Hello! Have you been dreaming of a trip to Iceland? Ready to make that dream a reality? Perfect! Welcome to your guide to planning an amazing first trip to Iceland.

Iceland is an incredible country with so much to see and experience. It also helps that it is so beautiful, with tons of varying landscapes and natural wonders. Iceland is truly an easy place to fall in love with.

That being said, it is also a place that requires planning, so that you can get the very most out of your Iceland adventure.

That’s where this guide comes in! If you want to know how to go about planning a perfect trip to Iceland, keep on reading!

Seljalandsfoss waterfall in Southern Iceland.
Seljalandsfoss Waterfall

Tips for planning a trip to Iceland

Transportation in Iceland

1: Fly with Icelandair

When visiting Iceland, I highly recommend flying with Icelandair. I’ve always had a great experience, and the flights tend to be very reasonably priced.

For example, when I visited Iceland in August, I was able to get round trip, nonstop flights for under $400.

Additionally, Icelandair also offers a “stopover pass,” which is perfect for people who are traveling to mainland Europe. With this stopover pass, you can stop in Iceland for 1-7 days, and continue on to your final destination with for no additional airfare.

This is a great way to see Iceland while on your way to another country!

2: Rent a Car

When I was originally planning my Iceland trip I was unsure if I really needed to rent a car.

Trust me, you do!

While it is possible to get from the airport to Reykjavik and then go on guided tours that provide transportation – this option provides very little flexibility.

Renting a car and driving at your own pace, stopping to see amazing wonders along the way, is truly the best option! We used our rental car a ton, and it was great to be able to take day trips, both short and long.

While cars (and gas) can be expensive, having a rental car is so worth it! You’ll be able to see so much, and driving in Iceland is super easy and low stress.

3: Make sure you reserve the correct kind of car – manual vs automatic

Many of the cars in Iceland are manual (stick shift,) and for some people, this is no problem! However, there are lots of people (like me!) who can only drive an automatic.

When reserving your car, be sure you choose one that you are comfortable driving! Iceland (with a rental car) isn’t necessarily the best place to learn to drive a manual for the first time.

Additionally, lots of cars use diesel and not gas! Be sure to ask when you pick up the car so that you don’t fill-up with the wrong kind of fuel!

We were told that (unlike in the US,) the diesel full pumps won’t actually fit into the tanks of gas cars (and vice-versa) – but personally I don’t want to take the chance.

4: Keep in mind that gas is expensive

Gas (or diesel fuel) is a major expense when visiting Iceland. For example, a gallon of gas in NYC is currently around $3.20. In Iceland, a gallon of gas is $7.50+. A gallon of diesel is just about $7.00.

This means that gas and diesel are more than double the price in Iceland than in the USA.

We were driving a small Honda with a twelve gallon tank, and it was nearly $100 to fill it.

Be sure to factor gas into your Iceland vacation budget!

Money and Prices – Is Iceland Expensive?

After visiting Iceland the most common question people ask me is: “Is Iceland expensive?” The short answer is: sometimes.

In Iceland gasoline and food are very expensive (compared to the United States,) but hotels and accommodations are similar to the rest of Europe. Hotel prices in Iceland, in my experience, are much cheaper than hotels in major US cities. You can find great hotel options in Reykjavik for $100-$150 per night, and AirBnbs can be even cheaper.

This all being said, Iceland is not a super budget-friendly destination.

5: You don’t need to exchange money

Something that surprised me so much about Iceland is that you do not need cash, pretty much at all.

I went an entire week in Iceland without ever once using cash. Every single business I visited took credit cards and it was so nice!

6: Eating out in Iceland is relatively expensive

Here’s where Iceland gets more expensive. We’ve already established that gasoline is pricey, and so is eating out.

If you eat out for every meal, you can easily (and almost certainly) spend $60+ a day on food alone.

Small coffees are $5-$6, breakfasts are $15+, and lunch and dinner can run upwards of $30 – even at average, not fancy, restaurants.

I’ll get into more detail about how to save money on food later on in this post! Don’t worry, it’s totally doable.

