Learn how to plan the perfect Iceland solo travel trip with itinerary and tips to slash the cost of your trip.
Mention Iceland and, to many people, four things come to mind.
Björk, the quirky Icelandic songstress. The 2008 economic meltdown which placed the country on the verge of collapse. Watching newsreaders visibly sweat as they valiantly attempted to pronounce Eyjafjallajökull, the volcano that erupted in 2016, destroying the holiday plans of many.
And, finally, isn’t Iceland a cripplingly, outrageously expensive place to visit, especially if you are a solo traveller?
In this article, we will take a closer look at those trip costs and how to save money in Iceland. But first, let’s see what it’s like to visit Iceland as a solo traveller with some practical tips.
Some articles on this website contain affiliate links. This means that I may earn a small commission if you make a purchase through these links at no additional cost to yourself. As an Amazon Associate, I earn from qualifying purchases. Read the full disclosure here.
Why Iceland is a Great Solo Travel Destination
The crime rate in Reykjavik is so low to be almost zero. Therefore, there is little chance of you getting robbed or being subject to physical risk. Harassment is also rare.
As a solo traveller in Iceland, it is easy to book excursions to suit your tastes online or via one of the agencies on Laugavegur in downtown Reykjavik. Iceland is also a mecca for outdoor activities.
And if you want to treat yourself, Iceland is made for splurging. Linger over a meal at one of Reykjavik’s excellent restaurants or buy that handmade Icelandic jumper you have been eyeing up.
What is the Best Time of Year to Visit Iceland?
There is no absolute right or wrong time of year to visit Iceland.
Iceland’s average temperatures are higher than you might expect, given its position in the North Atlantic Ocean. Thanks to the moderating effect of the Gulf Stream, Reykjavik’s average winter temperature is 0 degrees; in summer this reaches a giddying 12 degrees.
But, for me, the bigger consideration is the number of daylight hours. In midwinter, the sun doesn’t rise until 11.45 am, setting again at 2.45 pm. Whilst this might be optimal for Northern Lights chasing, it limits daytime activities.
Contrast that with mid-summer. Here, we are looking at 24-hour light, with the sun setting at midnight, and twilight persisting until it rises again at 3 am.
Therefore, the time of year that you visit Iceland may largely depend on the number of daylight hours that you feel comfortable with, and whether you want to see the Northern Lights.
In my view, Feb/March or Oct/Nov are good times to visit Iceland. There are enough daylight hours to allow you to sightsee, but you will also be able to see the Northern Lights if they decide to come out to play.
When I visited Reykjavik in March, there were around 11 hours of daylight.
What Should You Bring to Iceland?
First and foremost, warm clothing, whatever time of year you are visiting Iceland. This means a hat, scarf, gloves, layers and a warm, preferably windproof, coat.
A refillable water bottle. Don’t buy bottled water when you are in Iceland.
Not only is this not eco-friendly, but it is also completely unnecessary. Icelandic water is pure and delicious straight out of the tap. Just let the water run for a minute before filling your bottle.
Zip-Loc freezer bags for your packed lunch. More on that later.
What Should you Leave at Home When Visiting Iceland?
Your umbrella. Seriously. Those Arctic gusts spell instant death for brollies and carrying one will instantly mark you out as a tourist.
Money in Iceland
Iceland’s currency is called Króna (ISK). Due to the lack of subdivisions, get used to seeing lots of zeros.
It’s worth noting that the Króna has no value outside of Iceland. Therefore, you should not exchange large amounts of currency, and you should change it back before you leave.
Also, as you are unlikely to be able to get hold of Króna in your home country, you will need to change currency on arrival. It’s best to do this in downtown Reykjavik rather than at the airport.
The good news is that Iceland is almost a cashless society. Credit cards rule supreme and can be used for even the smallest of purchases.
I did not change any currency and used my credit card for the entire duration of my trip to Iceland. But check that your credit card provider will not charge you an extortionate fee for using your card overseas.
Iceland Trip Costs
Iceland is an expensive country in which to live.
Accommodation and food & drink are much to blame. Eating & staying in Reykjavik will cost you 44% more than the average in the EU.
