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Iceland鈥檚 capital requires some capital. Ranking high on many 鈥渕ost expensive cities in Europe鈥� lists, 搁别测办箩补惫铆办 is not cheap.

As with any Icelandic destination, it is oh-so-easy to be lured in with a flight that may be comparatively affordable to other continental destinations. But once your boots are on the ground, this volcanically morphed peninsula of a city can feel like a totally unplanned spending spree.

Many factors contribute to this, including the need to import goods to the island nation, plus high taxes and high average wages for the population of 200,000-plus living throughout the Greater 搁别测办箩补惫铆办 region.

But there are ways to save money in 搁别测办箩补惫铆办, and everyday transactions are where you'll see the most opportunities, including transportation, food and passes for the biggest attractions. Here are some tips as you enjoy the city鈥檚 bayside landscape, and the friendly locals living within it.

For better deals, steer clear of the summer months

June through August are pure bliss in 搁别测办箩补惫铆办 and beyond. Temperatures are the warmest all year (with highs in the mid-50s掳F), and the 鈥渕idnight sun鈥� radiates for 20-plus hours a day. This is when folks flock to the city, so things are more expensive. January through May is the timeframe for discounted flights and lodging.

Book your hotel as far in advance as possible

As much of a tourism hotspot as 搁别测办箩补惫铆办 can be, it doesn't have an endless supply of lodging options, or discount hotel sites to speak of. Whether you're looking at a chain hotel (Icelandair and Fosshotel being popular), a boutique option or an Airbnb or guesthouse, book well in advance. Waiting until you get to 搁别测办箩补惫铆办 won鈥檛 save you money, and you may not have any options at the last minute.

Fly to 搁别测办箩补惫铆办 and weigh your options

To reach 搁别测办箩补惫铆办 from international destinations in North America and Europe, Icelandair remains the go-to. Iceland鈥檚 flag-bearing carrier is headquartered outside of the capital at Keflav铆k International Airport, where it has hundreds of nonstop and connecting flights per week.

Twenty-three other airlines operate out of the airport as well, including European budget carriers Play, EasyJet and Wizz. Keep an eye on bargain fares from the discount carriers, but make sure to read the fine print for any in-flight or baggage up-charges.

Get to the city center by bus

Keflav铆k International Airport is located approximately 50km (31 miles) southwest of 搁别测办箩补惫铆办's urban core. This can equate to a hefty taxi or shuttle fee and take approximately 45 minutes, so the airport is a great spot to get acquainted with the bus system, or .

The ride may take a little bit longer 鈥� typically an hour and 10 minutes 鈥� but line 55 goes back and forth between the airport and city center, with one-way fares running approximately $15. Beyond line 55, 厂迟谤忙迟贸 has more than 50 total routes throughout the region, with buses often stopping every 15 minutes on weekdays and 30 minutes on weekends.

Pass on the bottled water

While 鈥渄on鈥檛 drink the tap water鈥� is a mantra that should absolutely be adhered to in some destinations, this is not one of them. 搁别测办箩补惫铆办 has some of the purest water of any city you鈥檒l find, generated from Iceland鈥檚 untouched springs. So save the $3 to $4 per bottle 鈥� it鈥檚 not necessary here.

Walk around the city (or take a free walking tour)

搁别测办箩补惫铆办 is a very walkable city, where you can be to the 贬补濒濒驳谤铆尘蝉办颈谤办箩补 cathedral, Hlj贸msk谩la Park and museums galore in a matter of minutes. Guided walking tours can help you get your bearings, and there are several around the city for a fee; of the free options, is among the best. Just make sure to tip your guide.

Opt for a much, much smaller geothermal experience

Approximately 50km (31 miles) southwest of central 搁别测办箩补惫铆办, the Blue Lagoon gets a lot of Instagram love. But you don鈥檛 have to venture out of the city鈥檚 confines to get your geothermal spa on. The Grott谩 Hot Pool is a much more intimate option, situated in the coastal town of Grott谩 with a white lighthouse. It鈥檚 just 5km (3 miles) northwest of the city center.

Snag a 搁别测办箩补惫铆办 City Card for major savings on big attractions

If pools, museums and bus travel are all on the 搁别测办箩补惫铆办 itinerary, the is a no-brainer. With 24-, 48- and 72-hour options, the card grants holders free entry into all of the city鈥檚 swimming pools, free bus travel (excluding the airport route) and complimentary entry at select museums. The cost of a 24-hour pass is roughly $30.

Buy your booze strategically

Iceland has one of the highest alcohol taxes in the world 鈥� upwards of 75% of the purchase price of a bottle of booze 鈥� so if you're going to have a bottle of vino or Brenniv铆n on hand for your 搁别测办箩补惫铆办 adventure, you may want to stock up at the airport鈥檚 duty-free stores. Otherwise, keep an eye on happy hours 鈥� often during the 4pm to 7pm time frame 鈥� along the pub-clad Laugavegur street and surrounding areas.

Snag the "best hot dog in town" on the fly

Street food is on the rise in 搁别测办箩补惫铆办, with food halls, such as Hlemmur Math枚ll and the Old Harbour鈥檚 Grandi Math枚ll, taking center stage.

Often made with Icelandic lamb, hot dogs are an inexpensive cultural experience here. The unassuming B忙jarins Beztu Pylsur 鈥� translating to 鈥渢he best hot dog in town鈥� 鈥� remains an on-the-go heavyweight and has seven locations throughout the city. A hot dog and soda runs less than $6.

Shop the Kolaporti冒 marketplace

Sure, there are pricey shopping options aplenty in the Kringlan mega mall and along Laugavegur. But for price-conscious keepsakes, handmade Icelandic goods and local food, the Kolaporti冒 marketplace is as uniquely 搁别测办箩补惫铆办 as it gets. It鈥檚 across the street from 搁别测办箩补惫铆办 Harbor and 搁别测办箩补惫铆办 Art Museum鈥檚 Hafnarh煤s, and open on weekends.

Daily costs

Hostel room: $45鈥�50
Basic room for two: $160鈥�175
Self-catering apartment (including Airbnb): $225鈥�250
Public transport ticket: $3.50
Coffee: $4鈥�6
Sandwich: $10鈥�15
Dinner for two: $90鈥�100
Beer/pint at the bar: $7.50鈥�10