Visiting Iceland is on many people’s bucket lists. Its stunning landscapes feature 32 active volcanoes, countless fjords and glaciers and numerous naturally formed geothermal spas. Add the possibility of seeing the Northern Lights or savoring a bowl of Plokkfiskur (fish stew), and you have a truly unforgettable holiday.

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However, a trip to Iceland isn’t cheap. On average, travelers can expect to pay $2,908 for a one-week trip to Iceland for two people (which includes costs for hotels, food, tours and transportation). If that sounds a little too pricey, some alternative cities provide many of the same benefits of an Iceland vacation for less.

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Rovaniemi, Finland

Located in the northern Finland Lapland, Rovaniemi is the ultimate Arctic escape. Known as the “Official Hometown of Santa Claus,” Rovaniemi attracts numerous tourists hoping to spend their holidays with Santa and his elves.

But Rovaniemi is more than just a Christmas destination. It also offers plenty of Arctic activities, including Northern Light tours and a chance to try dogsledding with Finnish huskies.

If hiking is your thing, check out the Arctic Circle Hiking Area, which offers well-marked trails alongside stunning scenery, including water rapids.

Bergen, Norway

Bergen is Norway’s second-largest city, and it’s an excellent option for tourists seeking a gateway to the country’s stunning fjord landscapes.

You can visit historic Bryggen, a small village of colorful row houses that’s also a World Heritage site. Or take the funicular to the top of Mount Fløyen, which offers stunning city views and numerous hiking trails.

Don’t forget to stop at the historic Bergen Fish Market, which first opened in the 1200s and is still a popular local meeting place. The market offers several restaurants serving the day’s fresh catches.

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Oslo, Norway

For those seeking a deep dive into Viking history, Oslo is an excellent alternative to Iceland.

You can start your trip by visiting the Midgard Viking Centre, which contains several exhibitions of Viking artifacts and replicates one of the most magnificent known Viking halls. At the Slottsfjells Museum, you can see an actual Viking ship known as the Klastad. You can also explore an urban Viking settlement at Kaupang Viking town.

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Kiruna, Sweden

Kiruna is Sweden’s most northern city. Its small population of just 22,000 people means you’ll be smack in the middle of nature’s Arctic glory, which includes stately mountains, blue glaciers and numerous lakes.

The city’s location allows visitors to experience the midnight sun or polar nights, depending on when they visit. It’s an ideal place for catching the Northern Lights when they’re visible in autumn, winter or early spring.

The extra adventurous can try snowmobiling through the Arctic tundra or ice climbing near Camp Ripan.

Punta Arenas, Chile

Patagonian Chile offers some of the same experiences you’d find in Iceland, including whale-watching trips and magnificent scenery. Base yourself in Punta Arenas, and you’ll be close to numerous attractions.

Just a few hours’ drive from Punta Arenas is the Torres del Paine National Park, home of the famous five-day W-trek that takes you through epic mountains, stunning ice-blue lakes and beautiful glaciers. Other attractions include king penguin colonies and old shipwrecks from times when pirates and traders used the Strait of Magellan as their primary transport route.

Glencoe, Scotland, United Kingdom

Glencoe sits in the middle of the Scottish Highlands and offers dramatic landscapes at every turn. In it, you’ll find several beautiful hiking locations, including the Three Sisters Viewpoint, Hidden Valley and Buachaille Etive Mòr. While the difficulty level varies, each offers stunning viewpoints of Glencoe and its surrounding area.

If you rent a car, take a drive down Glen Etive Road, where part of the James Bond movie “Skyfall” was filmed. You’ll see more than a few mountains and glens that wouldn’t look out of place if seen from Iceland’s infamous Ring Road.

Average cost of one-week trip for two people sourced via Budget Your Trip unless otherwise specified. All data accurate as of August 6, 2024.

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