget-friendly option than booking accommodations every night, it does come with some limitations in terms of space and convenience.
- WILL YOU BE DRIVING IN THE WINTER OR SUMMER MONTHS?
During the winter months, the roads can be icy and snowy, so you’ll need to choose a car with 4-wheel drive and studded winter tires, which are required by law from November to April. You may also want to consider renting a car with a GPS or Wi-Fi hotspot, as weather conditions can affect visibility and cell phone reception.
In the summer, a 2-wheel drive car is typically sufficient for most itineraries. You may want to rent a car with a sunroof or convertible top to fully enjoy Iceland’s stunning summer scenery. However, keep in mind that summer is peak tourist season, so rental cars can book up quickly. Be sure to book in advance to secure your preferred vehicle.
- DO YOU NEED INSURANCE?
Yes. We highly recommend getting the most complete insurance you can opt for when renting a car in Iceland. Iceland’s weather can be unpredictable, and so are some of its roads. Make sure to add insurance that covers anything from rocks damages, sand storms and flat tires when renting a car, to avoid unnecessary stresses.
DID YOU KNOW? Not all roads are paved in Iceland. Every website and car rental mentions that you need a 4×4 vehicle to approach the unpaved F-roads. While this is true, it’s also important to note that many non-F-roads are also unpaved, especially in more remote areas. This means you still need a vehicle with some ground clearance to visit some of Iceland’s most popular landmarks.
Where to sleep in Iceland?
There are plenty of places around the ring road where you can relax and sleep after a long day of exploring. These include hostels, homestays, fancy hotels and stunning Airbnbs. Rates, however, aren’t the most accessible. Expect to pay more than you’re probably used to on accommodations, and expect even higher prices during peak season.
Hotels in Iceland
In Reykjavik, Iceland’s capital city, you’ll find a diverse range of accommodations. This includes budget-friendly hostels and guesthouses, as well as high-end boutique hotels. Many of these hotels in the city center are conveniently located for easy access to popular attractions, dining options, and vibrant nightlife.
In more remote regions of Iceland, particularly along the Ring Road, hotels cater to travelers who want to explore the country’s natural beauty. These hotels provide a comfortable and often cozy base for those who plan on hiking, exploring glaciers, or chasing the Northern Lights.
Iceland is also known for its unique and unconventional lodging options, such as ice hotels, glass igloos, and geothermal spa resorts. While these accommodations offer once-in-a-lifetime experiences, they typically come with a higher price tag.
Prices:
For budget-conscious travelers, private rooms in guesthouses or budget hotels range from $70 to $150 USD per night.
Mid-range hotels in Reykjavik and other parts of Iceland typically cost between $150 and $300 USD per night for a standard room. These hotels often include amenities like private bathrooms and complimentary breakfast.
Luxury hotels in Iceland can be quite expensive, with prices ranging from $300 to well over $1,000 USD per night. In return, you can expect spacious rooms, fine dining, spa services, and incredible views.
If you’re looking for something truly unique, accommodations like ice hotels or glass igloos tend to be at the higher end of the price spectrum, often exceeding $500 USD per night.
Hostels in Iceland
The hostel scene in Iceland isn’t the greatest, especially compared with other countries in Europe, however there are some cool hostels here and there and overall they are conveniently spreaded around the country.
A bed in a dormitory can cost anywhere from 30 to 60€ per night, which is far more expensive than other countries. Private rooms in hostels, when available, can range from $70 to $150 USD per night.
The best option in Reykjavik is Kex Hostel, while in Akureyri the best choice is Hafnarstraeti Hostel. A hidden gem also in the north is Möðrudalur/Fjalladýrð, a small farm tucked in the Icelandic Highlands, but just a few km away from the ring road.
Free camping in Iceland
The surge in tourism has put pressure on the country’s fragile environment and infrastructure, leading to the introduction of various regulations to manage the impact. As of 2023, camping in Iceland is only permitted in designed campsite areas.
