Iceland is one of the most expensive destinations in Europe — a fact that surprises every first-time visitor. The reference budget of €150/day/person corresponds to a modest comfort stay: guesthouse or 2-3 star hotel (€60-90/night for a shared room outside the capital), compact 2WD hire car (€70-100/day in season, more in high season), one hot meal a day at a restaurant (€25-35) supplemented by supermarket groceries, plus site entries and activities.
A budget traveller can manage with €90-110/day: hostel or campsite (€15-30/night with personal sleeping bag), home cooking 100% of the time (pasta, rice, instant soups and tinned food from Bonus or Krónan are about half the restaurant price), shared car rental. Campsites are plentiful along the Ring Road (€15-25/night in summer) and the Camping Card (€175) gives access to 35 campsites in the chain.
The comfort or luxury traveller will find high-end lodges: ION Adventure Hotel near Þingvellir (design rooms with lava and glacier views, €350-500/night), Deplar Farm in the Tröllaskagi peninsula (absolute luxury, €2,500/night/person all-inclusive), Silica Hotel or Retreat at Blue Lagoon (private lagoon access, €600-1,200/night), Hotel Borg in Reykjavik (€350-500/night).
By spending category: accommodation (35% of the budget) — hostel €18-30/night, guesthouse €60-90, 3-star hotel €120-200, boutique hotel €250-400. Food (30-35%) — café-bakery €5-8, lamb soup €18-22, burger-fries €25-30, restaurant main course €35-50, gastronomic €80-150/person. Activities (15-20%) — Blue Lagoon €80-150, Sky Lagoon €60-100, Húsavík whale tour €90-120, Silfra fissure snorkelling €130-180, glacier hike €100-150, glacier snowmobile €250-400. Transport (15-20%) — compact car €70-100/day, 4x4 €150-250/day, fuel €1.80-2.10/litre, FlyBus airport €30-35.
A few practical tips: tap water is the best in the world — never buy bottled water (except hotel hot water, slightly sulphurous due to its geothermal origin). Card payment is universal: no business refuses cards, even for €2, and Icelandic cash is rarely needed. Tipping is not practised (service is included everywhere). A local SIM is not needed for a short stay: EU roaming works perfectly with French and UK plans. Waterproof and windproof clothing is essential year-round, including in summer. Download the apps Vedur.is (Icelandic weather, indispensable), SafeTravel.is (safety, travel plan) and 112 Iceland (geolocated rescue alert).
Read also
- Reykjavik and the Southwest — The capital, the Reykjanes peninsula and the Blue Lagoon: Iceland's urban and geothermal heart.
- The Golden Circle — Þingvellir (Viking parliament), Geysir and Gullfoss: the must-do day loop from Reykjavik.
- The South Coast — Seljalandsfoss and Skógafoss waterfalls, Reynisfjara black-sand beach, Jökulsárlón glacial lagoon.
- The East Fjords — Egilsstaðir, Seyðisfjörður and the wildest stretch of the Ring Road, between reindeer and whales.
- The North and Akureyri — Akureyri, Mývatn, Goðafoss waterfall and the whales of Húsavík: the volcanic, lake-strewn north.