Do you need to rent a car? They have a great bus network with all kinds of passes to make it cheaper if you're using the bus network a lot. Using buses will probably be cheaper than renting a car.
There is very good tourist information in Reykjavik, I went to the office here: https://www.whatson.is/ and if you want to see things more cheaply they should be able to advise you well if you tell them what kinds of things you want to see.
Also, I've not stayed outside of Reykjavik (only been on some excursions), but I suspect that by simply taking more time outside of Reykjavik you will save money. almost 3 years ago
If you drink alcohol, definitely stock up on your full allotment at Keflavik airport before continuing on. It's significantly cheaper than at the liquor stores. If you plan on drinking in Reykjavik bars make sure to take advantage of each establishment's happy hours. Drinks will be up to half price compared to normal hours. There's a happy hour app available as well as a free weekly newspaper (in English) that lists all the happy hours in town along with entertainment listings etc almost 3 years agoAnswered by Keith via WorldNomads.com
There is no cheap way to see Iceland. If you go, plan to spend a lot of money. I just got back from Iceland, did the Golden Circle & then the Ring Toad. Very nice trip but don't bother going if money is a concern. almost 3 years agoAnswered by Al via WorldNomads.com
Lonely Planet Iceland is your passport to the most relevant, up-to-date advice on what to see and skip, and what hidden discoveries await you.
Bónus is probably the best known budget grocery store.
Stop by Tourist Information Centre for inquiries . almost 3 years agoAnswered by Joseph via WorldNomads.com
You can bring groceries into Iceland. They have only have a few restrictions and lax customs compared to those used to travelling to less isolated places. We had a list of everything we had with us. They never looked at it.
We also only drank during Happy Hour. Some beer and some wines are half price but most things are not even during Happy Hour. almost 3 years ago
Not an inexpensive location. Car rentals are almost essential and they run much higher than the rest of europe. Petrol or diesel fuel are expensive......as you might expect on an island with no oil resources. Restaurants are $$$$ for the most part unless you are willing to eat lots of hotdogs that are available at every fuel station. almost 3 years ago
For food stick with their grocery stores, Subway had a great deal when we were there and was real good too and some of the convenience/gas station stores weren't too bad. Stick with a water bottle and refill with the awesome glacier water right out of the tap! If you ever want alcohol and missed getting it at the airport, some of the convenience stops for beer were very reasonable and like 1/3 the price compared to buying at restaurant/bar. You can rent your own little mini camper instead of hotels, but there are many alternatives including hostels, cottages and guesthouses. Icelandic people are very lovely, genuine and accommodating folks. We had our money converted with our bank before we even left so we didn't have to worry about it later when we got there and it didn't cost that much either and that was just for some extra spending money for tips and maybe a little bit of shopping to keep within budget, but used our credit card that did not charge foreign transaction fees for paying for any bigger priced expenses. As far as your sightseeing and tours and such, just depends what you are interested in. Near the tour bus stops/gas stations/grocery store hubs were tourist guide areas stocked with brochures and information for lots of choices. You can rent a car, camp, rent a camper, drive everywhere yourself to see so many things unique to every part of the island and not have to spend a whole lot doing it. Many things were actually free. The favorite spots to spend the money were the Blue Lagoon about $35 USD, the Glacier Lagoon riding the amphibian boat about $35 USD, and northern spot of island to do the whale watching about $90 USD per person. All well worth it and awesome!!!! almost 3 years ago
1) Food: Bring as much of your own food as you have room for. Once there, I largely stayed away from restaurants and opted for grocery stores. "Bonus" and "Netto" are two grocery chain stores you'll see. When all else failed, a sandwich from one of the convenience stores was cheaper than restaurant food. Also, a Costco store just opened up in Reykjavik.
2) To save on alcohol: If you drink alcohol, stock up at the duty free at the airport, buy beer at the grocery chains, and search out happy hours at restaurants.
3) To save on travel: definitely consider taking public buses, but also consider that a car -- especially a 4x4 -- will take you places that a bus won't. You're going to Iceland, after all. Spending money on independent transportation might be a splurge that proves well worth it. Also, if you sleep in your car (more below), you can save on lodging costs, which will significantly offset the cost of the car.
4) To save on lodging: Sleeping in your car or van is much cheaper than sleeping in hotels. BE MINDFUL: You can't just park your car anywhere -- to be completely legal, you need to park in specified campsites found in most every village, that typically cost $10-15 per person per night. It is possible to find "hermit" sites to park your car, where you'll likely not be noticed. But don't be an asshole: Icelanders have opened up their country for you to visit and it is disrespectful to just park your car wherever. Hostels tend to be cheaper than hotels, too. Many are $50/night, but some are less. Both hostels and campsites have kitchens with cookware so that you can make your own hot meal and save money that way. Also, bring your own sleeping bag. You'll need it if you sleep in your car, and it'll save you a few bucks at hostels if you use a sleeping bag instead of their linens.
5) To save on activities: Don't go to the Blue Lagoon -- much cheaper and better hot springs elsewhere. Consider that hiking and sightseeing is free, and many trails are well-marked and don't require any kind of guide. Also, stick with activities that are unique to Iceland -- whale watch or sea kayak back home. almost 3 years agoAnswered by Chris via WorldNomads.com