One of the main reasons for the restrictions on free camping is the concern over environmental damage. Iceland’s delicate ecosystems are sensitive to human activity, and uncontrolled camping can lead to littering, soil erosion, and damage to vegetation. In some cases, tourists have set up campfires in prohibited areas, causing wildfires that have further threatened the natural environment.
Another factor contributing to the regulations is the strain on infrastructure and public facilities. Free camping often involves staying overnight in non-designated areas, which can lead to overcrowding in popular tourist spots, inadequate waste management, and increased pressure on limited restroom facilities. The influx of tourists has also put a strain on emergency services, as accidents and incidents require more resources to manage.
Campsite areas in Iceland
Camping is the most common way to explore Iceland, and therefore there are many campsites located all across the country. Campsites differ a lot from one another, so it’s crucial to do your own research and read the latest reviews. The easiest way to look for campsites is by searching for the word “camp” on google maps (the word “camping” will already leave some off the list).
Overall, most of the campsites we have stayed at were really clean, with several having limited facilities (like kitchen and showers). This may often result in queues, especially during high season in the most popular campsites.
Some campsites have a fully equipped kitchen, while others only have a couple of stove and others don’t have a kitchen at all. Same applies to showers: some campsites have hot showers, while others don’t.
The more popular campsites are usually priced at around 1800 ISK ($13 USD) per person, but you can also find some more basic camps at around 1200 ISK ($9 USD). We even found one in Reykjavik which was charging more than 3000 ISK ($22 USD) per person, so it’s always good to double check prices before going.
Seasonal Variations
Keep in mind that prices in Iceland can fluctuate significantly based on the season. The summer months (June to August) mark the peak tourist season, leading to higher prices. The winter months (December to February) are popular for Northern Lights viewing and can also command relatively high prices.
Best time to visit Iceland
Summer (June to August) is high season in Iceland. These are Iceland’s summer months are the warmest, with average temperatures ranging from 10°C to 15°C (50°F to 59°F). In some parts of the country, temperatures can reach as high as 20°C (68°F) or more. Keep in mind that even in the summer, the weather can be unpredictable and change quickly, so it’s a good idea to pack layers and be prepared for rain. As mentioned, this is also the busiest time in Iceland, resulting in high prices and booked-out hotels and cars. It’s advisable to book accommodations and rental cars in advance and expect larger crowds.
Winter (November to March): Iceland’s winter months are the coldest, with temperatures ranging from -5°C to 5°C (23°F to 41°F) on average. In some parts of the country, temperatures can drop as low as -30°C (-22°F) or more. During this time of the year, all F roads to the highlands are closed and snow covers pretty much the entire country. However, the winter months also offer the chance to see the Northern Lights and enjoy activities such as ice caving and skiing.
Spring (April to May) and Fall (September to October): Iceland’s shoulder seasons offer milder temperatures, with average temperatures ranging from 0°C to 10°C (32°F to 50°F). In the spring, the snow begins to melt and the countryside comes alive with blooming flowers, while in the fall you can witness the spectacular autumn colors. If you visit Iceland in this time of the year, keep in mind some of the F roads might be closed and rain days are more frequent. However, it is less busy and it is possible to see the Northern Lights.
Ultimately, the best time to visit Iceland depends on you and your priorities. Shoulder seasons might be the best time to explore the country, especially if you don’t like large crowds like us.
Hours of light in Iceland
The length of the day in Iceland varies greatly throughout the year, with the country experiencing extreme variations in daylight hours between summer and winter. During the summer months, Iceland experiences almost 24 hours of daylight in some parts of the country, with the sun remaining above the horizon for most of the day and night. This is due to Iceland’s position close to the Arctic Circle, where the sun does not set during the summer solstice in late June.
