I would first like to give a shout out to the Reykjanes peninsula, as I feel that it ranks as one of the most unappreciated areas of Iceland. This is a huge shame as it contains some truly hidden gems just a short way from the airport and the city of Reykjavik.

Broadly speaking, the Reykjanes peninsula stretches all the way from Keflavik airport to  the outskirts of Reykjavik.

For a lot of people, their experience of Reykjanes doesn’t go much further than the view from the coach window on their way into town or to the blue lagoon (more on that later). However, there are several small towns along the peninsula which are worth thinking about staying in depending on your itinerary and budget.

In the town of Keflavik itself, there are a number of places to stay within minutes of the airport. These range from budget hostels all the way up to 5 star luxury hotels, which makes this an ideal place to stay if you are visiting Iceland for a long weekend or are on a short layover between flights. Buses regularly travel between Keflavik and Reykjavik, and the entire peninsula is easily accessible by car.

One of the newest and most popular places to stay in Reykjanes is the hotel at the Blue Lagoon. The construction of the hotel has only recently been completed, and given that the Blue Lagoon itself is repeatedly listed as one of the “must visit” places in the world, staying there is certainly worth considering, even though it is more on the pricey side when compared to other hotels.

There is a lot to talk about with regards to where to stay in Reykjavik. It is truly a varied city with options (depending on the season) from campsites in and around town, all the way up to 5 star luxury hotels and everything in between.

From my own experience, I have spent a lot of time in hostels as opposed to higher priced hotels, and Reykjavik has more than its fair share.

I find that this is a good way to meet fellow travellers, to be close enough to downtown that your bed is only a tipsy stagger away, and none of the hostels will break the bank.

www.hostelworld.com is a great site which can be used to find a place to stay, allowing you can tailor the searches to find exactly what you might be looking for.

Another option is to book a place to stay through www.airbnb.com. There are a huge number of places available throughout the city if you feel like having that “home away from home” experience.

After Reykjavik and the Golden Circle, the second most popular place in Iceland to visit is the south coast.

You will find some of the most recognizable landmarks such as the Seljalandsfoss and Skogafoss waterfalls, the black sand beach at Reynisfjara and of course the stunning Jökulsárlón glacier lagoon.

 Most people visiting Iceland will usually spend a day visiting these landmarks as part of a guided tour before heading back to stay in Reykjavik.

This is far from the best way to see the south coast in my experience, especially if you have access to your own transport. (a hired car, public transport etc.)

The south coast is dotted with a myriad of new hotels and small towns which are all beautiful and unique.

Worth checking out are the hotel Kria, which is located in the town of Vik.

You could even stay at one of two locations of The 5 Million Star Hotel where our Bubbles offer you the perfect  romantic getaway under the northern lights or midnight sun.

A short ferry trip from the southern coast of Iceland lie the Westmann islands.

This is the home to flocks of migrating puffins (depending on the season) and some truly spectacular walking paths which look out over the North Atlantic ocean.

In the harbour you will also find the Sea life whale sanctuary, which is the home to two rescued Beluga whales and a museum dedicated to conservation efforts and the island in general.

The ferry to the Westmann islands leaves daily, and takes around 30 minutes to make the trip, so there is no reason not to hop over if you have the time!

The town of Vik is a 3 hour drive from Reykjavik, and is located fairly centrally along the south coast. Because of this, it can act as a very useful place to stay in order to break up a longer drive east (perhaps to Jökulsárlón or the East Fjords). A lot of people choose to stay overnight in the town itself before heading back to Reykjavik or continuing further.

One of the biggest draws to this town is the black sand beach at Reynisfjara. This has become one of the most recognisable places in Iceland in recent times, both because of its sheer dramatic beauty as the huge waves crash over basalt columns, and due to the fact that this area has featured in dozens of movies and music videos.

Driving around one hour further east from Jökulsárlón, you will find yourself in the town of Hofn. This is one of the biggest towns in the region, and that makes it the perfect place to stay whilst exploring the south coast or before continuing further along the ring road.

It is also famous for its lobster festival which is held every summer, so make sure to check the dates if you are there around June/July!

For photographers (or anybody who with an eye for a view), this area is also home to some of the most spectacular and iconic places to visit.

Looming over the town is the mountain of Vestrahorn, which has some amazing walking trails and views over the nearby Vatnajokull glacier which are not to be missed!

I could not talk about the south coast without mentioning one of the most challenging but unforgettable places to visit. The Laugarvegur trail stretches around 55km across the highlands, heading southwards until ending in the stunning area of Thorsmork.

