{Iceland Diaries} A cheaper alternative to the Blue Lagoon…

People often ask me how we can afford to travel as we do and I always say that it’s because we shop around for great deals and when we go, we have a strict budget to stick to which means being super clever with what we do when we’re on holiday and how we do it.  This post is an example of how we use our budget wisely…

When most people plan a trip to Iceland, the Blue Lagoon is usually top of their list, and why wouldn’t it be. It’s one of Iceland’s most famous attractions with it’s milky-blue water, luxury spa vibes, and Instagram-perfect photos.

It was definitely the top of our list from the first day we booked our holiday, in fact, we had actually planned to visit on the morning we arrived before we drove to our hotel and checked in as so many other people seemed to do that judging by what we read online before we went.  

But when we came to book our visit, I just couldn’t press buy on the our tickets. It was £112 each for the time slot we wanted (cheapest I think was about £92) and that just felt like such a lot out of our budget for a couple of hours.  

It wasn’t just the price that put me off though, I read that over 1 million visitors a year spend time at the Blue Lagoon and that it’s quite commercial.

It’s also actually not a natural wonder as it was created accidentally in the 1970’s when a beautiful blue pool formed using leftover water from a nearby power plant.  The plant draws up super-heated water from deep underground to produce electricity and hot water for nearby towns.  The leftover mineral-rich water (full of silica, algae, and minerals) was released into the surrounding lava field, and it naturally formed a beautiful blue pool.

I also read that the water can be very drying to your hair and that you need to really coat your hair in conditioner before going in to keep it from drying out and going a bit stiff. 

I can’t say that it isn’t an amazing experience because (a) we didn’t end up booking tickets to visit and (b) I think the majority of the 1 million visitors a year would dispute any claims that it wasn’t great value for money. 

But I can say that we found something a bit more authentic (and much less expensive) that we absolutely loved during our holiday. So much so that we visited three times during our week and still spent less than we would have spent on one visit to the Blue Lagoon. 

Our alternative to the Blue Lagoon is the Secret Lagoon in Flúðir which is the oldest natural swimming pool in Iceland.

Here’s why…

It’s quieter and more relaxed

I imagine Blue Lagoon can feel more like an event than a soak — lots of people, queues for drinks, and with so many visitors a year, I would think that you would feel a bit like you were part of a tour group conveyor belt. The Secret Lagoon, on the other hand, is so peaceful. It’s smaller, surrounded by natural scenery, and you can actually hear the birds and bubbling water while you float.

There’s a larger pool which you can float in (there’s loads of pool noodles you can grab at the side to help you float and completely relax) and a smaller pool you can just sit in and relax and for the brave, there’s a cold plunge pool. 

It’s much cheaper

The Blue Lagoon is beautiful, but it’s also pricey — tickets were £112 per person for when we wanted to visit whereas the Secret Lagoon cost us £25 each and we got the full geothermal experience in a beautiful setting. For families or anyone travelling on a budget, it’s a no-brainer.

It’s genuinely natural

The Secret Lagoon feels closer to how locals would have bathed hundreds of years ago and during each of our visits, there was a really good mix of locals and tourists. It’s built around a real hot spring and even has little geothermal pools bubbling away just next to it. The water constantly flows, keeping it clean and perfectly warm.

It fits perfectly into a Golden Circle day

Because it’s in Flúðir, the Secret Lagoon is ideal to stop at after seeing Gullfoss, Geysir, or Kerid Crater. You can spend the morning exploring, then end your day with a dip as the sun sets — and if you’re lucky, you might even catch the Northern Lights.

It’s also very close to another of my favourite stops when we were on holiday – Friðheimar Tomato Farm where we had the most amazing tomato soup.

It feels more local

At the Blue Lagoon, it’s easy to forget you’re in Iceland at all — it’s all robes, bars, and hotel spas. At the Secret Lagoon, you’ll find more locals, fewer tour buses, and a simple charm that makes it feel genuinely Icelandic.

It’s easier to book

The Blue Lagoon often sells out weeks in advance, especially during peak season. The Secret Lagoon is usually available on the day, and you don’t need to turn it into a major outing — just show up, pay, and enjoy.

It was on the route of the Golden Circle which we drove a few times so we ended up just keeping our swimsuits and towels in the back of our car so we could pop in if we were passing as it was the loveliest way to spend time. 

It’s perfect for real memories, not just photos

Of course, the Blue Lagoon looks amazing on camera. But if you want that sense of stillness — floating in naturally heated water with steam drifting through the cold air — the Secret Lagoon wins hands down to me. It’s the kind of experience that sticks with you long after you’ve left.

They do offer to waterproof your phone for you so you can take it in with you which I think cost about £6 and that was so worth it but most of my photos have either us or other people in them in their swimsuits and I don’t really want to share them so you’re just seeing a few of the photos and definitely not the best. 😁

I also only took my phone in on the first visit as it was so relaxing that I just wanted to float and not worry about taking pictures and holding onto my phone. 

So, while the Blue Lagoon might get all the attention, the Secret Lagoon is the quiet gem that feels more personal, more natural, and much better value. If you’re heading to Iceland soon, skip the crowds and take a dip where it all began. You won’t regret it.

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