In contrast, during the winter months, Iceland experiences very short days, with the sun only appearing above the horizon for a few hours each day in some parts of the country. During the winter solstice in late December, the country experiences only a few hours of daylight, with the sun rising late in the morning and setting early in the afternoon.
Overall, the length of the day in Iceland across different seasons can have a significant impact on travel plans and activities. During the summer months, visitors can take advantage of the long daylight hours to explore Iceland’s stunning landscapes and enjoy outdoor activities such as hiking, camping, and whale watching. In the winter months, visitors can experience the unique phenomenon of the Northern Lights, but should also be prepared for shorter daylight hours and colder temperatures.
Puffins sightings in Iceland
Puffins can be seen in Iceland during the summer months, typically from early April to late August. These charming seabirds migrate to Iceland’s coastal areas and cliffs to breed and raise their young. Here’s a breakdown of the best times and locations to see puffins in Iceland:
- Early April to May: Puffins begin arriving in Iceland in early April, but their numbers are relatively low during this time. The best chances of spotting them increase as the month progresses. Some popular locations to see puffins during this period include the Westman Islands (Vestmannaeyjar) and the southern coast, such as Dyrhólaey and Reynisfjara.
- June to July: This is the peak season for puffin sightings in Iceland. The birds are plentiful and actively nesting during this time. Various locations around the country offer excellent opportunities to observe puffins up close. Some recommended places include the Westman Islands, Látrabjarg cliff in the Westfjords, Dyrhólaey, and the Puffin Island (Lundey), located near Reykjavík.
- August: Towards the end of August, puffins start preparing for their migration, and their numbers gradually decrease. Although it’s still possible to spot them during this month, their presence becomes less guaranteed. It’s worth noting that some puffin colonies, such as those in the Westman Islands, may start to empty out earlier in August.
Ice cave season in Iceland
The best time to explore ice caves in Iceland is typically during the winter months, from November to March. During this period, the colder temperatures allow for the formation and stability of ice caves within the country’s glaciers. Additionally, the limited daylight hours during this time create a unique atmosphere inside the caves, with the possibility of witnessing stunning blue ice formations and ethereal lighting.
Luckily, there are a few exceptions such as Katla Ice Cave and Langjökull Glacier Tunnel, which can be visited year-round.
It’s also important to note that ice caves are natural formations and can vary in their accessibility and stability from year to year. Before planning a trip to explore ice caves in Iceland, it’s advisable to check with local tour operators or visitor centers for the most up-to-date information on ice cave conditions and availability.
Chase Northern Lights in Iceland
Best time to see the Northern Lights in Iceland
The best time to see the Northern Lights in Iceland is during the winter months, from late September to early April. During this time, the nights are longer, and the skies are darker, providing better conditions for viewing the aurora borealis. However, it’s important to note that the Northern Lights are a natural phenomenon, and sightings can never be guaranteed.
Best places to see the Northern Lights in Iceland
Certain areas of Iceland that are better for viewing the Northern Lights than others. The best places to see the Northern Lights in Iceland are typically in the countryside away from light pollution and urban areas. Some of the best spots for viewing the Northern Lights in Iceland include:
- Thingvellir National Park: located about 40 km east of Reykjavik, Thingvellir National Park is a popular spot for viewing the Northern Lights due to its dark skies and open landscapes.
- Seltjarnarnes: a town located on the outskirts of Reykjavik, Seltjarnarnes is known for its clear skies and low light pollution, making it a great spot for viewing the Northern Lights.
- Vatnajokull National Park: situated in southeastern Iceland, Vatnajokull National Park is a remote and isolated area with minimal light pollution, making it an ideal location for viewing the Northern Lights.
- Akureyri: a town located in northern Iceland, Akureyri is known for its clear skies and high auroral activity, making it a great spot for viewing the Northern Lights.
- Westfjords: a remote and rugged region in northwestern Iceland, the Westfjords are known for their dramatic landscapes and dark skies, making them an ideal spot for viewing the Northern Lights.
