Campervan vs. Hotel Road Trip in Iceland: Full Cost Comparison

Planning a road trip to Iceland? One of the biggest decisions you'll face is whether to rent a campervan or stay in hotels. Both options offer unique experiences, but they come with very different price tags and lifestyles. Let's break down the real costs so you can make the best choice for your adventure.

Understanding Iceland's Travel Landscape

Iceland is a dream destination for road trippers. The famous Ring Road circles the entire country, taking you past glaciers, waterfalls, black sand beaches, and geothermal hot springs. Most visitors spend 7-10 days exploring, though some take shorter or longer trips.

The country is expensive compared to most destinations. A simple meal can cost $20-30, and accommodation prices are high, especially during summer (June through August). This is why choosing between a campervan and hotels makes such a big difference to your budget.

Campervan Option: Breaking Down the Costs

A basic campervan in Iceland costs between $100-200 per day during summer, depending on the size and amenities. For a 7-day trip, expect to pay $700-1,400 just for the vehicle. Larger campervans with bathrooms and better heating cost $200-350 per day.

Winter rentals (October through April) are cheaper, often $70-150 per day, but you'll need a more robust vehicle with good heating.

Camping Fees

Iceland requires you to camp only in designated campsites. You cannot wild camp in a campervan (though tent camping is allowed in some remote areas with landowner permission).

Campsite fees range from $15-30 per person per night. For two people on a 7-day trip, that's roughly $210-420 total for camping fees. Many campsites offer basic facilities including showers (sometimes with extra fees of $2-5), toilets, cooking areas, and electrical hookups. Popular sites along the Ring Road fill up quickly in summer, so booking ahead is smart.

Fuel Costs

Iceland is big. The Ring Road alone is about 830 miles (1,332 km). Most travelers drive 100-150 miles per day when exploring. Gas prices in Iceland hover around $7-8 per gallon. Campervans get roughly 20-25 miles per gallon. For a 7-day trip covering about 1,000 miles, you'll spend approximately $280-400 on fuel.

Food Costs

Here's where campervans shine. You have a kitchen, which means you can cook your own meals.

If you shop at budget supermarkets like Bonus or Kronan, you can keep food costs to $30-50 per person per day. For two people over 7 days, that's $420-700 total. This includes breakfast, lunch, dinner, and snacks.

Compare this to eating out for every meal, which would cost $80-120 per person per day.

Insurance and Extras

Basic insurance is usually included in campervan rentals, but Iceland's weather and roads are tough. Most people add extra coverage for gravel damage, ash storms, and river crossings.

This additional insurance costs $20-40 per day, adding $140-280 to your trip.

You might also want to rent camping chairs, a GPS, or Wi-Fi hotspot for an extra $5-15 per day.

Total Campervan Cost (7 Days, 2 People)

• Campervan rental: $700-1,400
• Camping fees: $210-420
• Fuel: $280-400
• Food (cooking yourself): $420-700
• Extra insurance: $140-280
• Miscellaneous supplies: $50-100

Total: $1,800-3,300

Per person: $900-1,650

Also Read, Campervan vs. Car in Iceland: Which Is Better for Your Trip?

Hotel Option: Breaking Down the Costs

Hotels and guesthouses in Iceland vary widely in price and quality. Budget guesthouses with shared bathrooms cost $80-150 per night for a double room. Mid-range hotels with private bathrooms run $150-250 per night. Nice hotels in popular areas cost $250-400+ per night.

For a 7-day trip (6 nights), staying in budget to mid-range places, expect to pay $600-1,500 total for accommodation.

Car Rental

You'll still need a car to get around. A basic sedan costs $40-80 per day in summer. For 7 days, that's $280-560. If you want an SUV for better handling on gravel roads and rougher conditions, expect $80-150 per day, or $560-1,050 for the week.

Smaller rental cars are more fuel-efficient than campervans, getting 30-40 miles per gallon. For the same 1,000-mile trip, you'll spend about $175-250 on gas.

