Send Query

Iceland Cheap Holiday Deals

PACKAGES

24x7 Customer Support
Quality Assured
Stress Free Experience
Easy and Secure Booking

For travellers seeking adventure and natural beauty on a budget, Iceland doesn’t have to be expensive. With smart planning, off-season travel, and budget-friendly deals, you can experience Iceland’s glaciers, waterfalls, hot springs, black-sand beaches and dramatic landscapes without breaking the bank. This guide shares how to find affordable Iceland holiday deals, what to expect, and how to travel economically while still seeing Iceland’s highlights.

Why Cheap Holiday Deals to Iceland Are Possible

Although Iceland is known for high living costs, several factors allow for budget-friendly travel:

  • Off-season and shoulder-season discounts on flights, accommodation and tours.
  • Shared transport or shuttle buses instead of expensive car rentals or private transfers.
  • Budget accommodation: hostels, guesthouses, dorms, shared stays, or simple guesthouses in countryside.
  • Self-catering or cooking — reducing costs on food by using groceries.
  • Free or low-cost natural attractions: waterfalls, beaches, hikes, national parks, scenic drives — many of Iceland’s best sights are free to visit.
  • Last-minute deals: tour operators sometimes offer discounts if there are unsold slots or cancellations.

Typical Budget-Friendly Itinerary with Cheap Deals

Here is a sample 5–7 day budget-friendly itinerary using cheap holiday deals and economical choices: ..

Read More

Day 1 – Fly to Iceland (Budget Flight + Hostel Stay)

Book a flight during an off-peak period or with low-cost airlines. Stay in a hostel or shared dorm in Reykjavik to reduce accommodation cost.

Day 2 – Explore Reykjavik & Golden Circle (Shared Shuttle or Budget Tour)

Use a budget shuttle or group tour for Golden Circle to visit Þingvellir National Park, Geysir iceland , and Gullfoss Waterfall . Pack your own food or buy groceries to save on meals.

Day 3 – South Coast on a Budget (Self-Drive / Shared Ride or Bus + Guesthouse Stay)

Travel to South Coast waterfalls and black-sand beaches using shared transport or a budget rental car with friends. Stay in a countryside guesthouse or dorm-style accommodation.

Day 4 – Glacier Lagoon Visit (Free Walks + Optional Budget Boat Tour)

Visit Diamond Beach and Jokulsarlon . Walking along the lagoon and beach is free. If budget allows, book a discounted boat tour or just enjoy free sightseeing and photos.

Day 5 – Nature Walks, Free Hikes & Cheap Spa / Hot Springs

Explore free hiking trails, volcanic landscapes, and geothermal areas. Use public pools or affordable geothermal baths instead of expensive resorts when available.

Day 6 – Return to Reykjavik + Optional Low-Cost Activities

Head back to Reykjavik, use free walking tours, city museums or local sights. Cook meals or eat at budget-friendly cafés.

Day 7 – Departure

Catch your budget flight home, carrying unforgettable memories without overspending.

Where to Find Cheap Holiday Deals for Iceland

Here are some of the best ways to hunt for budget-friendly deals to Iceland:

  • Off-season Flights: Look for flights during low-demand periods (late autumn, early spring, winter shoulder months).
  • Last-Minute Deals: Tour operators often discount unsold slots or cancellations — especially for shared tours, glacier hikes, or boat trips.
  • Budget Accommodation: Hostels, dorms, guesthouses, or countryside shared stays — book early to secure cheap beds.
  • Shared Transport / Shuttle Buses: Cheaper than car rentals, ideal for solo or budget travellers.
  • Cook Your Own Food: Use supermarkets and self-catering kitchens where possible to reduce meal costs.
  • Free or Low-Cost Attractions: Many natural wonders — waterfalls, beaches, hiking trails, vistas — are free to visit.
  • Group Travel or Shared Rentals: Sharing car rental and fuel with friends reduces per-person cost.