Overall, Iceland’s remote and sparsely populated areas away from light pollution are the best places to view the Northern Lights. It’s important to check the weather forecast and solar activity levels before heading out to increase your chances of seeing the aurora borealis.
Best weather conditions to see the Northern Lights
The best weather conditions for viewing the Northern Lights in Iceland are clear skies and minimal light pollution. Cloud cover and light pollution can obstruct the view of the aurora borealis and reduce their visibility.
It’s important to note that the Northern Lights are a natural phenomenon that is influenced by solar activity, which means that even on clear nights, there is no guarantee of a sighting. High auroral activity levels, which are influenced by solar wind and magnetic field fluctuations, increase the likelihood of seeing the Northern Lights.
Additionally, it’s important to be prepared for cold temperatures when viewing the Northern Lights, especially during the winter months when the skies are the clearest.
Resources to check Auroral Activity Levels:
Did you know? There are several websites where you can check the auroral activity and increase your chances of seeing the Northern Lights while backpacking Iceland. The most common app is called “My Aurora Forecast & Alerts” on both android and iOS devices, and it’s free.
Some additional websites for checking auroral activity include:
- Icelandic Met Office: The Icelandic Met Office provides a daily aurora forecast for Iceland, which includes information on the likelihood of seeing the Northern Lights, cloud cover, and auroral activity levels.
- Aurora Watch UK: Aurora Watch UK is a website that provides real-time auroral activity alerts for the UK and Iceland. Users can sign up for email or SMS alerts when auroral activity levels are high.
- Space Weather Live: Space Weather Live is a website that provides real-time information on solar activity, including sunspots, solar flares, and coronal mass ejections, which can impact auroral activity levels.
- Aurora Service: Aurora Service provides aurora forecasts and real-time auroral activity information for Iceland and other Northern Lights destinations around the world.
- Soft Serve News: Soft Serve News is a website that provides auroral activity alerts for Iceland and other Northern Lights destinations. Users can sign up for email alerts when auroral activity levels are high.
Overall, checking auroral activity levels on these websites can help you plan your Northern Lights viewing trip to Iceland and increase your chances of seeing this stunning natural phenomenon.
Wi-Fi, Data & local SIM Card in Iceland
Maintaining connectivity while backpacking Iceland is likely to be a breeze. Many lodgings and campsites offer robust, complimentary Wi-Fi, and a significant number of car rental agencies furnish their vehicles with portable Wi-Fi devices, along with unlimited data.
If you’re a European traveler – or someone with the option to use data from your existing mobile plan in foreign countries – it’s wise to check the allocated amount. If you have enough GB it could potentially cover your entire Icelandic journey, considering most of the time you will probably be using a Wi-Fi.
However, if you anticipate a need for a local SIM card while visiting Iceland, several options are at your disposal. The country boasts three major telecom providers:
- Siminn: One of the oldest and most established providers in Iceland, offering extensive network coverage.
- Vodafone Iceland: A popular provider with a strong network presence.
- Nova: Another well-known provider, offering competitive services and coverage.
The price of sim cards and data packages varies by provider and the amount of data, talk time, and text messages you require. Typically, a sim card costs around 1,500-4,000 ISK (Icelandic Krona), which is approximately €12-32 EUR. Some packages with high data allowance can cost up to €60 EUR.
Where to Purchase a Sim Card
You have several options for purchasing sim cards in Iceland:
- Keflavik International Airport: Many travelers opt to buy sim cards upon their arrival at the airport. Siminn, Vodafone, and Nova have service counters there.
- Local Stores: Sim cards are readily available at local stores and supermarkets throughout the country.
- Provider Shops: In major cities, you can visit the official stores of Siminn, Vodafone, and Nova for assistance and support.
