A Thrifty Black Girl’s Guide to Iceland on a Budget

Did you know you can visit Iceland without spending a lot of money? Yes, it’s one of the most expensive countries in the world, but with the right planning, even a solo traveler can explore this beautiful country without going broke.

My cousin Krista found a cheap flight to Iceland during the summer months. Since I had just come back from long trips to to Mexico and Morocco, I had to sit this one out. When she couldn’t find a travel buddy, Krista decided to go solo. Here’s her experience and some top tips for seeing the best places in Iceland on a budget.

Flight from NYC to Iceland

I found a cheap flight for $302.67 on Iceland Air, flying out of JFK. The flight was half empty, so I moved 12 seats up and had plenty of space. Instead of buying food on the flight, I packed her own meals—a turkey and cheese sandwich from a bodega in Queens and a $1 Chobani yogurt.

If you’re traveling from North America, especially cities on the East Coast or Midwest, you can often find cheap flights to Reykjavik, especially during early September or outside of peak season.

Getting Around Iceland: Why Renting a Car Was the Best Option

I picked up my rental car from ACE Car Rental, which was only a block from the airport. The total cost was around $178 for a Hyundai Elantra for four days. There was no GPS, but I followed another couple from New York into the city center using their taillights as a guide.

Driving in Iceland is the best way to see the entire country. If you’re planning a road trip or visiting during the summer months, it gives you total freedom. Just be prepared for gas prices. I spent a good amount at gas stations with fuel averaging $7.50 per gallon.

If you’re visiting in the winter months and don’t feel comfortable driving, public transportation or group tours might be a better option. Some rental companies also offer camper vans, which can be a great way to save on accommodation costs too.

Grocery Stores, Hot Dogs, and Saving on Food

Food in Iceland isn’t cheap, but I found some great ways to save. I went grocery shopping early in the trip and stocking up on essentials. Grocery stores like Bonus and Krónan are where you’ll find the best prices.

I also carried a reusable water bottle because the tap water in Iceland is clean and refreshing. For a local treat, I grabbed hot dogs from Bæjarins Beztu Pylsur, which are inexpensive and super popular with both tourists and locals.

Another tip for saving money is to look for accommodations that offer free breakfast and cook your own meals if you have access to a kitchen. This helps cut the food budget in half. Don’t forget to take advantage of happy hour for drinks or snacks at a lower cost.

Free and Low-Cost Things to Do in Reykjavik

My solo trip to Iceland was on a budget so I didn’t purchase any of the tours. All of my Reykjavik sightseeing was done alone after doing research.

I walked around a lot and used my rental car and a physical map.

If you don’t rent a car, you can also arrange tours from your hotels in Reykjavik. Here are some low-cost and free things to do in Reykjavik.

Hallgrímur’s Church (Hallgrímskirkja): Walking distance from hotel *Free

If you want to go to the top, there is a suggested admission of $10 USD. Iceland’s tallest and largest church is also its most photographed site. Named after 17th-century hymn writer and church scholar Reverend Hallgrímur Pétursson.

Harpa: Walking distance from hotel *Free

One of Reykjavik’s easiest structures to recognize is its concert hall and conference center

Laugavegur

For open-air shopping, stroll along Laugavegur. This shopping-centric street is filled with boutiques selling souvenirs, clothing, and specialty foods

Perlan: Walking and driving distance from the hotel

The view from the top is amazing. There was an actual Glacier you can walk through.  Admission is around $20- $25 USD.

Solfar (Sun Voyager): Walking distance from hotel *Free

This steel sculpture, which was designed by Jon Gunnar Arnason, mimics a Viking ship and pays homage to the sun.

Golden Circle: Driving Distance *Free

Iceland’s Golden Circle is a popular tourist route in southern Iceland, covering about 300 kilometers looping from Reykjavík into the southern uplands of Iceland and back. It is the area that contains most tours and travel-related activities in Iceland.

Blue Lagoon Spa: Driving Distance *Free

If you want to visit the Blue Lagoon, there is an admission for entry, slippers, towels, and every little thing costs money. Not only is there a cost, but you must reserve a spot online in advance starting at $58.  I was satisfied with walking through the facility for FREE99.

The Blue Lagoon is a 15-20-minute drive to the airport and my last stop on the trip. I visited the morning before going back home.

Search for the Northern Lights

Visiting Iceland and seeing the Northern Lights isn’t 100% guaranteed, but you can see the natural wonder with Reykjavik excursions on a Northern Lights Tour.

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Have you done a solo trip to Iceland before?