Compared to most other European destinations, Iceland can be quite expensive. For example, a cup of black coffee costs an average of $5 and beer is particularly expensive at $9 for the average pint in 2023. However, there are plenty of ways to stick to a budget and still have a good time in Reykjavik. Finding happy hours in pubs across the city can keep the cost of entertainment down and dining at Reykjavik’s food halls rather than upmarket restaurants offer a budget alternative.