ICELAND ON A BUDGET: Reykjavik travel guide & Itineraries

This travel guide is a lot more about Reykjavik and the day excursions that you can take from there. We also included sample itineraries, budget breakdown and recommendations on things to do. If you’re planning on checking out other parts of Iceland, this may not be suitable.

Most people think that Iceland is expensive.

Well, I hate to break it to you but, uhm, Iceland is really expensive. Reykjavik, its capital, is probably the most expensive city I’ve set foot in. It could cost you an arm, but you know what? It will treat your senses to an limitless succession of wonder that you will gladly give your other arm for another go at it.

That’s not to say that splurging is the only way to go. There are ways to lessen expenses, as we learned during our stay. and that is what we’re gonna share in this post.

WHAT’S covered IN THIS GUIDE?

Understanding Iceland and Reykjavik
When is the best Time to visit Iceland
How to get to Reykjavik, Iceland
How to get from Keflavik airport to Reykjavik City CenterRent a Car
Take a FlyBus or Grayline Bus
Take the public Bus
Take a mini-bus or shuttle

Where to stay cheap in ReykjavikTop Hostels in Reykjavik
Search for more: Reykjavik Hotels

How to get around Reykjavik City Center
How to visit nearby parts of Iceland from ReykjavikOption 1: By Car
Option 2: By Bus
Option 3: group Tours

Day excursions from Reykjavik (And a night Tour)Northern Lights Tour
Blue Lagoon
Golden Circle Tour
South coast Tour
South coast excursion with Glacier Walk
Jökulsárlón Glacial Lagoon (Icebergs!)
Other Iceland Attractions

Places to visit in Reykjavik Proper
Where to eat cheap in Reykjavik
How to stay connected in Iceland
Sample Iceland travel plan and ExpensesIceland travel plan A: You’re joining Tours
Iceland travel plan B: You’re Driving

More Iceland ideas for the poor Traveler
More ideas on YouTube ⬇️⬇️⬇️Related Posts:

Understanding Iceland and Reykjavik

Iceland is exceptional in lots of ways. It’s one of the youngest landmasses on the planet geologically, formed when lava spewed by volcanoes rose to the surface of the ocean and accumulated over millions of years. Iceland rises directly above where new crust is created, the Mid-Atlantic Ridge, with one foot on the North American plate and the other on Eurasian plate, splitting the country apart. imagine the crazy volcanic activities happening here, adding the latter bit to its nickname, “Land of Ice and Fire.”

Iceland is also one of the last countries to be populated in Europe. According to tradition, its first permanent settler was the Norwegian chieftain Ingólfr Arnarson who arrived in the island in 874 CE. Yet, it has the world’s oldest national parliament that is still in existence, the Icelandic Alþingi (aka Althing or Althingi), the history of which can be traced to 930 at Þingvellir.

Þingvellir, where the North American and Eurasian plates pull apart
With only over 300,000 residents, Iceland is also one of the most sparsely populated countries in Europe. Two-thirds of the population lives in Reykjavik and nearby areas in the southwest edges of the island. Although it is Iceland’s economic and political center, Reykjavik is a lot more like a big town than a city. It has preserved a nostalgic, rustic atmosphere, with no skyscrapers or gigantic shopping malls around.

Here are a lot more things you need to know about Iceland.

Language: Icelandic, a North Germanic language. It looks intimidating for non-speakers, especially when you see some really lengthy words that are hard to pronounce. but English is the second language and is spoken fluently by nearly everyone.

Currency: Icelandic Króna (ISK, kr). 100kr is around EUR 0.76, USD 0.87, SGD 1.2, PHP 47 (as of October 2018).

Cost of travel: very high. Iceland is an expensive destination. There are ways to minimize the cost, but it is normally expensive especially for travelers from developing countries like us.

Modes of payment: a lot of establishments accept both credit scores card and cash, but cash transactions are rare even for small purchases. Snack stands and cafes expect credit scores card a lot of of the time.

Electricity Info: 230V, 50Hz. Iceland uses type F sockets, also known as schuko. These are sockets that are indented into the wall and accepts plugs with two round pins including Plugs C and E.

