I’ve visited Iceland several times since 2012 and have even driven the whole Ring Road. So I’ve done plenty of Iceland tours and free activities. Some, like glacier hikes and snorkelling between two tectonic plates, you simply can’t do without a guide. Others, like hot springs, puffin spotting, and the South Coast waterfalls, are better (and cheaper) to do on your own. Here’s my breakdown of activities you should do as a tour, some that are better to do alone, plus a few hyped stops that aren’t worth your time or money at all.
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Must-do Iceland tours worth paying for
These are the experiences where you need special transport, gear, training, or local knowledge to do them safely. So this is where it’s worth it (or necessary) to pay for a tour.
You can tap/click the ISK amounts shown in green to see current conversions to other currencies.
Glacier tours (like Katla, Jökulsárlón, and Skaftafell)
Cost range: Glacier Hike 17,000 ISK to Ice Climbing 34,000 ISK
Glacier tours aren’t something you can safely DIY. Permits aside, you need crampons, helmets, and a certified guide who knows which parts are stable at any given time. The winter season from December to March is (perhaps obviously) the safer season for ice cave tours in Iceland.
We opted to go ice climbing and it was so much fun. The Katla Glacier trip also looks amazing, but I didn’t have time during my last visit. It’s always good to save something for next time!
A dark but important note about glacier tourism: An ice cave in Iceland collapsed on the Breiðamerkurjökull glacier in 2024 and one tourist died. Vatnajökull National Park understandably suspended tours, though things are back up and running now. Glacier tourism is becoming more dangerous as the climate gets warmer, so it’s important to stay aware and consider the risks.
Jökulsárlón Glacier Lagoon boat tours
Cost range: Kayaking 7,000 ISK to Amphibian Boat Tour 18,000 ISK
You can see the glacier lagoon from the shore for free, but that’s not really the same thing, is it? We did a zodiac boat tour, which took us right out among the icebergs. It was only April, but they put us in these giant snow suits to keep warm out on the water, and honestly, we needed them.
Snorkelling between two continents
Average cost: Silfra Snorkelling Tour 16,000 ISK
The Silfra fissure in Þingvellir National Park sits between North America and Europe. You can get suited up and dive into the underwater gap and literally float between continents. I haven’t done this one yet, but it’s on my list for next time.
Whale watching
Average cost: Whale watching in Reykjavik 15,000 ISK
Your odds of actually seeing any whales are much higher when you get out on a boat rather than using your binoculars or bare eyes from shore. Húsavík in the north is a well-known whale-watching base, and tours also leave from the capital city and Olafsvik.
Iceland Highlands exploration via Jeep
Average cost: Thorsmork Super Jeep Highlands Tour 40,000 ISK
If you want to reach epic places like Landmannalaugar or Þórsmörk, you’ll need to travel down F-roads, which require a 4×4 and sometimes involve precarious river crossings. Because of the challenging road conditions, a highland bus or super jeep tour is often a safer and less stressful option than driving yourself.
Lava tunnels
Average cost: Víðgelmir 8,500 ISK to Raufarhólshellir 15,000 ISK
The only way to access these places is with a guided tour. I’ve seen a lot of lava in my day (New Zealand is pretty volcanic) but the sheer size, colour, and unique ice formations within Raufarhólshellir really blew my mind.
Iceland activities you can DIY to save money
“Nothing in Iceland is free.” Even the locals will tell you that. And while it certainly feels like that, it’s only partially true. There are still a few hidden gems and activities you can do without spending thousands of króna, and that don’t require a tour.
Chasing the Northern Lights
While joining a Northern Lights tour can improve your chances of spotting this incredible phenomenon, you can totally DIY this. We downloaded Hello Aurora for forecasts and alerts. Like, literally slept with it next to the bed and got up at 1 AM when an alarm went off saying they were visible outside. And you know what? The app was right.
There are a few different Northern Lights app for Iceland, and the Northern Lights Iceland Facebook page where knowledgeable people discuss the likelihood of the Arora appearing that night.
Puffin watching
You can see puffins in Iceland between April and September, with June and July as the best months. They like to hang out cliffside, and there are some specific areas you can visit (for free!) for the best chance.
Vincent Voyage has put together a full rundown of colonies, but here are some good spots to check out:
- Dyrhólaey (South Coast): We found some puffins here in late April. There’s a free and pretty easy cliffside trail to a lighthouse, but the puffins are the real draw.
- Borgarfjördur Eystri (East Fjords): If you’re driving the Ring Road, you’ll go through the East Fjords. We didn’t get lucky with puffin watching here, but if you go in the peak season around June/July, you’ll have a better chance.
