Budget-Friendly Travel Tips in Reykjavik

Prices in Reykjavik vary by season. Summer (June–August) is the most expensive season, with higher rates for tours and accommodation in Iceland. Visiting in spring or autumn can save you up to 50%.

Plan ahead and travel outside peak months for lower prices and fewer crowds. Book early, especially for festivals or popular tours. Use the Reykjavik City Card for discounts on transport and attractions, and walk whenever possible — the city is compact and easy to explore.

Choosing Affordable Accommodation in Reykjavik

Finding the right stay makes a big difference. Book early and look for an affordable hotel in Reykjavik that includes breakfast or has kitchen access.

Hostels and guesthouses are great for solo travelers or small groups. Staying just outside the center can cut costs, too, but check bus routes for convenience. Boutique hostels and mid-range hotels often offer affordable private rooms and shared spaces that balance comfort and value.

Why ODDSSON Midtown and Downtown Are Great Budget Hotels

For travelers who want comfort and savings, ODDSSON Hotels are smart picks. Both combine modern design with features that help you spend less.

ODDSSON Midtown includes a complimentary daily breakfast, plus a cozy bar serving soups and light meals, ideal for quick, affordable dining. In the heart of the city, ODDSSON Downtown features a kitchenette in every room, allowing guests to cook simple meals. With Brikk Bakery on the ground floor, you can grab quality food without restaurant prices.

Both offer free parking, flexible housekeeping, and direct tour pickups, saving transport costs. Their central locations also mean easy access to city buses and attractions.

Saving Money on Food Costs in Reykjavik

Eating out in Reykjavik can be pricey, but there are easy ways to save. Stay at hotels with complimentary breakfast to cut daily food costs.

Shop at Bónus, Krónan, or Nettó for groceries and cook simple meals when you can. Try local favorites such as Bæjarins Beztu Pylsur for hot dogs or explore Hlemmur Mathöll for affordable street food.

If you drink, take advantage of happy hours, when bars often offer up to 50% off. And always carry a reusable bottle, as Iceland’s tap water is clean and free. On average, budget travelers spend around 12,000–18,000 ISK ($85–$125 USD) per day, including food, local transport, and basic accommodation. 

Getting Around Reykjavik Without Overspending

Reykjavik is small and walkable, so you can explore most places on foot. For longer trips, use the Strætó bus system or the Reykjavik City Card for unlimited rides and attraction discounts.

Taxis are expensive, so use them only for short rides or groups. If you’re planning day trips, rent a car only for the days you’ll drive. Also, check whether your hotel offers tour pickups to save on extra transport costs.

Budget-Friendly Day Trips from Reykjavik

You don’t have to go far to see Iceland’s beauty. These nearby spots are affordable and easy to reach, making your Reykjavik travel on a budget still fun and unforgettable:

• Golden Circle – Visit Þingvellir National Park, Geysir, and Gullfoss Waterfall, all free to enter. Join a shared tour or consider renting a car for the day.

• Reykjanes Peninsula – Less than an hour away, with hot springs, lava fields, and coastal views. Most sights are free; you’ll just pay for transport or driving costs.

• Viðey Island – A peaceful island just off the harbor, free to reach with the Reykjavik City Card. Perfect for walks, art, and picnics.

• Reykjadalur Hot River (Hveragerði) – A 40-minute road trip from Reykjavik. The hike and hot river are free, making it one of Iceland’s best-value adventures.

• Mount Esja – Reachable by Strætó bus, with free hiking trails and views of Reykjavik from the summit.

Free and Low-Cost Things to Do in Reykjavik

Reykjavik may be small, but it’s packed with experiences that don’t cost much or anything at all. Here are some of the best things to do in Reykjavik to fill your days while keeping your budget intact:

• Explore the waterfront – Walk to the Sun Voyager sculpture and Harpa Concert Hall, one of Reykjavik’s top architectural sights, for great views and photos.

• Join a free walking tour – Tip-based tours share local stories and city history.

• Relax in public geothermal pools – Visit Sundhöll Reykjavíkur for hot tubs and saunas at a low entry fee. All are free with the Reykjavik City Card.

• Visit free museums and galleries – Several small galleries are free, and some larger museums are included with the City Card deals.

• Enjoy the city’s green spaces – Walk around Tjörnin Pond, picnic at Austurvöllur Square, or hike Öskjuhlíð Hill near Perlan.

Tips to Save Money While You Stay in Iceland

Saving money in Iceland comes down to planning smart and spending wisely. Here are a few Iceland cheap tips to enjoy your Reykjavik travel on a budget:

Before You Go

• Travel during the shoulder season – Spring and autumn often bring lower prices on flights, hotels, and tours.

• Book early – Secure flights, hotels, and rental cars in advance. Prices rise quickly, especially in summer.

• Choose an affordable hotel in Reykjavik with complimentary breakfast – Places like ODDSSON Midtown include daily breakfast, which helps cut food costs.

• Get travel insurance – It’s an upfront cost, but it can save you a lot in case of delays, cancellations, or incidents.

During Your Trip

• Pack snacks – Bring lightweight snacks for road trips or tours to avoid expensive rest-stop meals.

• Cook when you can – Use shared kitchens or kitchenettes to prepare simple meals instead of dining out.

• Enjoy happy hours – Many Reykjavik bars offer early-evening drink specials, usually 30–50% off.

• Use public transport or walk – Reykjavik is compact and safe to walk around. The Strætó bus system and Reykjavik City Card help you get around cheaply.

• Do DIY tours – Rent a car for a day or use public transport to visit nearby sites at your own pace.

• Explore free and cheap activities – Public pools, walking tours, and local parks around ODDSON Midtown offer plenty of value for little or no cost. Splurge only on activities you can’t DIY, like visiting ice caves.

• Get the Reykjavik City Card – It includes unlimited bus rides, free entry to museums and Iceland’s pools, and the Viðey Island ferry.

Enjoy Reykjavik Without Breaking the Bank

Reykjavik proves that great adventures don’t need a big budget. With smart planning, the right timing, and a few local tricks, you can see Iceland’s capital without overspending. From affordable stays like ODDSSON Hotels, to free attractions and cheap eats, a Reykjavik travel on a budget is easier than most people think.

Use these Iceland cheap tips to stretch your krona, explore more, and enjoy the city’s charm — all while keeping your wallet happy!