How this Pune couple planned a budget trip to the second most expensive country in the world

Ranked as the second most expensive country in the cost-of-living index, Iceland offers beauty at a premium. But with some strategic planning and clever spending, the Pune-based couple managed to turn their bucket-list trip into a reality without overshooting their budget.

The couple travelled in the shoulder season, booked only Airbnbs so that they could cook their meals, and meticulously planned the road trip to avoid paying for paid tours. As part of Mint’s travel series, Jain shares a first-hand account of their 10-day Iceland adventure, which they completed in about 5.2 lakh.

Planning Pays Off

This holiday was a pact four friends made many years back. This year we finally decided to realise it. We chose September to travel for a mix of pleasant weather, favourable conditions to witness the Northern Lights, and it being the shoulder season to help save on costs.

We are seasoned travellers and meticulously plan for all our holidays. This one more so because we were aware of just how expensive Iceland is. As a first step, we booked everything four months ahead of the travel dates to secure good prices.

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We chose to travel to Iceland via Amsterdam, taking advantage of low fares offered by Play Airlines for the Amsterdam to Iceland leg of our journey. Besides, flights from Mumbai were cumbersome with long layovers at the connecting airport and were priced at 80,000-90,000 per person. There’s a direct flight to Helsinki from Delhi, but it was costing about 1.3 lakh per person. The Amsterdam option worked out cheapest and most convenient for us. Since we used credit card points for hotels in Amsterdam and Copenhagen, where we spent one night before taking the return flight, there was no extra cost of staying either.

In Iceland, we prioritised budget-friendly yet comfortable stays. After finalising our itinerary, we mapped our stops along the Ring Road, selecting accommodations in pit stops to minimise travel time. Booking through Booking.com gave us flexibility, with free cancellation if plans changed. Our mid-range BnBs or guesthouses averaged around 12,000 per night.

Hotels and meals are two major costs in Iceland. We saved on both through Airbnbs. We cooked most of our meals, except visiting some cafes for coffee and croissant treats. Even groceries in Iceland are quite expensive but pales in comparison to the cost of eating out. A simple breakfast would cost about 2,500 per person, whereas cooking in the BnB saved about one-eighth of the cost.

Even though we had made our bookings four months in advance, we revisited them later to check if better deals were available. To our surprise, prices across the board, particularly for car rentals, had surged significantly. In that moment, we felt relieved that we had made our bookings ahead of time.

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Graphics: Pranay Bharadwaj/Mint

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Graphics: Pranay Bharadwaj/Mint

DIY Aurora Adventure

Renting a car in Iceland was one of the best decisions we made for our trip. It was convenient, gave us the freedom to take detours to explore some hidden gems along the Ring Road and even cheaper.

Iceland doesn’t have a robust train network, unlike the rest of Europe, so the only option is to self drive or book tours. The tours are restrictive and cost a lot more than renting a car.

With our own car, we were able to forgo expensive Aurora sighting tours, as Iceland provides numerous fantastic natural viewing spots on nights with favourable forecasts. We would drive to secluded locations away from city lights for an authentic, peaceful Northern Lights experience.

We booked the car through Rentalcars.com, which conveniently allowed us to compare and reserve options from various third-party rental agencies all within a single app. We conveniently picked up and dropped off the SUV at the airport, eliminating any additional taxi costs.

With four travellers sharing the expense, the total cost came to 85,000, including insurance—a great deal we secured by booking well in advance.

The Ring Road Odyssey

Ten days on Iceland’s Ring Road was a journey through a surreal landscape. From the moment we set off, we were captivated by the ever-changing scenery – rugged coastlines, cascading waterfalls, and mystical volcanic landscapes.

We crossed rivers and felt the thrill of adventure with each bend in the road, surrounded by the natural beauty that made us take multiple pit stops to soak it all in.

Among the many attractions, the ones that stood out for us included the stunning Canyons of Iceland, Waterfalls (Foss) of Iceland, Thingvellir National Park, Black Sand Beaches, the Game of Thrones filming locations, and Glaciers at Jökulsárlón.

As a die-hard Shah Rukh Khan fan, I had a unique bucket list item: visiting the filming locations of Gerua. Standing beneath the breathtaking Seljalandsfoss, I felt transported to the movie itself.

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To keep costs in check, we opted for self-guided exploration, renting a car and staying in affordable accommodations. Many key attractions were accessible by car, and having our own vehicle allowed us the freedom to travel at our own pace.

To enjoy unique experiences such as a glacier hike, we decided to prioritise one or two standout activities instead of cramming our itinerary with every available tour.

To sum up the journey in one sentence, Iceland felt like a different planet.

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