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Can I afford a trip to Iceland?

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Hi! I was so excited to begin planning a trip to see beautiful Iceland, My husband, myself, and our 3 teenagers were planning to fly from NY to London and after a week there, fly to Iceland for another week before heading home.
Well, I just received a proposal from the travel agent, and it seems Iceland costs more than $2,000.00 per day. Ouch! Granted we usually need two hotel rooms when we travel, and I had asked for some private tours, and to rent a vehicle so we can do some touring on our own but still... I also just asked that we stay at two different locations, at preferably 3 or 4 star hotels. Now I'm wondering if there is a better way to see Iceland. Maybe one guide for the whole trip? Maybe only do self-touring? Any and all advice will be greatly appreciated!

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