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Iceland is quite a small country but it sure combines a lot of activities, natural landscapes and things to do for travelers.
Roughly 4 times smaller than California, most of Iceland is actually covered in…ice, but it is also surprisingly green and full of interesting landscapes that captivate visitors.
I’ve been lucky to visit Iceland a handful of times in the last few years, for a combination of exploration and work, which has given me good insight into the county and all its beauty.
While this is not an extensive guide, it is quite large and has sections on everything you will need to plan your first trip.
From things to do just in the capital, to outdoor activities and day trips you can add, plus food, you will have a much better understanding of where to go.
Iceland is a country that begs for repeat visits, so whether this is your first time, or your have already visited a few times, you will find something new and exciting to do.
🥳 TESTED TOP PICKS FOR ICELAND
- 📲 Best eSIM: Ubigi eSIM (my top pick for convenience and stability) 10GB for 7 days for $11 – Also get 10% your plan with discount code BACHELORTRAVEL
🏨 Best hotel in Reykjavik: KEX HOSTEL – awesome location, great prices for private and shared rooms
🚌 Airport transfer: Keflavík Airport → Reykjavík Bus (Flybus) — cheapest and most straightforward way to get into the city after landing
🍽️ Food experience: Reykjavík Food Walk (guided foodie walking tour) — if you only do one tour in Reykjavik choose this one!
How to reach Iceland
Iceland is such a good stopover location. Especially for US based travelers. Mot airlines have direct connections from the main hubs (New York, Boston, Chicago, etc).
The same is true for most EU travelers. For Greece-based people like me, you will have to travel to another main European hub though first.
Still, the low-carriers have frequent connections, so you can even score a cheap flight with Wizz Air, easyJet etc.
You will land at Keflavik Airport which is small, compact but can be packed during peak season.
One thing to keep in mind is that Keflavik Airport is far from the center. I have a written a short guide on how to plan your transport from Keflavik to Reykjavik and what options are available, to make it a bit cheaper.
What you need to decide first
Road trip vs Guided Tour
This is probably one of the biggest things I see debated in forums and discussions with travelers.
Both options have their advantages and it will depend on your budget and how comfortable you feel driving or staying in a camper van to cut costs.
A road trip gives you full control and more flexbility in terms of stops but it does mean navigating icy roads, renting a car and having to handle insurance etc. If you are comfortable driving then I see no reason not to do it.
At the same time a bus trip takes the stress away and can be cheaper when booked in advance. You’ll have someone take care of the details and might be able to connect with locals in a different way. If you are an older solo traveler it also gives you more relaxation options.
In terms of rental cars, I would go for an SUV or a camper van!
Car rental prices vary a lot based on the season, so you always want to start with comparing car rentals in Iceland across local providers before booking.
💌 Travel to Iceland offers extensive car rental comparisons in Iceland. Instead of looking at 30 companies, you get to browse best prices faster. They also offer free cancellations and you don’t have to pay the total up front. It’s a locally run Icelandic company that’s worth checking out.
How expensive is Iceland really?
Short answer: very… expensive.
It’s also one of those places where you cannot control costs if you want to see things.
Food and restaurants → expensive
Accommodation → expensive
Activities → super expensive and worth it
Where you can save:
cook some of your meals
stay outside central Reykjavík or rent a camper van
choose 1–2 paid activities per day instead of everything
- (my favorite) visit multiple times, so you don’t feel pressure to see everything in one go.
Let’s break down some typical costs.
How to Budget for Iceland (2026)
In order to keep this section compact, I’ve listed some of the more standard costs based on my latest two trips. If you want a more in-depth look into budget and costs, check out my full guide to Iceland costs, here.
If you’re traveling with a bigger budget, it’s very easy to spend more in Iceland. Nice hotels, private tours, and multi-day experiences can push daily costs well beyond €250–€400 per person.
5-Day Iceland Budget Overview
Style | Accommodation (per night → 5 nights) | Food (per day → 5 days) | Activities (per day → 5 days) | Transport (car/bus) | 5-Day Core Total | 5-Day Total incl. Transport |
|---|---|---|---|---|---|---|
Budget | $80 → $400 | $50 → $250 | $60 → $300 | Tours from Reykjavik only + public bus $50 | $950 | $1000 |
Mid-Range | $150 → $750 | $100 → $500 | $120 → $600 | $400 (rental car + fuel) | $1,850 | $2,250 |
💰 BUDGET
- You are staying in the capital in hostels/shared accommodation.
