Like most of the population, most of the accommodation and tourist infrastructure in Iceland is located in Reykjavik. Most tourists visiting in Iceland end up spending at least a few days here at the beginning or end of their journey, and others spend their whole trip here, venturing out into the surrounding area for day trips.
By far, you’ll have the most options for accommodation in Iceland in Reykjavik. Choices range from the very basic budget hostels to lavish suites at high prices, and everything in between. To get the most for your money, consider visiting at the very beginning or end of high season (June – mid-September) when prices can 30% (or more) cheaper than during peak times. To get the most for your money, look for places that offer free perks like wi-fi, breakfast, kitchen and laundry facilities, parking, or bike rentals. And don’t discount guesthouses if you normally prefer hotels – many are quite nice and many offer ensuite bathrooms, but at a much lower price than comparable hotels.