Iceland is without a doubt one of the most naturally beautiful places to visit in Europe. The waterfalls, glaciers, mountains and hot springs are truly one of a kind. Iceland should absolutely be on every traveler’s bucket list. It’s somewhere I keep going back to and somewhere I know I’ll keep visiting over and over. 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! Ready to plan an epic trip? Keep reading for 20 insider Iceland travel tips for the best trip!
20 Essential Iceland Travel Tips
Transportation in Iceland
1: Rent a Car and Make Sure it’s 4WD
Iceland is definitely somewhere that requires a car. There’s so much to see and a car is necessary to get where you want to go. Day trips, like the Golden Circle, the waterfalls in the South and the Reykjadalur Hot Spring Thermal River are very popular and all require a car.
In addition to renting a car, no matter what time of year, I would recommend getting a 4WD/AWD vehicle. This is necessary any time there’s snow, but it’s very helpful any time of year as paved roads will abruptly turn to gravel and there’s also a lot of “off-roading” spots you may find yourself in.
I like to use Expedia to compare prices/vehicles at a bunch of different car companies, so I know I’m getting the best price.
If you really don’t want to rent a car, it is possible to get into Reykjavik (the capital city) without one and to take guided tours during your stay. While this doesn’t offer as much freedom to explore at your own pace, it’s certainly an option for those who don’t want to/can’t drive.
- Private transport from Keflavik Airport to Reykjavik
- Shared transport from Keflavik Airport to Reykjavik
2: Make Sure You Reserve the Correct Kind of Car – Manual vs Automatic
Many of the cars in Iceland are manual (stick shift). 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. Automatics tend to be a little more expensive, but not outrageously so.
Additionally, lots of cars use diesel fuel 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 fuel pumps won’t actually fit into the tanks of gas cars (and vice-versa) – but personally I don’t want to take the chance.
3: Keep in Mind that Gas is Expensive – That Said, Fill Up Often
Gas, and diesel fuel, are major expenses when visiting Iceland. Fuel costs in Iceland are consistently double what they are in the USA.
This being said, many vehicles in Iceland get considerably better fuel mileage than the average vehicle in the US. This is especially true for smaller vehicles and for those that have diesel engines.
While there are tons of gas stations in Iceland, I would fill up whenever you see a gas station and your vehicle is under half a tank. This is especially the case if you’re going on a long day trip or plan to be a little off the beaten path.
Budgeting: 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. Hotel prices in Iceland, in my experience, are similar to major US cities, but more expensive than many European cities. Tours and activities vary, but there are options that won’t break the bank.
This all being said, Iceland is not a super budget-friendly destination.
4: You Don’t Need to Exchange Money
Something that surprised me about Iceland is that you do not need cash – basically ever.
I’ve visited Iceland several times for many days at a time and never once have used cash. Every single business I visited, no matter how small, took credit cards and it was so nice.
5: Eating Out in Iceland is Pretty 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 $75+ a day on food alone.
Small coffees are $5-$6, breakfasts are $15+, and lunch and dinner can run upwards of $30-50 – even at casual, not fancy, restaurants.
When traveling in Iceland, you’ll most likely spend more on food than you would in other places in Europe/the USA.
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.
The food in Iceland is very unique. I definitely recommend going on a food tour during your time in Reykjavik to try a bunch of different local specialties!
- Reykjavik Food Walk – Local Foodie Adventure in Iceland
- Reykjavik Food and Drink Adventure – Local Evening Experience
- Private Food Walking Tour in Reykjavik
- The Icelandic Sweet Tooth Tour
6: There’s Not a Big Tipping Culture in Iceland
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.
A few exceptions to this are that some restaurants do add service fees to bills (although this isn’t at tip) and sometimes you may want to tip a tour guide a small amount if they really went above and beyond. This being said, it is never expected to tip tour guides and you certainly would not tip the same amount that you would in the US.
On my first trip to Iceland, I tipped my walking tour guide 20% and he seemed genuinely confused by why I was giving him money at the end of the tour. He told me “you already paid” lol.
7: Make Coffee at Your Hotel
This is a great way to save money while traveling in Iceland. Like I mentioned, small coffees are usually $5-$6 and specialty coffees can be even more. Buying espresso pods/ground coffee 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.
8: Make Easy Meals & Go Grocery Shopping
Just like making your own coffee will save you money, so will buying snacks and groceries for easy meals. Many hotels have small refrigerators and ranges/hot plates in them, so you can easily whip something up to eat.
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. Just walk a few extra blocks to a Bonus and you’ll save money!
9: Drink the Tap Water
The tap water in Iceland is great and perfectly safe to drink. Bring a reusable bottle and fill it up with tap water instead of buying plastic water bottles.
Packing and Weather – Is Iceland Always Cold?
10: 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). That being said, when it’s rainy or windy it can feel much cooler.
Winter temperatures average around 32°F (0°C), but it will often feel much colder with the wind chill. Warm sweaters are great to wear year round under a waterproof jacket!
Make sure you’re prepared for cold temperatures and wet weather year round! I was not prepared on my first trip and it was as rude awakening.
11: 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. I wouldn’t go anywhere without a sweater and a raincoat.
When packing, it’s important to bring 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. Even in the summer, a hat and gloves are sometimes necessary. In the fall and winter, they’re essential.