- You do a few guided activities towards Golden Circle that include transportation.
- Food is tight with snacks from supermarket and one meal per day.
- Hotel should include breakfast.
💰💰 MID-RANGE
- You stay in decent private accommodation.
- You rent a car to see more of the country.
- You eat out for one main meal in a restaurant/food hall and have coffee/snacks.
- You book one activity per day.
Accommodation
Accommodation is one of the biggest expenses in Iceland.
Even budget places like guesthouses or hostels will rarely go below $90–$100 per night unless you book early or travel off-season.
Mid-range hotels in Reykjavík or along the South Coast usually sit around $120–$180 per night.
👉 One of the easiest ways to save money here is to:
stay slightly outside the city center
book early
or share rooms if traveling as a group
Shared bathrooms are also very common and often bring the price down.
My recommendation for where to stay in Reykjavik
🔥 TOP CHOICE
Photo Credit: Booking.com
KEX
There are not alot of budget friendly places with a good vibe, good location and great amenities. KEX is one of them. You will love the quirky decor, well set up common spaces and location.
Food
Food in Iceland is honestly crazy expensive. Having a good hotel breakfast is awesome… especially if it’s already included. Most hotels have add-on prices of $30 per person just for breakfast!
Budget: $20–$30 per day (supermarkets + gas station food)
Mid-range: $50–$60 per day (1 proper meal + snacks)
A simple restaurant meal can easily cost $50+ per person.
👉 What I would recommend:
breakfast from a supermarket or included
snacks during the day
one proper meal
This keeps costs under control without missing out.
Activities
This is where Iceland can either stay reasonable or get crazy fast. But it is so worth it in my opinion to save your budget for once in a lifetime experiences.
Glacier hikes: $120-$200
Lagoon entries: $40-$150
Whale watching tour: $100-$130
- Northern Light Tour: $70-$100
- Fisra Snorkeling Tour: $130-$160 (with transport)
- Lava Show – $54
- Perlan Museum Entry – $55
👉 A good rule:
Pick 1 main paid activity per day, and keep the rest free.
The good news is that some of the best experiences in Iceland are almost free:
waterfalls
hikes
viewpoints
beaches
You’ll still need to get transport there and pay for parking.
Transport
Transport is what really defines your style of travel in Iceland.
Car rental:
$50–$100 per day
plus fuel (which is expensive)
Bus / tours:
$70–$150 per day depending on route
- If you’re traveling as a group, renting a car is often cheaper per person.
- If you’re traveling solo, tours can sometimes make more sense.
30+ Things to do in Iceland
In order to make this section easier to skim, I’ve broken down the areas so you know what to bookmark when you are in Reykjavik and outside.
Keep scrolling to find sections on day tours, food to try and miscellaneous things to keep in mind.
Classic things to do in Reykjavik
🔥 BOOK FIRST
🕰️ ADD ON
- Walk around Tjornin for relaxed walks and photos
- Go inside Harpa Concert Hall
- Visit some of the 10+ museums with the City Card
- See the Phallological Museum
- Shop for knits and sweaters
1. Visit Hallgrímskirkja, Reykjavík’s Landmark Church
You can’t miss Hallgrímskirkja, the towering white church that dominates Reykjavík’s skyline. Inspired by basalt columns and Iceland’s dramatic landscapes, it’s both architectural and spiritual.
Take the elevator to the top for one of the best panoramic views of the city, especially on a clear day. The inside is simple and serene, often filled with the sound of the organ playing. Whether you’re religious or not, it’s worth stepping inside.
🥳 PRICE
The church is free to visit but it costs 1500 ISK or $10-$11 to go up the tower.
2. Take a photo at Rainbow Street
Right in downtown Reykjavik, you’ll find Skólavörðustígur, better known as Rainbow Street. It’s a brightly painted road that leads straight up to Hallgrímskirkja church, making it one of the most iconic photo spots in the city. Come early or late in the day for fewer crowds and better lighting!
3. Explore the Icelandic Phallological Museum
If you want a weird and interesting place to stop, this is the one. Also known as the Penis Museum, it’s quirky, oddly scientific, and surprisingly informative.
You’ll find over 200 specimens from all kinds of animals — including whales, seals, and even humans. It’s definitely not your average museum, but it will 100% make for a memorable story (and some awkward giggles).
🥳 PRICE
Entrance ticket is about $30 per person.
4. Go to Perlan
If you only do one museum in Reykjavik, make it this one.
