Iceland & Reykjavík: Money Saving Tips for Food, Transport, Tickets and More

Our journey to Iceland was inspired by this YouTube video. We were captivated by scenes of the epic Laugavegur Trail (more on that adventure in another post!) and booked our flights. When we arrived, the famous Icelandic prices were a bit of a shock.

It took us a couple of days to adjust. But once we did, we discovered plenty of ways to save money without sacrificing the experience. We had an immense and unforgettable trip. We share essential tips with you here, so that you can navigate the costs and focus on the incredible beauty of Iceland.

Is Iceland as Expensive as They Say?

Iceland has a reputation for being pricey, and for good reason. As an isolated island, the country relies heavily on imports for many goods, which drives up costs. Furthermore, high local wages and taxes are reflected in the prices you see.

To give you a real-world sense of costs, a plate of fish and chips can set you back 4,000kr (~US$33), and a cafe latte goes for 880kr (~US$7.20). Seeing these prices can be jarring at first. But once you understand the baseline, you can plan smartly. This guide is all about sharing our best tips for navigating these costs, from supermarket finds to enjoying the best freebie of all - pure, refreshing glacier water right from the tap!

Cheap Ways to Get from Keflavik Airport to Reykjavík

Keflavik International Airport (KEF) is a 45-minute drive from Reykjavík. Skip that expensive cab, you have a couple of great options for making the journey.

The most direct and popular choice is the Flybus. We found it incredibly convenient. The service runs from the airport directly to the BSÍ Bus Terminal in Reykjavík. For an additional fee, you can add a transfer at BSÍ to a smaller bus that takes you to the official bus stop nearest your hotel. We found cheaper tickets online at Klook, and you can safely ignore the timings. After collecting your luggages, just walk over to the Flybus pick-up point to board the next available bus.

If you are looking to save more money, local Strætó bus 55 takes 85mins from KEF to BSÍ (2,400kr for adult ticket). Unlike Flybus, it runs on a fixed schedule, so check the latest timetable before your trip to make sure it aligns with your arrival.

Once you are in Reykjavík, the city center is wonderfully compact and walkable. We found that exploring on foot was the best way to soak in the sights and sounds.

Where to Stay in Reykjavík for First-Timers

For first-time visitors, your hotel's location in Reykjavík is crucial. We strongly recommend staying in the area between the main shopping street, Laugavegur (same name as the famous hiking trail!), and BSÍ Bus Terminal. This central sweet spot makes most major sights, restaurants, and shops easily accessible on foot.

On hindsight, this is something we would do differently. Our bus back from the Laugavegur trail dropped us right at the BSÍ, and having a hotel a short walk away would have been a game-changer. Hotels in this area, like Hotel Holt or Hotel Leifur Eiriksson, are good choices.

We stayed at Fosshotel Lind. It was a decent base for our adventures, but their shower cubicle was very small! We wouldn’t recommend it for this reason.

Staying central means you can walk and not take a bus, and this saves you money. An adult single trip on the local Strætó bus costs 670kr, and is valid for unlimited transfers within 75 minutes. Cash is not accepted on buses, contactless pay via credit card, Apple Pay or Google Pay is preferred.

Your First Must-Do in Reykjavík: A Free Walking Tour

One of our favourite travel hacks is to book a free walking tour for our first morning in a new city. It forces us to get out into the sun and fresh air, which is the best way to fight off jet lag.

This was the perfect way to get acquainted with Reykjavík. In just a couple of hours, our guide gave us a fantastic crash course on the city's layout and Iceland's rich history. A walking tour provides the context you need before you start exploring on your own. Plus, it is your best chance to get recommendations for cafes, bakeries, or hidden spots from your guide.

If you enjoy the experience, a tip of around 1,500kr to 2,000kr is a great way to show your appreciation. It is an incredibly valuable and efficient way to kickstart your Icelandic adventure.

Money Tips: How to Eat Well in Iceland Without Breaking the Bank

Eating out for every meal in Iceland will quickly drain your travel fund. But we discovered that with a few smart hacks, you can eat well without breaking the bank.

