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hotelicelandHotels in Iceland run the gamut from luxurious to very basic, depending of course, on the price. Despite the country’s famous financial collapse in 2008, prices for just about everything continue to be sky-high and many travelers are often shocked at the prices charged by some hotels in Reykjavik. That’s certainly not to say that you can’t find lodging within your budget, but expect that some of the extras you might receive at a comparably priced hotel elsewhere in Europe may be lacking.

The cheapest hotels
The cheapest hotels in Iceland won’t actually be hotels per se, but rather guesthouses, inns, and bed and breakfasts. For travelers who don’t want to stay in a hostel but who want to save a bit of money, these accommodations are great options. Many are set up for long-term travelers, meaning they offer free internet, access to laundry facilities, and offer a kitchen for guest use so you can save money by eating some of your meals here. Many also offer free breakfast in the rate, another money saver.

Beds may be firmer, rooms may be smaller, and you may have to share a bathroom with another guest or two, but you’ll only pay anywhere from 6,000 to 10,000 ISK for a single room and up to 14,000 for a double room. Many guesthouses also offer apartment accommodation, which can help you save big if you plan to cook often or if you are traveling with a group. High season rates for apartments that can sleep four are typically under 35,000 IKS (about $270).

Because tourism slumps so dramatically during the winter, off-season rates can be significantly lower than those offered during high season. If you are on a tight budget, consider visiting during colder months, when hotels can be discounted by up to half. Hotels and guesthouses outside of Reykjavik are also much cheaper, but you’ll offset your savings with the cost of a car rental.

Luxury hotels

The most basic room – a single room with twin bed, ensuite bathroom, and tv – at a luxury or full-service hotel will cost you at least 13,400 ISK (about US$100) during high season with prices for double rooms and suites ranging from 35,000 up to 55,000 ($250 – $450). Of course, these hotels do come with some perks – sleek design, spacious rooms, comfortable beds, concierge services, room service, and business centers. The flybus (Reykjavik’s transportation to Keflavik Airport) picks up right in front of many of these hotels.
>> Read about romantic hotels in Iceland
>> Read about luxury hotels in Iceland

Staying near the airport

Unless you have a very early flight the next morning, it’s not recommended that you stay near the airport. The airport is about 45 minutes from Reykjavik and there is not much to see or do in the area.

>> Find hotels near the Blue Lagoon and airport

Photo by Joseph Hatfield