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Inexpensive spring break in iceland?

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Hey Fodorites - My college-age daughter and her friend are headed to iceland for their spring break. They will stay in a hostel or air bnb lodging for a week in the first half of March. No car, so they will do some day trip excursions and explore Reykjavik on foot. Looking for some good suggestions of inexpensive restaurants. They are trying to find a place with at least minimal cooking options - good access to grocery stores, etc? One is a vegetarian. Any "cheap" lodging you particularly recommend? Any other Iceland tips? It's one of my dream locations but I haven't been yet so I'm beyond jealous...! What are some affordable tour companies you recommend? Any suggestions/advice would be appreciated. They're both adventurous young women who have traveled extensively, and they are in school in Colorado, so should be prepared for the weather. Thanks for any help!

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