Essential gear for backpacking Iceland
Must-Have Items
A good rain jacket. You want to have a good rain coat with you when visiting Iceland, as the weather can change unpredictably. There’s plenty of shops in Reykjavik that sell – and even rent – rain jackets for your Iceland vacation.
We would recommend a good one like the Marmot Men’s Minimalist Component Jacket or the Columbia Women’s Pouring Adventure II Jacket. Quality jackets can be a bit pricey, but they’re a worthwhile investment, especially for a trip to Iceland.
Waterproof overpants. It somehow seemed an unnecessary item to bring before reaching iceland, but it turned out to be one of those items we used daily. Bring a pair of those, you won’t regret it. Check out Columbia Men’s Rebel Roamer Rain Pant and Columbia Women’s Storm Surge Pant.
Warm Socks: Packing merino wool socks for Iceland is crucial to keep your feet warm and dry in the diverse and often unpredictable weather conditions. For summer, check out DANISH ENDURANCE Merino Wool Hiking Liner Socks, they are great quality and quite thin. If you’re travelling in the coldest months, consider getting knee-high wool socks.
Warm clothing: Iceland’s weather can be unpredictable. Pack thermal layers, including merino wool for its excellent insulation, insulated gloves (especially for winter), and a good quality winter hat.
Sturdy Footwear: Waterproof and insulated boots or hiking shoes are essential for exploring Iceland’s varied terrain. For top-notch gear, you can’t go wrong with brands like Scarpa, Salomon, and La Sportiva. If you’re looking for something a bit more budget-friendly, Merrell and Altra have got you covered.
Please note: If you’re gearing up for glacier walks or ice caving, make sure to go for rigid boots that can fit crampons. Flexible boots offer greater comfort for hiking, but you might struggle if you need to use ice spikes.
Reusable Water Bottle: Iceland has clean, safe and free drinking water everywhere. Therefore, you don’t need a fancy filtration system like the GRAYL GeoPress 24 oz for Iceland.
Save money and cut down on waste by opting for a reusable water bottle. The ideal solution for Iceland is one that works well for both hot and cold beverages.
Toiletries: Pack travel-sized toiletries, including soap, shampoo, and sunscreen, as these can be expensive in Iceland.
Headlamp/Flashlight: In Iceland’s long winter nights or for exploring caves, for chasing auroras or for walking around your campsite, a reliable light source is crucial. We have this one and simply love it, it’s incredibly cheap, bright plus the battery lasts so long.
Portable Charger: Keep your devices charged during outdoor adventures, especially if you’re planning to camp in Iceland. We recently picked up a fast-charging power bank from INIU that works like a charm. Just be sure to grab one with enough capacity for all your devices.
Additional Items
Swimwear: Don’t forget your swimsuit for relaxing in geothermal pools and hot springs.
Backpack: A sturdy, weather-resistant backpack is useful for carrying your essentials during outdoor excursions. If you plan on doing lots of hiking, we recommend a dedicated backpack. You have countless options on the market, but one like Men’s Osprey Talon 22L or Women’s Osprey Tempest 20L would be perfect.
Camera and Binoculars: Iceland’s landscapes are stunning, so bring a camera and binoculars for wildlife and scenic views.
Local Currency: Have some Icelandic Krona (ISK) on hand for small purchases and in case you visit places that don’t accept cards. We never used cash in Iceland, so it’s not something you must bring around, but in a couple of situations it would have been handful.
Food and Drinks: Due to Iceland’s relatively high prices, especially for alcohol, and limited food options in some areas, consider carrying some essential snacks and beverages.
Hiking Gear: If you plan on hiking, consider bringing trekking poles, a compact first-aid kit, and gaiters.
Wet Wipes: Handy for quick clean-ups, especially when camping or on long road trips. These can easily be bought once you land in Iceland, or packed in your backpack before leaving. Check these flushable ones if you’re looking for some.
Swiss Army Knife or Multi-Tool: Useful for various outdoor tasks, especially when camping or preparing food. Here is a cheap one.
