When it comes to dream destinations that offer surreal landscapes, cascading waterfalls, black sand beaches, and the chance to witness the Northern Lights, Iceland ranks among the world’s top choices. But let’s be honest — Iceland is also infamous for being one of the most expensive places to visit in Europe.
Here at Travecations, we’ve taken the challenge head-on to bring you the ultimate guide to the cheapest time to go to Iceland. Whether you’re an adventurer, a nature lover, or a digital nomad on a tight budget, this detailed article will show you how to experience the wonders of Iceland without spending a fortune.
We’ll cover the best low-cost travel seasons, how to save money on flights, accommodation, food, and more. Keep reading — and if you're also looking to explore other budget-friendly destinations, check out our 3-Day Travel Guide and Itinerary for Granada, Spain.
Why Timing Matters When Visiting Iceland
What Makes Iceland Expensive?
Iceland is a remote island nation with a small population, which means a lot of goods and services are imported. This raises the cost of living — and, by extension, the cost of travel. But don’t worry — with the right timing and planning, it becomes an affordable dream.
What is the Cheapest Time to Go to Iceland?
Visit During the Winter Off-Season (November to March)
The cheapest time to go to Iceland is during the off-season months, specifically from late November through early March. This is when prices for flights, car rentals, and accommodations drop significantly.
You’ll also avoid the peak tourist crowds and still enjoy spectacular winter landscapes, glacial lagoons, ice caves, and best of all — the Northern Lights.
Did you know? Our in-depth Best Time to Travel to Iceland guide covers monthly weather, activities, and pricing trends.
Pros & Cons of Traveling During the Cheapest Time
| Pros | Cons |
|---|---|
| Lower costs on flights, lodging, and food | Cold weather, snow, and icy road conditions |
| Great chance to see the Northern Lights | Short daylight hours (4–6 hours/day) |
| Fewer tourists and less crowded attractions | Some remote roads and attractions may close |
| Cozy winter vibes and fewer lines | Need for extra gear (thermal wear, snow boots) |
Monthly Breakdown: When to Go on a Budget
January – The Absolute Cheapest Month
-
Weather: Very cold, heavy snow.
-
Daylight: 4–5 hours/day.
-
Why go: Lowest flight and hotel prices of the year.
February
-
Activities: Ice caving, Northern Lights, budget-friendly spa options.
-
Crowds: Minimal.
-
Tip: Book accommodations early to snag the best rates.
March
-
Transition month: Prices still low but daylight improves (up to 10 hours/day).
-
Best for: Combo of winter magic and mild weather.
Late October to Early November
-
Still affordable.
-
Slightly warmer weather.
-
Aurora Borealis season begins.
Flights to Iceland – Book Smart
To score the cheapest airfare:
-
Use fare comparison sites: Google Flights, Skyscanner, Momondo.
-
Book 2–4 months in advance.
-
Be flexible: Fly mid-week and avoid weekends.
-
Budget airlines: Consider PLAY Airlines and Icelandair’s deals.
Where to Stay on a Budget
Top Budget Stays in Reykjavik
-
KEX Hostel – A popular spot among backpackers.
-
Loft HI Hostel – Centrally located with an epic rooftop bar.
-
Reykjavik Downtown Hotel – Cozy, clean, and cheap.
Tips for Saving
-
Stay outside the city for cheaper rates.
-
Book guesthouses or cabins instead of hotels.
-
Use Airbnb or consider Couchsurfing for an ultra-budget experience.
Affordable Iceland Activities That Won’t Break the Bank
Even when visiting on a tight budget, Iceland has tons of free or low-cost attractions:
1. The Golden Circle (Free Entry)
Includes:
-
Thingvellir National Park
-
Geysir Geothermal Area
-
Gullfoss Waterfall
2. Reykjavik’s Cultural Spots
-
Hallgrímskirkja Church (free to enter)
-
Harpa Concert Hall (beautiful architecture)
-
Street art walking tours
3. Free Natural Hot Springs
-
Reykjadalur Hot Spring River
-
Seljavallalaug Pool
-
Grettislaug in the North
4. Hike, Don’t Ride
Hiking trails like:
-
Mount Esja
-
Fimmvörðuháls
-
Glymur Waterfall
All are accessible and don’t cost a dime!
Traveling with a Purpose? Don’t Miss This
For those seeking a spiritual or religious journey, explore our detailed section on the Hajj experience, where you’ll find affordable packages, timelines, and travel insights for one of the most significant journeys in a Muslim's life.
7-Day Budget Itinerary for Iceland Under $1,200
Day 1: Arrive in Reykjavik – explore on foot.
Day 2: Golden Circle tour.
Day 3: South Coast – Skógafoss, Seljalandsfoss, Reynisfjara Beach.
Day 4: Glacier Lagoon + Diamond Beach.
Day 5: Ice cave tour (budget one).
Day 6: Reykjavik museums & hot springs.
Day 7: Northern Lights hunt at night.
Total Est. Cost: $1,000–$1,200 (including flights, accommodation, food, tours)
Travecations Travel Hacks
-
Pack thermal layers and reuse them (saves laundry costs).
-
Use duty-free at Keflavik Airport to buy alcohol or snacks.
-
Download maps offline to avoid roaming data.
-
Bring reusable water bottles — Iceland’s water is pristine.
What to Avoid
-
Taxis – Extremely expensive.
-
Currency exchange booths – Use credit cards or ATMs.
-
Overpriced tourist restaurants – Eat at gas station cafes and bakeries.
Final Travel Tools for Iceland
-
Weather App: Check daily forecasts.
-
Aurora Forecast App: For Northern Lights alerts.
-
Road.is: Road closures and travel safety.
-
Vedur.is: Iceland’s official weather site.
Connect with Travecations
For all your affordable travel dreams — whether it’s Iceland or beyond — we’ve got you covered. We believe unforgettable travel should be accessible to all.
-
Website: www.travecations.com
-
Email Us: [email protected]
-
Call Us: 1 888-989-2629