Is Reykjavik Expensive? Everything You Need To Know!

When it comes to beautiful, historic cities like Reykjavik, there’s no doubt that part of the appeal is the chance to gain insight into unique and vibrant cultures. But what’s the biggest draw for anyone considering a vacation to Iceland? Is Reykjavik expensive?To answer that question, it’s important to consider what an ideal vacation looks like when it comes to money. We all want to get the most bang for our buck, whether it’s in a hotel, a restaurant, or something else. So is Reykjavik an affordable destination? Let’s explore.

What Do I Need to Know About Reykjavik’s Cost of Living?

If you’re wondering whether Reykjavik is expensive, the cost of living should be one of your first considerations. After all, researching the cost of living gives a snapshot of the cost of everyday things in Reykjavik, not just the upfront travel costs.According to Expatistan—a reliable source for researching countries’ cost of living—the average price level index for Reykjavik is 37% higher than that of New York City. In other words, goods and services will cost you in Reykjavik what they would cost you in New York, but with a substantial discount. That being said, certain goods and services are particularly expensive in Reykjavik. Specifically, rent, transportation, restaurants, and entertainment tend to charge higher prices than in other low-budget destinations.

What Type of Accommodation Should I Look For in Reykjavik?

Accommodation is usually the priciest part of a trip—especially in Reykjavik. Though many tourists believe the high cost of hotels and Airbnbs to be inevitable, that isn’t necessarily true with a little research and planning. One great solution is to consider hostels. Hostels aren’t always the most luxurious option, but they’re definitely affordable—strapped-for-cash tourists can get a bed for as little as 5,000 ISK (about 40 USD). Plus, hostels often come with social facilities like cafes, making them great places to meet locals and fellow travelers from all over the world. Other accommodation options include Guesthouses and camping sites scattered throughout Reykjavik. Guesthouses are effectively private rooms available on Airbnb or hostel booking sites, so they’re generally more expensive than other accommodation options (expect prices starting at around 3,000 ISK or 25 USD per night). Alternatively, budget-conscious travelers can pitch tents at one of the camping sites around Reykjavik. While camping spaces are relatively low-priced (1,000–1,500 ISK or 8–12 USD per night), they don’t offer showers or cooking facilities like some of the other accommodation options do.

What Can I Do for Free or Cheap in Reykjavik?

Though Reykjavik isn’t necessarily the most affordable destination for all sorts of activities, there are a few great things that tourists can do for free or almost free:

• Visit museums: The Reykjavik Art Museum and the National Museum of Iceland are both free on Wednesdays
• Explore local nature: Tourists can visit Hot Springs, lava caves and waterfalls without spending money
• Take part in local events: There are plenty events taking place throughout the year which don’t cost anything
• Witness stunning views: You don’t need to pay anything to admire Reykjavik’s stunning views from Hallgrímskirkja and Perlan.
• Go swimming: Many pools in Reykjavik offer low entry fees.
• Enjoy coffee and cake: CafeBók offers delicious cakes and coffee for just 1,000 ICK or 7 USD.

What Can I Do for Bigger Money in Reykjavik?

Though many of Reykjavik’s tourist attractions are inexpensive or even free, it still offers plenty of activities for visitors willing to spend a bit more cash on their vacation:

• Visit the Blue Lagoon: Tourists can relax in the iconic Blue Lagoon—Reykjavik’s world-famous geothermal spa—for 10,900 ISK (roughly 90 USD) per person.
• Go shopping: Reykjavik boasts an array of boutiques and shops selling everything from souvenirs to high-end fashion items.
• Go whale watching: Tourists can experience the majestic beauty of whales and dolphins while exploring Iceland’s stunning fjords.
• Take culinary tours: Take a private culinary tour with a local chef and explore some of the city’s hidden flavors and dishes.
• Experience theater and music: Attend live performances at The National Theatre or Tjarnabio and experience the best theater Iceland has to offer.

The Bottom Line: Is Reykjavik Expensive?

Overall, there’s no definitive answer to this question. It depends on your unique budget constraints, as well as what activities you plan on engaging in while in Reykjavik. Generally speaking, though, Reykjavik is an expensive city when it comes to accommodation, restaurant meals, and certain entertainment activities. On the other hand, there are plenty of inexpensive attractions available for budget-minded tourists who love getting outdoors or visiting museums—so it’s possible to find ways to enjoy yourself without spending too much. Ultimately, no matter your budget, you can find something fun to do in this amazing city without draining your wallet.