7: You don’t need to tip

Unlike in the US and other places in Europe, in Iceland you do not need to tip! In Iceland, people who work in the service industry are paid a livable wage, and do not rely on tips. I think this is fantastic – it makes it easier for everyone.

Although eating out in restaurants is expensive, at least you’re not adding another 20% for a tip on top of the total amount.

8: Plan to make coffee/tea at your hotel/AirBnb

This will save you lots of money! Like I mentioned, small coffees are usually $5-$6. Bringing Nespresso pods or coffee bags and making your own coffee is a great way to save money – especially if you drink multiple cups of coffee per day.

Iceland does have a great selection of cafes, so I do recommend checking them out, but definitely not for every cup of coffee you drink on the trip.

9: Grocery stores will save you money!

Just like making your own coffee will save you money, so will buying snacks and groceries for easy meals.

Bonus is a very popular grocery store in Iceland, and it is also the most inexpensive. This is definitely where you want to go for snacks and groceries.

Avoid the 10/11 grocery stores – they are so much more expensive for absolutely no reason. Just walk a few extra blocks to a Bonus and you’ll save lots of money!

10: Drink the tap water

The tap water in Iceland is completely safe to drink and also really good!

A great way to save money (+ the planet) is to bring a reusable water bottle and fill it with tap water. No need to buy water!

Packing and Temperature in Iceland – Is Iceland always cold?

11: Iceland is chilly year round

No matter what time of year you visit Iceland it will never be warm. Even in the summer it can be very chilly.

Summer temperatures in Iceland (June-August) average around 50-59°F (around 12°C).

Winter temperatures average around 32°F (0°C). Warm sweaters are great to wear under a waterproof winter jacket!

Make sure you’re prepared for cold temperatures and wet weather year round!

12: Pack layers

Because Iceland is chilly year round, it’s important to pack layers! During the summer months, it can be sunny one minute and raining and windy the next.

It’s important to have long sleeve shirts, sweaters, and a jacket. In the summer, I recommend a lightweight puffer jacket, but in the winter you will need a waterproof parka.

Additionally, it’s super important to pack waterproof clothing. More details on this below.

13: Waterproof clothing and boots will be your best friends

As mentioned, the weather in Iceland tends to be very *wet.* There is often rain, snow, hail or a mix. Because of this, you definitely want to bring waterproof clothing.

Below is a list of all the waterproof clothing items you need for Iceland:

14: Pack European travel adaptors

Iceland uses the same power outlets as Europe (but not the UK). Be sure to bring some with you so you can plug in your electronics!

Check out this great affordable option!

Activities and Things to do in Iceland

15: You aren’t guaranteed to see the Northern Lights

The Northern Lights are viewable in Iceland from late August to April(ish). However, just because it is possible to see the Northern Lights during these months, doesn’t necessarily mean you’ll be able to see them.

We booked our Iceland trip at the end of August specifically so we would have a good chance of seeing the Northern Lights. However, it was so cloudy the whole time we were there that they were not visible – and the Northern Lights tour that we booked was canceled.

If you’re in Iceland for long enough during the correct months, you’ll likely see the Northern Lights – but it is definitely not guaranteed!

16: Don’t skip the Blue Lagoon!

When I was planning my trip to Iceland a bunch of people (and websites) told me to skip the Blue Lagoon. It was said to be overly touristy and a waste of money.

However, in my opinion, while it is touristy – it is definitely not a waste of money! It was so much fun and such a wonderful and relaxing stop.

Tickets to the Blue Lagoon are pricy (starting at $53), but personally I think it’s worth it for the amazing experience. You can spend as long as you like in the warm water, and it’s such a nice place to visit after a long plane ride to Iceland.

Pro tip: Visit the Blue Lagoon on your way from the airport to Reykjavik. It’s on the way, and is a great place to hangout until your hotel/AirBnb is ready for check-in.

