To get from Keflavik airport to Reykjavik, there’s the Straeto buses (no 55), there’s also the flybus which costs around £22, there’s always room on the buses. There’s various operators, and the buses run in conjunction with flights, so there’s always a bus on arrival, alongside departure, the journey takes 45 minutes, and hotel drop off is also provided for an extra fee.
I anxiously wait after reading a catalogue of bad reviews, but the public transport never failed me, even in the knee deep snow in Akureyri. Read the timetables on the Straeto website, at the bottom of each timetable there’s additional information, pay attention to this because It’s usually stating the days the buses run, some buses even require booking in advance because they’re very rarely used. So if you plan ahead, and read all the info, you can’t go wrong with the service. Short trips around the city cost 440k (£3), you need the correct change as it’s dropped into the drop box. Longer journey’s, such as my 7 hour bus ride from Reykjavik to Akureyri was 10,000 ISK (£73). The buses have free wi-fi and made several stops throughout the journey, it gives you a chance to sit back and enjoy the views. http://old.straeto.is/english/plan-your-journey/schedules-and-maps
There’s also the option to fly around the country, there’s several smaller airports situated all over Iceland. The airports and flights around Iceland can be found on through the following link; https://www.isavia.is/english/airports It’s advisable to book in advance, you get flights from Reykjavik to the North (Akureyri) for £55. If you book on the day, they average from £102 – £146. The flight from Reykjavik to Akureyri takes 30mins.
Carpooling (car sharing) is a great way to help the environment, and this is a big thing in Iceland. From Akureyri to Reykjavik it was 3000 ISK (£23), compared to the price of a bus (10000). This is the most recommended website to use; http://www.samferda.net several people had tried it with success.
Car hire, if you’re not confident with driving in snow and icy conditions, then maybe avoid winter, the roads are clear in summer. In late June (21st) roads to the Westfjords and the highlands are opened (too treacherous during winter). During the winter it’s common for road closures, so there’ll be plenty of detours and exploration, things change very fast in Iceland so a road closure could be re-opened the same day. Car hire can be costly, but if there’s several people, you split the cost. Driving is the most convenient way to get around Iceland, you have the freedom to explore at your own pace.
Many travellers use the tour operators to explore Iceland, but this can be costly. Of course if you’re willing to pay, then it’s a really informative way of getting around, just bare in mind that you’re on their schedule, and usually a large group unless you book a private tour.
So here’s the options for traveling around, there are no trains or trams in Iceland.