How To Plan a Trip to Iceland: A Step-by-Step Guide from Someone Who’s Been 4 Times
I’ve visited Iceland four times since 2016, and each trip was intentional, carefully planned, and worth every dollar spent. While the country has a pricey reputation, Iceland is very attainable if you plan ahead. The secret? Iceland rewards planners. You don’t need to map out every hour. However, knowing costs, best timing, and where to save or splurge makes all the difference. Whether you’re dreaming of the Northern Lights, the midnight sun, glacier hikes, or just wandering Reykjavík with a hot coffee and a pastry, this guide walks you through how to plan a trip to Iceland from scratch, step by step.
I was recently a guest on Bon Voyage Besties Podcast, sharing my best tips for planning a trip to Iceland.
Hit play, then follow along with the steps below.
Step 1: Decide How Many Days You Want to Spend
Before you look at flights, figure out how long you want to stay.
Short trips work well in Iceland. Four to five days is enough to hit the highlights without blowing your budget.
A good rule of thumb for mid-range travelers: budget around $350 per day per person.
That covers food, a daily activity or bus tour, and incidentals. Multiply that by your number of days and you have a starting point for an Iceland trip budget.
Want to see what a well-paced Iceland itinerary looks like?
Get inspired by reading: How to Spend 5 Days in Iceland.
Step 2: Choose Your Season
One thing that’s true no matter when you go: Iceland’s weather is unpredictable.
Pack layers, waterproof everything, and expect all four seasons in a single day.
Iceland looks and feels completely different depending on when you go.
Here’s a quick breakdown:
- Winter (November–February): Northern Lights season, shorter days, dramatic landscapes. Roads can be icy and unpredictable.
- Summer (June–August): Midnight sun, long hours of sunshine, wildflowers, peak tourist season, and peak prices.
- Spring & Fall (April–May, September–October): My personal sweet spot. Fewer crowds, lower prices, and still beautiful. It rains a lot, so pack accordingly.
Helpful Tip: If you’re flexible on timing, spring and fall are your best friends for deals on both flights and accommodation.
Step 3: Set Your Budget and Automate Your Savings
Once you know your approximate trip cost, the next step is building a savings plan.
My go-to method: open a dedicated travel fund and set up automatic transfers from every paycheck.
Even $25 per paycheck adds up faster than you’d think.
My first international solo trip to Paris was funded on exactly $25 a paycheck.
The key is consistency.
- Calculate: daily budget × number of days = target savings goal
- Open a separate savings account labeled “Iceland Trip”
- Set up automatic transfers every payday — out of sight, out of mind
- Increase the amount as you get more comfortable with saving
Helpful Tip: Already have credit card points and miles? Now is a great time to check your balances. Don’t hoard points; use them. Redeeming points for hotel stays or flights, even if partially, can cut your out-of-pocket cost.
For the real numbers, read my Iceland trip cost breakdown – I kept every receipt.
Step 4: Book Your Flights (and Watch for Package Deals)
Iceland flights from the East Coast have gotten pricier since the budget airline boom of the mid-2010s, but deals still exist if you know where to look.
Package Deals
Before booking flights and hotels separately, check vacation packages.
Bundles including both can be as low as $499–$799 per person from New York City.
My two favorite sources:
- Travel Zoo: Sign up for their weekly Wednesday “Top 20 Deals” email. Iceland pops up regularly.
- Gate 1 Travel: Their weekly Monday deal email is worth monitoring for Iceland offers.
Booking Flights Independently
If you’re booking on your own, the key is catching the deal before it disappears, and that’s exactly where Thrifty Traveler Premium comes in. Their team monitors fares around the clock and sends alerts the moment a good deal drops.
I’ve seen Iceland flights flagged at unbelievable prices that would be easy to miss if you were only checking Google Flights occasionally.
- Icelandair flies year-round from the East Coast and offers a free stopover in Reykjavík if you’re also heading to mainland Europe. This could be a great way to squeeze in Iceland on a bigger trip.
- Delta flies seasonally (roughly May–October) and can be competitive during that window.
- Set a Google Flights price alert as soon as you know your travel window.
Want to know if Thrifty Traveler Premium is worth it before you sign up? I broke down exactly what you get, what the deals look like, and whether it’s worth the cost. Read my full Thrifty Traveler Premium Review.
Step 5: Choose Where to Stay
Accommodation will be one of your biggest expenses. Here’s what I’ve learned across four trips:
- Stay central in Reykjavík. The main street (Laugavegur) is walkable. Hotels within a few minutes of Hallgrímskirkja Church keep you close to everything.