To complete this takes around 4 days, so preparation is essential and should only be attempted by those with a decent level of fitness.

There are campsites along the trail, but also it is possible to stay inside shared dormitories along the way (it is always worth booking these in advance as they do fill up).

The trail begins in the highlands at Landmannalaugar and is only accessible in the summertime via coach or specialised 4×4 as it involves several river crossings.

In Thorsmork itself, you will find a  green and verdant paradise surrounded on all sides by mountains and glaciers. Staying in this area gives a lot of options depending on time and budget.

There are numerous campsites dotted around, all with good facilities and sheltered from bad weather, and even the option of staying in a “glamping” tent! (A perfect relief after finishing a long hike)

The east of Iceland is a long trip to reach, but absolutely worth it. Here you will find some of the most stunning scenery and picturesque towns in the country.

Reaching the east can be time consuming, as driving can take at least 5 hours depending on if you take the north or south route.

If you don’t feel like a long drive however, there are daily flights from the domestic airport in Reykjavik all the way to the town of Egilsstadir which take less than an hour. The town itself is a great place to stay if you’re looking for a base whilst exploring the surrounding area.

It is pretty central to the other major towns which are dotted around the East Fjords and a short drive to the town of Seydisfjordur, which is where the ferries dock from Denmark and the Faroe islands.

Driving south from Egilstadir, you will reach the town of Dupivogur, which is home to both a strange series of giant egg statues along the harbour, and one of my most memorable encounters since I arrived in Iceland.

Just to the side of the road at the harbours edge lives a man called Villi. He makes a living by collecting driftwood from the beaches and turning it into art. His house is full of hundreds of these beautiful objects, and after accidentally stumbling upon his workshop/store I ended up getting lost in conversation with him for several hours! He is a fascinating person, and just to meet him is worth the drive to Dupivogur itself.

The north of Iceland is where you will find Akureyri, Iceland’s second biggest city. It is a small city by most standards, but still feels very lively and bustling, especially in the height of summer.

Akureyri is approximately a 6 hour drive from Reykjavik along the ring road, but flights also travel daily from Reykjavik domestic airport. Due to the small size and relative isolation, it is the perfect place to visit for anyone who wants to feel close to nature, as you can easily be out in the countryside within a few short minutes of driving.

Some of the most scenic camping in Iceland can also be found a short drive away from town in the beautiful forest of Vaklaskogur, which is Iceland’s second largest forested area.

Approximately one hours drive north of Akureyri is the town of Husavik, which recently garnered attention as the setting of the latest Will Ferrell movie about an aspiring Eurovision song contest act (There is now even a “Ja Ja ding dong” bar located in Husavik!)

Besides this, Husavik has always been a popular place to visit due to the fact that it is one of the best places in Iceland to participate in a whale watching tour, and there is also a fascinating whale museum in the town.

Jutting out of the north west corner of Iceland is the distinctive mass of the Westfjords.

This area is (in my opinion) somewhere that everybody who visits Iceland should try to see if time and weather are forgiving. The landscape is unforgettably dramatic, it has the feel of a real untamed wilderness, and it is one of the best places to see puffins up close and personal!

A trip to the Westfjords is not something that should just be done on a whim or without preparation. Driving takes around 5 hours from Reykjavik and can only be done in the summertime, as winter will leave a lot of the roads in and around the fjords inaccessible.

In addition to this, at least 1-2 days should be set aside for exploring the fjords themselves, it is a massive area with a lot of distance between towns (and gas stations!)

But for those who do make the trip, I would highly recommend stopping for the night in Isafjordur. It is the largest town in the Westfjords and a good place to pick up supplies and from which to explore the wider area.

From Isafjordur it is a few hours driving to two of my favourite places in the entire country, the spectacular waterfall of Dynjandi, and the sea bird cliffs at Latrabjarg.

The latter can be found on the south coast of the fjords, but it is worth bearing in mind that the closest gas station is an hours drive away in the town of Patreksfjordur, so make sure you top up the gas tank if you need to!

If you decide to make the drive however, in summer you will likely be greeted by the hundreds upon hundreds of puffins and other sea birds who make their nests on the immense cliffs, and a short walk along the cliffside path will take you within feet of many species of amazing birds, who are more than content to sit patiently whilst people snap photos!

A little way north of Reyjkavik lies the Snaefellsness peninsula.

Driving there from Reykjavik takes around 3 hours, and the entire peninsula can be driven around in a day, which makes it a perfect short trip for anybody with a day or more to fill, and truly stunning if the weather is good.