Puffin watching tours in Iceland
While you can spot puffins for free, you can also join a tour with a seasoned guide who knows exactly where to go. This is the better call if you really really really want to see a puffin.
- Reykjavik: Boats will take you out to islands with big puffin colonies. (There are some whale & puffin tour combos so you can do two epic Iceland activities in one go.)
- Vestmann Islands (Vestmannaeyjar): This is home to the world’s largest puffin colony and reachable by a short ferry from Landeyjahöfn. They also do ATV tours that look pretty wild.
Hot springs
The hot springs themselves aren’t free (except for a few of them), but you can DIY the trip and don’t need to rely on a tour. But do make sure you reserve your tickets in advance, as some can get really busy. Here are just a few to check out, but there are hot springs all over Iceland!
- Blue Lagoon: Ever heard of it? Some say it’s overrated, but I disagree. Do make sure you book your tickets like at least a week in advance.
- Vök Baths: A quieter spot on the eastern side of the country where the hot springs are set into a lake. It creates a natural cold plunge (that Chesney was brave enough to try, but not me).
- Reykjadalur Hot Spring River: That’s right — a steaming river. The unique spot is about an hour’s drive from Reykjavik and then an hour hike each way, but it’s scenic and free.
Read more: My Favourite Iceland Hot Springs
Fermented shark tasting
Drive out to the Bjarnarhöfn Shark Museum on the Snæfellsnes Peninsula. It’s a very small little museum that will take you like 15 minutes or so to walk through. But the family who runs it will explain the whole shark fermentation process and even let you try a little. Look, it’s unlikely that you’ll love the way it tastes, but it was as bad as I was expecting.
Self-drive the South Coast
Rent a car in Reykjavik and head out on a South Coast drive. There are lots of Iceland tours that makes it easy to just hop on a bus and arrive at destination after destination. But doing it on your own means you can linger wherever you like.
Here are some spots to hit on a self-drive tour of Iceland’s South Coast:
- Seljalandsfoss
- Gljúfrabúi
- Skogafoss
- Kvernufoss
- Dyrhólaey
- Reynisfjara Black Sand Beach
- Vík
Read more: All About Renting a Car in Iceland
Where to stay in Reykjavik
I’ve stayed at both of these hotels in Reykjavik, and can personally vouch for them being comfortable and in great locations downtown.
Kex Hostel
Maybe the best hostel I've ever been to! Great vibes, super clean, and a perfect location by the water. It's housed in an old cookie factory.
- Dorms or private rooms
- Live music
Storm Hotel
This is a perfect mid-range hotel option in Reykjavik with sleek rooms and a nice lobby bar. I found the beds super super comfortable.
- Buffet breakfast
- Walkable location
Iceland tours and activities you can just skip
Not all activities in Iceland are created equal, and there are a few overhyped activities that I don’t think you should spend your time or money on. Here’s my negative Nancy take:
Solheimasandur Plane Wreck
The Solheimasandur DC-3 Plane Wreck is literally not worth it. The walk from the parking lot is insanely long, and I was not prepared lol. The terrain is so flat that the wreck looks much closer than it is, and it took us about an hour to walk there across the desolate landscape.
There’s a big shuttle bus you can take instead, but even then, if I could do it all again, I wouldn’t go. There were lots of people all kinda fighting to get in line for photos. Soooo many other ways to spend your precious time in Iceland doing cooler stuff.
Bridge between continents
Snorkelling between the two continents sounds epic. Walking across the small bridge is high winds is less worth your time. Like, you’ll know you’re standing between the continents but I can’t say it feels like much. And it was crazy busy when I went. But hey, at least it’s free!
Diamond Beach
It looks cool in professional photos, but it isn’t really that impressive in real life. If you’re already at the Jökulsárlón Glacier Lagoon, it’s right across the road. So you might as well pop over for a look. But it’s not worth going out of your way for.
Phallological Museum
I’m not a prude! It’s just that I thought the Phallological Museum would be more culturally interesting. Maybe like, a collection of penis art through the ages, or historic Viking beliefs about the phallus. But no. In reality, it’s just one guy’s collection of different animal penises preserved in formaldehyde.
And at 4,000 ISK for a ticket, I can’t say it’s worth it.
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Naomi Lai
Naomi is a Canadian travel editor and writer with 13 years of international travel across Southeast Asia, Europe, South America, New Zealand, and beyond. She covers everything from budget backpacking to luxury travel — always from personal experience.
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