Perlan is an experience but it also helps you understand Iceland in a deeper way. To justify the ticket, think about it as a movie screening ticket + a museum.
You will see a short film about the Aurora, plus various interactive exhibits about glaciers and volcanoes.
I think it’s awesome to do with kids as well – plus the indoor ice cave is unique and lots of fun if you don’t get to go to a real Glacier Cave tour.
From the top, you have great views on a good day, ice-cream + a great souvenir selection.
🥳 PRICE
Entrance ticket is about $55 per person. Book it here.
5. Use the Reykjavik City card
For something different, or if you want to see multiple museums, it is worth looking into the Reykjavik City Card.
You can also use it to get access to all 8 local geothermal pools + public transport.
I don’t think it’s for everyone, but it has access to some really cool and less visited museums like the Maritime Museum and National Gallery. Plus, you get a 10% discount on your Perlan ticket and free public transport.
🥳 PRICE
There are various options for 24, 48 or 72 hours. The 48h option is $53 and you have to activate in-person. Book it here.
6. Shop for knits without overpaying
You will find wool products everywhere in Iceland, and most people have a “shop for Icelandic sweater” on their to do list.
Once you see the price, you might be tempted to skip it. But there s a better option.
My two favorite places for Icelandic sweaters are:
The Kolaportið Flea Market open on weekends only though
- The Red Cross stores (there are two)
One more option to check out is the The Handknitting Association of Iceland shop that also stocks lots of wool to bring home.
7. Go to the Lava Show
There are two Lava Show locations in Iceland.
The original location is in Vík, but unless you’re driving along the South Coast, it’s not very practical to visit. The Reykjavík location makes it much more accessible if you’re based in the city.
Without giving the experience away, I think the story is also really interesting. This is not something you can do anywhere else in the world!
8. Sky Lagoon
If you want the proper spa experience near the city, then Sky Lagoon is the best option.
It’s the modern and curated version of the local thermal spa pools and has a lot of adds on “ritual experiences” that combine the cold plunge, sauna, and beauty treatments.
It is also close to the city, but you’ll need a 1 hour bus journey or to book transfer with your ticket.
You can easily fit it into a 5-day itinerary in Iceland if you plan properly.
Day trips from Reykjavik
I think this section is important because a lot of people stay in Reykjavik during the whole trip, and do day trips out to main sights.
This is not a bad option.
It just severely limits what you can see.
With that said, you can certainly see quite a bit if you only have a few days to work with.
Here is what I would recommend if you are only doing day trips from Reykjavik.
🔥 BOOK FIRST
- Golden Circle Tour → easiest introduction to Iceland (geysers, waterfalls, history)
South Coast Tour → best scenery in one day (waterfalls + black sand beach)
Northern Lights Tour (winter only) → evening activity, weather dependent
🕰️ ADD ON
- Glacier Hike Tour → one of the most unique experiences
Snorkeling at Silfra → between tectonic plates
Lava Tunnel Tour → quick and very different experience
9. Do the Golden Circle loop
The Golden Circle is Iceland’s most famous sightseeing route, perfect for a short trip or stopover. It includes three major highlights:
- Þingvellir National Park – where the tectonic plates meet and the world’s first parliament was founded
- Geysir – the original geyser (yes, the word comes from here) and nearby Strokkur, which erupts every 5–10 minutes
- Gullfoss – one of Iceland’s most powerful waterfalls, with icy spray and a dramatic canyon setting
It’s a great intro to Iceland — but also the busiest.
If you have a bit more time or prefer a more varied landscape, the South Coast might be a better pick. You’ll find:
- Black sand beaches at Reynisfjara
- Towering waterfalls like Skógafoss and Seljalandsfoss
- Cliffs, glaciers, and views for days
🥳 PRICE
You can find Golden Circle Tour packages from about $90 per person. This is a full and busy day tour so prepare with snacks, camera, good gear and shoes and lots of energy.
10. Hunt for Northern Lights (or just enjoy the dark sky)
If you want to see the Northern Lights.. you either need to book a tour.. or have some luck and patience.
Apps like My Aurora Forecast can help. Even if you don’t catch them, the night sky here is magical.
Just remember that your phone can see them a lot better than the naked eye…
There are a lot of tours that depart from the capital (either via boat) or on land that you can book to almost guarantee you see them!
I’ve been so lucky to see the Aurora every time I’ve visited so far.. organically! These photos were taken at Solheimar Eco Village in March 2026.