When is the best Time to visit Iceland

It depends on what you’re in Iceland for. If you want to explore much of the country — including the desolate and off-the-beaten-track lands of the north — the summer months of mid-June to early September are ideal. The temperature is pleasant, just playing around 20C, and there’s a lot more daylight, which indicates a lot more hours of exploring. roads leading to the farthest corners of the island are open, too, and there are a lot more public transportation options. summer is also considered height season so prepare for the expensive to be a lot more expensive during this time.

Strokkur Geyser
But if you’re after the northern Lights (like I was), you need to visit between late September to late March. Reykjavik is the northernmost capital in the world, which indicates it is also the most easily accessible city for enjoying Aurora Borealis. The carry months of September, October, and March are great options not just because of the Lights but also because the rates are not as steep and the days are as long as the nights.

If you visit in December-February, prepare for shorter days and average zero degrees.

Note: It DOES feel colder in reality than what the forecast says because of the wind and the rain showers. Iceland’s climate is a bit very unpredictable. It’s sunshiny one time and then raining the next, so make sure you’re prepared for the cold (warm clothes!) even when it’s sunny when you leave your hotel.

How to get to Reykjavik, Iceland

First of all, know that Iceland is part of the Schengen Agreement, which indicates you will need a Schengen Visa to visit. lots of travel to Iceland as part of a larger European trip, just like we did. (If you’re based in the Philippines, and Iceland is the only country you’re gonna visit on this trip, you may apply for a Schengen Visa at the Norwegian embassy in Manila.)

Reykjavik has its own airport, Reykjavik airport (RKV), but it is used only for flights from and to other Icelandic towns, Faroe Islands, and Greenland.

If you’re coming from another country, you’ll be landing at the Keflavik international airport (KEF), which is an hour away from Reykjavik. If your trip to Iceland is part of a longer Eurotrip, the least expensive flights to Reykjavik are normally those coming from London, Copenhagen, and Amsterdam.

If you’re coming from Manila, the least expensive flight would be by means of Turkish Airlines + Icelandair. You’ll find ROUNDTRIP tickets for less than PhP 28,000 for March (off-peak, northern Lights) or for only PhP 31,000 for June (peak season, summer). See screenshots below.

The crucial is to book waaay in advance. The early bird catches the best fares.

Manila-Reykjavik, March

Manila-Reykjavik, June

How to get from Keflavik airport to Reykjavik City Center

Keflavik airport is located an hour away from Reykjavik. It’s actually a small airport so don’t worry about getting lost or not finding your way around.

To get to the city center, you have four options:

Rent a Car

If you can drive and have a driving license, you might want to consider this. I mean, really consider this. Renting a car is by far the least expensive (if you’re a party of 2 or more) and a lot of convenient way to get around Iceland. If you’re planning on renting a car to excursion anyway, you might as well pick it up at the airport. You can set up this before your flight or rent at the airport. (I’ll go over a lot more details in the section below. Scroll down.)

If you can’t drive for whatever reason, you can:

Take a FlyBus or Grayline Bus

Most tourists end up taking this because they have very visible booths by the terminal exit. It’s slightly pricier than the public bus and they charge a lot more if they drop you off at your hotel. note that if you choose that they take you to your hotel and if your hotel is located in the Old Town, you will be switching to a smaller mini-bus/shuttle at the terminal because big buses are not allowed in the area. here are the rates:

GRAYLINE(one-way)
To Grayline Terminal: EUR 20 (ISK 2400)
To your Hotel: EUR 24 (ISK 2900)

FLYBUS (one-way)
To Reykjavik BSI Terminal: EUR 20 (ISK 2500)
To your Hotel: EUR 24 (ISK 3000)

✅ get YOUR TICKET HERE

Take the public Bus

This is the more affordable bus option. Iceland has a Public Bus System called Strætó, and it runs Bus 55 that plies the Keflavik airport to Reykjavik route. just look for the BUS 55 sign outside the terminal. Its final stop is the BSI Umferðarmiðstöðin, which is the city’s main bus terminal. You can take another bus or you can walk to your hotel from here. The downside here is that it’s not as frequent as the private buses. You may check the timetable here. Fare: 1760 ISK (14.5 Euro, 16.5 USD). updated fares here.

Take a mini-bus or shuttle

There are also other companies like Reykjavik Sightseeing who could take you straight to your hotel without stopping or switching automobiles because they use a smaller shuttle all the way through. Fare: ISK 2990 (EUR 24).

