Iceland, often referred to as the “Land of Fire and Ice,” is a dream destination for many travelers. From dramatic glaciers to active volcanoes, geothermal hot springs, and awe-inspiring Northern Lights, Iceland promises an enchanting experience. However, being mindful of the costs involved in a trip to Iceland is vital, especially if you’re traveling from India. This article delves deep into the breakdown of the Iceland trip cost from India, including flights, accommodation, activities, and travel expenses. We’ll also explore how you can finance your trip, including considering a personal loan for holiday.
1. Flights from India to Iceland
The first major expense of your Iceland trip is flights. The cost of round-trip flights between India and Iceland depends on factors like the time of booking, the season of travel, and airlines chosen.
On average:
- Economy class flights from India to Iceland (Reykjavik – Keflavik International Airport) range between ₹50,000 – ₹70,000 per person round-trip.
- For business class or last-minute bookings, the fares can shoot up to ₹1,00,000 or more.
Indian cities like Delhi, Mumbai, and Bangalore offer connecting flights to Reykjavik, Iceland’s capital. Keep in mind that there are no direct flights, and most routes transit through hubs like Helsinki, Amsterdam, or Doha. Booking your tickets well in advance and monitoring airfare deals can help reduce costs significantly.
2. Accommodation Costs in Iceland
Iceland boasts a variety of accommodation options, ranging from budget hostels to luxury hotels. The cost of accommodation depends on the type of stay and the region you’re visiting.
Here’s a breakdown:
- Hostels and Budget Stays: Starting from ₹2,500 – ₹5,000 per night per person.
- Mid-Range Hotels: Around ₹7,000 – ₹14,000 per night.
- Luxury Stays: Can go up to ₹20,000 – ₹30,000 per night or even more, especially for five-star hotels or private cottages.
If you’re traveling during the peak season (summer months, from June to August), prices are likely to be higher. Booking in advance and opting for shared spaces like hostels or Airbnbs can help save on costs. Travelers on a budget may also consider camping, which is both economical and adventurous.
3. Travel and Transportation Costs in Iceland
Exploring Iceland’s stunning landscapes necessitates transportation, whether public or private. Since Iceland doesn’t have an extensive public transportation network, renting a car is the most convenient way to travel.
Car Rental Costs:
- Small Cars: ₹6,000 – ₹10,000 per day.
- SUVs and 4x4s: ₹12,000 – ₹20,000 per day (a better option for rough terrains and winter weather).
Fuel Costs: Fuel prices in Iceland are relatively high. Expect to spend around ₹150 – ₹200 per liter, depending on the fuel station.
Public Transport: Buses are available for touring Iceland, but they’re not as flexible as driving your own car. Bus routes to major locations cost about ₹1,500 – ₹3,000 per trip. Intercity passes or group tours range between ₹10,000 – ₹15,000, depending on the itinerary.
If driving is not your preference, organized tours to iconic destinations like the Golden Circle, South Coast, and Northern Lights hikes, cost around ₹7,000 – ₹15,000 per person.
4. Food and Dining Expenses
Dining in Iceland can be quite expensive compared to India. While Iceland offers delicious local cuisine like lamb stew, seafood, and skyr (a traditional yogurt), eating out needs careful budgeting.
Food expenses in Iceland:
- Budget Meals: Street food or fast food options cost around ₹1,000 – ₹1,500 per meal.
- Mid-Range Restaurants: Dining out at casual restaurants can cost around ₹2,000 – ₹4,000 per person.
- Fine Dining: Luxury restaurants may charge approximately ₹6,000 – ₹10,000 per person.
You can save on food expenses by cooking your own meals if your accommodation includes kitchen facilities (many hostels and Airbnbs do). Grocery shopping costs around ₹3,000 – ₹5,000 per week for essentials.
5. Activities and Sightseeing Costs
Iceland offers unparalleled experiences and natural beauty that come at varying costs, depending on whether you opt for guided tours or self-explored visits.
Popular activities and their approximate costs:
- Blue Lagoon Entry: ₹6,000 – ₹8,000 per person.
- Glacier Hikes: ₹10,000 – ₹15,000.
- Northern Lights Tour: ₹7,000 – ₹12,000.
- Golden Circle Tour: ₹5,000 – ₹10,000 per person for a day.
Many incredible sights in Iceland like waterfalls (Seljalandsfoss, Skogafoss), geothermal areas, and national parks are free to access, but day tours or guides have additional charges.
6. Total Estimated Iceland Trip Cost from India
Based on the breakdown above, here’s the approximate split for a 7-day Iceland trip cost from India (per person):
- Flights: ₹50,000 – ₹70,000
- Accommodation: ₹20,000 – ₹50,000
- Transportation: ₹20,000 – ₹50,000
- Food: ₹10,000 – ₹15,000
- Activities: ₹20,000 – ₹40,000
Total Estimated Cost: ₹1,20,000 – ₹2,25,000 per person for one week, depending on choices and preferences.
7. Financing Your Trip: Personal Loan for Holiday
Considering the high costs involved in an Iceland trip, you might want to explore funding options. A personal loan for holiday is a viable choice to finance travel expenses. Many banks and financial institutions in India offer holiday loans with flexible repayment options.
Advantages of a Personal Loan for Holiday:
- Quick and hassle-free application process.
- You can cover travel, accommodation, dining, and shopping expenses with a lump sum amount.
- Flexible repayment tenure ranging between 12 to 60 months.
- Competitive interest rates starting from around 10% per annum (varies by lender).
However, always ensure that you review your financial capacity before signing up for a personal loan. Use tools like EMI calculators to check affordability and avoid overburdening your finances.
Conclusion
A trip to Iceland from India is undoubtedly an expensive affair, but with careful planning and budgeting, it can be a once-in-a-lifetime experience. By booking flights and accommodations early, choosing cost-effective transportation, and managing food expenses wisely, you can reduce your overall costs.
If financing your trip becomes a challenge, options like a personal loan for holiday can help make your dream vacation a reality. All you need is proper research, planning, and a touch of excitement to enjoy every moment of Iceland’s breathtaking beauty. So pack your bags and prepare for an unforgettable journey in the “Land of Fire and Ice”!

