My trip to Alaska was a long time coming. And while I had done enough research by the time I arrived to know some of what awaited me, a lot of what I found was surprising.
Specifically, I had a good idea of how I would structure my time, including which places I’d stay and for how many nights, as well as the activities I’d take part in each day. As had been the case in Hawaii, I also had a general sense of how much things would cost (spoiler alert: a lot).
Indeed, I knew that the answer to the question “is Alaska expensive?” would be “yes.” I just didn’t know to what extent—it was a crazy one.
Prices in Alaska Shocked Me
Almost immediately after landing in Anchorage, I realized that “Alaska expensive” was on a different level. While I’ll explain more about this in subsequent sections, I’ll briefly narrate my experience. After picking up my rental car, which in spite of being in terrible condition cost around $250 per day (almost 10x what it would at most other US airports), I arrived at a $200-per-night Anchorage hotel that I can only describe as a glorified halfway house.
If the weather had been warmer (it was August, but it was freezing), I might’ve considered temporary storage options for my belongings, and slept in a tent instead of a hotel in Anchorage and an Airbnb in Seward. Certainly, this would’ve freed up some funds for meals and activities, which were both equally as expensive as my car and lodging had been, relatively to the quality of the products and services in question.
The 5 Most Expensive Things in Alaska
Lodging
As I mentioned above, I was shocked by the condition and the cleanliness of my “hotel” in Anchorage, which was downright terrifying—and not just because of how much I paid for it. I was so eager to get out (and so scared of going barefoot) that I actually didn’t shower before setting off. My Seward Aribbn was cheaper (and better), but as a general rule, you should expect to spend at least $200 per night (but probably more—maybe much more) for accommodation in Alaska.
Transportation
If you find getting around in Alaska cheap, you’re probably rich. Truth be told, even long-distance buses and the Alaska Railroad seemed expensive, which is part of why I thought it was best to rent a car for two people. As is the case with hotels, you should plan to shell out no less than 200 USD per day to get around in Alaska, and maybe more depending upon the size of your party.
Food and drink
“Surely,” I remember saying as I sat down for my first real meal in Alaska, “crab has to be cheap.” Nope! While I could’ve saved a bit of cash option for Dungeness crab instead of king crab, the reality is that I was basically doomed to spend over $100 per person at dinner; even the next night, when we opted for fish, we still each spent over $60 each when considering soft drinks and dessert.
Experiences
In some sense, I understand why Alaska prices for things like Seward wildlife cruises are expensive. The boats cost a lot to maintain, and the crew needs to be specially trained. On the other hand, I remember thinking as the ship headed off that the company who ran the tours must be printing money—1,000+ tourists per day at ~$300 per head for 4-5 months. You can do the math. Unless you hike on free trails (and aren’t afraid of bears), plan on spending a lot to enjoy Alaska.
Shopping
I am not a big shopper, though I do like to buy souvenirs for friends and family everywhere I go. It’s ironic, then, that Alaska-branded keepsakes (made in China though they might have been) were one of the only reasonably priced things I spent my money on during my time in the state. Certainly, after shelling out over $2,000 for the privilege of existing in the state for less than $72 per hour, $5 for a moose magnet didn’t seem unreasonable.
Alaska is Expensive—But It Isn’t Rich
A phrase I wrote down during my time in Alaska was “Norway prices; Arkansas quality.” This is not meant as an attack on the people of Alaska, only to say that I found the disparity of their existence—they take in more tourism revenue per capita than almost every other state; they frankly appear to be poor, in some places even destitute—to be sad and shocking. This is in contrast to Hawaii, where locals seem to be at least middle or upper-middle class.
I’ll leave it to you to do the math for yourself, but when I extrapolated my Alaska trip cost (which was on the lower end) to all the tourists that come there every year, it seemed like local residents should’ve been swimming in cash. My conclusion, based on logic more than research, is that some combination of corruption and money flowing outside the state is the cause of one of America’s most expensive states also seeming to be its poorest.
Other FAQ About the Cost of Travel in Alaska
How expensive is Alaska to visit?
Alaska is shockingly expensive, both in terms of how much you can expect to spend (no less than 400-500 USD per day for a couple) as well as the quality of goods and services that buys you. I’ve been to almost 100 countries and more than half of US states, and with a couple of exceptions (Norway and Switzerland immediately come to mind), nowhere else I’ve traveled is anywhere near as expensive.
Is eating out in Alaska expensive?
Eating out in Alaska is extremely expensive, even if you eat mostly things that are locally caught or cultivated. For example, a pound of king crab legs (and not nice-looking ones) in Seward cost almost $100, to say nothing of how much I had to pay for sad side dishes and drinks served in plastic cups. A couple should expect to spend far north of 100 USD per meal.
Why is Alaska so expensive?
The short answer is that Alaska’s remote location makes the price of goods (which are almost entirely imported) much higher than their intrinsic cost. The long answer is that there’s probably a certain level of corruption in Alaska that allows businesses (which I suspect are often not locally-owned) to rip tourists off, while not passing the proceeds onto the local population.
The Bottom Line
Is Alaska expensive? Yes—in spades. In fact, without being dramatic, I can honestly say that Alaska is more expensive than almost anywhere else I’ve ever been. Prices are similar to those you pay in Norway or Switzerland, but without nearly as much return on your investment. To put it another way, you pay five-star prices for two-star experiences in Alaska; in spite of the tourist revenue the state takes in, the locals seem to be rather poor. Now, I wouldn’t say that this detracts from the beauty of the state, though it does make me reticent to spend more time there in the future. Need help planning an Arctic adventure, no matter where in the world it takes place? Consider hiring me as your Travel Coach!
