Iceland is often seen as an expensive destination, but with the right planning, it can be surprisingly budget‑friendly—without sacrificing comfort or unforgettable experiences. Here are practical Iceland travel tips for budget travelers, with ideas on where to stay, how to save on food and transport, and how to make the most of your time in West Iceland and the Westfjords.
One of the easiest ways to keep costs down is to plan your route around affordable, well‑located accommodation. Ourhotels.is offers simple, comfortable inns in some of the most beautiful parts of the country, making it easier to explore Iceland on a budget while still sleeping well and waking up close to nature.
Start your journey in West Iceland, an ideal region for budget travelers because it’s close to Reykjavík yet feels wonderfully remote. The Hvítá Inn in Borgarfjörður, near Borgarnes, is a great base if you’re renting a car and want to avoid high city prices. From here, you can explore waterfalls like Hraunfossar and Barnafoss, soak in nearby hot springs, and drive scenic routes through lava fields and farmlands—all without long, expensive drives. Staying at Hvítá Inn means you’re close enough to the Ring Road for easy access, but far enough away to enjoy quieter surroundings and better value.
Food is one of the biggest expenses in Iceland, so smart eating habits can save you a lot. Shop at budget‑friendly supermarkets like Bónus or Krónan, and choose accommodation where you can prepare simple meals or at least store snacks. Many travelers find that having a hearty breakfast, packing a picnic lunch, and then enjoying a modest dinner out strikes the right balance between saving money and still tasting local flavors. Inns like those on Ourhotels.is are especially convenient for this style of travel, as they’re often located near small towns where you can stock up on groceries and fuel.
When you head north and west toward the Snæfellsnes Peninsula, consider staying at The Stykkishólmur Inn. Stykkishólmur is a charming harbor town and a perfect budget base for exploring the peninsula’s dramatic coastline, black sand beaches, and the iconic Snæfellsjökull National Park. Instead of rushing through on a day trip, staying at The Stykkishólmur Inn lets you slow down, explore at your own pace, and avoid the cost of back‑and‑forth driving from Reykjavík. You can walk around the colorful harbor, hike nearby viewpoints, and take in the scenery without paying for expensive tours if you prefer to explore independently.
Transport is another key area where you can save. Renting a small, fuel‑efficient car and sharing costs with travel companions is often cheaper than multiple tours, especially if you’re staying several days. Plan your route carefully to minimize unnecessary driving: cluster attractions by region, and use your stays at Hvítá Inn, The Stykkishólmur Inn, and Ísafjörður Inn as “hubs” for day trips. If you’re traveling in summer, take advantage of the long daylight hours to see more in a single day, reducing the number of nights you need on the road.
For travelers who want to experience Iceland’s wild side without luxury prices, the Westfjords are a dream. Ísafjörður, the region’s main town, is a fantastic base, and the Ísafjörður Inn offers budget‑friendly comfort right in the heart of this remote area. From here, you can explore dramatic fjords, towering cliffs, and quiet fishing villages. Many of the best experiences in the Westfjords are free: hiking along fjord edges, watching seabirds, visiting viewpoints, and simply enjoying the silence and scenery. By staying at Ísafjörður Inn, you avoid the higher prices of more touristy regions while gaining access to some of Iceland’s most untouched landscapes.
Another way to keep your Iceland trip affordable is to focus on free or low‑cost activities. Nature is Iceland’s main attraction, and it doesn’t charge an entrance fee. Plan hikes to waterfalls, coastal viewpoints, and hot springs; walk through small towns and harbors; and enjoy the simple pleasure of sitting by the sea or in a valley surrounded by mountains. When you base yourself at inns like those on Ourhotels.is, you’re often just a short drive—or even a walk—from beautiful spots that don’t require tickets or tours.
Timing your trip can also make a big difference. Traveling in the shoulder seasons—late spring or early autumn—often means lower prices on flights and accommodation, fewer crowds, and still‑good weather. In winter, you may find even better deals, and if you stay in darker, less light‑polluted areas like Borgarfjörður or the Westfjords, you’ll have a better chance of seeing the northern lights without paying for expensive excursions. Just be sure to rent an appropriate car and check road conditions daily.
Finally, think about value rather than just the lowest price. A clean, comfortable room in a good location can save you money on transport and food, and give you a better night’s sleep so you can enjoy your days more. Ourhotels.is focuses on exactly this kind of practical comfort: inns like Hvítá Inn near Borgarnes, The Stykkishólmur Inn, and Ísafjörður Inn are designed for travelers who want to experience Iceland’s nature and small‑town charm without overspending.
By choosing the right regions, staying in budget‑friendly inns, planning your meals, and focusing on free natural attractions, you can discover Iceland in a way that’s both affordable and deeply rewarding. West Iceland and the Westfjords offer some of the country’s most memorable landscapes, and with Ourhotels.is as your base, you can explore them at your own pace—without breaking your budget.
