Last updated: 28 June 2023
We spent 7 days exploring Iceland in winter. The prices and costs listed below should reflect the low season. Note that exploring Iceland in winter has pros and cons. Pros being you can book accommodation on the fly and change your plans as you go, but be aware many places will close for the winter.
Driving conditions will change at the drop of a hat, so it’s worth considering that despite your aspirations to see the whole country, you can’t get everywhere as quickly as you’d like. Weather conditions will heavily impact how far you can travel. At Roaming Required we’re not afraid of a challenge, so we had hoped to drive the entire ring road (N1) that encircles the island. In summer it’s advised you need 9 days, in winter that’s not always possible to even make it! Reluctantly and feeling thwarted by this, we resolved the most we could achieve in 7 days was to visit the bottom half of Iceland.
The amended 7 day road trip
For a 7 day road trip in Iceland, this is what you can expect to spend:
We flew London to Iceland’s largest airport, Keflavik Airport with the Icelandic low-cost carrier, WOW Air. They offer a fun and memorable service. Their modern fleet of aircraft means passengers have in-seat power on board. WOW Air pride themselves on being a ‘modern’ airline, if you’re not familiar with them, check out their very popular Snapchat account!
I will concede that we significantly overpaid for flights because for the simple fact that we booked really late. Deals and specials can be found if you’re organised and book early.
London to Iceland with Wow Air £123 each, one way
Iceland to London with EasyJet: £205 each, one way
Car Hire
I can’t reiterate how important it is to hire a decent reliable car. Whilst on a tour we met a couple travelling a similar route to us. They had hired the cheapest car they could find. They told horror stories of their passenger window kept falling down while they were driving and wouldn’t go back up. The weather howled through the open window and the car rattled like a tin can along the road, and to top it off, they didn’t have studded winter tires.
On the other side of the fence, we had spent a little more and hired a near-new 4WD with spiked tires and the luxury of seat warmers! Bliss!
Where to hire?
The usual suspects of Thrifty and Avis have depots at Keflavik Airport. I recommend you to consider using a local provider. We rented a Kia Sportage 4×4 from Blue Car Rental. They were helpful, prompt reply for enquiries and competitively priced. Studded tires come as standard when hiring between November and April.
The type of car you should hire depends on the season and what you are planning to do. In summer, if you are a couple and are going to stay on the N1 ring road, then you should be fine with a small economy car.
However, if you’re travelling in winter, a large party, or planning to go off road/on gravel paths, you should opt for a 4X4 for the comfort and safety. Insist on studded tires when driving in winter.
As for fuel, our car took Diesel and had no difficulty finding it. Fill up when you can, you never know how far it is to the next service station.
Budget for Car hire:
Car hire: We paid 53,000 ISK (£354) for 7 days, 4WD. Estimate upwards of £50/day.
Diesel fuel: At time of travel diesel was 193 ISK (£1.38) per litre. We spent just over 14000 ISK (£100) on fuel for the 7 day road trip. Budget: £15 per day.
Food
It’s something you need to function, but it’s not something that has to cost the earth, food. Iceland has an array of dining options throughout its towns and villages. Locally caught seafood is in abundance in restaurants however it’s not always the cheapest option.
Insider Tip: Early on, plot the location of large supermarkets into your itinerary. We became fond of Bonus, the Icelandic equivalent of Aldi. We’d pickup sliced meats, crisps, drinks and rolls to keep ourselves going throughout the day, quite often having roadside picnics.
Sitting in the car with my seat warmer on high, we had a roadside picnic while watching icebergs bobbing up and down at the Jökulsárlón Glacier Lagoon. It was a memorable experience I’ll never forget.
Average food costs:
- 1 hot dog: 1200 ISK (£8)
- 2 coffees & 2 pastries from a local bakery: 1080-1910 ISK (£8-£13)
- Restaurant dinner (2 mains – Langoustines, Reindeer burger) & 3 domestic beers: 12480 ISK (£84)
- Supermarket shop (2 sandwiches, 2 drinks, crisps) 2220 ISK (£15)
Over the course of 7 days we spent 109,000 ISK (£740) on food. This includes 3 visits to the Bonus supermarket, 3 ‘nice’ dinners in restaurants or at the hotel, a few beers here and there, DIY lunches & snacks on the road.
