Planning an Iceland road trip on a budget is absolutely possible—without missing out on the magic of waterfalls, glaciers, hot springs, and charming fishing towns. With a bit of smart planning, you can keep costs down and still enjoy an unforgettable journey around West and North-West Iceland.
Here are the best budget tips for your Iceland road trip, with ideas on how to use Ourhotels.is properties—Hvítá Inn, Stykkishólmur Inn, and Ísafjörður Inn—as comfortable, affordable bases along the way.
Iceland Road Trip on a Budget: Start with Smart Planning
The earlier you plan, the more you save. Flights, rental cars, and accommodation all get more expensive closer to your travel dates, especially in summer (June–August). If you’re flexible, consider traveling in shoulder seasons—May, early June, September, or early October. You’ll still get long days, beautiful scenery, and fewer crowds, often at lower prices.
Booking your stays through Ourhotels.is lets you plan a logical route through West Iceland and the Westfjords, staying in budget-friendly inns that are well located for sightseeing.
Choose the Right Car (and Fuel Strategy)
You don’t always need a 4×4. For most of West Iceland and the main roads to the Westfjords in summer, a small, fuel-efficient 2WD car is enough. This can save you a lot on rental costs and fuel.
To keep fuel costs down:
– Use apps or maps to compare fuel prices along your route.
– Fill up in larger towns like Borgarnes, Stykkishólmur, and Ísafjörður, where prices are often more competitive.
– Drive smoothly and stick to speed limits—this saves fuel and avoids expensive fines.
Base Yourself Strategically with Ourhotels.is
Instead of changing hotels every night, choose a few well-placed bases and explore from there. This reduces driving time, fuel costs, and the stress of constant packing and unpacking.
Hvítá Inn – Budget Base for Borgarfjörður & West Iceland
Located in Borgarfjörður, close to Borgarnes, Hvítá Inn is a great first stop when you leave Reykjavík and head north or west. It’s ideal if you want to explore:
– Hraunfossar and Barnafoss waterfalls
– Deildartunguhver hot spring
– Reykholt and the surrounding historical area
– The scenic countryside of Borgarfjörður
Staying at Hvítá Inn gives you a comfortable, affordable base in a peaceful rural setting, while still being close to the Ring Road and services in Borgarnes. You can easily spend a couple of nights here and do day trips instead of constantly moving on.
Stykkishólmur Inn – Affordable Stay on the Snæfellsnes Peninsula
The Stykkishólmur Inn is perfectly located for exploring the Snæfellsnes Peninsula, often called “Iceland in Miniature” because it has a bit of everything: lava fields, black beaches, cliffs, mountains, and fishing villages.
From Stykkishólmur Inn, you can visit:
– Kirkjufell mountain and Kirkjufellsfoss waterfall
– Snæfellsjökull National Park
– Arnarstapi, Hellnar, and the dramatic coastline
– Local hot pots and natural pools in the area
By using Stykkishólmur Inn as your base, you can explore the peninsula in loops, returning each night to the same comfortable, budget-friendly accommodation. This saves time and money compared to hopping between multiple hotels.
Ísafjörður Inn – Budget-Friendly Gateway to the Westfjords
If you’re heading into the Westfjords, Ísafjörður is the natural hub—and Ísafjörður Inn is a great option for travelers watching their budget. From here, you can explore:
– The colorful town of Ísafjörður itself, with its harbor and old houses
– Nearby fjords and small villages
– Hiking routes and viewpoints
– Day trips to places like Bolungarvík or Suðureyri
The Westfjords feel remote and wild, but staying at Ísafjörður Inn keeps you close to services, restaurants, and activities, while still offering good value compared to more isolated options.
Save on Food: Mix Eating Out with Self-Catering
Food in Iceland can be one of the biggest expenses, but there are simple ways to keep costs down:
– Shop at budget supermarkets like Bónus, Krónan, or Nettó in towns such as Borgarnes, Stykkishólmur, and Ísafjörður.
– Prepare simple breakfasts and picnic lunches: bread, cheese, skyr, fruit, and snacks travel well in the car.
– Save restaurant meals for special evenings—perhaps a local fish dish in Stykkishólmur or Ísafjörður.
Many travelers find a rhythm: self-cater for two meals a day, then enjoy one sit-down meal. This approach keeps your budget under control without feeling like you’re missing out.
Take Advantage of Free Nature and Low-Cost Activities
One of the best things about Iceland is that many of its highlights are free or very low cost. Around Ourhotels.is locations, you’ll find:
Near Hvítá Inn (Borgarfjörður area):
– Free access to viewpoints and waterfalls like Hraunfossar and Barnafoss
– Scenic drives and short hikes in the countryside
Near Stykkishólmur Inn (Snæfellsnes):
– Coastal walks, viewpoints, and beaches
– Photo stops at Kirkjufell and along the peninsula
Near Ísafjörður Inn (Westfjords):
– Hiking trails with fjord views
– Exploring small villages and harbors
You can build entire days around free or low-cost outdoor activities, only paying for the occasional museum, hot spring, or guided tour that really interests you.
Pack Smart to Avoid Extra Costs
Bringing the right gear can save you money once you’re here:
– Layers and a waterproof jacket, so you don’t need to buy expensive clothing locally.
– A reusable water bottle—tap water in Iceland is excellent and free.
– A thermos for hot drinks on the road.
– Swimsuit and towel for hot springs and swimming pools.
– Snacks from home if you have space, especially if you’re on a tight budget.
Use Local Pools Instead of Expensive Spas
Iceland’s local swimming pools are a budget traveler’s secret weapon. For a small fee, you get access to hot tubs, saunas, and often great views. You’ll find pools in towns like Borgarnes, Stykkishólmur, and Ísafjörður, all within easy reach of Ourhotels.is properties.
This is a much cheaper way to enjoy hot water and relaxation than high-end spas, and it’s a very local experience.
Plan Your Route to Minimize Backtracking
Fuel is expensive, so a well-planned route saves money. A simple, budget-friendly itinerary using Ourhotels.is might look like:
– Reykjavík → Hvítá Inn (Borgarfjörður area)
Explore waterfalls, hot springs, and countryside.
– Hvítá Inn → Stykkishólmur Inn
Drive to Snæfellsnes, explore the peninsula over 1–2 days.
– Stykkishólmur Inn → Ísafjörður Inn
Continue north into the Westfjords, using Ísafjörður as your base.
This kind of route keeps driving distances reasonable and lets you see a lot without rushing.
Why Choose Ourhotels.is for a Budget Road Trip
Ourhotels.is focuses on comfortable, well-located inns in West and North-West Iceland that work especially well for road trippers:
– Hvítá Inn: Rural charm near Borgarnes and Borgarfjörður’s natural sights.
– Stykkishólmur Inn: Perfect base for exploring the Snæfellsnes Peninsula.
– Ísafjörður Inn: Affordable gateway to the dramatic Westfjords.
By combining these stays, you can build a road trip that feels rich in experiences but gentle on your wallet.
With thoughtful planning, smart choices on car, food, and activities, and strategic stays at places like Hvítá Inn, Stykkishólmur Inn, and Ísafjörður Inn through Ourhotels.is, your Iceland road trip can be both budget-friendly and unforgettable.
