Iceland in 3 days on a budget

Sleeping and eating cheap

Kex Hostel on Skulagata has dorm beds from ISK 5527 and a bar locals actually drink at. Loft Hostel on Bankastraeti is similar. Both have kitchens. Skip restaurants for two meals a day and shop at Bonus (the pink pig supermarket) — pasta, skyr, bread, and vegetables cost about the same as at home.

For your one restaurant meal, Baejarins Beztu Pylsur does the famous lamb hot dog for ISK 737. Icelandic Street Food on Laekjargata serves unlimited-refill lamb soup for ISK 2702.

Day 1: Free Reykjavik

Walk the harbour and the Solfar sun voyager sculpture (free). Hallgrimskirkja is free to enter; skip the ISK 1474 tower. The Settlement Exhibition is ISK 2702 — worth it if you like museums, skippable if not. Instead, swim at Sundhollin geothermal pool for ISK 983: three hot pots, a steam room, and the same water chemistry as the fancy spas.

Evening: bring-your-own bottle at the hostel is cheaper than ISK 1719 pints at the bars.

Day 2: Golden Circle by bus

Reykjavik Excursions runs Golden Circle day tours from ISK 9212 — cheaper than a rental car for a solo traveller once you factor fuel and parking. You get Thingvellir, Geysir and Gullfoss in one day with pickup at your hostel.

For a cheap hot spring alternative to the Blue Lagoon, ask the driver to drop you at Fontana in Laugarvatn (ISK 5773) or better still, do the free hot river at Reykjadalur — a 3km hike outside Hveragerdi that ends in a warm stream you can sit in.

Day 3: South Coast bus or self-drive

A group day tour to Seljalandsfoss, Skogafoss, Reynisfjara and Vik runs ISK 11668-ISK 14738. If two of you split a rental, you match that price and stay longer. Bring sandwiches from Bonus.

Back in Reykjavik, close the trip at Micro Bar on Vesturgata where a flight of four Icelandic craft beers is ISK 2211 — the cheapest way to actually taste the local scene.