Search for hostels in Iceland here
Budget travelers will be pleased to find they have many options in Iceland (of course, depending on where you are coming from, you may need to adjust your idea of “budget”). Despite it’s astronomical prices for luxury hotels, the country is actually home to quite a few hostels that offer very affordable rates.
There are 34 Hostelling International-affiliated hostels around the country, which offer a total of 11,000 beds, along with dozens of independently-owned hostels. Several offer private an family rooms, though most offer dorm accommodations with 2-6 people sharing each room. Pillows are provided, but each guest will need to bring linens or a sleeping bag and towels.
Hostel rates start at about 3000 ISK (about $25US) per bed, with additional supplements for private rooms and for the hostels in Reykjavik. Hostelling International also operates a campsite near Reykjavik that is open four months of the year.
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Guesthouses are a great middle option between hostels and the much more expensive full-service hotels. Like hostels, they often have shared bathrooms, kitchen facilities and common areas, but they are generally quieter and offer extras like free internet and breakfast. Rates can range from 8,000 to 14,000 ISK for a double room. Many offer the option of ensuite rooms for an extra fee and some offer apartments as well.
If you are planning a long visit, want to save money by cooking, or are traveling with 3-5 people, an apartment may be the most economical choice.Those visiting more rural areas and looking to camp along the way can check out the Iceland Touring Association, which owns a number of huts around the country that are available for use by hikers. Couchsurfing is also popular in Iceland and it’s not too difficult to find a local willing to take you in for a few nights and show you around, especially in Reykjavik.
Photo by blatantgizmo