However, booze is the real budget-buster. A glass of your favourite tipple is likely to cost 123% more than it would in an average European country.
But fear not. Even when travelling alone, it is possible to visit Iceland on a mid-range budget without resorting to staying in a hostel or letting a single Pot Noodle pass your lips.
How to Save Money When Travelling to Iceland
Let’s take a look at how a solo traveller can visit Iceland on budget.
Accommodation costs in Iceland
Accommodation in Iceland does not come cheap. To save money on lodgings, conventional wisdom applies:
- Book early
- Get the best possible deals by using price comparison websites, for example, Google Hotels.
- Consider self-catering accommodation, through Airbnb or Booking.com. This will also save you money on food.
However, that said, I did the opposite!
I got a great deal three weeks before I flew with BA Holidays. This bundled flights at convenient times and to/from convenient airports with a centrally-located three-star hotel that included breakfast. This deal cost marginally more than the hotel alone if I had booked these separately.
Trip costs in Iceland: Eating out
Eating out in Iceland is relatively expensive. A main course in a mid-range restaurant will set you back between 2,000 and 4,000 ISK. For this reason, Icelanders consider dining out to be a treat.
Here are my top tips for eating out in Iceland on a budget.
- Bring some snacks from home. Whatever your fancy, these are good for munching on when you are feeling peckish or to form part of a packed lunch on the go.
- Bag a good hotel deal that includes breakfast. Not only will this set you up for the day ahead, but you may be able to assemble a packed lunch. Trust me … I wasn’t the only person doing this at breakfast. Whilst I was at least trying to be discrete, a group of four at an adjacent table had a production line going, complete with proper sandwich bags. I was seriously impressed.
- Alternatively, stay in self-catering accommodation where you won’t be reliant in dining out.
- When in Reykjavik, keep your eyes peeled for lunchtime lunch deals.
- Tipping is not expected in bars and restaurants in Iceland
Drinking alcohol in Iceland on a budget
Alcohol is eye-wateringly expensive in Iceland. A local beer, for example, is likely to cost 1,000 ISK. Reckon on spending at least 1,400 ISK for a glass of unremarkable wine.
Despite this, Reykjavik has a vibrant bar scene and you should not deprive yourself of the chance to try the excellent local beer. But, if you’re not careful, alcohol can make your trip to Iceland expensive.
Here are my tips on how to reduce your Iceland trip costs when it comes to booze but still have a good time.
- Keep drinking out to a minimum
- Instead, buy booze before arriving at your accommodation. Pack alcohol in your checked luggage or buy a bottle or two at the Duty-Free in your departure airport. Or do as the Icelanders do and stock up in the Duty-Free shop in the Arrivals area at Keflavik Airport.
- Don’t rely on buying alcohol from a supermarket. Prohibition was only fully repealed in Iceland in 1989 and its accessibility is relatively limited. It can only be purchased in state-run off-licences (ÁTVR), which are only open during office hours.
- If you are drinking out, take advantage of the numerous happy hours around Reykjavik. Again, learn from the locals, and download Reykjavik AppyHour, an app that lists these. Available for iPhone and Android devices.
Public transport in Iceland
Public transport infrastructure in Iceland is relatively limited.
There is no railway, only a shrinking network of long-distance bus routes provided by just a few companies. Although there are bus services during the summer months (June – August), for the remainder of the year buses are too infrequent – or non-existent – to be useful.
Many visitors hire a car and this is likely to be your cheapest option. However, as it was winter and I am not keen on driving, I didn’t do this. Instead, I used bus transfer services and excursions.
I can recommend Reykjavik Sightseeing for day excursions. A 7.5-hour Golden Circle tour costs 8.490 ISK (November 2020 price); add an additional 1550 ISK for a hotel pick-up.
Taxis are expensive and Iceland is currently Uber-free.
How Much Does a Trip to Iceland Cost for One Person?
Here’s the bottom line. In 2019, my three-day / four-night itinerary Iceland trip cost a total of £820.
Here are what the cost of this trip looked like broken down:
FOOD & DRINK £110
FLIGHT & ACCOMMODATION £504
AIRPORT TRANSFERS £44
Let’s now see what this £800 buys you.