First, the most important rule - do not buy bottled water. Iceland’s pure, refreshing glacier/spring water is piped to every tap in Iceland, and it is completely free. Bring a reusable bottle and fill it up from any tap. When you eat at a restaurant, ask for tap water. You will get a pitcher of incredible water for free, which saves you from buying expensive drinks.

Your best friend for budget meals is the local supermarket. Our preferred chain was Krónan, which we found had a great balance of selection and price. After that came Bónus, and then Extra. We were surprised to find that not everything was more expensive. Items like frozen pizza, potato chips, beer, and especially smoked salmon and meat were cheaper than back home in Singapore!

If your accommodation has full kitchen facilities, you are set. Cooking is the most economical way to eat. We saw fellow travellers whipping up meals in the shared kitchens. Since it was just the two of us, we focused on easy microwaveable meals for simple, hot dinners.

You can still enjoy Reykjavík’s vibrant cafe and restaurant scene. The trick is to do it strategically. For our caffeine fix, we loved Reykjavík Roasters, which offered a free refill on their delicious filter coffee. For a fantastic meal, look for lunch specials. Our best find was the 2-for-1 weekday lunch deal at Jörgensen Kitchen & Bar, which let us score their delicious Confit Pork and Icelandic Lamb Stirloin for only 5,990kr total! Seeking out these kinds of offers is the best way to dine affordably.

Money Tips: How to Save Big on Iceland Attraction Tickets and Tours

This was our single biggest money-saving discovery in Iceland. Do not book your tours and attraction tickets without first comparing prices on third-party sites like Agoda or Trip.com. We found that we could get the same tickets for a significantly lower price and we had zero issues using them.

Here are 3 real-world money saving examples from our trip:

• Vök Baths: The admission price is 7,490kr per person. On Agoda, you can buy the ticket at US$50.41! You can get Sky Lagoon tickets cheaper too!

  

• Skaftafell Glacier Hike (with Arctic Adventures): The standard price for this guided tour is US$115. We found a better price at US$90.91!

  

• Lava Show in Reykjavík: While prices are only slightly cheaper compared to the official website, we prefer to buy from Trip.com as it charges in our currency, so we avoid the high credit card FX fees for paying in ISK.

We couldn’t see the cheaper Agoda deals when connected to local wifi in Iceland, but were able to access them when we disconnect wifi and used our 20GB travel eSIM that routed data through a server in Hong Kong! We suspect these deals in Agoda are region locked.

Bookmark this post and revisit it when you are ready to buy your tickets in Iceland using our travel eSIM. It’s a simple check that could save you hundreds of dollars on your activities.

Other deals in Reykjavík we found:

• Whale Watching Cruise Reykjavík

• Perlan Museum Tickets

• Flybus from KEF Airport to any Reykjavík Hotel

• Icelandic Phallological Museum Tickets

• National Museum of Iceland Tickets

Even More Money-Saving Tips for Iceland

Let’s rapid-free more ways to keep your budget in check:

• Pack Smart, Buy None: Iceland is not the place for last-minute shopping. A thorough packing list is your best defence against buying overpriced essentials.

• Book Accommodation ASAP: Rates are much cheaper when booking Hotels in advance, especially for travel during the peak summer season. Many hotels/rooms were no longer available when we booked 4 months before our trip!

• Save on Your Road Trip: If you plan on driving, your car, gas, and parking will be major expenses. We cover how to save on the road in our dedicated Guide to Driving in Iceland.

• Remember the Golden Rule: Drink Tap Water! We will say it one last time. It’s pure, healthy, and absolutely free!

Departing Iceland: How Much Time You Need at KEF Airport

When it is time to fly home, you might wonder how early you need to get to Keflavik Airport (KEF). Based on our experience, arriving two hours before your scheduled departure is plenty of time to check in our bags, pass smoothly through security, and even sit down for a quick snack before heading to our gate.

If you plan to rent a car, returning it at the KEF airport means you don’t need to spend money on transport to the airport. Have your meal at the towns just outside of the airport as the food options in KEF is limited, expensive, and most close by 630pm.

With a little savvy planning, your first trip to the Iceland will be rich in experiences, not expenses!

Hope you found this post useful!

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