Iceland is considered a relatively expensive travel destination. On average, a trip to Iceland costs between $100 and $300 per day depending on spending habits, travel style, and the time of year. For example, budget travelers who camp or stay in hostels might spend around $100 to $150 per day, while a more comfortable trip could cost $250 or more daily. Accommodation prices vary widely, with hostels costing $16–$50 per night, mid-range hotels around $80–$200 per night, and higher prices during peak summer season. Food is also pricey; a simple hot dog might cost around $6, and restaurant entrées often range from $25 to $30. Transportation, especially fuel, adds to the cost since Iceland imports most goods and has a high cost of living overall. However, with careful planning and choosing budget options, it is possible to enjoy Iceland without an exorbitant budget.