There are not as many towns and villages along Snaefellsness as in other areas of Iceland, but all of them are situated along the main road and so make for perfect places to stop whilst on a day or overnight trip.

In particular, the towns of Stykkisholmur and Grundarfjordur should be on every “to see” list.

Stykkisholmur is a busy little harbor town, and super picturesque! It also has one of the most unusual looking churches at Stykkisholmkirkja.

In addition, it is the home of one of the finest fish restaurants I have visited, called Sjavarpakkhusid. It is based right next to the docks and their produce is always as fresh and delicious as anyone could hope for!

And for anybody with an adventurous palette, a trip to Snaefellsness should not be without a visit to the shark museum at Bjarnahofn. Located on the northern coast, this museum offers a fascinating glimpse into the history of fishing in Iceland, and is one of the few remaining places which still makes Hakarl (traditional Icelandic “rotten shark”)

It really doesn’t matter which part of the country you decide to stay in; with such a range of options, places to stay and incredible natural wonders, you might need more than one trip around our breath-taking island.

One thing is for sure- with so much to see, you certainly won’t want to stay put in just one place and you may want to stay with us a little longer!

Given the small population size of little more than 360,000, it may come as a surprise that Iceland maintains its own currency, the krona. 

It is worth noting that most places you will be travelling, even in the countryside, support credit and debit cards, so it is worth coming with as little cash as you can. Do not attempt to pay with dollars and euros in shops, cafes and restaurants, as other currencies are not accepted. Whilst undeniably useful to carry a little paper money for emergencies, it is worth noting that the krona is a currency that holds little value outside of Iceland. It can be hard to get hold of before travelling, and even harder to exchange once you leave. So pay plastic or Apple Pay where you can. 

In recent years cheaper flights and layovers to Iceland between Europe and the USA have opened up exciting opportunities for travellers to explore this wonderfully eccentric little Nordic paradise. The surprisingly low cost of getting here can however lull some travellers into the trap of booking trips without considering the expense until arrival.

As the Nordic nations have become popular destinations for their cool style, cosy culture and reputation for happiness, they have also become known as being expensive places to visit. According to Budget Your Trip, in 2019 the average daily budget for a traveller in Iceland was around 22,000kr ($158.96/€141,54/£129.33) per person. This is based on the costs of food, transportation and accommodation and does not even take into account any activities and trips you may have in mind. The currency can be confusing, so something as simple as a meal out can easily go way beyond the suggested daily budget of 3783kr ($27/€24.34/£22.24), but trust me, it can be reduced if you know where to go. 

There are many simple ways to tighten your budget; just by choosing to partially self-cater and self-guide, limiting transportation costs if you’re staying in the capital area and choosing hostels with dorms or private rooms over hotels, you will save money.

If you hire a car, you can regulate the money you spend by self-guiding. Whichever direction you take will lead to an adventure that, apart from the cost of fuel, won’t cost a penny. 

Iceland is truly breathtaking with its variety of lava fields, more waterfalls and black sand beaches than you can shake a stick at and a variety of quirky towns to explore. Whilst I would not entirely forgo the knowledge of nature and historic insight that you will get from amazing, highly entertaining trained guides on a tour, you can create your own day trips by exploring less visited areas. 

The Reykjanes peninsula is gorgeous, easily accessible by car and a great place to self-guide. A UNESCO Global Geopark with an array of natural wonders to discover, Reykjanes’ proximity to Reykjavík makes it a must visit for those with limited time and budget. Whether you have an interest in hiking trails, spectacular birdlife or standing on the bridge between continents; with six volcanic systems, 55 geosites and the occasional earthquake you might honestly feel the earth move by taking a day trip to this magical peninsula. This is the perfect destination to pack up a budget picnic and explore; and it won’t cost the earth.

If you’re hankering for a hike, Mount Esja is close to Reykjavík and the beginning of the route is easily accessible by bus. The hike takes between two and four hours, and is possible even for the most unseasoned of hikers (like me!). You’ll be rewarded with spectacular views, but as always layer up and watch out for the weather. 

If you don’t have access to a car it might be worth checking the car-share website Samferda.is. Often other travellers will post looking for passengers for trips they are going on around the country and this usually only requires the splitting of fuel costs. Carpooling can also be a useful option for getting to and from the airport. 

Hitchhiking is commonplace in more rural areas. As a seasoned hitchhiker, Iceland is probably as safe as it gets and I have met some wonderful people and have had many unique experiences travelling this way. However, it is also always important to make it clear that this is a personal choice and you must be mindful of safety if you choose this method of travel. Hitchhiking is certainly not for everyone- and my Mother would certainly rather I didn’t!

