Is Iceland expensive? Our top tips for travelling Reykjavik on a budget
If you’re thinking of travelling to Reykjavik, you won’t be disappointed. Iceland is known for breath-taking landscapes, unique culture, and friendly locals.
But is Iceland expensive? It certainly does have a reputation for being pricey, but we're here to show you how to explore the capital Reykjavik and the wider country on a budget.
From cheap accommodation in Reykjavik to budget-friendly dining options and free attractions, this guide will help you make the most of your trip without breaking the bank.
Is Reykjavik expensive?
Reykjavik is generally considered an expensive city, but with careful planning and budget-conscious choices, you can manage the cost without compromising on the experience.
It always helps to start by understanding the exchange rate of pounds to Icelandic krona.
Transport in Reykjavik
So, is Reykjavik expensive for travel? The answer is that it can be fairly cheap, especially if you explore on foot and by bus.
There’s no Metro system in Reykjavik, so the cheapest way to get around is by bus or on foot.
It’s a fairly small city and most popular attractions and tourist areas are within walking distance of each other. Exploring on foot is also a great way to explore Reykjavik’s unique charm - as long as you dress for the weather.
Buses
Iceland has an extensive , with many low-cost airlines operating direct services. Airlines include easyJet, Jet2, TUI, Icelandair, Wizz Air, and British Airways.
Prices can start from as little as £34 in quieter months - generally November to January.
The price of accommodation in Reykjavik
Accommodation can be costly in Reykjavik, so find the most budget friendly options by booking ahead.
You will often find cheap accommodation in Reykjavik on the outskirts of the city but remember to allow for bus or taxi fares to take you into the centre.
Hotels
Hotel costs vary depending on the star rating and board basis. A five-star hotel could cost more than £200 per night, but typically you can expect a standard hotel to be over £100 per night.
Apartments
There are plenty of holiday apartments available in Reykjavik. A room in a private house is usually the cheapest option, while an exclusive use, private property will be more expensive.
Hostels
Hostels provide cheap, no-frills accommodation where you may share a dormitory with other travellers. You can often book online to make sure you have a space.
Camping
There are campsites in and around Reykjavik where you can pitch a tent, but this is only recommended during the summer months. You could also hire a campervan, but this is less budget- friendly.
Food in Reykjavik
by ordering online now, or you might also like to choose a Travelex Money Card. Read more about money in Iceland in our currency guide.
Or, for more travel inspiration and ideas of what to do on your trip, see our Iceland travel guide. We also have some more general tips about budget travel.