Travel Pillow: For added comfort during long drives, flights or while camping. The provided ones aren’t always the best. Here is a good one.
Best Type of Luggage
While choosing your luggage, you need to take into account the type of trip you will be doing.
During our backpacking journey through Iceland, we encountered a wide array of travel setups, and some proved far more efficient than others. For instance, if you intend to camp, a spacious backpack that can be conveniently stowed in your car’s trunk, granting quick and easy access to all your essentials, is an excellent choice. Conversely, a cumbersome, rigid suitcase demanding twice the space might not be the most practical option for such an adventure.
However, a rigid luggage might be just as good if you plan on staying in guesthouses or hotels. It all depends on your travel choices and preferences.
Budget Breakdown: How expensive is Iceland?
Everybody says Iceland is expensive, but how expensive this country actually is?
Well, it’s really expensive! Here are some prices divided by category just to give you an idea:
Transportation
Renting a car will cost you anywhere between 175 and 250 €/day for the most basic options during high season. Luckily, the same cars can be found at about 100-110 €/day during shoulder seasons.
When it comes to gas prices, Iceland tops the ranking for Europe’s most expensive fuel. As of October 2023, Gasoline costs 2.23 €/l (8,95 USD/gal) and diesel costs 2,19 €/l (8,80 USD/gal).
Food
Eating at restaurants in Iceland can be extremely expensive. A main dish, for example, will cost you anything from 3000 ISK (20,50€) to 6000 ISK (41€), depending on the restaurant. Even a soup usually costs anywhere between 2000 ISK (14€) to 3000 ISK (20,50€). Water, on the other hand, is always free of charge.
Planning to cook your own food might be a great idea to save some money. However, food in supermarket also isn’t exactly cheap. Fresh produce like vegetables and fruit is generally expensive, as the country needs to import the bast majority of it.
Accommodation
The last main expense when visiting Iceland is accommodation. Most rooms are listed in the 150-200€/night range, but you can find a few options under the 100€ threshold if you’re in luck.
A cheaper alternative to apartments and hotel rooms is campsites. Here you can park your van or sleep in a tent, while using the facilities of the campsite. You do need to bring and set up your own tent, but you’ll be able to save a lot of money this way. Per night, expect to pay anything between 10 and 15€ per person on average.
Budget Breakdown
In this chapter we’ll make a resume about the costs explained above, trying to give you an idea of the daily budget. Here are some considerations:
Budget: travel during shoulder seasons, renting a 2WD vehicle, share it amongst 4 people, cook all your meals, stay at campsites, no paid activities.
Mid-range: travel just out of high season, renting a 4WD vehicle, share it amongst 2 people, cook most of your meals but include a few meals at restaurants, stay mostly at campsites with a few nights at other accommodations, join 2 paid activites during a 10-days stay.
Luxury: travel during high season or with a fancier car, share it amongst 2 people, eat most of your meals at restaurants, stay in hotels/airbnbs, go on 5 paid activities over a week-long trip.
Prices are per person.
| Budget | Mid-range | Luxury | |
| Car rental | 25 €/day | 70 €/day | 150+ €/day |
| Fuel | 15 €/day | 30 €/day | 30 €/day |
| Food | 15 €/day | 50 €/day | 150+ €/day |
| Accommodation | 15 €/day | 30 €/day | 150 €/day |
| Activities | / | 20 €/day | 110 €/day |
| Total | 70 €/day | 200 €/day | 590+ €/day |
How to make the trip cheaper?
Making a trip to Iceland on a strict budget is no easy task. To stick to the Budget column of the previous chapter, here are all the things you should consider:
Visit during low season. Prices for rental cars and some accommodations are much cheaper during low season. Some companies also offer last-minute discounts on some “summer vehicles” (usually small vans with no heaters) during shoulder seasons.
Travel in a group. Share your car or van with friends and cut one of the main expenses. If that’s not possible, consider joining a group trip.
