How to spend four days in the Land of Fire and Ice without breaking the bank this winter

In January 2024, I took a long weekend trip to Iceland. This is a country I’d dreamed of visiting for years. Snow-covered volcanic landscapes, natural hot springs and the elusive Northern Lights make it one of Europe’s most surreal and unforgettable destinations.

While Iceland is known for being expensive, with a bit of planning and the right choices, it’s possible to explore the highlights on a semi-budget. Here's how I did it and how you can too!

Getting There and Getting Around

I flew direct with British Airways from London Heathrow to Reykjavik. Upon arrival, the stark contrast of black volcanic soil against the white snow felt like landing on another planet.

To save money, we avoided private transfers and instead took Bus Line 55 from the airport. It’s a reliable and affordable option at around €8–11. The journey to Reykjavik’s main bus terminal takes about 45 minutes, after which you’ll need to transfer to a local city bus or walk to your accommodation.

Where We Stayed

We stayed at Thingholt by Center Hotels in central Reykjavik, costing just under £400 for three nights. With its welcoming staff, sleek modern interiors, and complimentary spa access for guests, this boutique hotel provided an ideal base for exploring Reykjavik. Its central location also made it convenient for joining local tours, which depart from designated bus stops nearby rather than directly from hotels.

Reykjavik is a compact city with a population of around 400,000, so almost any central accommodation will leave you well-placed for sightseeing.

Day 1: Arrival and Northern Lights Tour

After checking in and relaxing in the hotel spa, we headed out for a quick dinner at Primo Ristorante, a casual Italian spot next door. The venison bolognese was simple and affordable - ideal before a long night ahead.

That evening, we had our Northern Lights tour booked - a must for any winter trip to Iceland.

Northern Lights Tips:

Book your tour for your first night. If the lights don’t appear, most tour operators offer a free rebooking on another night - find your tour HERE.
Dress warmly. Reykjavik may feel manageable, but tours venture deep inland where temperatures can drop to -10°C or lower.
Be prepared for a late return. Tours typically start around 8–9 PM and can return as late as 1–2 AM.
Go with a guided tour. Local guides track weather and light conditions and have the vehicles to navigate Iceland’s challenging winter roads.

Seeing the aurora borealis is never guaranteed, but even attempting to find them is part of the experience.

Day 2: Golden Circle and Sky Lagoon

We dedicated our second day to exploring Iceland’s iconic Golden Circle, combining it with an evening visit to Sky Lagoon.

Golden Circle Highlights:

Þingvellir National Park: A UNESCO World Heritage Site where the North American and Eurasian tectonic plates are visibly pulling apart. Due to heavy snow, we couldn’t do the walking tour, but it remains a fascinating geological site.
Geysir: Located in the Haukadalur geothermal area, this is the original geyser that gave its name to all others. The bubbling hot springs and regular eruptions are unforgettable.
Gullfoss Waterfall: A two-tiered waterfall fed by glacial meltwater. Even in winter, its raw power is impressive.
Kerið Crater: A volcanic crater lake known for its vivid red soil, coloured by iron deposits. At just a few thousand years old, it’s one of the younger volcanic features in the area.

Book your tour HERE

Sky Lagoon

We ended the day with a two-hour visit to the Sky Lagoon, Reykjavik’s newest geothermal spa. The spa offers an Icelandic bathing ritual involving hot and cold cycles, a swim-up bar, and an infinity-edge pool with views of the North Atlantic.

Note: If I were to return, I’d choose a daytime slot to take full advantage of the ocean views. While the evening atmosphere was atmospheric, the surrounding scenery is best appreciated in daylight.

Book your entry HERE

Dinner at Apotek

Back in the city, we dined at Apotek, one of Reykjavik’s higher-end restaurants. The set menu, priced around £70 per person, included:

Arctic char served on a Himalayan salt block
Cod loin with a rich sauce
Traditional skyr mousse for dessert

It was a splurge, but well worth it.

Day 3: A Slower Pace in the City

After two action-packed days, we took Saturday at a slower pace. The weather wasn’t ideal for further excursions, so we opted to explore Reykjavik on foot.

What We Did:

Hallgrímskirkja Cathedral: The city’s most iconic landmark. Take the elevator to the top for panoramic views.
Icelandic Phallological Museum: Unusual, but worth a quick visit if you’re in the area.
Downtown shopping: We stopped into local boutiques, including one called Nebraska for unique souvenirs.

Budget Lunch Tip:

One of the best-value meals in Iceland is a hot dog from the famous stand Bæjarins Beztu Pylsur. At €3–4 each, it’s a local favourite and after trying it once, we went back three times.

Dinner: Traditional Icelandic Cuisine

For our final night, we tried a restaurant near the cathedral offering traditional Icelandic dishes like fermented shark and wind-dried fish. While it’s important to experience local cuisine, I won’t pretend to have enjoyed it - fermented shark, in particular, had an overwhelming, ammonia-like flavour.

We ended the evening at a lively Irish bar in the city centre with live music a great way to unwind after a long day.

Day 4: Final Views and Departure

Before heading to the airport, we walked up the infamous rainbow road to have a final stop at Hallgrímskirkja and took in the sweeping views of Reykjavik one more time. After some last-minute shopping, we caught the bus back to the terminal and boarded our flight home around 6 PM.

Budget Breakdown

While Iceland is often seen as a costly destination, it is possible to keep expenses relatively low with strategic choices.

Total Cost for 4 Days:

Flights + Hotel (3 nights): £375
Spending Money (food, tours, transport): ~£500
Total: ~£875

You could easily spend double this, but with early bookings, public transport, and a mix of budget-friendly and mid-range dining, Iceland can be made more accessible even for shorter trips.

Final Thoughts

Iceland lives up to the hype even in winter. With just four days, we saw waterfalls, geysers, craters, the Northern Lights, and bathed in hot springs. While I do wish we’d had time (and weather) for a volcano or glacier hike or to even head down to the picturesque south coast, the experience was still one of the most unique I’ve ever had.

If you’re willing to plan ahead and travel smart, Iceland doesn’t have to cost a fortune. And chances are, you’ll leave already planning your return.

A Budget-Friendly Long Weekend in Iceland