Backpacking in Iceland: A Complete Guide

Iceland is a dream destination for outdoor enthusiasts and nature lovers, known for its dramatic landscapes of volcanoes, geysers, waterfalls, glaciers, and hot springs. While it’s a relatively expensive country to visit, careful planning can make backpacking in Iceland affordable and unforgettable.

1. Cost Breakdown

Iceland’s high costs can be managed with smart budgeting, especially when it comes to accommodation, food, and transportation. Here’s a general cost breakdown:

• Accommodation:

  • Hostel dorm bed: ISK 4,000-8,000 ($30-60 USD) per night
  • Budget hotel/guesthouse: ISK 10,000-20,000 ($75-150 USD) per night
  • Camping: ISK 1,500-3,000 ($10-25 USD) per night (wild camping in certain areas is allowed for free)

• Food:

  • Street food/Takeaway: ISK 1,500-3,500 ($12-28 USD) per meal
  • Restaurant meal: ISK 3,000-5,000 ($24-40 USD)
  • Groceries: ISK 6,000-10,000 ($45-75 USD) per week

• Transportation:

  • Public buses (city): ISK 490 ($3.50 USD) per ride
  • Car rental: ISK 5,000-15,000 ($40-120 USD) per day, depending on vehicle type
  • Domestic flights: ISK 10,000-25,000 ($75-190 USD) one-way
  • Gasoline: ISK 240-260 per liter ($8-9 USD per gallon)

• Activities:

  • Museums and hot springs: ISK 1,500-6,000 ($12-45 USD)
  • Tours (Golden Circle, glacier hikes, etc.): ISK 8,000-20,000 ($60-160 USD)
  • Hiking: Free!
  • Blue Lagoon: ISK 8,500+ ($65+ USD)

You can budget around ISK 10,000-20,000 ($75-150 USD) per day for backpacking in Iceland, staying in hostels, cooking your own meals, and limiting paid activities.

2. Top Places to Visit in Iceland

Iceland’s natural beauty is its main draw, and you’ll find jaw-dropping landscapes at every turn. Here are the top places to visit while backpacking in Iceland:

• Reykjavik: Iceland’s capital and largest city is a great starting point for your adventure. Explore the iconic Hallgrímskirkja church, the Harpa concert hall, and enjoy the city’s lively cafes, street art, and museums.

• Golden Circle: This popular tourist route includes three main attractions:

  • Þingvellir National Park: A UNESCO World Heritage Site where you can see the rift between the North American and Eurasian tectonic plates.
  • Geysir Geothermal Area: Home to the famous Strokkur geyser, which erupts every few minutes.
  • Gullfoss Waterfall: One of Iceland’s most spectacular waterfalls.

• South Coast (Seljalandsfoss, Skógafoss, and Vík): Explore the beautiful waterfalls of Seljalandsfoss and Skógafoss, and visit the black sand beaches of Vík, framed by towering basalt sea stacks.

• Jökulsárlón Glacier Lagoon: This stunning glacier lagoon is filled with floating icebergs, and the nearby Diamond Beach is where ice chunks wash up on the black sand, creating an otherworldly scene.

• Skaftafell National Park: Part of Vatnajökull National Park, Skaftafell offers excellent hiking opportunities, including trails to Svartifoss (Black Falls), surrounded by dark basalt columns.

• Reykjanes Peninsula: Home to the famous Blue Lagoon, volcanic landscapes, and geothermal areas, this region is easily accessible from Reykjavik.

• Snæfellsnes Peninsula: Often called "Iceland in Miniature" because it contains many of Iceland’s diverse landscapes, this peninsula is home to the Snæfellsjökull volcano, dramatic sea cliffs, and charming fishing villages.

• Westfjords: A more remote and less-visited part of Iceland, the Westfjords offer rugged beauty, fjords, and wildlife. Don’t miss Dynjandi waterfall and the Látrabjarg cliffs, known for puffin sightings.

• Lake Mývatn: This volcanic area in northern Iceland features geothermal hot springs, lava fields, and the Hverir geothermal area. It’s also close to Dettifoss, Europe’s most powerful waterfall.

3. Travel Essentials

• Car Rental: Renting a car is the best way to explore Iceland’s natural wonders at your own pace. A 4WD vehicle is recommended if you plan to travel on gravel roads or visit the Highlands. However, buses and tours are also available.

• Hiking Gear: Iceland is a hiker’s paradise. Bring waterproof hiking boots, thermal layers, a rain jacket, and gloves, as the weather can be unpredictable. Don’t forget a reusable water bottle, as Iceland’s tap water is some of the purest in the world.

• Camping Equipment: If you’re planning to camp, pack a good quality tent, warm sleeping bag, and a portable stove. Wild camping is allowed in some areas (but not near farmed land), and there are many campsites across the country.

• Adaptor for Electronics: Iceland uses the European Type C and F plugs (230V). Be sure to bring an adapter if your devices use a different type.

• Travel Insurance: Since Iceland’s rugged terrain offers plenty of adventure opportunities, it’s essential to have travel insurance that covers activities like hiking, glacier walks, and even potential accidents.

• Cash and Cards: Icelanders use credit and debit cards for almost everything, so you don’t need to carry much cash. However, it’s good to have a small amount of Icelandic krona (ISK) on hand for rural areas.

4. Travel Tips

• Book Transportation in Advance: Iceland’s accommodation and car rentals can sell out quickly, especially during the summer months. Book these well in advance to secure the best rates.

• Wild Camping: Take advantage of Iceland’s liberal camping laws, which allow wild camping in many rural areas. Be mindful of local regulations and always respect nature.

• Cook Your Own Meals: Dining out in Iceland is expensive, so cooking your own meals is a great way to save money. Shop at budget supermarkets like Bonus and Kronan.

• Free Hot Springs: Skip the pricey Blue Lagoon and opt for free or cheaper hot springs like Seljavallalaug, Reykjadalur, or Landmannalaugar. They offer a more natural experience and are located in stunning settings.

• Stay in Hostels or Guesthouses: Hostels are the most affordable accommodation option, especially in cities like Reykjavik. Guesthouses in rural areas can also be relatively affordable.

• Icelandic Weather: Iceland’s weather is unpredictable. Always check the forecast before heading out, especially if you’re hiking or driving in rural areas. The Icelandic weather app (Veður) is useful.

5. Best Time to Visit

• Summer (June to August): The best time to visit for pleasant weather, long daylight hours (Midnight Sun), and accessible hiking trails. This is also the most popular and expensive time to visit, with higher accommodation prices and more tourists.

• Winter (November to February): Ideal for witnessing the Northern Lights and exploring the winter landscapes. However, some roads and hiking trails may be inaccessible due to snow, and daylight hours are short.

• Spring (April to May): A quieter time to visit, with fewer tourists and blooming landscapes. Some hiking trails and attractions may still be closed due to snow, but prices are generally lower.

• Autumn (September to October): A great time to experience the fall colors, fewer crowds, and lower prices. It’s also possible to see the Northern Lights starting in September.

Conclusion

Backpacking in Iceland is an incredible adventure, offering otherworldly landscapes, free outdoor activities, and unique cultural experiences. While it can be pricey, there are many ways to save money by camping, cooking your own meals, and focusing on the country’s natural attractions, which are mostly free to access. With stunning vistas around every corner, Iceland is a top destination for backpackers who crave nature and exploration.