Accommodation in Iceland

Overview of the offer

Iceland offers a fairly wide range of accommodation (which is best booked in summer), including hotels and guesthouses, youth hostels, gîtes, farm stays, campsites, "summer residences", and mountain huts for hikers. The only downside for (almost) everything: outrageous prices that verge on the absurd, especially in summer, even though there are "sleeping bag accommodations" that are slightly cheaper and let you sleep with your own sleeping bag.

Hotels and guesthouses

Hotels

Not very numerous, often not great in terms of setting, and especially overpriced, with nothing under 100 € per night. They mainly cater to business travellers rather than tourists.

Edda Hotels

Not quite conventional hotels, the Edda Hotels are actually 12 schools converted into accommodation during the summer holidays. You can sleep in a room or dormitory, and a sleeping bag can come in handy. Their prices are roughly in line with those of youth hostels.

Guesthouses

Somewhere between a B&B and a hotel, depending on the case. Guesthouses offer accommodation run by private individuals.

Youth Hostels

There are 36 hostels across the island, suitable for both individuals and families. You can sleep in a dormitory, double room, or family room, and use a shared kitchen to prepare your own meals, along with other facilities (sometimes free), such as a washing machine, Wi-Fi, etc. Overall, the value for money isn’t too bad (compared to hotels), and you can expect a dorm bed for at least 20 to 30 € and a double room for around 80 € at best. Breakfast is rarely included in the price. A sleeping bag can sometimes be useful, as can booking ahead in season for certain places.

Camping

This is ideal in summer, especially for saving money compared to other types of accommodation. Iceland has around 110 campsites, more or less well-equipped, generally open from early June until late August or mid-September for some. Expect to pay at least 7 to 10 € per person per day to pitch your tent. In any case, given the climate, it’s best to be well-equipped. That said, more and more sites now also offer bungalows, mobile homes, and other chalets, with prices and "comfort" similar to those of guesthouses and youth hostels. Wild camping is banned in protected areas and can be tricky elsewhere due to the nature of the terrain.

Mountain huts

There are usually staffed mountain huts along the main hiking trails. They are often quite basic and require you to bring your own equipment (including, of course, your sleeping bag) and food. Booking ahead is recommended in season. As for the price, they are just as excessive as other types of accommodation. Expect to pay at least 30 € per person per night, or around 10 € just to pitch your tent...

Staying with locals

Other options

Gîtes and farm stays

Iceland has a number of rural gîtes and farm stays. More than just accommodation, these options are primarily an opportunity to share the life of the owners and take part in various activities, such as horseback riding, fishing, hunting, or sheep herding.

Apartments and villas

As in many European countries, it’s possible to rent an apartment or house from a private individual. Even though you’ll have an entire place to yourself compared to other types of accommodation, expect to pay at least 100 € per night for a capacity of 2 to (sometimes) 4 people.

Which accommodation to choose?

Accommodation is usually the biggest expense when travelling in Iceland. If you want to keep costs down, it’s best to opt for camping or dormitory stays. One small detail: it can also be important to always choose accommodation with cooking facilities if you don’t want to spend a fortune on restaurants or even simple cafés.