Iceland on a Shoestring

 Iceland Vacation Done Right

When you think of European vacation, Iceland rarely comes on the radar. But it is one of those destinations that have not yet been on tour groups' radar. Yes, vacationing in Iceland is expensive, but if done correctly you can vacation in Iceland on a shoestring budget. Known as the land of fire and ice, Iceland has little bit for everyone. From experiencing hot lava natural bath’s to getting close to glaciers, you will get to experience nature’s wonders like no other.  If visiting nature and natural phenomena is your thing, Iceland is just the right destination for you. 

There is no public transport in Iceland, hence the easiest and cheapest way to get around is renting a car. While there are tour groups that will take you around, driving is very straightforward and is similar to the USA. The signs posted are in English and easy to follow. You can stop at any of the local grocery stores and pick groceries for you to have a handy sandwich while on the road. This will keep your costs to a minimum. Reykjavik has the only Costco in the country, or you can visit any of the local grocery chains Bonus, Kronan or Netto. Icelandic Currency in Iceland is ISK ( Icelandic Krona). At the time of this writing 1 USD was 143 ISK. Assuming you have access to a rental car, here is our 1 week itinerary to cover all the hotspots in iceland. 

Day 1. Arrive in Reykjavik

Easiest way in and out of Iceland is catching any European flight to Reykjavik, the capital of Iceland. There are several flights out of London, Paris, Amsterdam or even the USA.The airport is located a good 40 minutes drive from the city in another town of Keflavik, and with public transport nearly non-existent between cities, it is best to rent a car. A bigger car is advisable if you are going to be offroading, but even a modest small car will suffice if you are going to drive around iceland’s ring road. On the way from the airport if you are into Natural hot water bath, Blue Lagoon might just be the right stop over for you before you hit Reykjavik. Once you arrive, get settled in , soak in the Icelandic atmosphere for the day. Finding accommodations on the outskirts of the city is the best way to situate on Day 0. You will be well positioned to begin your journey the next day and also it will save you money staying outside the downtown area. 


Day 2.  Golden Circle

It's a day on the road, as you start your drive outside of Reykjavik. First stop on your tour of the golden circle is Seljalandsfoss. Seljalandsfoss is located in the South Region in Iceland right by Route 1 and the road that leads to Þórsmörk Road 249. The waterfall drops 60 m (197 ft) and is part of the Seljalands River that has its origin in the volcano glacier

After visiting Seljalandsfoss, the next stop is SkógafossThe Skógafoss is one of the biggest waterfalls in the country. Due to the amount of spray the waterfall consistently produces, a single or double rainbow is normally visible on sunny days.  Next on the list for the day is a fantastic drive to Sólheimasandur crash site.  Sólheimasandur Crash, is a crashed US Navy Douglas C-117D located in Sólheimasandur on the southern coast of Iceland. The remains of the aircraft - which crashed in 1973 - have remained relatively intact, leading to the crash site becoming a tourist destination. Now that you are done with the golden circle, you want to continue on the ring road, and the best way is to find yourself accommodation near Kirkjubaejarklaustur so the next day you are well on your way. You can find lots of airbnb’s and local hotels in the region.



Day 3. Ice section of Fire and Ice - Ring Road

No visit is complete without driving on the ring road which circles all of iceland. From Kirkjubaejarklaustur  visit  Jökulsárlón Glacier LagoonJökulsárlón is Iceland’s most famous glacier lagoon. Conveniently located in the southeast by Route 1, about halfway between the Skaftafell Nature Reserve and Höfn, it is a popular stop for those traveling along the South Coast or around the Ring Road of the country.As a glacier lagoon, Jökulsárlón is a lake that is filled with meltwater from an outlet glacier.

