10 Iceland Tips for the Thrifty Traveler

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Today’s guest post is from reader Abbey Chanda. If you’d like to contribute your own Thrifty Tips, make sure to shoot us a message via email or social media! 


While a trip to Iceland may sound like an adventure of a lifetime with glaciers, whales, and gorgeous waterfalls around every corner, it can also strike fear into the heart of many a Thrifty Traveler. Limited resources and sky high prices make Iceland a difficult country to visit on a budget, but don’t banish it from your travel list just yet! Here are some quick tips to help you save cash during your time in Iceland whether it is a 2 week long road tripor a quick stopover in Reykjavik.


1. Bonus Supermarket

Grocery stores in Iceland aren’t actually that expensive and are cheaper alternative than going out to eat. If you’re looking for the cheapest supermarket then head over to Bonus. It follows the no-frills format of limited hours, simple shelves and having a giant fridge instead of chiller cabinets. There are 32 stores around the island, which should make them easy to find.

Thrifty Tip: Avoid 10-11 supermarkets, which are the most expensive on the island.



2. Costco in Reykjavik

Although I have not visited yet, there is a Costco in Reykjavik, which just opened on May 23, 2017. If you’re a Costco member in the United States, your membership will also work in Iceland. The good news is they take all major credit cards as well.

Thrifty Tip: Check out the Costco gas station to save on expensive fuel.


Costco opened its store in a suburb of Reykjavik, Iceland, in May 2017


3. Investigate your accommodation options

For groups of 2 or more, Airbnb may prove to be cheaper than Icelandic hostels. If you are traveling solo or enjoy the hostel environment, don’t forget to bring a sleeping bag since hostels charge up to 10 USD for sheets.


Click here for $40 off your first stay!


4. Rent a camp stove

Iceland Camping Equipment rents camp stoves, which offer a great way to have hot meals on the road. Pack snacks and instant foods from home, or keep your eyes peeled for low cost Bonus supermarkets in Iceland.

For a breakfast of champions I recommend oatmeal and instant coffee… mixed together for efficiency!


You’ll need a camp stove for hot meals in rural areas


5. Experience Icelandic food strategically

Traveling cheap doesn’t mean missing out on all the local food. Lunch discounts and affordable restaurants are available in larger towns. In our quest to sample the famous langoustine in Höfn, the lobster capital of Iceland, we stumbled across the no-frills Hafnarbudin where we enjoyed a tasty langoustine sandwich for half the price of neighboring restaurants.

Thrifty Tip: Hot dogs in Iceland are cheap everywhere (~4USD) and are deceptively delicious.


Order the arctic char at Messinn in Reykjavik (Trust me it’s delicious)


6. Pack some cheap drinks

Alcohol can be obscenely expensive in Iceland. While many people buy their alcohol in duty free upon arriving in Reykjavik, we chose to bring boxed and canned wine from our local Icelandic store. Many come in single serving sizes which are more convenient than glass bottles. What can I say – we’re classy!



7. Download Appy Hour. Right now.

The Appy Hour smartphone app lists the time and description of every happy hour in Reykjavik. From sports bars to cocktail lounges, happy hours range from noon to midnight, often featuring half off or 2-for-1 drink specials. The walkability of Reykjavik paired with the never ending parade of discount liquor makes bar hopping a distinct possibility. I recommend Kaldi Bar for deals on beer, bubbly, and olives.



8. Don’t forget the hot springs

While the milky blue water of the Blue Lagoon attracts many travelers to Iceland, a visit can be costly. If you don’t mind a little algae, a beautifully scenic (and totally free!) option exists between Seljalandsfoss and Skogafoss. It’s a “secret” for now, but I’ll bet you can find it 😉


Blue Lagoon


9. Use points to stay at the Hilton Canopy Reykjavik 

Mr. TT stayed at the Hilton Canopy in Reykjavik last summer. The cost is 70,000 Hilton Honors points a night, but the central location and stellar free breakfast make it worth every point. Snag one of the American Express Hilton cards to help build up your points.


Hilton Canopy is nordic and trendy


10. Don’t buy bottled water

The water in Iceland is delicious and perfectly safe to drink. Save yourself the cost of expensive bottled water and hit the tap first. Your wallet (and mother earth) will thank you.


Drink up! It’s clean and safe.


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This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For more information check out our Advertising Disclosure.

2 Responses

  1. Ileana A Bryan says:

    Great tips! Will be there in less than 2 weeks (first time) and plan on putting those tips to good use! Thanks!

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