The Blue Lagoon in the summer in Iceland.
The Blue Lagoon – a must visit

When to Visit? The Best Months to Visit Iceland

17: 5 days is the perfect amount of time for a first trip

For a first trip to Iceland, I recommend spending five days exploring. Five days will allow you to see many of the major attractions and sites in the country. I would say that you can definitely experience much of what Iceland has to offer in a five day trip.

In five days you’ll be able to visit waterfalls and the black sand beach in Southern Iceland, hike the Reykjadalur Hot Spring Thermal River, visit Fagradalsfjall volcano, drive the Golden Circle and explore Reykjavik!

The only thing that you won’t be able to do in five days is drive the entire Ring Road, a road that goes around the entire country. To drive the Ring Road you will need at least ten days, and many travelers choose to stay in camper vans during their trip.

Admiring Seljalandsfoss waterfall in Iceland.
Admiring Seljalandsfoss in Southern Iceland

18: Visit in the late-summer or early fall

In the summer, Iceland has many hours of daylight. In August, for example, there are still about 16 hours of daylight per day. These long days are great for touring and sightseeing, as you’re able to spend many hours outdoors.

Towards the end of August, and early September, there are still about 13 hours of daylight – AND the Northern Lights become visible. Additionally, the temperatures in the early fall are still mild, around 50 degrees.

For these reasons, I recommend visiting Iceland in the late summer or early fall. During the winter, it is quite cold (often around 32 degrees), and you get very few hours of daylight.


Well, there you have it! I hope you found my guide and tips for planning a trip to Iceland to be helpful!

If you have any questions about planning a trip to Iceland, or anything you’d like to add to this list, let me know in the comments. Also, follow me on Instagram, @twosistersabroad, for tons of Iceland photos and mini-guides.

Lastly, share this post with someone you know who needs a trip to Iceland!

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Pinterest Pin for 18 tips for planning a trip to Iceland.
Pinterest pin with tips for planning a trip to Iceland!

♡Kate

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21 Comments

  1. I just returned from Iceland last month and I would second all your tips. I found it was very reasonable to save on foods by going to the grocery store. And the more time you can spend in Iceland the better.

  2. Iceland has been on my list and I’ve actually attempted to get there while I was in Europe, but fate conspired against me! I will make it one day though!

  3. Visiting Iceland is high on our bucket list! Thanks for the tips on planning to pack lots of layers, waterproof shoes, and rain gear! We can’t wait to go next year. Thanks for the down to earth and perfect travel guide, Kate!

  4. I havent been to Iceland but I plan to one day so I have saved these useful tips to look at again in the future. I know that I’ll definitely want to hire a car though to discover all the awesome natural wonders!

  5. Thank you so much for all these helpful tips. I can’t wait to visit Iceland one day. I was doing a rough convert and gas is about the same there as in New Zealand… so expensive lol. And, I would definitely not skip the Blue Lagoon either!

  6. My biggest dream! Wondering when will the borders open again so hopefully I can travel soonest!! And thanks to this blog, now I knew gas is expensive in Iceland!

    Btw, thanks for sharing!!

  7. My biggest dream! Wondering when will the borders open again so hopefully I can travel soonest!! And thanks to this blog, now I knew gas is expensive in Iceland!

    Btw, thank you for sharing this blog!!

    1. Hi Nathalie, thanks for your message! Iceland’s borders are open! So you can definitely start planning that trip whenever you’re ready 🙂

  8. I love posts like this! I had no idea about gas prices, or food prices, and I hate being surprised… thanks for the recs on what to pack and how to dress, too… so important to plan ahead! Iceland is moving up and up on the short list 🙂

  9. Thanks for all the tips. Travel in Iceland sounds similar to travel here in New Zealand (including some of the prices). I can’t imagine skipping the Blue Lagoon as it is so iconic.

  10. This looks lovely. Iceland is on our travel list for the future so your tips will be helpful. 🙂 Thank you for sharing!

  11. Love these tips, and can’t agree more about bringing your own coffee and tea. We do this and bring portable snacks as well 😆 Iceland looks amazing!

  12. All of these are actually such practical and important tips – thanks for sharing! I also loved your photos from Seljalandsfoss and Blue Lagoon. They have me swooning!

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