What to Expect with Budget Holiday Deals

While cheap holiday deals help save money, there are trade-offs to keep in mind:

  • Basic accommodation — dorms or simple guesthouses rather than luxury hotels.
  • Shared facilities or fewer amenities compared to premium stays.
  • Limited flexibility — shared tours or fixed-schedule shuttles.
  • Cold weather or fluctuating conditions — summer deals offer milder climate; winter deals may require careful preparation.
  • Comfort over luxury — meals and stays will be simple and practical.

Who Should Opt for Cheap Iceland Holiday Deals?

Budget-friendly deals suit travellers who:

  • Want to explore Iceland without large expenses
  • Are flexible with dates and accommodation style
  • Prefer simple stays, shared transport or hostels
  • Don’t mind self-catering or cooking meals
  • Enjoy hiking, nature walks, photography and free-entry natural sites
  • Are open to last-minute bookings and flexibility

Tips for Smarter Budget Travel in Iceland

  • Travel in shoulder/off seasons to avoid high prices
  • Book flights and accommodation early or seek last-minute deals
  • Share transport or book group tours when possible
  • Use supermarkets for groceries — cook your own meals or picnic
  • Prioritize free natural attractions over paid tours
  • Pack smart — bring warm, waterproof clothes to avoid expensive rentals
  • Check weather and road conditions in advance to avoid unexpected costs
Read Less

 

Popular Package in Iceland

FAQS

Can Iceland really be visited on a budget?

Yes. With budget accommodation, shared transport, self-catering and free attractions, many travellers manage Iceland trips without high costs.

When are the cheapest times to travel Iceland?

Shoulder seasons (spring and autumn) and winter off-peak months often have the lowest rates for flights, accommodation and tours.

How to find cheap deals for tours and accommodation?

Check last-minute offers, share group tours, book hostels or guesthouses early, and avoid peak holiday weeks.

Are natural attractions in Iceland free to visit?

Most waterfalls, beaches, hiking trails, glaciers (view from safe shores), and scenic roads are free — great for budget travellers.

Is self-drive better for cheap travel?

Self-drive can be cost-effective if shared with others and fuel/vehicle rental is split; otherwise shared transport or shuttles may be cheaper for solo travellers.

 

Conclusion

Iceland doesn’t have to be an expensive dream destination — with smart planning, budget-focused choices, and awareness of cost-saving opportunities, you can enjoy a full holiday filled with glaciers, waterfalls, beaches, volcanoes, and more. Cheap holiday deals make Iceland accessible to travellers on a budget without sacrificing the beauty and thrill the country offers. Whether you’re a backpacker, budget traveller, student, or just someone wanting a memorable adventure without spending too much, budget-friendly Iceland is entirely possible. Pack wisely, choose smart deals, and prepare for an unforgettable journey that fits your budget.

ICELAND SPECIAL OFFERS

SAVE UP TO 10% ON SELECTED TRAVELS EXPERIENCE IN 2026.

OUR ICELAND TOUR REVIEWS

See what makes our Iceland trips special with testimonies from our lovely customers.

John & Marian
Australia

A truly amazing experience! With Iceland Packages, I reserved an Iceland trip package for my honeymoon, and it well above all my expectations. Everything about the experience was beautiful, from the breath-taking scenery to the flawless setups. Strongly advise anyone organizing a romantic gateway to use their services.

John Legend
United States

A Memorable Iceland Journey! I had the most amazing holiday ever with my family. All the must-see locations and activities were included in the thoughtfully designed tour package. The local guides were immensely informative, and the accommodations were excellent. I'm eager to make another reservation with them.

Jeff Daniels
United States

A Fantastic Trip to Iceland! I am so grateful to Iceland Packages for planning the ideal trip for me. Everything was handled perfectly from the time I landed until I left. I was able to take my time discovering Iceland's hidden treasures because I could alter my schedule to suit my needs. Absolutely once in a lifetime!".

Mel Gibson
Ireland

Easy Reservations and Top-Notch Support! It was really easy to book my flights and vacation package to Iceland. Their customer service team was really helpful throughout the entire process. The trip itself was excellent; every aspect had been carefully thought out. Strongly advised for hassle-free trip preparation!.