🥳 PRICE
Tours for Northern Lights range between $50-$190+ depending on whether you go with a group/private, or do a bus/jeep/boat. This is a popular option with a bus.
11. South Coast of Iceland Day Trip
One thing many people don’t mention properly in their guides.. is how big the South Coast is.
Not just in size and attractions but also in terms of travel times. With that said… I don’t want to be negative. You can still do a day trip from Reykjavik, to see highlights along the South Coast.
Just expect a very long travel day, with limited time in a lot of places.
I would recommend this tour as a full-on trip that shows you some of the highlights including:
- Seljalandsfoss
- Skógafoss
- Reynisfjara
- Vik
- Glacier Lagoon
⚠️ This is not a typical South Coast tour! Most of the tours don’t stop at Glacier Lagoon or go all the way, since it adds a lot of time. But if you’re short on time and don’t plan to drive to see all these spots then that works really well.
Skógafoss is one of the most iconic waterfalls in Iceland, and where scenes for Games of Thrones were filmed.
🥳 PRICE
South Coast day tours are expensive. These are long travel days and include a lot of sights, so I think the price is worth it if you are not driving, paying for parking and fuel. Expect to pay $190-$250. The tour I’ve listed is currently $240.
12. Join a glacier walk tour
Real talk about glacier walks in Iceland. They are amazing and one of my favorite activities I have ever done. With that said, booking one if you are stressed for transport is confusing.
I’m personally not a fan of including the glacier walk as part of another tour with other sights in the South Coast. It gets way too rushed and crowded.
A glacier walk is something you want time for – to gear up properly, understand what you’re seeing and actually enjoy being out there.
If you are departing from Reykjavik your options are slightly limited. A lot of providers will just bundle:
- waterfalls
- glacier walk
- black sand
In my opinion don’t book tours that combine a glacier walk with other sights.
It sounds efficient but in reality it is a long day with no time on the glacier.
It makes no sense to drive all the way to Vik to climb Vatnajökull if you just turn around and go back. I think you see why when you look at a map.
Instead, you can do a glacier walk in Sólheimajökull which is closer to Reykjavik and more accessible.
There are a limited number of providers that offer pick up just for glacier walks and ice climbing. Like this one.
🥳 PRICE
I love this option from Reykjavik which comes to $250 with pick up.
13. Visit a volcano or lava tunnel
If you want to feel like an explorer for the day, consider a lava tunnel tour.
One thing you don’t realize before visiting Iceland is how popular volcanic explosions are for locals.
When there is volcanic activity, people will drive (and there are traffic jams) to go see them.
If you can’t time it right, then an underground expedition is both fun and highly educational.
You should make sure to book the transport option from Reykjavik for this one, unless you have a car. Taxis are way too expensive otherwise.
🥳 PRICE
This tour is priced at $130 with pick up and drop off which is great value.
14. Scuba dive or snorkel between two tectonic plates
As a scuba diver, diving in Iceland is high on my list of things to do.
The water is glacial, crystal clear, and absolutely unforgettable.
🥳 PRICE
Expect to pay around $220 with pick up.
What to Eat in Iceland
Iceland is not known for its food… which is a shame.
There are some really interesting food options for you to try during your travels. As well as some interesting choices that might even be considered unethical.
Without making this section super long, I’ve listed my top 3 food related activities but you should check out this full blog to Things to Eat in Iceland as well.
15. Do this food tour in Reykjavik
I love walking tours, and I also love food tours. In Reykjavik it makes so much sense to combine them.
For starters, the city is small and easy to walk around but it has small hidden gems.
Second: food and activities are expensive.
So why not combine a walking tour, with lunch?
This food tour stops in a lot of places, so you get lunch, drinks and dessert while learning more about Iceland. I think it’s excellent and would recommend it to everyone. You also get to try a bit of fermented shark if you want!
It is insanely popular, especially during lunch hours so make sure to book ahead.
🥳 PRICE
This tour goes for $140 per person. Which is a lot. But I think of it as a tour + lunch!
16. Eat the famous tomato soup
One of my favorite places I’ve now been to 4 times.
While super popular and touristy I think it’s worth it, and you can easily combine it with your Golden Circle day.
There are different ways to book and enjoy this experience, either through the buffet (refills of tomato soup and endless bread) or as a proper dining experience.
I prefer the buffet in the main greenhouse space where they also do tours.
🥳 PRICE
The all you can eat lunch buffet is about $28 per person.
