What Things Cost in Iceland

Typical Prices for Common Items

Author: The Traveling Professor/Wednesday, February 21, 2018/Categories: Norway/Iceland/Denmark

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The Traveling Professor just got back from doing two small group tours of Iceland already this year.  We spent 5 nights and 6 days roaming around the city of Reykjavik and the surrounding area.  Although Iceland lends itself well in terms of economics to a small group tour, what would some of the more common things cost if choosing to travel on your own?

Transfers To and From Reykjavik Airport:  A taxi from the Keflavik airport to downtown Reykjavik is a whopping $165.  There are shuttles but they will only take travelers to a central drop-off point near the city center, then a taxi is needed to get to the hotel.  That will run about $45 per person.  The shuttle service is time consuming and is a problem if you have bulky luggage.

Taxi:  You are going to want to walk instead of taking a 10-minute taxi ride to the restaurant for just under $25.

Meals: Expect to pay some of the highest prices to be found.  Pizza starts at about $32.  We ordered a spicy pepperoni at a take out place for $40.  Welcome to the land of the $30 burger.  Main dishes like lamb, fish, and beef hover around $50 and in some casual places, it goes much higher.  You might find a "catch of the day" special for $35 or so.    If lunch can be found under $20, you have hit the jackpot!  The one exception is the famous Icelandic hot dog at Bæjarins Beztu Pylsur for only $5.

Beer and Cocktails: You will search far and wide for a happy hour where beers are under $10 and cocktails are less than $15.  Otherwise, plan to pay about $15 for a beer and between $25 and $30 for a martini.  We thought we would try to save some money by going to the liquor store and picking up a bottle of Jameson Scotch Whiskey, but that would have run us a stunning $90.

Blue Lagoon:  The Blue Lagoon offers several packages but expect to pay about $100.  But the real problem is getting there and back (the Blue Lagoon is near the airport).  A taxi is from downtown Reykjavik will cost about $100 each way.  By the way, a lunch of 2 sandwiches, a coke and a beer was just a shade under $50 about the Blue Lagoon cafe.  However, if you want to bathe in one of the several public pools in the city, it runs about $6 a person, but don't expect a Blue Lagoon experience.

Tours:  To join a tour to the Golden Circle runs $135 per person. The dramatic South Coast is $145. Expect to pay about $90 to go outside of Reykjavik for a great view of the Northern Lights.  The Traveling Professor likes to take his small groups on private walking tours of Reykjavik, but you can join a "free" City Walks Tour of Reykjavik

Lodging:  The cost of hotels varies widely, depending on season, location, and demand.  3-star properties can average about $250 a night for a mid-week stay in March for example.   For 4 and 5 star properties, the $500 range per night is not unusual.

I know some of the prices shown here can be hard to believe, but look at my photos to see some menus and other prices. 

On our Traveling Professor small group tours to Iceland, we have been able to reduce costs significantly and still let the traveler enjoy the comfort of a small group tour.

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