Meg Sees The World

Reykjavik, Iceland’s charming capital, offers stunning natural wonders and a lively city culture. Whether you’re relaxing in a hot spring, exploring Icelandic cuisine, or enjoying queer nightlife, this guide will help you experience Reykjavik affordably, and inclusively.

Where to Stay in Reykjavik

Although this is a budget guide, Iceland is a country with a very high cost of living, so prices are pretty high coming from most other places. Expect to pay $30-50 per night for a hostel dorm, and $130+ for a room in a guesthouse. Here are some of my top picks at a few price points:

101 Guesthouse

This option has a central location and private bathroom and shared bathroom rooms. 101 Guesthouse has free Wi-Fi, comfortable bedding and towels. You also have access to a shared kitchen and convenient services like luggage storage.

Dalur – HI Eco Hostel

This eco-certified hostel is next to the geothermally heated Laugardalslaug Swimming Pool and has a coffee house and bar, 2 communal kitchens and free private parking – perfect if you rent a car! Dalur – HI Eco Hostel also offers a year round barbecue for guests to use, events and help organising activities and transfers.

They have another location closer to the city centre too – check it out HERE

Kex Hostel

Arguably the most social hostel in Reykjavik, Kex Hostel has a super central location and lots of cosy communal areas. They have dorms and private rooms, two shared kitchens and an onsite restaurant with pretty affordable options.

What to Do in Reykjavik

Sky Lagoon

Unwind in the luxurious geothermal waters of the Sky Lagoon. Its ocean views and seven-step spa ritual make it a standout experience. Book HERE for tickets, and HERE for tickets with transfers to and from Reykjavik.

• Budget Alternative: Visit local swimming pools like Laugardalslaug for as little as 1,000 ISK (~$7 USD), which include hot tubs, steam rooms, and lap pools

Northern Lights Tour

Book a guided tour for the best chance to see the Northern Lights or head to dark, open spaces like Grótta Lighthouse for a DIY experience

If you want a chance to see the Aurora in a super fun and unique way, check out this boat cruise: https://getyourguide.tp.st/nIKu7zUU

Hús Máls og Menningar

This bookstore-café hybrid is perfect for enjoying an Icelandic night out, live music, or a relaxed coffee break in a cosy environment.

Where to Eat in Reykjavik

Brauð & Co

Famous for its vibrant storefront and delectable baked goods. Don’t miss their cinnamon buns!

DEIG Workshop

A trendy spot offering artisanal bagels and donuts—perfect for a quick breakfast or snack.

Mai Thai Bistro

Savor affordable and authentic Thai cuisine in a relaxed atmosphere, lots of veggie options available..

Just Wingin’ It

This casual eatery is the place to go for delicious chicken wings with a variety of sauces and sides (Trust me – it’s better than Wingstop).

Where to shop on a budget in Iceland

Bónus Supermarket

Stock up on budget-friendly snacks, drinks, and essentials for your adventures at Iceland’s most affordable grocery store. Check you’re staying somewhere with a kitchen you can use as this will save you a LOT!

LGBTQ+ Nightlife in Iceland

Reykjavik may be small, but its LGBTQ+ nightlife is thriving, with welcoming spaces for everyone to enjoy.

• Kiki Queer Bar: Reykjavik’s premier gay bar, known for its vibrant dance floor, themed parties, and fun, inclusive vibe.

• Gaukurinn: A queer-friendly venue that hosts diverse events, from concerts to drag shows.

• Drag-Súgur: Iceland’s leading drag collective regularly performs at Gaukurinn, featuring local and international queens in a dazzling showcase of talent and creativity.

• Reykjavik Pride Drag Extravaganza: If visiting in August, don’t miss this fabulous event during Reykjavik Pride.

LGBTQ+ Travel Advice

Reykjavik is one of the most LGBTQ+ friendly cities in the world, offering a welcoming and safe atmosphere for queer and trans travellers, so there’s really nothing to worry about!

Advice for Trans Travellers

While Iceland has robust anti-discrimination laws that protect gender identity and expression, many of the famous hot springs have gendered changing facilities, and the cultural expectation is that you shower naked, so that is something you should be aware of when deciding what you’re comfortable doing.

Travel Tips

• Getting Around: Reykjavik is compact and walkable. For longer trips, use the city’s efficient bus system. Consider a Reykjavik City Card for unlimited bus rides and discounts on attractions. You can check them out HERE.

• Budget Tip: Iceland’s tap water is among the world’s purest. Bring a reusable bottle to save money and fill it up with the most delicious water you’ll ever drink!

• Best Time to Visit: Winter is ideal for seeing the Northern Lights, while summer offers the midnight sun experience (definitely on my bucket list!)

From chasing the Northern Lights to dancing the night away at Kiki Queer Bar, Reykjavik has something for every traveler. What’s your favorite spot in Reykjavik? Let us know in the comments!