- Hostels are a solid option if you’re visiting Iceland on a budget.
- Loft HI Hostel is right on Laugavegur and is one of the best-located budget stays in the city.
- If your hotel is further out like Hotel Muli, factor in transport or walking time.
Step 6: Spend Your First 2+ Days in Reykjavík
Most first-time visitors land and immediately want to rush out to the South Coast or Golden Circle.
I get it, but… slow down. Spend a few days in Reykjavík first.
The city is walkable, safe (especially for solo female travelers), and gives you important cultural context before you head into the countryside. You’ll see the colorful wall murals, discover the coffee culture, and understand how Icelanders actually live.
This is one of the most common pieces of advice I give, and sadly, one of the most ignored. Read more about why in: Unpopular Iceland Travel Advice, or listen to the podcast episode below where I break down why slowing down in Reykjavík makes for a better trip.
Listen on Apple Podcasts | Spotify | Pandora | Amazon Music | Any player
Free and Low-Cost Things to Do in Reykjavík
- Join a free walking tour (tip-based)
- Strike up a conversation wherever you can — locals are warm, well-traveled themselves, and full of recommendations you won’t find in any guidebook.
- Hallgrímskirkja Church — free to enter; pay a small fee to ride to the top for 360° views
- Sun Voyager sculpture along the waterfront for an iconic photo stop
- Harpa Concert Hall — stunning glass architecture, free to walk through
- Stroll along the Harbor — boats, coffee shops, and sea air
- Wall murals — creative expression all over the city buildings
- Local swimming pools — around $8–$10 entry; you’ll be soaking alongside actual Icelanders
Step 7: Plan Your Day Trips
The South Coast is non-negotiable on a first trip. Waterfalls, black sand beaches, glaciers, and some of the most dramatic scenery on earth are all accessible on a single day trip from Reykjavík.
The Golden Circle hits Þingvellir National Park (where two tectonic plates meet), the Geysir geothermal area, and Gullfoss waterfall — all in one loop.
Pair the Golden Circle and the South Coast of Iceland, and you’ve covered Iceland’s two most iconic routes.
Bus Tours vs. Renting a car
This is the big question, and there’s no universally right answer.
- Bus tours: No stress, no insurance headaches, no navigating icy winter roads. A 12-hour bus tour covers an enormous amount of ground and runs around $150+ per person. I’m a bus tour person who would rather enjoy the scenery than white-knuckle a rental car in high winds.
- Rental car: Freedom to linger, set your own pace, and reach places buses don’t go. You’ll pay for fuel, the rental itself, parking, and insurance, but nature attractions (waterfalls, glaciers) are largely free.
- Note: Many popular sites now charge for parking.
🗺️ Not sure about renting a car? Here’s my honest take on exploring Iceland without one.
Helpful Tip: Bus tours add up fast if you’re doing multiple days. Budget $150–$200 per tour, per person, and factor in how many activity days you’re planning.
If you’re dreaming of a longer adventure, the Ring Road — Route 1 — circles the entire country and is the classic way to see Iceland beyond the tourist trail. It’s typically done over 7–10 days with a rental car.
🗺️ Bus tour or rental car? This is the question I get most. If you want a second opinion on your specific trip, I offer personalized Iceland itinerary planning backed by four visits.➡️ Book an Iceland Planning Session →
Leave Breathing Room
I know you might feel tempted, but don’t fill every hour.
Some of my best memories came from unplanned moments: stumbling into a coffee shop during a rainstorm, watching the light change over the harbor at sunset, following a trail that wasn’t on any itinerary.
Plan the non-negotiables, book what needs to be booked in advance, but then leave space.
Iceland will fill it.
Step 8: Save Big on Iceland Tours
There are so many incredible experiences to have in Iceland.
One of the best places to look for inspiration is Viator.
Consider:
- Snorkeling at Silfra: You’re swimming between two tectonic plates in glacial water with visibility so clear it looks like glass. I will never forget this experience. One of the best things I’ve ever done anywhere.
- Horseback riding: Icelandic horses are a unique breed with an extra gait called the tölt. Riding one through the landscape is surreal.
- Ice caving: Explore stunning blue ice caves formed by melted glacier water and enjoy incredible photo opportunities.
