Reykjavik, Iceland
Guide to Reykjavik, Iceland
Reykjavik is the northernmost capital city in the world and home to around 220,000 people, roughly two-thirds of Iceland’s entire population, which makes the country one of the most urbanised on earth despite its reputation as wilderness. That concentration matters to a visitor: you can experience Iceland’s extraordinary landscapes on day trips from a city that has international restaurants, serious museums, and a nightlife culture that punches well above its size. The trade-off is cost. Iceland is one of the most expensive countries in the world for visitors, and Reykjavik prices have increased substantially since tourism expanded through the 2010s. Going in with realistic budget expectations avoids a lot of frustration.
Getting There: Keflavik Airport and Transfer Options
Keflavik International Airport (KEF) is not in Reykjavik; it sits 50 km southwest in the town of Reykjanesbær. This matters because the transfer options have very different costs and experiences.
The Flybus (operated by Reykjavik Excursions) is the standard airport coach running every 30-40 minutes, timed to flight arrivals. A one-way ticket to downtown Reykjavik costs around 3,999 ISK ($29 USD) and the journey takes 45-50 minutes. The bus stops at the BSI Terminal and connects to hotel drop-off shuttles for a small additional fee. Book online in advance.
A taxi from the airport to central Reykjavik costs approximately 22,500 ISK ($160-175 USD), which is high by any standard. This is not negotiable; metered taxis in Iceland are regulated but that rate is still the reality. Split between four people it becomes reasonable; solo it is not.
The Blue Lagoon transfer is worth understanding separately. The Blue Lagoon is located only 20 minutes from Keflavik Airport and is directly between the airport and Reykjavik. Many visitors time a Blue Lagoon visit as their first or last activity, arriving from the airport or departing via the lagoon on the way back. Reykjavik Excursions offers a direct transfer from the airport to the Blue Lagoon for around 7,999 ISK ($57 USD); from the lagoon to Reykjavik adds another 3,999 ISK. This is genuinely a smart way to structure arrival.
When to Go
The seasons in Reykjavik are more distinct than most western European capitals.
June to August brings near-continuous daylight (the sun sets briefly around midnight in June), temperatures of 10-15C, and access to all outdoor activities. This is peak tourist season and prices reflect it. Accommodation books up months in advance. Whale watching success rates are highest; puffins are present on nearby cliffs from May through August.
September and October offers the first chances of northern lights without deep winter cold, autumn colours in the uplands, and noticeably lower crowds. This is the sweet spot for many experienced Iceland visitors.
November to March is northern lights season in earnest. Temperatures drop to -5 to 2C and some highland roads close. Reykjavik itself is fully operational year-round and the Christmas market in December is well regarded. Snow transforms the city and the surrounding landscape.
April and May are shoulder months with improving weather, longer days, and the beginning of the puffin season. Often good value compared to summer peak.
What to See in Reykjavik
Hallgrimskirkja is Reykjavik’s landmark Lutheran church, designed to resemble the basalt lava columns found across Iceland and visible from almost anywhere in the city. The tower observation deck gives you the best aerial view of Reykjavik’s colourful rooftops and the mountains beyond. Entry to the tower is around 1,000 ISK ($7 USD); the church itself is free to enter. The statue outside is of Leifr Eiriksson, gifted by the United States in 1930 to mark the Althing’s 1,000th anniversary, which tells you something about Iceland’s relationship with its medieval past.
Harpa Concert Hall on the harbour opened in 2011 and is a striking glass structure designed in collaboration with artist Olafur Eliasson. The geometric glass facade changes colour and texture with light conditions throughout the day. Tours run regularly for around 1,500 ISK, but the building’s public areas and lobby are worth walking through for free.
The Sun Voyager sculpture on the waterfront promenade is more interesting than it first appears. Designed by Jon Gunnar Arnason, it is often described as a Viking ship but was intentionally conceived as a “dream boat” or ode to the sun, not a historical reconstruction. The distinction matters for appreciating what Arnason was attempting.
