We just returned from our family vacation to Iceland and it was an incredible experience. Iceland had been on our “family bucket list” of destinations for years and we were finally able to make it happen.
That being said— I never thought it would be in our budget to take all four of us so I had to use my “travel hacking” knowledge and some diligent planning to make it work..and it was still expensive. This is a recurring theme in Iceland, so its helpful to mentally prepare for the cost as you plan 🙂
We were there for 5 days and for reference it is the middle of March and I definitely learned some tips and tricks for exploring Iceland on a budget,to help your family gets the most out of this incredible destination.
First, Let’s Talk Flights
We knew when we were going to take 4 people internationally, the biggest chunk of costs would be flights. The largest time I spent saving was to accrue enough miles to do this. I did not accrue enough to fully cover the bill, but did accrue enough so our out of pocket cost was $950 or so. ( Without miles, it was roughly $3400 to fly us out of MCO in March).
I do this by what is commonly called among travel enthusiasts as ” travel-hacking.” I do explain this in an article ( that does need some updated, I admit) that you can find here.
I will say that I did use the Chase Ultimate Rewards program ( my favorite) by using points earned on our Chase Freedom and Chase Sapphire Card.
About IcelandAir
This trip was our first experience with Iceland Air and it may have been the smoothest experience we have ever had.
Rent a Car
If you are comfortable, self-driving in Iceland is a great choice. My husband drove and we enjoyed the flexibility with our schedule and the kids had the back seat to spread out. We rented a Toyota Rav 4 from Zero Car, a subsidiary of Blue Car, which we found to be the most affordable and convenient. Picking up our rental was a breeze at Keflavik Airport and we had no issues at all with the car.
Manual cars cost less than automatics, but we went with an automatic transmission. Even though my husband can drive a stick shift, we are so glad we didn’t try to cut costs here. There are a lot of mountains and hills. You will want an automatic transmission!
For those looking to explore Iceland, especially in the winter, a 4 wheel drive car is important and I did purchase the full coverage insurance for my own peace of mind. We literally just pulled the car up and handed over the keys when we left.
We rented a Toyota Rav 4 from Zero Car, a subsidiary of Blue Car, which we found to be the most affordable and convenient.
Where to Stay
This is where we splurged. It can get overwhelming figuring out where to stay…whether a hotel in the city center, renting a camper van, staying at multiple locations throughout the country. We opted to stay in one location, but outside of Reykjavik where we could get a chance to see the Northern Lights with a little less light pollution.
We chose the Fisherman’s Village in Garðabær and booked the family suite.
The suite had a private hot tub, sauna and seperate-ish areas for each kid and us, so it was a great place to come home and warm up in after long days of driving and sightseeing.
Staying Connected Without the High Costs
To avoid the hefty fees of international mobile plans, we opted for Trawire for our connectivity needs. Available for easy pick-up and drop-off at Keflavik Airport, the 5G hotspot was the perfect solution to stay connected without overspending.
We booked the Trawire Super plan which easily gave wi-fi access on the go for all of our devices. Our phones stayed on airplane mode and the Trawire gave us Wi-Fi continually. It also came with a charging cord for the car so we has zero issues navigating with Waze ( our preferred navigation app in International countries).
Budget-Friendly Shopping at Bonus
One of our top tips for saving on meals is shopping at local supermarkets like Bonus. Known for its budget-friendly prices, Bonus became our go-to for snacks and essentials.
I made a trip daily.
Known for its budget-friendly prices, Bonus became our go-to for snacks and essentials.
Picking up croissants, apples, cheese, and crackers helped us save significantly on dining, allowing us to splurge elsewhere. One day, we had a “picnic lunch” in the car because we knew we would be decently far from any reasonbly prices restaurants.
Plus, take advantage of their selection of souvenirs, including unique Icelandic salt and delicious chocolates. The same items would be marked up significantly in souvenir stores, but I loved picking up chocolate and salt to bring home at Bonus.
Icelandic salt and chocolate are some great souvenirs to bring home…and can be purchased much cheaper at the grocery stores than in souvenir shops.
Exploring Reykjavik and Icelandic Cuisine
Reykjavik is compact and the city is fairly walkable, yet there is no shortage of cuisine options. However, with kids…we needed variety for some picky palates. We definitely found some favorites.
It’s important to, once again mention, that eating in Iceland is expensive. It’s an island and everything is imported. So even a budget meal could cost us upwards of $70 USD. What made them winners was when our children finished their meals.
One of our highlights was dining at Icelandic Street Food.
Icelandic Street Food, Laekjargata 8, Reykjavik 101 Iceland
The small local cafe is in the heart of Reykjavik, just passed the Hard Rock Cafe. It can be a little bit of a hike from the free parking at Hallgrímskirkja, but after popping in and out of shops along the way, we stayed warm and were ready to eat.
Offering free refills on soup and waffles, it’s a must-visit for families looking to taste traditional Icelandic dishes like fish soup and lamb meat soup without overspending. Josiah wanted to go back a second time, he loved it so much.
The Seafood Stew at Icelandic Street Food. Free refills and the bread bowl!
The city’s food halls also offer various affordable dining options where everyone can choose something they enjoy. Our kids were especially big fans of Flatey Pizza, which was their food of choice at both Hlemmur Matholl food hall in Reykjavik and The Old Dairy food hall in Selfoss.
Food halls are a great way to try a variety of options where everyone can find something they like.
Of course, to truly eat locally… don’t forget to hit up a gas station restaurant for a burger or hot dog 🙂
Most gas stations have affordable, clean dining options that are great for families with kids.
Making the Most of Your Visit Without Overspending
When planning our trip, we considered visiting some museums, but decided to save the costs and instead enjoy Iceland’s natural beauty, opting for outdoor adventures.
Self-driving and visiting Iceland’s natural wonders was a great way to explore and save costs. This is us as Kerið crater in South Iceland on the Golden Circle
This approach saved us money and allowed us to create lasting memories amidst Iceland’s breathtaking landscapes. Granted, some areas did require parking fees, but they were nominal compared to museum fees.
The one excursion we booked was theGeothermal Bread-Baking Experience at Laugarvatn Fontana. This was a nice stop that didn’t take too long, was fun for the kids and a great way to warm up a bit.
If you are planning on self-driving, I highly suggest getting the Rick Steves Travel Guide to Iceland. We all know Rick is my travel idol, but this book was exceptional in breaking down drive itineraries to match your time-frame with must-have stops…and what to skip.
If you are planning on self-driving, I highly suggest getting the Rick Steves Travel Guide to Iceland.
I feel like I have barely scratched the surface, but plan to right some more detailed posts in the future. In short, traveling to Iceland with your family on a budget is definitely doable ( with good planning) and can be a fantastic experience. These tips are based on our own recent adventure and made a big difference in managing costs while still enjoying all the beauty and excitement Iceland has to offer. I hope they help you plan your trip and make the most of your time in this amazing country. Happy travels!
