Bus fares soar for journey from Reykjavík to Höfn in Iceland as ridership declines

Traveling by bus from Reykjavík to Höfn in Hornafjörður has become notably expensive, costing nearly 35,000 Icelandic krónur for a round trip. This is a sharp increase, as ticket prices for public transport in rural areas of Iceland have risen, and the number of passengers appears to be declining compared to last year. The changes in pricing were implemented as part of a fare increase in July and are under review due to this year’s anticipated decrease in ridership.

Since the state’s first comprehensive public transport strategy was published in October 2019, aimed at improving connections between settlements, the Icelandic Road and Coastal Administration (Vegagerðin) took over the management of rural bus services from municipalities. The goal was to increase passenger numbers, make transportation an appealing choice, and enhance overall service quality.

However, despite hopes of having an additional 80,000 passengers this year compared to 2018, ridership is expected to fall short. Last year, only 326,000 passengers were recorded, and current trends suggest a decrease.

Fare structures have become more complex and expensive based on the routes traveled. For instance, a single trip between Akureyri and Egilsstaðir costs approximately 10,800 krónur. Cost increases have been less severe than in other regions, yet rural bus services face challenges in attracting riders again post-pandemic.

Vegagerðin plans to revise the current route system and fare structure, aiming for a revamped system to launch in early 2026. Challenges persist in competing with other transport options, yet some shorter routes remain competitive. Notably, marketing efforts for rural bus services have been insufficient, limiting their visibility and reach.