There are plenty of activities and things to do in Reykjavík which will cost you little to no money. When the weather is kind, exploring the city is always a joy. The centre itself is not large so it is very easy to negotiate on foot. Whether you’re walking along the seafront, checking out the harbour area or exploring the colourful houses downtown, Iceland’s capital has a lot to offer if you are willing to scratch the surface. 

If you are a culture vulture it is worth checking out the events lists in the Reykjavík Grapevine for daily updates on what’s happening around town. As well as the more traditional institutional galleries and museums Reykjavík boasts a vibrant art scene with plenty of free artist run spaces to explore in and around town. The Marshall House on Grandi houses two of the most exciting spaces in the city, Kling and Bang and The Living Art Museum, both of which host regular exhibitions by Icelandic and international artists. Though they encourage do donations there is no entrance fee when visiting. 

If you are game for a giggle Reykjavík also has a burgeoning and diverse English speaking stand-up comedy scene. In 2019 there were shows every night of the week, with both ticketed and free open-mic style shows taking place at The Secret Cellar comedy club and across venues downtown. Gaukurinn is a venue that also serves up a range of live events (both free and ticketed) ranging from comedy and music to regular drag shows.  

For a truly authentic Icelandic experience you must visit one of the many swimming pools dotted across the country. Heated with the same geothermal water as the more expensive destination spas and lagoons, local pools will always cost less and provide a genuine insight into an important part of Icelandic culture. Reykjavík alone boasts seven pools across the city and suburbs, and a variety of discounted pool card options are also available.

Whilst eating out is notoriously pricey, Iceland is full of wonderful restaurants and cafes serving up delicious food using local ingredients. Despite the amount of necessary importing of food, there is an emphasis on responsible sourcing that is to be applauded. With geothermal greenhouses situated throughout the countryside Iceland manages to grow a surprising amount of its own produce. 

Money saving rule number one when it comes to food and drink is- never buy bottled water. Icelandic water might just be the best in the world and it all comes from the same place- whether that’s from an expensive branded plastic bottle, or from the cold tap. The best place to get water is straight from the source so if you happen to be hiking in the mountains fill up a reusable bottle from an ice-cold stream for instant refreshment. 

If you’re on a tight budget or maybe wanting to save for a special meal that is a little bit fancy then partial self catering is a good option. Whilst convenient, avoid pricey 10/11, downtown and local village stores where the costs are often increased even on the most basic of items. Taking a trip to the Grandi area of Reykjavík gives a choice to fit every budget with Bónus, Krónan and Netto all on one complex. Aiming to buy ‘First Price’ branded items should also benefit your wallet. Meat and dairy will also impact your final shopping tally, so perhaps go vegan for some of the week- it will save you pennies and benefit the planet, so it’s win win! And the cows will thank you.

If you require a city or road snack, the famous Icelandic hotdog may be just what you’re looking for. Available at a variety of vendors (including the infamous Bæjarins Beztu) and in every gas station on the ring road, it’s the perfect snack. One with everything will keep hunger at bay and won’t harm your bank balance, coming in at around 450kr ($3.35/€2.90/£2.65).  

Soup is also a great option and in typical Icelandic ‘you just have to know’ fashion, there is usually a free refill that you won’t necessarily be told about. Hearty and warming on cold days, Icelandic meat soup (or lobster in fishing towns) is a classic that can be found in many gas stations as well as in every town in the country. There will usually be a vegetarian alternative on the menu so nobody has to miss out on that satisfying free bowl. 

If Iceland had a national beverage it would be coffee, and if you’re looking for the cheaper option, the filter will always be fresh and high quality. The same rule usually applies to coffee as it does with soup regarding refills so make the most of it. If you’re desperate and looking for a freebie, you can also usually find a free customer coffee machine in the bank or more surprisingly in the hardware store. So perhaps stop in for that essential hammer purchase to get that sweet free caffeine fix! 

It is perfectly acceptable to have ice-cream for dinner and I thoroughly recommend it as another cheap dining option. An ideal snack in any weather, enjoyed especially in the depths of winter and during storms, ice-cream is probably only third to coffee and hotdogs as an Icelandic national cuisine. With a selection of candies and chocolates that Willy Wonka would be envious of, ice-cream vendors offer a variety of out-of-this-world combinations.