The National Museum of Iceland covers 1,100 years of Icelandic history from settlement to independence, with strong medieval and early modern collections. Entry around 2,500 ISK ($18 USD). More substantive than most visitors expect.
Reykjavik Art Museum operates three locations across the city (Hafnarhus, Kjarvalsstadir, Asmundarsafn) on a single ticket of around 1,700 ISK. The Hafnarhus building on the old harbour houses a permanent collection of Erró’s political pop art, which is one of the more distinctive museum experiences in the city.
Laugardalslaug geothermal swimming pool in the Laugardalur area is where Reykjavik residents actually go swimming, and is the best single thing you can do in the city that most tourists skip. Entry is around 1,250 ISK ($9). The complex includes hot tubs at different temperatures, a steam room, and an outdoor pool heated to 29C year-round. Go on a weekday morning to share the water with locals rather than tour groups. Bringing your own towel is cheaper than renting.
Day Trips from Reykjavik
The Golden Circle is Iceland’s most-visited day trip route: Thingvellir National Park (where the Eurasian and North American tectonic plates are visibly pulling apart and where Iceland’s parliament was founded in 930 AD), the Geysir geothermal area (the geyser Strokkur erupts every 5-10 minutes), and Gullfoss waterfall. The sites themselves are free; organised tours cost $60-100 USD, or you can rent a car and do it independently for the cost of fuel. Self-driving gives you flexibility and the chance to stop at small farms and lesser-visited sites along the route. Allow 7-8 hours.
The Blue Lagoon is the most famous geothermal attraction in Iceland and the most commercially developed. Tickets must be booked online in advance (they regularly sell out weeks ahead in summer) and start from around 9,990 ISK ($73 USD) for the basic Comfort package, which includes admission and the silica mud mask. Higher packages add drinks, towels, and restaurant meals. The water is rich in silica, algae, and minerals and does feel restorative. The crowds are real (the lagoon manages this through timed entry) and the commercial development is thorough; if you want a more authentic geothermal bathing experience, the Secret Lagoon at Fludir (90 minutes from Reykjavik, around 3,500 ISK entry) or Krauma near Husafell are less visited alternatives. That said, the Blue Lagoon is genuinely impressive as an experience and the surrounding lava landscape is extraordinary.
South Coast and Jokulsarlon Glacier Lagoon: If you have two days available, the south coast route past Seljalandsfoss and Skogafoss waterfalls to the glacier lagoon at Jokulsarlon (where icebergs calve from Breidamerkurjokull glacier into a lake and then drift to the adjacent black sand beach) is one of the most dramatic road trips in Europe. The entire return from Reykjavik is about 600 km. Rent a car.
Whale Watching: Tours depart from Reykjavik’s old harbour. Elding and Special Tours are the main operators with good track records. The standard 3-hour cruise costs around 12,000-14,500 ISK ($87-105 USD). Minke whales and humpbacks are the most common sightings; white-beaked dolphins and harbour porpoises are also frequent. Success rates are significantly higher in summer (June-August). No operator can guarantee sightings, and legitimate operators offer a rebooking guarantee if whales are not seen.
Northern Lights: Visible from September through March when conditions align; clear skies, solar activity (measured as KP index of 3 or higher), and darkness away from city light pollution. Guided minibus tours leave the city and follow weather forecasts to clear areas; prices start around 8,000-10,000 ISK ($58-72 USD). The apps Aurora Forecast and My Aurora Forecast are useful for monitoring KP index independently. A car rental gives you more flexibility to chase clear skies. Some nights are spectacular; many nights are cloudy and nothing is seen. Manage expectations and book an operator that offers a free rebooking.
Where to Eat
Baejarins Beztu Pylsur on Tryggvagata has served hot dogs from a small kiosk since 1937. The secret is the lamb-based sausage and the combination sauce; locals order “ein med ollu” (one with everything). It costs around 650 ISK ($5) and is genuinely worth doing once. Bill Clinton famously ate here in 2004, which is documented inside the kiosk.
