Iceland is notoriously expensive, but you can easily moderate the sticker shock by spending carefully.
While dinner at an average restaurant costs about $50, there are always lots of other good options. It seems people just eat simpler food in Iceland. Cafés, diners, and mini-markets have shelves of salads and sandwiches, and there’s always a hot dog stand nearby (hot dog and a coke: $10).
My go-to lunch spot was a soup bar. For about $20, I could have great soup (and refills), bread, butter, and water. That’s good enough for locals, and it was perfectly good enough for me.
(BTW, Iceland has no tipping culture and taxes are included — so you’ll pay exactly the price you see on the menu.)
I also noticed many people were skirting the high costs of eating and sleeping by going the RV way. I met several people who were driving RVs around the entire island on the 800-mile Ring Road — and they all reported it was a wonderful experience.
What about you? Do you have any tips for cutting costs in Iceland?