If you are planning to drink, it is important to know that Iceland has extreme restrictions regarding the sale of alcohol. You will save yourself a lot by using your duty-free allocation and stocking up before leaving the airport. Apart from bars and restaurants, alcohol can only be purchased in government run off-licenses and for this reason there is a significant mark up. During my first six months in Iceland I chose not to drink purely for financial reasons; so going temporarily teetotal is also a valid choice not only for your body but for your bank balance!

There are a number of apps that may prove useful during your trip, and will also help you cut financial corners. As mentioned above alcohol is highly restricted in Iceland so if you are planning to drink responsibly during your trip, Appy Hour is essential. By allowing you to follow the Happy Hours around Reykjavík, you’ll get a chance to see more of the bar culture, maybe meet some locals and again save those precious pennies. 

The Straeto bus app is another essential app if you are staying in the city. Although buses do accept cash, they will not give change, and I’ve seen many a-tourist throw in a 1000kr note and get stung by this. Buses are also one of the only places that do not accept cards, so get this app. 

In summer the best, cheapest and most fun way to get around town is undoubtedly by scooter. A new addition to the landscape of the city, it will often cost less than a bus ticket. There are plenty of cycle lanes to follow, so there is no need to feel unsafe whilst whizzing downtown. There are currently two companies that run scooters; you can pick up a blue Hopp or an orange Zolo on almost any street in the downtown area. The locals just ask that you please scoot sensibly! 

Though not always visible, in the darker months you may be lucky enough to see the famed Aurora Borealis during your visit. Whilst tours offer you trips with experienced northern lights guides who have the inside scoop on the best and darkest locations, there are a number of apps that can help guide you as to when and where you might get lucky. Hello, Aurora launched in 2019, aims to collate the most accurate data available and has the added bonus that users can share their successful viewing locations with others.

Befriending locals (whilst not forcing your company on them!) on your trip will not only give you an insight into the real culture but may also lead to some useful money saving hacks. 

First of all treat your baristas and service industry workers nicely! They are often the people who know areas best and always have a hot-tip or two. As a former barista I always made time for recommendations for nice customers and directed them to the most exciting local events and cheapest places in the city. Being polite costs nothing, and sometimes you will be rewarded. 

The Student Cellar in the University of Iceland is open to all and boasts some of the cheapest prices for food and alcohol in the city. They also hold a range of events and often show sports on a big screen. It also pays to make friends with a student, as they get extra discounts at the bar. Maybe offer to buy a round and you’ll be sure to have a good night!

Local produce is the best and when you’re on your travels stop and support local communities and their businesses. There is nothing better than fresh Icelandic fish, and rather than spending a fortune in supermarkets and city restaurants, I recommend going local.  Though there are large companies that buy and sell most of the fish in Iceland, some fishing towns still have small processors and sellers. Buy from the source, save money, and cook yourself. You will never have had fresher, and you will not regret it. 

Now you’ve saved on food, alcohol, transport and hopefully bagged yourself a few new friends; it’s time to relax in one of the one of the most unique and extraordinary locations imaginable. The Bubble Hotel provides unique accommodation where lifelong dreams come true. An amazing place to make priceless memories, in the winter you can lie under the stars in our innovative completely transparent igloos, watching the Aurora; whilst in summer you can enjoy the midnight sun surrounded by nature. With additional Golden Circle and South Coast tours available in all seasons this is truly an unforgettable adventure worth paying for. 

Car hire is also worth the expense, allowing you to save money in other areas. With rentals ranging from anyways between 4570kr ($33/€30/£26.50) and 27,700kr ($200/€178/£160) per day depending on the car size and level of luxury you require; there’s a vehicle to fit every budget. I would recommend visiting a comparison site such as rentalcars.com just to ensure you get the best deal possible. Having your own car allows you access to the ringroad and a whole heap of adventure awaits whether you head north, south, east or west. Just pay attention to those changeable weather conditions and you’ll be good to go. 

As far as you can get on your own, there are certain experiences that require the knowledge, experience, equipment and access only a guide can provide. Whether you’re an adrenaline junkie or a nature lover there is a day trip to suit all sensibilities. Glacier hiking, ice-cave tours and snorkelling in the crack between continents are all available for those of an adventurous nature; whilst taking a ride on the unique Icelandic horse or coming face to face with humpback whales is an experience you will never forget. Iceland offers the opportunity to really engage with the land in a way you can nowhere else; and these are the experiences really worth investing in. 

Whilst Iceland is expensive, with a bit of planning ahead and some clever budgeting there is no reason not to experience the best that this extraordinary country has to offer. As the saying goes; you just have to know!

*PLEASE NOTE All figures and prices listed in this article are subject to change.