Additionally, it’s super important to pack waterproof clothing and shoes. More details on this below.
12: 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:
- In the summer you’ll need a raincoat, and in the fall/winter, a waterproof winter jacket.
- You’ll also need waterproof pants – either lightweight or snow pants depending on the time of year.
- These are really important if you’re doing any hiking (like this epic volcano hike!) and it starts to rain. I went on several hikes where I ended up very wet and wishing my pants were waterproof.
- Fleece-lined water resistant leggings are also great, for less wet and cold days.
- Lastly, waterproof boots are so important. My hiking boots were not waterproof and I learned the hard way how much of a necessity they really are.
I’m from Northern Vermont and I’m used to wet, cold, snowy weather and even I underestimated just how important waterproof clothing and boots were for Iceland.
13: 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.
Activities and Things to do in Iceland
14: 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 first 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. On one of my trips in November, we were also unable to see them.
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!
For the best chance of seeing the Northern Lights, you can book a tour with a local guide. They’ll pick you up and drive you around to the spots where you have the best chances of seeing the Northern Lights on any given night. They have special equipment they use to track the Northern Lights and it’s honestly pretty cool.
Many tours also have a policy where if you don’t see Northern Lights on your tour, you can go again sometime during your trip for FREE. This is a great way of maximizing your chances of seeing the Northern Lights.
Northern Lights Tours:
- Northern Lights Tour from Reykjavik with PRO photos
- Northern Lights Superjeep Tour from Reykjavik
- Northern Lights Cruise from Downtown Reykjavik
- Private Northern Lights Tour from Reykjavik
Sometimes, you can just walk outside and see the Northern Lights! There are even a few hotels you can stay at that pride themselves on being some of the best Northern Lights viewing spots in Iceland.
A few of these hotels include:
15: 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 pricey, 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.
Time slots sell out, so be sure to book your tickets in advance.
If you aren’t planning to rent a car but still want to visit the Blue Lagoon, check out these tour options with transportation:
- Blue Lagoon Admission Ticket with Transfer
- Small-Group Golden Circle, Blue Lagoon with Ticket & Kerid Crater
- Sky Lagoon Ticket with 7-Step Ritual and Transfers from Reykjavik
- If you enjoy lagoons and hot springs, definitely also consider checking out the Sky Lagoon!
16: Take Some Guided Tours
While a rental car will allow you to see a lot of Iceland on your own, I definitely still recommend going on some fun guided tours! There are tons to choose from and they’re a great way to experience unique parts of Iceland with a local guide.
When thinking about which tours to go on, I tend to choose activities that I wouldn’t be able to do on my own, or ones that have information that I wouldn’t necessarily learn on my own. There are so many to choose from, so there will absolutely be some that peak your interest.
A few of my favorites include:
- Hiking Tour to Fagradalsfjall Volcano with Local Guide
- Icelandic Horseback Riding Tour Including Pick Up from Reykjavik
- Walking Tour of Reykjavik
- The Reykjavik Cat Walking Tour
- Another fun walking tour option!
- The Reykjavik Cat Walking Tour
- Whale Watching Tour with Professional Guide from Reykjavik
How Long to Spend in Iceland and When to Visit
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.
18: Visit in 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.
On one trip, I visited in November, and while it was beautiful, there were only 5-6 hours of daylight. This can make sightseeing a little more difficult. The plus side to visiting in November is that there are basically no crowds and you have a great chance of seeing the Northern Lights!
19: Stay in Reykjavik for Part of Your Trip
For a five day trip to Iceland, I recommend basing yourself in Reykjavik for much of the trip and taking day trips.
Reykjavik is a wonderful, walkable city with a lot to do. It’s also centrally located for many of the day trips you’ll want to take. It’s perfect for driving the Golden Circle, checking out the waterfalls in the South and also visiting hot springs.
In Reykjavik, you’ll find a great selection of restaurants, shops and activities, making it the perfect place to stay for the majority of your stay in Iceland.
Awesome hotels in Reykjavik:
20: Spend at Least One Night Outside of Reykjavik
While I recommend spending the majority of your nights in Reykjavik, spending a night or two outside of the city is also a great idea and really allows you to see more of the country. Outside of Reykjavik, many of the towns are much smaller. These smaller towns still have a lot to offer, but you’ll likely want to spend only a night in them before moving on.
Some of the best hotels are outside of town, as this allows them to be optimal locations to view the Northern Lights. The downside to this is that you’ll be away from restaurants and shops – but that’s not really a big downside.
I would recommend spending one night in Vik when you visit the waterfalls on the Southern Coast as well as one night at a hotel that’s known for it’s amazing Northern Lights views, like the Northern Light Inn or the Ion Adventure Hotel (along the Golden Circle).
Great Accommodations in Vik:
Amazing Hotels to See the Northern Lights:
I hope you found these 20 Iceland travel tips to be helpful! If you have any questions, or any additional Iceland travel tips to add to this post, please let me know in the comments.
Be sure to check out my other Iceland guides to keep planning your epic trip:
- Itinerary for a Perfect Weekend in Iceland
- Best Places in Iceland to Visit on Your Trip
- Iceland in November: Everything You Need to Know for Your Trip
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♡Kate
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