Prices in Iceland have been increasing more rapidly during the ongoing global economic flux. In global comparison, the prices in Iceland are relatively high. We took a look at the prices in the main consumer categories like food, drinks and fuel and travel related such as accommodation, day tours and activities.
Accommodation Prices in Iceland
For tourist accommodation, Iceland has limited availability in the summer months, as most accommodation is already booked. In our example, we search for accommodation for two adults and one child (10 years old). When this was written in May 2023, 85% of accommodation in the capital area on Booking.com was unavailable in the first week of July (first to the seventh). The lowest price was at Víðines Guesthouse, for a family room with shared bathroom for 1,133 USD/1,051 EUR. The lowest price in the “fabulous” rated category was Icelandic Apartments in Kópavogur in the capital area for 1314 USD/1218 EUR. The prices are lower in some places in the countryside. If our imaginary family of three heads to Suðureyri in the Westfjords, they can get accommodation at Fisherman Guesthouse (rated 8.1 out of 10 on average) in the first week of July for 853 USD/790 EUR.
If we head over to AirBNB to look for accommodation for the family in the capital area for July 1-7, the lowest price we can find is 773 USD/716 EUR in the suburb of Grafarvogur (around 10 km from downtown Reykjavik). The lowest prices outside the capital area are similar.
The Cost of Day Tours & Activities
Here you can find a great variety of day tours and activities for your stay in Iceland. Some of the most popular day tours and activities in and from Reykjavík currently cost somewhere between around 50 EUR/53 USD and 293 EUR/312 USD:
Most private tours will currently cost upwards of 666 EUR/710 USD:
More economic alternatives such as visiting museums or FlyOver Iceland could cost from around 26 EUR/28 USD to 80 EUR/85 USD:
Transportation and Car Rental Prices
The most widely used public transportation are the city buses in Reykjavík. The cost of a single trip for an adult within Reykjavík is 550 ISK (4 EUR/4 USD). A card for 24 hours unlimited trips costs 2200 ISK (14 EUR/16 USD) while you can get unlimited trips for three days (72 hours) for 5000 ISK (33 EUR/35 USD). A 30 days card is available for 9000 ISK (59 EUR/64 USD). You can also use the city buses to get to and from the international airport in Keflavik (KEF) for 1960 ISK (13 EUR/14 USD). The schedule is available on straeto.is.
A more convenient and frequently running option to get to and from the airport is the Flybus, with BSÍ Bus Terminal as its base in Reykjavík, but you can also get straight to or from hotels downtown via their shuttle service. Airport Express drives between the airport and Reykjavík Terminal in Skógarhlíð 10.
What about car rental? Similar to accommodation, a lot of the cars are already booked for the summer. We took a look at the same period as for accommodation, the first week in July (1st to 7th). A five-seat Dacia Duster SUV is available for 112,583 ISK (749 EUR/799 USD) and for a similar price you could also get these 5-seat cars:
- Toyota Corolla
- Suzuki Vitara
- Dacia Logan Estate
- Volkswagen Golf
- Peugeot 2008
- Mitsubishi Eclipse Cross
Food Prices in Iceland
Food prices have been increasing in Iceland as everywhere else due to rising inflation levels globally. This year, we have covered the prices of common food items in grocery stores, dishes in popular restaurants and beer in stores as well as restaurants.
Starting with food from grocery stores, this is what you can expect to pay for common items:
- Whole milk (1 L) – 206 to 240 ISK
- Bread (500 g) – 250 to 699 ISK
- Bananas (1 kg) – 300 to 400 ISK
In popular casual dining restaurants, here are examples of what you can expect to pay:
- Fish of the day at Snaps Bistro: 4930 ISK (33 EUR/35 USD)
- Lamb with baked potato & vegetables at Jörgensen Kitchen & Bar: 5990 ISK (40 EUR/43 USD)
- Icelandic lamb meat soup at Café Loki: 2550 ISK (17 EUR/18 USD)
More detailed information about meal prices in Iceland, including fast food and fine dining.
You might also want to have something to drink besides tap water which is fresh and comes with no extra charge. These are examples of drink prices at Forréttabarinn, a restaurant we can recommend:
- Small beer (33 cl) – 1100 ISK (7 EUR/8 USD)
- Large beer (50 cl) – 1500 ISK (10 EUR/11 USD)
- A glass of house wine (white or red) – 1550 ISK (10 EUR/11 USD)
- Soda (25 to 33 cl), e.g. Pepsi, 7UP or sparkling water – 500 ISK (3 EUR/4 USD)
- Cocktail of the month – 2000 ISK (13 EUR/14 USD)
- Espresso – 550 ISK (4 EUR/4 USD)
- Coffee Americano – 550 ISK (4 EUR/4 USD)
These drink prices are similar to what you can generally expect to pay at casual dining restaurants. You might also wonder how much you can generally expect to pay for a beer in Iceland. We’ve got you covered.