Where to stay cheap in Reykjavik

If you’re going on a road trip around the island, then you shouldn’t spend all your nights in Reykjavik. but if you can’t drive or not planning on checking out the farther corners of the country, it makes sense to use Reykjavik as your home base because a lot of accommodations are here.

The Old town is the best place to stay because it’s the heart and soul of the city. It’s great to walk around and there are plenty of respectable restaurants.

When we were searching for hotels in Reykjavik, we were shocked. Our visit was in October but the rates were at least EUR 100 (USD 110) per night for a twin or double room at a “budget” hotel. The upscale ones would discuss USD 1000 per night.

Dorm beds were more affordable at around USD 25-55 per person (but I snore so scandalously, I wouldn’t want to put my roommates through it, haha, so it wasn’t an option for me).

I tinkered with hotel booking engines and found that these are normal rates for June-October. You can book private twin rooms at a budget hotel for as low as EUR 55 per night if your travel dates fall within the November to March period.

Anyway, we ended up booking an apartment or condo by means of AirBnB for only EUR 70 per night (+ EUR 42 service fee). I’ll write a separate entry about it soon.

Top Hostels in Reykjavik

Reykjavik downtown Hostel
Vesturgata 17, Reykjavik City Center
CHECK RATES

Hostel B47
Baronsstigur 47, Reykjavik, Iceland, 101
CHECK RATES

Search for more: Reykjavik Hotels

How to get around Reykjavik City Center

Reykjavik is a small, walkable city. If you want to go around the city, go on foot. Unless the weather is sour or it’s very cold, of course. Otherwise, WALK.

Should you really need to take the bus, here are the rates:

Single ride: ISK 420
20 ticket card: ISK 8000
1 day card: ISK 1,500
3 day card: ISK 3,500

If you’re not sure about what to buy, select a single ride first and then try exploring the town on foot and see if you really need to ride the bus from your hotel to your destinations.

How to visit nearby parts of Iceland from Reykjavik

Vik, Iceland’s southernmost village
There are no railways in Iceland. Locals normally travel by car or by plane (for long distances within the country). but if you want to see the southern and southwestern parts of Iceland, which are the regions closest to Reykjavik, you have two options.

Option 1: By Car

Like I said earlier, the least expensive and a lot of convenient way to go around Iceland is by car. If you know how to drive and have a driving license, it makes best sense to drive. Why? because public transportation options are scarce and excursions are expensive.

Car rental rates normally start at around EUR 100 (ISK 13,000, PHP 5500) for the first day and additional EUR 30-50 EUR for every succeeding day. That’s for a Hyundai I10, Suzuki Alto, or similar unit with unrestricted mileage and can accommodate up to 4 passengers. A 5-day rental would probably cost EUR 210 (ISK 26,500) and a 6-day rental around EUR 270 (ISK 34,000).

Add petrol/gas cost and insurance (around EUR5 per day), and these would be your only transportation expenses. If you’re a group of two or more, that’s a lot more affordable than joining group tours, which I will go over later.

Renting a car gives you not only savings but also flexibility. You can choose your stops and you can even opt to spend the night in another town so you don’t have to go to Reykjavik at the end of each day.

Option 2: By Bus

If you want to see much of Iceland other than those surrounding Reykjavik but you CAN’T drive, you can purchase a bus passport. This will allow you to hop on and off a bus system that would stop at lots of crucial attractions and towns. There are four routes to choose from. the most popular is the full CIRCLE passport that will allow you to travel around the country in one direction, which can start and end in Reykjavik. It costs EUR 300 (ISK 37,900).

Here’s the catch, it’s only available during summer, mid-June to early September. Also, in my opinion, to maximize its value (because it’s pricey), it’s only ideal if (1) you’re staying in Iceland for at least a week, and (2) you want to see the eastern and northern parts of the country. a lot more information about bus passports here.

You may also take the public buses, but bear in mind the schedule for the route you want to take and the frequency of trips. a lot more info here: Iceland Public Bus Schedule.

Option 3: group Tours

If you can’t drive and you don’t want to wrap your head around bus timings, you can join a group tour. We can drive but we don’t have a valid license so we ended up joining group excursions instead. like all the other things in Iceland, it’