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Reykjavík on a budget

Northern lights, hot springs and Iceland Airwaves. Here's where to stay, what to do, and how to turn it into a whole trip, without overspending.

Reykjavík itself is pricey, but the landscape around it is the cheapest thrill in travel. This is the practical version of a Reykjavík guide: where to actually stay (with live prices compared across 100+ booking sites), what's worth your time, where to go after dark, and a budget you can book today.

💡 Local tip: Skip the pricey Blue Lagoon for a local geothermal pool, a few quid, and where Icelanders actually go.

The cheapest time to visit Reykjavík

For UK travellers, aim for September–March for the Northern Lights, or June for the midnight sun. Prices ease outside midsummer. Mid-week departures (Tuesday to Thursday) almost always beat weekends on price, and setting a budget first, rather than a fixed destination, is the single biggest money-saver. You can do exactly that with our Reykjavík trip builder.

Where to stay in Reykjavík

The same room is often £30–£50 cheaper on one booking site than another, so always compare before you book. We check 100+ booking sites through Hotellook and show the cheapest stays in Reykjavík, with photos and star ratings, so you can see the floor price in one glance, then book direct.

Compare live Reykjavík hotels →

Things to do in Reykjavík

  • Blue Lagoon comfort entry, bookable from £75.
  • Sky Lagoon seven-step ritual, bookable from £55.
  • Golden Circle day tour, bookable from £65.
  • Reykjavík geothermal pool hop, a local favourite worth your time.
  • Northern Lights hunt, in season, a local favourite worth your time.

Where to eat: Dill (Michelin), Bæjarins Beztu hot dogs, Sægreifinn lobster soup.

Shopping: Laugavegur, Kolaportið flea market, Hand-knit wool shops.

Reykjavík nightlife

After dark, locals head to Kaffibarinn, Húrra, Paloma. Want more? The what's-around page maps restaurants, shopping, nightlife and casinos near your stay.

Getting there

Most travellers fly, our sample trip uses Gatwick → Reykjavík return.

Find flights to ReykjavíkCompare airlines and dates with our flight partner, you book direct, no fees.
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A real budget trip to Reykjavík

Here's a worked example you can book today, flights and hotel are the fixed base, and activities are optional so you can dial the price to your budget:

Reykjavík lagoon & spa break, 3 nights, return flights from Gatwick.
Flight + hotel base: £340 pp · full trip with all activities: £535 pp.
See the full breakdown and book each part →

What's on in Reykjavík

Bundloo is reader-supported. Hotel and activity links are affiliate links, we may earn a commission at no extra cost to you, and you always book directly with the provider. Prices are indicative; confirm on the provider's site.

Ready to go?

Build a Reykjavík trip to my budget →

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