Budget/Backpacker Travel Guide: Reykjavik

Accommodation

$25-60 per night

Hostel dormitory beds, budget guesthouses, or shared accommodation through home-sharing platforms

Food & Dining

$20-45 per day

Self-catering with grocery shopping, local bakeries, food trucks, and occasional budget cafes

Transportation

$5-15 per day

Public buses within Reykjavik, walking, and occasional bike rentals

Activities

$10-35 per day

Free walking tours, public geothermal pools, hiking trails, and occasional museum visits

Shop at local grocery stores and cook your own meals - typically 60-70% cheaper than eating out for every meal

Use the public bus system instead of taxis - usually 75-85% less expensive for getting around the city

Visit free geothermal areas and hiking trails instead of paid attractions - can save $30-80 per day

Book accommodation outside peak summer months for 25-40% lower rates

Take advantage of happy hour prices at restaurants, typically 20-30% cheaper than regular menu prices

Purchase the Reykjavik City Card for combined transport and attraction discounts - generally saves 15-25% on multiple activities

Fill up water bottles from tap water instead of buying bottled water - Iceland has excellent tap water and saves $3-8 daily

Eating every meal in tourist-heavy areas near the harbor - typically costs 100-150% more than local neighborhoods

Taking taxis for all transportation instead of learning the bus system - can triple your daily transport costs

Booking accommodation at the last minute during summer months - often results in 40-80% higher prices than advance booking

Not checking if attractions offer combination tickets - missing potential savings of 20-35% on multiple sites