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Sandwiched between the wild North Atlantic Ocean and the Greenland Sea, Iceland is an idyllic destination that should be on every traveler’s bucket list. Given its unique location, the landscape looms with soaring mountains, frosty ice fields, and glacier-carved fjords.
On the flip side, Iceland also offers veritable volcanoes, sizzling lava fields, bubbling hot springs, and highlights like the Northern Lights. With such a stark contrast in scenery, it’s no wonder Iceland is pinned as the land of Fire and Ice!
If you’re planning a trip to Iceland, you might feel stumped by all there is on offer. This country is famous for many things, and fitting it into one itinerary can be tricky.
Let's start of with the question of why people visit Iceland.
Why Visit Iceland?
Bursting with gorgeous vistas, wild volcanoes, and untamed natural wonders, Iceland is a must-visit destination. This country is full of opportunities, from adventure and sports to history and culture.
Topped with highlights like the Northern Lights and Blue Lagoon, there are plenty of hidden gems to discover too. Iceland is known for many things, and a trip here will be one that you’ll never forget.
Let's dive into the 7 unique features that Iceland has waiting for you to explore!
7 Unique Iceland Features to Experience!
7. Vikings
Iceland is known for its extensive Viking history. Many Icelandic Vikings fled to the newfound land from Scandinavian countries, carrying on their traditions and customs. They brought hobbies like wrestling, horse riding, racing, and archery to Iceland, and some of those pursuits can still be found today.
If you’re a history-intrigued traveler, try this Viking Age walking tour. You’ll learn about the significant impact made here during the 8th to 11th centuries and all the tales of battles. If you want to step back in time, grasp the opportunity in Iceland!

6. Icelandic Horses
Calling all animal lovers! Iceland is known for its majestic breed of four-legged friends, known as the Icelandic horse. This unique breed features a gait that’s sturdy enough for harsh weather. If you’re a horse-loving traveler, don’t miss the opportunity to come face to face with the beautiful creatures.
Why stop there? This horseback riding experience in the Icelandic meadows will take it to the next level. You’ll admire the astounding vistas of south Iceland while experiencing the ‘tölt.’ Including free photos, drinks, and all the appropriate gear, this tour is an ideal budget-friendly activity.

5. Lopapeysa Sweaters
The lopapeysa is an iconic symbol of Iceland, stitched from traditional lopi wool. This authentic Icelandic sweater is especially warm for rough weather conditions, as it’s knitted with a double layer.
These sweaters are not just tourist-targeted pieces of memorabilia—the lopapeysa is a functional piece of clothing that locals wear. Whether you’re heading out horseback riding, hiking, or popping over for dinner, this clothing item is something that Iceland is well known for wearing.
If you’re wondering how to get your hands on one of these top-notch threads, you might be shocked at how much lopapeysa costs. Usually going for around the $150-$220 mark, some sweaters with additional features can cost up to $300.
If you’re a budget traveler, you can head to a flea market to find a second-hand item for up to half the price. Score!

4. Highlands in South Iceland
Iceland is known for its diverse landscape and captivating contrasts. On top of all the highlights, the highlands don’t disappoint. If you’re an adventure enthusiast at heart, take the opportunity to explore this rugged terrain.
Check out this famous Landmannalaugar hiking tour for an experience you’ll never forget! With a relatively affordable price tag, this tour offers a wallet-friendly option through Iceland’s breathtaking geothermal wilderness.
You’ll see the best of the Fjallabak Nature reserve, including bubbling lava fields, frozen glacial lakes, and soaring mountain tops. You can get your adrenaline pumping as you scale through the Condugil Canyon, the Brennisteinsalda Volcano, Mount Bláhnúkur, and then kick back in the natural hot springs.

3. Volcanoes
Given the country’s location on the Mid-Atlantic Ridge, Iceland is home to many famous volcanoes.
Here’s a fun fact about Iceland: did you know there are over 32 active volcanoes in Iceland? Isn’t that a stupefying amount? Of all the veritable volcanoes, the most famous are Eyjafjallajökull, Hekla, and Fagradalsfjall.
If you’re keen to join the action, you’re in luck! Get your heart rate up on this budget-friendly volcano tour and hike. You’ll scale the stunning Reykjanes Peninsula, discover the black lava in Geldingadalur, and explore the cracks of the Fagradalsfjall volcano.
Afterward, you can check out the sizzling mud pools in the Seltún geothermal area before getting gob-smacked by the Kleifarvatn Lake. This tour offers excellent value for money, especially for backpackers and budget-conscious travelers. Talk about adventure!

2. Blue Lagoon
Sitting in southwestern Iceland, the Blue Lagoon is a must-see destination. Backed by snow-capped mountains, this stunning spot is home to a series of mineral-packed geothermal outdoor pools. If there’s one thing Iceland is known for, it’s this iconic turquoise treat right here!
If you’re a budget traveler who doesn’t want to miss out, peek at this Blue Lagoon tour. The ticket includes a towel, a drink, and a few other benefits, making things all the more hassle-free for you. Plus, it’s pretty affordable when compared to other tour packages!

1. Northern Lights
If you’re a budget traveler, you might be fretting over the price range in Iceland. In fact, your trip may be limited when it comes to activities and attractions. If there’s one thing worth saving for, it’s a trip to see the Northern Lights.
Also known as the Aurora Borealis, the Northern Lights are pinned for the perplexing colors that shoot through the sky. This natural phenomenon is caused by the collision of charged particles from the sun interacting with our planet’s magnetic field.
This Northern Lights tour from Reykjavik offers relatively decent value for money, making it an ideal fit for budget travelers. Not only will you get to witness the lights in all their splendor, but there are also free photos, homemade hot chocolate, and cinnamon buns included too.
Is there a better combination?!

Don’t Miss a Thing in Iceland!
The land of Fire and Ice is decked out with dazzling opportunities. Whether you want to hike an active volcano, get a taste of the nightlife, dive deep into the Viking history, or go horseback riding across the hinterland, there’s something for everyone.
Iceland is famous for its natural splendor—there’s no doubt about it! The only downside is the high prices, especially if you’re a backpacker.
There’s no need to fret! That’s where I come in. Save these budget travel tips to make the most of your Icelandic adventure!
Planning is a crucial move, especially if you’re on a budget. If you’re looking for unique activities, tours, and attractions to squeeze into your Iceland itinerary, I’ve got you covered. Before you jet-set off abroad, look at this guide on the top things to do in Iceland!
Lagoons, Lights, Lively Volcanoes, and Beyond!
Navigating the network of nifty activities in Iceland can be difficult, especially if you’re on a budget. Just because you’re saving your pennies doesn’t mean you must miss out! Plan your upcoming Iceland trip with Pilot and begin the countdown now!