Next stop is the  diamond beach near the lagoon. A must-do in southeast Iceland!. The beach next to the lagoon has black sand and is called the Diamond beach or more precisely, Breiðamerkursandur. We are near Jökulsárlón. Next stop is the Vestrahorn mountain ranges. While there is not a single stop there, just the drive around the mountains is very scenic, with some of the shallowest ocean spots in the world. Vestrahorn is a mountain in south-east Iceland, noted for its two distinctive peaks and proximity to the Jökulsárlón glacier lagoon and East Fjords

Final destination for the day is getting to a good B&B or airbnb near Djúpivogur


Day 4. Seyðisfjörður

Today you will spend the day driving to Seyðisfjörður. Icelandic Fjord, the fjord itself is accessible on each side from the town, by following the main road that leads through the town. Further out the fjord is fairly remote but rich with natural interests including puffin colonies and ruins of former activity such as nearby Vestdalseyri from where the local church was transported. Spend the rest of the day just soaking in the city, the atmosphere and get a feel for the fjords.


Day 5. Dettifoss

Today, continue on the ring road to Dettifoss. Dettifoss is a waterfall in Vatnajökull National Park in Northeast Iceland, and is reputed to be the second most powerful waterfall in Europe after the Rhine Falls.Dettifoss is situated on the Jökulsá á Fjöllum river, which flows from the Vatnajökull glacier and collects water from a large area in Northeast Iceland.The Dettifoss waterfall is the most powerful waterfall in Europe, 500 cubic meters of water per second plunge over the edge. Dettifoss is 45 m high and 100m wide. A nice hiking trail, 34km, goes along the canyon from Dettifoss to Asbyrgi. Camping is possible in Vesturdalur.


Finish the day by staying at any of the hotels around Myvatn. This will be our home base for two nights. 


Day 6. Spots around Myvatn

If you are into Nature bath’s , start by visiting the nature bath near myvatn. Experience Iceland like never before and relax in the milky blue water and soak up the scenery surrounding the lagoon Steam Baths. Experience a steam bath in natural, geothermal steam rising through vents in the floor. There are several you will find in the area. 

Next stop is Námafjall Hverir Viewpoint. It is a must-see place on the ring road, and one of the top attractions at the Lake Myvatn.Like almost everything in Iceland, this particular area has a volcanic origin, a fact that is probably not that surprising by now.


Hverir is a geothermal place under the Namafjall mountain that belongs in the Krafla volcano fissure zone. iF you are into seeing a crater caused due to volcanic eruption, steep climb to  hverfjall crater is your thing. Discover this 4.2-km circular trail near Skútustaðahreppur, Northeastern. Generally considered a moderately challenging route, it takes an average of 44 min to complete. This is a very popular area for birding, hiking, and running, so you'll likely encounter other people while exploring. The trail is open year-round and is beautiful to visit anytime.

Hverfjall (also called Hverfell) is a tuff ring or tephra explosion cone volcano in the east part of Mývatn and part of  the Diamond Circle. You can hike to the top of the crater and make a full loop (about 1km). Great views of Mývatn when you're at the top and also the huge lava fields that are close by. There is parking at the start of the trail. Next are natural Dimmuborgir lava formations. Excellent place to see impressive lava formations and learn a bit about the Icelandic Yule Lads. Plenty of well maintained walking paths that are accessible in all weather conditions. Free to visit. There is also a gift shop and small restaurant near the parking lot.


You finish the day back at Myvatn for a final night stay there. 



Day 7. Deildartunguhver

As you are concluding the ring road journey, a final visit to another hot water spring area near

Deildartunguhver. Deildartunguhver is a hot spring located in Reykholtsdalur, a district of West Iceland. Deildartunguhver is the highest flowing hot spring in Europe and is widely known for its rapid flow rate of 180 litres (380 pints) per second. Visit this district on a self drive tour in Iceland.


Drive back to reykjavik, on way Visit cultural Árbær Open Air Museum once you enter reykjavik.Árbæjarsafn ss the historical museum of the city of Reykjavík as well as an open-air museum and a regional museum. Its purpose is to give the public an insight into the living conditions, work and recreational activities of the people of Reykjavík in earlier times.



A week has gone by and you have experienced everything from fire, volcano crater, lava formations to glaciers, black sand beaches. Iceland has so much to offer everyone in terms of nature, and you won't miss the hustle bustle of the city and popular tourist traps.  So for your next trip make sure to check out Iceland. 

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