Hotels

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Hotels 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 pay well under what a full-service hotel charges. Rates have gone up a lot since this article was first written, so compare current prices before you book. 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.

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
Even the most basic room at a luxury or full-service hotel in Reykjavik is expensive in high season, and doubles and suites cost considerably more; the 2010 prices this article once quoted are long gone, so check current rates when you plan your trip. Of course, these hotels do come with some perks - sleek design, spacious rooms, comfortable beds, concierge services, room service, and business centers. The Flybus (the main airport bus to Keflavik Airport) will collect you from many of these hotels or from a designated bus stop nearby.
>> 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