17. Try Skyr
This is very easy to do, whether you are shopping at the supermarket or having breakfast at a hotel. You should try different types of skyr (flavors and fermented versions). They are all excellent!
More things you need to know
There is so much more to say about Iceland, which is why I’ve written separate comprehensive guides to cover more questions.
The main things to remember are:
- Download essential apps: 112, Vedur (for weather) and all these apps here, will help make your trip much better.
- Pack for all weather: It is important you come prepared with all your gear. Here’s a good packing list for most of the year.
- Pick up some books: Iceland has so many authors. I had the chance to meet and chat with Hildur Knútsdóttir, author of The Night Guest. I highly recommend picking it up.
Where to Stay in Iceland
Accommodation in Iceland is expensive, there is no way around it, unless you book in advance or choose to book a campervan.
For Reyjkavik, I would recommend staying centrally at least a few days to soak up the city. The rest of the southern part of the country is geared towards more guesthouse type establishments, which are less polished (some of them) and might even have kitchens that you can use for cooking.
Reykjavík
- Center Hotels Plaza – I stayed here and really liked it. It’s right in the heart of downtown, next to the main square. Rooms are clean and recently renovated, the staff is friendly, and the breakfast was genuinely great. It’s a perfect base if you want walkability, museums, restaurants, and shops are all just steps away.
- KEX Hostel – One of my favorite options for Downtown Reykjavík. It has character and amazing decor, it is well located and you can make use of the common spaces for work or socializing.
- Fosshotel Baron: This is right next to KEX. It has cute rooms with skylights even though slightly older and more dated but the breakfast is really good.
South Coast
- Solheimar Eco‑Village – For something really different, staying at Sólheimar Eco‑Village is such a memorable experience. You get a mix of farm life, educational workshops, and a community with purpose. The vibe is calm, meaningful, and earthy. You can volunteer, stay overnight, help out on the farm, or just soak in the philosophy of the place.
- Hotel Skálholt – If you’re doing the Golden Circle or heading south, this is a peaceful and meaningful place to stay. Right next to the historic cathedral, the hotel offers cozy rooms, beautiful views, and often includes both dinner and breakfast.
Vík – Guesthouses & Hotels
- Guesthouse Carina — Cozy, clean, comfortable. Comes recommended if you want something quiet but still close to town.
- Hotel Kría — Modern, centrally located. Good if you want something more polished.
- Hotel Katla by Keahotels — More of a standard hotel with good amenities, located well.
Quick facts about Iceland
- Capital: Reykjavík
- Population: Around 380,000 (2025 est.)
- Currency: Icelandic Króna (ISK)
- Language: Icelandic (but almost everyone speaks English)
- Time Zone: GMT (no daylight savings)
- Driving: Right-hand side. 4WD is recommended for some rural areas.
- Credit Cards: Widely accepted everywhere—even for tiny purchases.
- Tipping: Not expected, but appreciated.
- Wi-Fi & SIMs: Free Wi-Fi is common. You can also grab a local SIM or eSIM if you are not on an EU plan that allows roaming.
- Emergency Number: 112 (for police, fire, or medical assistance)
- Weather: Unpredictable! You might experience all four seasons in one day.
- Best Time to Visit: Summer for road trips and midnight sun; winter for Northern Lights and snow. Make sure to check out my packing list for more information.
- Famous For: Volcanoes, waterfalls, geothermal pools, puffins, glaciers, and jaw-dropping landscapes.
🥳 TESTED TOP PICKS FOR ICELAND
- 📲 Best eSIM: Ubigi eSIM (my top pick for convenience and stability) 10GB for 7 days for $11 – Also get 10% your plan with discount code BACHELORTRAVEL
🏨 Best hotel in Reykjavik: KEX HOSTEL – awesome location, great prices for private and shared rooms
🚌 Airport transfer: Keflavík Airport → Reykjavík Bus (Flybus) — cheapest and most straightforward way to get into the city after landing
🏺 Best Tours:
There is sooo much to see and do in Iceland, I would definitely recommend prioritizing your budget for some of them.
Reykjavík Food Walk — if you only do one tour in Reykjavik choose this one!
Golden Circle Tour → easiest introduction to Iceland (geysers, waterfalls, history
South Coast Tour → best scenery in one day (waterfalls + black sand beach)
Northern Lights Tour (winter only) → evening activity, weather dependent
- Glacier Hike Tour → one of the most unique experiences
Snorkeling at Silfra → between tectonic plates
Lava Tunnel Tour → quick and very different experience