A 3-Day Iceland Solo Travel Itinerary
Like most people on a short break to Iceland, I used its capital, Reykjavik, as a base.
As well as being a fabulous destination in its own right, Reykjavik is the best base from which to explore Southern Iceland.
Here is my 3-day Iceland itinerary.
DAY 1: EXPLORE REYKJAVIK
After a hearty breakfast, start the day by exploring Reykjavik with Free Walking Tour Reykjavik. As Iceland’s capital is so compact, it is a breeze to navigate on foot.
Don’t miss the following:
Hallgrímskirja – this geyser-shaped modern church is Reykjavik’s most iconic sight. Make sure that you take the lift to the observation deck at the top of the church. With its tower standing 73 meters high – the tallest church in Iceland – you will get fantastic 360-degree views of Reykjavik.
- Grjóti village – the colourful buildings that you are able to see from Hallgrímskirja’s tower are clustered around Grjóti village, the oldest neighbourhood in Reykjavik.
- Harpa – Reykjavik’s controversial harbourside concert hall. Take the lift to the 5th floor to fully appreciate its honeycombed glass walls and ceiling, and for great views over Reykjavik harbour.
- Sólfar (“Sun Voyager”) – a sculpture created by the artist Jón Gunnar Áranson representing a dream Viking longship floating off to new beginning towards the setting sun.
DAY 2: TOUR THE GOLDEN CIRCLE
Day 2 and it’s time to leave Reykjavik to explore Iceland’s rugged interior. Its famous Golden Circle, a 300 km circular route that loops from Reykjavik into central Iceland, is not to be missed.
Here are the main stops:
- Thingvellir National Park – a rift valley where the American and Eurasian continental plates meet, and the site of the longest functioning parliamentary assembly.
- Geysir – a thermal area of bubbling sulphurous pools where the mighty Strokkur geyser, reliably puts on a performance every five minutes or so.
- Gullfoss – a dramatic waterfall formed by twin cataracts thundering into a narrow gravel canyon of the Hvitá river.
And you may also get an opportunity to pet an Icelandic horse.
DAY 3: VISIT THE BLUE LAGOON
Views are divided on the Blue Lagoon. Is it a must-see destination on any Iceland itinerary or a complete tourist trap?
I did debate whether to go there but, being a completist, I felt that it should be included in my Iceland itinerary. Also, I wanted to make my mind up for myself.
The verdict? Yes … it is a tourist trap but its steaming, milky waters set within a lava field is an unmissable sight.
Where to Stay in Reykjavik
If you want to be in the thick of things, then the downtown area of Reykjavik, close to the Laugavegur shopping street, is your best bet. Here you will find most of the museums, restaurants and bars.
However, if you are a light sleeper be aware that there a high concentration of few bars that stay open until late in the weekend. But if you are also out burning the midnight oil, this won’t make any difference!
Travelling Alone in Iceland on an Organised Tour
But what if you’re are not sure whether you are ready to explore Iceland independently. If that’s the case, why not join a group tour?
You’ll benefit from an expertly curated itinerary and you will gain valuable insights into the country, the history and local culture. Keeping safe when travelling is a common fear amongst those taking their first solo trip. But with a group tour, there’s safety in numbers. Finally, with ready-made travel companions, you don’t have to fear solo travel loneliness or the prospect of dining out alone.
Alternatively, join a day-tour when you are out there as I did. My go-to platform is GetYourGuide, which offers a broad selection of local tours with extremely generous cancellation terms.
Can You Visit Iceland on a Budget as a Solo Traveller?
Iceland is one of the best solo travel destinations in Europe, and its potential to drain your bank account should not put you off visiting. Despite the high cost of living, Iceland trip costs need not leaving you taking out a loan on your return from holiday.
Bag a good deal on accommodation and exercise self-restraint when eating and drinking alcohol out. Iceland is expensive but it is worth it every Króna.
Let’s look on the bright side. The relatively high cost of booze means that, unlike other European cities such as Tallinn or Prague, Reykjavik is yet to become stag party central. And surely that has to be a good thing?