How to travel Iceland on a Budget without missing the best experiences

Iceland has a reputation for being expensive. Gas, restaurants, activities, and accommodation can add up quickly, especially during the summer season. The good news is that it is possible to experience some of Iceland’s most famous landscapes without spending a fortune.

The secret is not to avoid experiences. The secret is choosing the right base, making use of self-guided adventures, and knowing where to spend money for the greatest value

For travelers exploring Southeast Iceland, Skyrhúsið Guesthouse offers exactly that combination.

5 Tips to have in mind:

• Accommodation – Look for best price guarantee and guesthouses with shared kitchen facilities. When booking accommodation, book directly with the locals. Third party resellers take high commission, you can avoid that extra cost if you book directly with the locals and get the best possible price. Dining out in Iceland is expensive. You can save money by cooking for yourself and dining out on special occasions and when you like to treat yourself.
  
• Water – Iceland has one of the best water supplies in the world.  Make sure to bring your own water bottle and fill it up with tap water during the stay.  It is free and healthy.
  
• Grocery shopping – You can save money buying from low budget grocery shops, such as Prís, Bónus, Krónan and Nettó
  
• Electrical rental cars – Iceland creates its own natural electrical power through hydro and geothermal energy.  Electricity prices are quite cheap and stable compared to other energy resources.  Choosing electric rental cars is both an eco friendly way of travelling in Iceland and also cheap.
  
• Unique nature – Iceland is truly the land of fire and ice.  It is shaped by continuous volcanic eruption which makes the landscape very unique and beautiful.  Most of these places are free to explore, you might need to pay service fees at parking lots but after that you are free to hike and enjoy nature as much as you like.  Just remember to bring your own lunch after shopping from the low grocery stores.
  

Stay in one place and explore more

One of the biggest mistakes budget travelers make is changing accommodation every night. Constantly moving between locations increases fuel costs, takes time away from sightseeing, and often leads to unnecessary expenses.

Skyrhúsið is located in Hali, between Höfn and Jökulsárlón Glacier Lagoon. Staying two or three nights allows travelers to explore a large section of Southeast Iceland without repeatedly packing and unpacking.  Skyrhúsið has free parking and nice simple kitchen facilities.

Within easy driving distance are Jökulsárlón Glacier Lagoon, Diamond Beach, Fjallsárlón Glacier Lagoon, Múlagljúfur Canyon, Skaftafell, Skálafellsjökull, and several lesser-known local hiking trails. Many of these attractions are completely free to visit; you only need to pay for parking.

Save money by cooking your own meals

Food is often one of the largest expenses during an Iceland trip. For travelers watching their budget, having access to a kitchen makes a huge difference.

At Skyrhúsið, guests have access to a fully equipped shared kitchen where meals can be prepared throughout their stay. Instead of having every meal in restaurants, many travelers shop for groceries in Höfn or along their route and prepare breakfast, lunch, and dinner themselves.

For grocery shopping, Prís in Reykjavík, Bonus in Selfoss, Krónan in Vík are on the way to Skyrhúsið from Reykjavik.  Nettó in Höfn is the nearest low-price supermarket. Smaller shops can be found along the road, but prices are generally higher.

A simple breakfast before heading to the glacier, packed sandwiches for a day hike, and a home-cooked dinner in the evening can save a substantial amount over several days.

The kitchen also gives travelers flexibility. Weather changes quickly in Iceland, and being able to prepare food on-site means there is no need to rush to restaurants or drive long distances after a day outdoors.

Take advantage of Free Self-Guided Adventures

Many visitors assume that every worthwhile experience in Iceland requires a tour. That is simply not true.

To help guests explore more while spending less, Skyrhúsið has created a collection of Free Self-Guided Adventures. These local guides include practical information, driving directions, seasonal advice, and recommendations for some of the area’s favorite locations.

Guests can discover places such as:

• Grandma’s Hali Trail directly outside the guesthouse
• Jökulsárlón Glacier Lagoon
• Diamond Beach
• Glacier Adventure Stone Arch
• Fjallsárlón Glacier Lagoon
• Skálafellsjökull
• Múlagljúfur Canyon
• Svartifoss
• Vestrahorn
• Skútafoss
• Hvalnes Lighthouse

Many of these locations require nothing more than a vehicle, good outdoor clothing, and a sense of adventure. Find more information here

Know where a guide is worth the cost

Some experiences in Iceland should never be done independently.

Glacier hiking and ice cave exploration require specialized equipment, route knowledge, and certified glacier guides. Conditions on Vatnajökull change constantly, and safe access depends on current glacier conditions. Glacier Adventure guides monitor these conditions throughout the season.

That is why many experienced Iceland travelers choose to self-guide the free attractions while investing in one professionally guided glacier experience.

Glacier Adventure (Locally owned and operated) is located right next door to Skyrhúsið, making logistics simple and eliminating extra driving on tour days. Glacier Adventure operates glacier walks, ice cave tours, and mountain adventures throughout the year.

Save even more with our accommodation and tour discount

Guests staying at Skyrhúsið can also receive special discounts when booking tours with Glacier Adventure.

Booking accommodation and a glacier tour together is often one of the easiest ways to reduce overall trip costs while still experiencing one of Iceland’s most memorable activities. The combination allows travelers to save money without sacrificing the glacier experience that brings many visitors to Southeast Iceland in the first place.

A simple budget strategy for southeast Iceland

Many guests find that the most cost-effective approach looks something like this:

Day one focuses on Jökulsárlón, Diamond Beach, and local hiking near Hali.

Day two combines a guided glacier tour with Glacier Adventure and a relaxed evening at the guesthouse.

Day three is reserved for exploring Fjallsárlón, Múlagljúfur, Skaftafell, or one of the other self-guided adventures nearby.

With accommodation in one location, meals prepared in the guesthouse kitchen, free self-guided adventures during part of the trip, and one professionally guided glacier experience, travelers can experience the best of Southeast Iceland while keeping costs under control.

Travelers planning a Southeast Iceland adventure can book accommodation directly with Skyrhúsið and explore available glacier tours with Glacier Adventure before arrival.