Car rental insurance in Iceland is essential. Basic coverage is usually included, but you'll want gravel protection and other extras. This adds $15-30 per day, or $105-210 to your total.

Food Costs

Eating out in Iceland is expensive. Here's what you can expect:

• Breakfast at a café: $15-25
• Lunch (casual restaurant or soup and sandwich): $20-35
• Dinner (mid-range restaurant): $35-60
• Coffee and snacks: $10-15 per day

If you eat out for most meals, budget $80-120 per person per day. For two people over 7 days, that's $1,120-1,680.

You can save money by having breakfast included at your hotel (many guesthouses offer this) and buying lunch supplies at grocery stores. This hybrid approach might cost $50-70 per person per day, or $700-980 for two people.

Total Hotel Cost (7 Days, 2 People)

• Hotels/guesthouses: $600-1,500
• Car rental: $280-1,050
• Fuel: $175-250
• Food (mix of eating out and groceries): $700-1,680
• Extra insurance: $105-210

Total: $1,860-4,690

Per person: $930-2,345

Beyond the Numbers: What Else to Consider

Campervans give you incredible freedom. Wake up next to a waterfall, stay longer at spots you love, and change your plans on a whim. You're not tied to hotel check-in times or specific locations.

With hotels, you need to plan your route around where you're staying each night. This can mean backtracking or missing out on spontaneous detours.

Comfort and Convenience

Hotels offer real beds, reliable hot showers, heat, and space to spread out. After a long day of hiking and exploring, there's something wonderful about a comfortable room.

Campervans are cozy but cramped. You're sleeping in a small space, cooking in tight quarters, and dealing with Iceland's unpredictable weather. Some people love this adventure; others find it exhausting after a few days.

Weather Considerations

Iceland's weather is famously unpredictable. In summer, you might encounter rain, wind, and temperatures ranging from 45-60°F (7-15°C). In winter, it can be brutally cold and windy.

A warm hotel room is a refuge on a stormy night. In a campervan, you're more exposed to the elements, though modern campervans have good heating systems.

Cooking vs. Dining Out

Cooking in a campervan means you control your meals and save money, but it also means time spent shopping, cooking, and cleaning. In Iceland, where daylight lasts until midnight in summer, you might prefer spending that time exploring rather than cooking.

Eating out is convenient and lets you try Icelandic food, but it's expensive and can feel repetitive if you're on a budget.

Who Should Choose a Campervan?

A campervan is ideal if you:

• Want maximum flexibility in your itinerary
• Enjoy the camping lifestyle and outdoors
• Are traveling on a tighter budget
• Like cooking your own meals
• Want to stay in more remote locations
• Are comfortable in small spaces
• Enjoy meeting other travelers
• Are visiting in summer when camping is more pleasant

Who Should Choose Hotels?

Hotels are better if you:

• Prefer comfort and consistent amenities
• Want guaranteed hot showers and warm rooms
• Don't want to worry about cooking and cleaning
• Are traveling with young children or elderly family
• Are visiting in winter when camping is challenging
• Value privacy and quiet time
• Have a higher budget and want to splurge on comfort
• Want to experience Iceland's unique hotels and guesthouses

The Verdict

For most budget-conscious travelers, campervans offer the best value, especially in summer. You'll save $500-1,500 per person on a week-long trip compared to staying in hotels and eating out regularly.

However, the cost difference narrows if you're willing to stay in budget guesthouses and cook some of your own meals even while staying in hotels. For solo travelers, hotels might actually be more economical since you're paying full price for a campervan but could potentially find cheaper solo rooms or hostel beds.

Ultimately, your choice should balance your budget with your comfort preferences and travel style. Iceland is stunning regardless of where you sleep at night. The memories you make exploring waterfalls, glaciers, and hot springs will far outweigh whether you slept in a van or a hotel.