Avoid unnecessary expenses: don’t buy water (it’s always free). Don’t pay for parking areas, use free parks instead. Avoid restaurants, they are crazy expensive – cook your own food instead. Avoid coffees and alcohol, they are really pricey in Iceland.
Choose a vehicle with low fuel consumption. Gas is really expensive in Iceland and while it may seems a detail, it’s something to keep in mind.
Avoid hotels, stay at campsites. You may want to risk to sleep in some random parkings, but maybe it’s not worth the ticket you may get.
Stick to the free activities. Joining a tour is cool but paying for it isn’t always fun.
If you want to bring this whole thing to the extreme, you may consider moving to Iceland for the season and work there, or volunteer. There are so many businesses who are in need and hire foreigners for the season. We are talking mostly about tourist attractions, accommodations, campsites, grocery stores, souvenir shops, tour operators and many more.
Mistakes to avoid when backpacking Iceland
Avoid speeding tickets! Speed limit on paved roads in Iceland is 90 km/h, which is equal to 56 mph. Luckily there aren’t many fixed speed cameras around Iceland, the few that exist are located mostly around Reykjavik.
Avoid parking tickets! There are many parkings around Iceland located next to tourist attractions that are free of charge, or that you can pay by app for a small price. Other parkings however, have cameras at the entrance and you’re not told it’s a paid parking until you are inside. Sometimes these parkings are really expensive, and if you decide to go park elsewhere it’s already too late and you get a parking ticket.
Always hold your car doors in strong wind conditions. While it may appear to be a minor concern, the impact of powerful gusts is a far more common occurrence than one might initially imagine. The force of the wind can catch you off guard, potentially causing damage to your vehicle, and in extreme cases, even posing a safety risk. Furthermore, no insurance covers such damages, and you definitely don’t want to pay for a new car door.
Avoid flat tires! They are more common than you think. Potholes and sharp rocks on gravel roads may be fatal or your tires, and replacing one isn’t cheap in Iceland. Drive slow on dirt roads and save yourself some cash!
Backpacking Iceland as a solo traveller
Backpacking Iceland as a solo traveler promises a truly remarkable and unforgettable journey. From the mesmerizing beauty of cascading waterfalls and glaciers to the tranquil solitude of vast, untouched wilderness, Iceland has something to offer every solo adventurer.
However, the challenges of planning and executing your journey alone are not to be underestimated. Navigating the logistics, adapting to Iceland’s unpredictable weather, and potentially grappling with moments of solitude are part of the solo traveler’s experience.
Pros:
- Independence: You have the freedom to explore Iceland at your own pace, choosing the activities and locations that interest you most.
- Natural Beauty: The country’s stunning landscapes are yours to enjoy in peaceful solitude, allowing for a deep connection with nature.
- Adventure: Iceland offers a wide range of outdoor activities, from hiking to glacier walks, perfect for the adventurous solo traveler.
- Safety: Iceland is one of the safest countries in the world, making it an ideal destination for solo travelers.
- Solitude: Iceland’s vast and untouched landscapes provide an opportunity for solitude and introspection.
Cons:
- Challenges: Solo travel requires you to handle all logistics, including navigation, accommodation, and dining, which can be a daunting task in a foreign country.
- Loneliness: While some relish solitude, others may experience moments of loneliness. Staying connected with loved ones can help combat this.
- Cost: Iceland is known for being an expensive destination, and as a solo traveler, you bear the full cost of accommodations, car rental and other expenses.
- Responsibility: You are solely responsible for planning and ensuring your safety, which can be both liberating and demanding.
Furthermore, Iceland might not be the best place to meet new people. There aren’t many solo travelers around, and since everyone has their own vehicle and customized itinerary, it can be a bit challenging to find travel companions. While it’s easy to make new friends at camping areas and guesthouses, the people you meet may not stick around for long.
