Updated in May 2025 to reflect prices in Iceland in 2025.
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 2025, 86% of accommodation in the capital area on Booking.com was unavailable in the first week of July (first to the seventh). The lowest price for accommodation with a rating was at R13 – A Townhouse Hotel, for a triple studio with bunk bed for 140,338 ISK. The lowest price in the “superb” (9+ out of 10) rated category was Apartment in Lágaleiti in Reykjavik – Birta Rentals in Reykjavík for 177,828 ISK. The prices are lower in some places in the countryside. If our imaginary family of three heads to Ísafjörður in the Westfjords, they can get accommodation at Mánagisting Guesthouse (rated 6.9 out of 10 on average) in the first week of July for 123,884 ISK.
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 90,632 ISK in Hafnarfjörður (around 12 km from downtown Reykjavik).
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 7,790 ISK and 51,000 ISK:
Most private tours will currently cost upwards of 165,000 ISK:
More economic alternatives such as visiting museums or FlyOver Iceland could cost from around 4,300 ISK to 6,990 ISK:
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 670 ISK. A card for 24 hours unlimited trips costs 2650 ISK while you can get unlimited trips for three days (72 hours) for 5800 ISK. A 30 days card is available for 11200 ISK. You can also use the city buses to get to and from the international airport in Keflavik (KEF) for 2400 ISK. 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 Logan Estate is available for 106,679 ISK and in a similar price range you could also get these 5-seat cars:
- Kia Ceed Estate
- Dacia Duster 4×4
- Skoda Octavia
- Mitsubishi Eclipse 4×4
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) – 220 ISK
- Bread (500 g) – 415 ISK
- Bananas (1 kg) – 325 ISK
More detailed information about grocery prices in Iceland.
In popular casual dining restaurants, here are examples of what you can expect to pay:
- Fish of the day at Snaps Bistro: 5,490 ISK
- Icelandic lamb sirloin: 6,490 ISK
- Icelandic lamb meat soup at Café Loki: 4,750 ISK
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) – 1200 ISK
- Large beer (50 cl) – 1600 ISK
- A glass of house wine (white or red) – 1650 ISK
- Soda (25 to 33 cl), e.g. Pepsi, 7UP or sparkling water – 550 ISK
- House cocktail – 2750 ISK
- Espresso – 450 ISK
- Coffee Americano – 550 ISK
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.
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