1. Transportation — With a population of under 4,000 000, Iceland does not have the best public transportation system. The greatest way to save the most money is to take a rental car and share the cost among four individuals. You can find other travellers if you’re a solitary traveller at hostels or even on Facebook groups (haven’t personally tried these, but worth a go).
2. Accomodation – Hostels can be a fantastic alternative for accommodation if you want to travel on a budget. Try arranging an Airbnb for a group of three to four if hostels are not an option. To locate the best choice, make sure to cross-check both AirBnB and Booking.com. Additionally, double-check the location on Google Maps because there might not be many possibilities outside the city and they might be spread out far from one another.
3. Food – We try our best to reserve hostels that offer breakfast, eat a tasty local lunch outside, then purchase ingredients to prepare dinner at the airbnbs or hostels we stay at. Avoid skipping out on regional specialties like lamb soup, lobster soup, and Icelandic hot dogs, which are main courses unto themselves.
4. Forex savings: Never exchange currency at the airport, always use a forex card with a good exchange rate, such as the Niyo Global Card, or convert money at a local store (Euros/USD) in your home country (most expensive). We often try to use cards wherever possible and keep 100 to 150 euros in spare change.
5. Shopping – Unless you’re looking for souvenirs, I personally wouldn’t advise going shopping in Iceland due to the high prices and the fact that the most of the things are imported rather than being created locally.
6. Purchase food and goods at Bonus in Keflavik or Reykjavik. You’ll find a wide selection and the best prices here.
7. Alcohol – Keflavik Airport has the best prices on alcohol, and don’t forget to taste the Einstok Icelandic white Ale.
8. Mobile Data – While most locations offer free internet, Lebara has the finest plans if you’re seeking for a tourist sim ( they sell this in vfs offices in India). The commercial section near the airport exit is where you can also purchase the tourist simulators. One can select between Simin’s network and Nova’s plans, which are both the greatest.