How many towns: I advise visiting
four to six towns on a trip of one to two weeks. Iceland’s distances are long, and the pace of a place only shows when you stay at least a night. Fewer than four feels like a rush, while more than six means more driving than looking. Mix one larger base with smaller fishing settlements for contrast.
Choosing the kind: If you want
easy access, pick towns near Reykjavik and the South Coast, where buses run and hostels are plentiful. If you want quiet and cheaper rooms outside peak season, choose the Westfjords or East Fjords, but expect long drives and thin services. Travelers who like pools, cafés and whale-watching suit the North, where harbor towns are compact and walkable. Choose by pace first and by photos second.
What it costs: Iceland is expensive. …
read more 👉 How many towns: I advise visiting four to six towns on a trip of one to two weeks. Iceland’s distances are long, and the pace of a place only shows when you stay at least a night. Fewer than four feels like a rush, while more than six means more driving than looking. Mix one larger base with smaller fishing settlements for contrast.
Choosing the kind: If you want easy access, pick towns near Reykjavik and the South Coast, where buses run and hostels are plentiful. If you want quiet and cheaper rooms outside peak season, choose the Westfjords or East Fjords, but expect long drives and thin services. Travelers who like pools, cafés and whale-watching suit the North, where harbor towns are compact and walkable. Choose by pace first and by photos second.
What it costs: Iceland is expensive. A tight backpacker budget runs about US$90 to 140 a day: dorm beds US$40 to 70, self-catered groceries US$15 to 25, and a pool entry US$7 to 12. Eating out lifts that fast, with a simple café meal around US$18 to 30 and a pint US$10 to 14. Whale-watching costs roughly US$90 to 130, local guided walks US$60 to 120, and a rental car US$50 to 150 a day depending on season and gear. Fuel is a major line item. Camping runs US$15 to 25 per person, but only in designated sites, and it is limited outside summer. The most useful saving is a supermarket shop at Bonus or Kronan, plus a refillable bottle, because tap water is clean and often tastes faintly mineral.
Safety and culture: Iceland is very safe from crime, but weather is the real hazard. Check road.is for conditions and safetravel.is for alerts, and file a travel plan for remote drives. Wind can rip a car door off its hinges, so hold it with both hands. In winter, ice on small-town streets is slick, and a pair of microspikes helps.
Culturally, Icelanders are reserved but fair and direct. Quiet hours in guesthouses are taken seriously. Shower naked with soap before entering any pool, which is a firm rule and one locals will politely enforce. Tipping is not expected. Do not drive off marked roads, and do not camp in town fields or on farmland without permission. Respect fences and sheep, which wander onto rural roads and in autumn are gathered in loud communal round-ups. In small towns, shops may close early on weekends, so buy food ahead.
The reward is real: the sound of gulls over the harbor, wool-scented hostel common rooms, steaming pools under a green sky, and a bakery’s warm bread at the end of a wet day.
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Hi, I’m Johan (Netherlands 🇳🇱), the creator of TakeYourBackpack. Over the past 3 decades, I’ve backpacked through 90+ countries across six continents, gaining extensive experience with independent travel, long-term trips, and overland routes.