- Sky Lagoon: A geothermal infinity pool overlooking the Atlantic, with a seven-step Icelandic ritual spa experience. Worth it for a full wind-down day, especially your last day before flying home.
Read this for more on how to stretch your activity budget without missing the best experiences: Saving Big on Iceland Tours
✈️ Not sure which experiences are worth the splurge? I’ve done the tours, compared the prices, and learned what’s actually worth it across four trips. Let me build a custom Iceland itinerary that fits your budget and travel style. Get Your Custom Iceland Itinerary →
Step 9: Plan for Food (Without Blowing Your Budget)
Eating out in Iceland can be pricey, but with a little strategy, you can eat well without derailing your entire travel budget.
1. Free Hotel Breakfast
When you book a hotel or guesthouse that includes free breakfast, you’ve eliminated one full meal from your daily spend.
2. Shop Like a Local
Stock up at grocery stores like Bónus or Krónan for snacks and sandwiches, and easy meals.
Don’t leave without trying skyr, Iceland’s thick, protein-rich dairy (like yogurt) that locals eat daily.
Also, grab Icelandic chocolate while you’re there.
3. Tap Water is Non-negotiable
Skip bottled water entirely.
Iceland’s tap water (from any faucet) comes from glaciers. It is some of the best water on earth. Bring a reusable bottle, and you’ll save $5-$10 every day without even thinking about it.
Where to Actually Spend Your Food Budget
Save your dining dollars for dinner in Reykjavík.
Pick from fresh Atlantic seafood, slow-roasted lamb, and creative Nordic cuisine. A few of my favorites include:
- Fresh lobster soup – Rich and warming after a cold day outside.
- Lamb – Iceland lamb is grass-fed and tasty. Order it wherever it appears on the menu.
- Fish and chips.
- Iceland black bread (Rye bread).
Frequently Asked Questions
Is Iceland expensive to visit? Iceland is one of the pricier destinations in Europe, but it’s manageable. A mid-range budget of around $350 per day per person covers accommodation, food, car rental, and one activity or tour. The biggest costs are flights, accommodation, and guided tours. Saving money on flights with Thrifty Traveler Premium, grab-and-go sandwiches from grocery stores like Bónus, and mixing free attractions with paid tours keeps costs in check.
What is the best time of year to visit Iceland? It really depends on the experience you want to have. Winter (November – February) is Northern Lights season with dark, dramatic landscapes. Summer (June – August) brings the midnight sun and long daylight hours, but also peak crowds and peak prices. Spring and fall (April – May and September – October) offer the best balance. You can expect fewer tourists, lower prices, and rainy weather. Visiting during shoulder season is my personal recommendation for most financially savvy travelers.
How many days do you need in Iceland? Four to five days is a good amount of time to see the highlights, including Reykjavík, the South Coast, and a spa experience like the Sky Lagoon without rushing. Seven to ten days gives you room to do the Ring Road or explore the Westfjords. If you only have a long weekend, even three days is worthwhile.
What should I pack for Iceland? Layers are non-negotiable. Iceland’s weather can cycle through sun, rain, and wind in an afternoon. Pack a waterproof outer layer, thermal base layers, sturdy waterproof boots, extra socks (just in case they get wet), and a warm hat and gloves, even in the summer. A reusable water bottle is a must for drinking Iceland’s glacier-sourced tap water. Leave the umbrella at home; the wind will destroy it.
Is Iceland worth it? Yes, every single time! Iceland exceeds expectations regardless of how high you’ve set them. The landscapes are unlike anywhere else in the world, and experiences like snorkeling between tectonic plates, walking on a glacier, and watching the Northern Lights fill up the sky, stay with you forever.
Plan Your Iceland Trip
Iceland is absolutely worth the planning effort.
Every trip I take, I learn something new, see something I missed, and come home already thinking about going back.
If you want an expert eye on your itinerary or prefer someone who keeps returning to create a custom itinerary for you, I’m here to help.
Ready to stop researching and start packing? I build custom Iceland itineraries: a day-by-day plan with recommendations based on what you want to see and do. No generic template.➡️ Get Your Custom Iceland Itinerary
Other Helpful Iceland Travel Planning Guides
Danielle Desir Corbett is an award-winning and 6x grant-funded travel writer and podcast host who went from financial struggle to visiting 27+ countries all without waiting until retirement. Her story is proof that budget doesn’t limit adventure. Tune into The Thought Card Podcast for practical strategies to travel smarter and live on your terms. Say hello: thethoughtcard (at) gmail (dot) com.
