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Iceland is one of the most expensive countries in the world. Here are 8 ways I saved money during my trip.

Iceland is one of the most expensive countries in the world. Here are 8 ways I saved money during my trip.
The author at the Blue Lagoon in Iceland.Talia Lakritz/Insider
  • Iceland has the eighth-highest cost of living in the world, according to Numbeo.
  • I saved money on my trip by booking a red-eye flight and renting a car further from the airport.

On my first day in Iceland, I paid 2,690 ISK, or about $20, for a piece of avocado toast at the Blue Lagoon.

After realizing how quickly purchases like that would add up over a five-day trip, I resolved to be more mindful about my spending.

Iceland is the eighth most expensive country in the world with a cost of living 15.8% higher than the US, according to Numbeo's global cost of living index. Even with higher prices, I discovered a few helpful tricks for saving money during my visit.

Here are eight ways I cut costs on my trip.

I booked Icelandair's cheapest red-eye flight.

I booked Icelandair
Flying Icelandair into Reykjavík.      Talia Lakritz/Insider

I paid $852.65 for my round-trip economy ticket on Icelandair. My flight took off from New York City at 11:15 p.m. and landed in Reykjavík at around 9 a.m. local time. I'm not usually a fan of red-eye flights, but it allowed me to maximize my first day in Iceland and save around $100.

I booked a rental car further away from the airport.

I booked a rental car further away from the airport.
A white SUV in Iceland.      Talia Lakritz/Insider

I made my rental car reservation through Hotwire, a third-party booking site where I tend to find lower prices. I paid $348.66 for five days.

When I landed in Iceland, I found that only four rental car companies had counters in the arrivals terminal: Avis, Budget, Europcar, and Hertz. To get to the Economy Rent A Car counter where I'd made my reservation, I needed to take a 10-minute ride in a shuttle that only came every 30 minutes.

While it took a little longer to pick up my car, it was several hundred dollars cheaper than the other more conveniently located companies.

I brought some food from home.

I brought some food from home.
Breakfast at the Bubble Hotel in Iceland.      Talia Lakritz/Insider

Packing some basics like granola bars and trail mix allowed me to avoid paying steep prices for snacks during my trip. I was also grateful to have brought an instant soup cup when I stayed at a remote bubble hotel located in a forest along the Golden Circle. Buubble by Airmango offered a kettle to heat water for coffee or tea, but no restaurant or lobby.

I supplemented my snacks from home with items from Icelandic grocery stores.

I supplemented my snacks from home with items from Icelandic grocery stores.
Fruit for sale at Krónan in Iceland.      Talia Lakritz/Insider

Throughout my visit, I stopped at Icelandic grocery chains like Hagkaup and Krónan to stock up on to-go items like sandwich ingredients and snacks. The prices were higher than the US, but it was still cheaper than eating at restaurants for every meal.

Booking inexpensive hotels that included breakfast also helped keep my meal costs low.

Booking inexpensive hotels that included breakfast also helped keep my meal costs low.
Hjónabandssæla, also known as a "happy marriage cake," at a hotel breakfast in Iceland.      Talia Lakritz/Insider

I'm a hotel breakfast enthusiast. I love starting my travel days with a filling meal and sampling local morning staples in different cities and countries. In Iceland, the continental breakfast included in my hotel stay was another meal I didn't have to pay extra for.

I ended up spending a total of $154.16 on food over the course of my five-day trip — about $30 per day.

I saved money on bottled water by drinking it straight from the source.

I saved money on bottled water by drinking it straight from the source.
Filling my water bottle with water from a glacier.      Talia Lakritz/Insider

I was surprised to learn that it's safe to drink straight from many clear rivers and streams in Iceland. On one hike, I filled my reusable bottle with water from melting glaciers instead of paying for bottled water. On other occasions, I filled my bottle with Icelandic tap water, which is widely regarded for its high quality.

I visited non-touristy recommendations from locals, where prices were lower.

I visited non-touristy recommendations from locals, where prices were lower.
A cafe in Iceland.      Talia Lakritz/Insider

One local recommended that I visit the Secret Lagoon, located about 62 miles from Reykjavík, as a non-touristy alternative to the Blue Lagoon. The cheapest ticket to the Blue Lagoon cost 13,228 ISK, or about $93, while the Secret Lagoon cost 3,300 ISK, or about $23.18.

The Blue Lagoon featured more luxurious amenities and included perks like a face mask and drink, but the more rustic Secret Lagoon also provided an enjoyable geothermal pool experience and would be a great option for budget travelers.

I asked another Iceland local to meet at her favorite cafe in Reykjavík. She took me to the Flóran Garden Bistro located inside the Grasagarður Botanical Garden, a gorgeous setting adorned with flowers, string lights, and bubbling fountains. There, a sandwich and a bowl of soup cost 2,490 ISK, or about $17.60, which was one of the most delicious and least expensive meals I purchased during my trip.

I took advantage of Iceland's free natural wonders.

I took advantage of Iceland
The author in Iceland.      Talia Lakritz/Insider

While some of Iceland's tourist attractions charge admission fees, many of the country's natural wonders are free to enjoy. While driving south, I happened upon the incredible Seljalandsfoss waterfall on the side of the highway. The site had a free parking lot and bathrooms, plus incredible views that didn't cost a króna.


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