Dill Restaurant on Hverfisgata holds a Michelin star and serves a tasting menu rooted in Icelandic and Nordic ingredients. Expensive at 20,000 ISK+ per person for the full menu, but the cooking is inventive and honest about what Iceland produces. Book weeks ahead.
Brut is a Michelin-recommended seafood restaurant with a more casual atmosphere than Dill and strong cocktails alongside fresh fish. Mid-to-high range at 5,000-9,000 ISK per person.
Matbar on Hverfisgata draws locals as well as visitors and serves unpretentious small plates of Icelandic produce. The lobster bisque and smoked haddock options are reliable. Mid-range at 3,000-5,000 ISK per person.
Þrir Frakkar (Three Coats) on Baldursgata has been serving traditional Icelandic seafood for over 30 years. The fried cod cheeks and creamy fish soup are the things to order. Moderate at 3,500-5,500 ISK per person.
Reykjavik Street Food on Laekjargata is a casual hall serving fish soup with unlimited bread refills for around 2,490 ISK. It is one of the better value meals in the city for a filling lunch.
For lunches specifically: most Reykjavik restaurants offer weekday lunch specials that can be significantly cheaper than the same food in the evening. Budget-conscious visitors should plan their main meal at midday.
Where to Stay
Hotel Borg on Posthusstraeti is Reykjavik’s most historically prestigious hotel, built in 1930 in Art Deco style, and the closest thing the city has to a grand hotel. Rooms from $250-400 USD/night.
Apotek Hotel on Austurstraeti occupies a restored pharmacy building from 1917 in a prime downtown location. Rooms are design-forward and mid-luxury at $200-320 USD/night.
Canopy by Hilton near the harbour opened in 2018 and is more affordable at $150-230 USD/night with good location and design quality.
For lower budgets, the Kex Hostel on Skulagata is the most design-conscious hostel in the city, set in an old biscuit factory, with private rooms from $90-130 USD alongside dorms. The bar is worth visiting regardless of where you stay.
Practical Notes
Currency: Iceland uses the Icelandic Krona (ISK). Credit cards are accepted almost universally in Reykjavik and card payment is the genuine norm even for small purchases. You do not need cash for day-to-day transactions. Avoid currency exchange desks at Keflavik Airport, which have consistently poor rates; if you need ISK, use an ATM in the city.
Transport around Reykjavik: The Straetisvagnar bus network covers the city with a single flat fare of 560 ISK ($4) per journey; buy a loaded Klappid card for slightly cheaper fares. The city centre is compact and walkable. For day trips, a rental car is essential; most Golden Circle and south coast sites are not served by public transport adequately for independent travellers.
Costs: Budget around $150-200 USD per day per person for accommodation, meals, and activities on a mid-range trip. Fine dining and Blue Lagoon visits push this higher. Alcohol is expensive; a beer in a bar costs 1,000-1,500 ISK ($7-11 USD). The duty-free shop at Keflavik Airport is the cheapest place to buy spirits and wine.
Weather and clothing: The saying that Iceland’s weather offers four seasons in one day is a cliche because it is accurate. Rain, wind, sunshine, and hail can follow each other within hours in any season. A waterproof outer layer and wind-resistant mid-layer are not optional. Temperatures in summer rarely exceed 15C.
Midnight sun: From late May through mid-July, the sun barely sets. A blackout sleep mask makes a meaningful difference. The extended light also means you can hike or walk the city at 10pm in full daylight, which is worth taking advantage of.
Tourist traps to avoid: Stores in the immediate tourist centre near Laugavegur sell “Icelandic wool sweaters” (lopapeysa) that are frequently mass-produced imports rather than authentic handknitted examples. If authenticity matters, buy from the Handknitting Association of Iceland on Skolavordustigur, where prices are higher but the provenance is real. Bar “friend” scams where a new acquaintance suggests a specific bar and you receive an enormous bill exist and are worth being aware of; agree on prices before ordering if in any doubt.
The single most important practical thing to know about visiting Reykjavik: the city is a base, not the destination. What Iceland offers that is unreproducible elsewhere is the landscape, and seeing it requires leaving the city. Give yourself at least one full day for a day trip and ideally two.