There are many types of accommodations in Iceland: campgrounds, guesthouses, bed and breakfasts, huts, rental cottages, hotels... Reservations are not necessary in winter, but during high season (June to August), we strongly recommend booking in advance because most places are full. It is a good idea to bring along a sleeping bag because sheets cost extra in hostels, and some guesthouses and cabins for rent. These prices are given as a guideline and refer to high season rates, so do not be surprised if they seem outrageous. In winter, lodgings are available for half that price, especially outside the capital.
For budget accommodations during the summer season (June to August), or off-season if you are brave and well-equipped, camping is your best option. No reservations are required. There are about 200 campgrounds spread throughout Iceland; they are listed online at http://tjalda.is. Rates range from 1 000 to 1 500 ISK per night, per person.
The Ferðafélag Íslands Association manages the huts stationed along the hiking trails. The list of huts is available on their website, http://www.fi.is. Per night, per person rates fall between 5 000 and 7 000 ISK. The huts have a small housing capacity and must be reserved well in advance.
Hostels are an affordable option, whether travelling alone or in a group. Rates start at around 4 500 ISK for a dormitory, 7 500 ISK for a single room and 20 000 ISK for a four-person room. Bathrooms and kitchens are shared. Breakfast is not included. http://www.hostel.is
Guesthouses or bed and breakfasts are everywhere in Iceland, and offer private rooms with different options or extras: private bathroom, breakfast, find the combination that is right for you. Rates are generally between 120 and 180 euros. The Iceland Tourism Office’s website lists them by region here: http://www.visiticeland.com. We recommend this little guesthouse in North Iceland: http://www.elfguesthouse.com
Icelandic Farm Holidays offers more than 170 lodgings, of all types and at any price, in the Icelandic countryside. More information is available on their website, http://www.farmholidays.is.
Airbnb is a new platform for staying in Icelandic houses or apartments during your trip. You can rent one room in a house or the entire home. Prices vary significantly depending on lodging type, date and city. https://www.airbnb.com
Hotels are plentiful in Iceland. Except for the Edda hotel chain, which are schools converted to hotels for the summer, they are expensive. If you can find a double room in a Hotel Edda for 100 euros, then the same room in a traditional hotel will cost double. http://www.hoteledda.is/en
If you are travelling as a family or in a group, you can reserve Icelandic summer cottages on http://bungalo.is. Most cottages have a two-night minimum stay and must be clean upon departure.
Iceland24, June 2015