While we didn’t starve, we also didn’t eat like kings. Some evenings we attempted to experience local cuisine and delicacies without breaking the budget.
Budget for food:
Including supermarket runs and splurges at restaurants & hotel dinners, £50 per person, per day.
Accommodation
As much as I love a 5* hotel, they are often outside our price range so they’re a treat for special occasions. In Iceland, excluding Reykjavik, 5* hotels don’t exist. Options for accommodation include quaint and personalised boutique pensions, farm stays, B&Bs and camp sites.
As a married couple we’re a bit past dorm rooms and shared facilities. So when searching for accommodation we looked for with a double room and an en suite for privacy. Everywhere we stayed outside Reykjavik came with free parking, which is pretty standard in Iceland.
Unless you’re a seasoned extreme-weather adrenaline junkie like Bear Grylls, I do not recommend camping in Iceland in winter. The weather is too unpredictable and you could easily find yourself in a bit of trouble. If you’re looking to cut costs, you can find B&Bs with small in-house rooms and shared facilities.
Insider tip: We booked everything either on the day or a day ahead. This is a luxury afforded when travelling in winter. Many hosts told us they were already fully booked for the summer. The flexibility of arranging accommodation meant our trip was fluid and we could change course at any moment or stay longer in an area we liked. There were one or two occasions when we would have liked to stay somewhere and they were fully booked however we never struggled to find somewhere to sleep. We had a local Icelandic SIM card with data so we booked everything through Booking.com.
We spent 98,382 ISK (£703) for 7 nights. We travelled in November which is considered low season. Expect prices are higher in peak and shoulder seasons.
Budget for Accommodation:
For a double room with en suite, breakfast & free parking: £100 per night
Tours
Keen to tick off a bucket list item or two we investigated what was possible in winter. Short notice was the name of the game on this trip and many tours like ice caving and snowmobiling were sold out.
We found a glacier walking tour with Glacier Guides with an Easy+ degree of difficulty which promised to not be too strenuous for us inexperienced hikers/climbers.
We paid: 9000 ISK (£65) each for glacier walking.
Iceland’s world famous Blue Lagoon was another bucket list item. With four tiered pricing structure we opted for just entry fee. Prices are listed in Euros, clearly orientated to the tourist market.
We paid: €40 (£35) each for Blue Lagoon entry.
A soak in the Icelandic local thermal springs at Secret Lagoon is worth a visit if you’re in the area near Flúðir. A more authentic experience with rugged charm, we spent hours here with the place to ourselves awaiting the Northern Lights that never came.
We paid: 4250 ISK (£30) for entry + 1 towel hire
Northern lights boat cruise in Reykjavik is a great opportunity to see the phenomenon of aurora borealis. Elding offer this or whale and puffin watching expeditions in the summer months. Expect to pay about 9900 ISK (£70 GBP) per person.
A free walking tour through Reykjavik is technically free. The concept where you pay what you think the tour is worth, however we suggest about £10 each.
Budget for tours:
Budget is heavily dependent on what type of tours you’re interested in. For 7 days we’d recommend a budget of £150-£200 per person.
At a glance
Suggested budget for a 7 day Road Trip in Iceland
Thanks for the helpful information. Iceland is one of my favorite countries. It is the perfect destination for nature lovers. A few months ago, I had visited this place with my friends. At that time we contacted with http://www.discover.is. Our experience with Discover Iceland was perfect. We have done 4 tours with this company. We enjoyed the Iceland beauty on a super jeep.
Have to agree with you Janna, Iceland is an incredible destination. It certainly sounds like you’d be interested in returning for more adventures.
We just got back from Iceland on December 31 , 2016. Our car rental was from Blue Rental and the deposit to hold our car was 190.00 usd. If you rent more then 7 days like we did, your 8th day is free. Great place to rent a car from. Just make sure you pay to park, we got a parking ticket the first day we arrived.
Another happy customer from Blue Car rental, pleased to hear your positive review Katheryn. What was your favourite place in Iceland that you visited?
Hi, do you remember how much of a security deposit/pre-authorization was taken from your credit card for car rental?
Sorry Jenny I can’t recall how much the deposit was. I’m sure most companies would have that information on their website or be able to tell you if you enquire.
Very helpful and great information. We appreciate advice, Thanks again and keep up the great work!