Iceland is famous for its stunning landscapes, from geysers and glaciers to volcanic beaches and waterfalls. While it’s a dream destination for many, the country is often associated with high travel costs. Fortunately, finding cheap accommodations in Iceland is possible with the right planning and insider tips. This guide will help you explore budget-friendly lodging options without compromising on comfort.
Why Finding Cheap Accommodations in Iceland Matters
Traveling in Iceland can be expensive, with accommodation often taking up a large portion of your budget. Opting for cheap accommodations in Iceland allows you to spend more on experiences like glacier hikes, whale watching, and geothermal spas. Budget lodging also makes it easier for solo travelers, backpackers, and families to enjoy the country without breaking the bank.
Types of Budget-Friendly Lodging
Hostels
Hostels are a popular choice for budget travelers. They offer shared rooms, kitchens, and social spaces where you can meet other travelers. Many hostels in Iceland are located in central areas, making it easy to access sightseeing spots while keeping costs low.
Guesthouses and B&Bs
Guesthouses and bed-and-breakfasts provide a more local experience. They are often family-run and include breakfast, which adds value to your stay. Booking early can secure some of the best deals on cheap accommodations in Iceland.
Farm Stays
For a unique experience, consider staying on a working farm. Farm stays often include cozy rooms, home-cooked meals, and a chance to experience Icelandic rural life. This is a great option for travelers who want authenticity on a budget.
Camping
Camping is the ultimate budget-friendly option. Iceland has numerous campsites near popular attractions, and some even offer basic facilities like kitchens and showers. If you enjoy nature, camping is one of the cheapest ways to stay in Iceland while immersing yourself in its landscapes.
Tips for Booking Cheap Accommodations
- Book in advance – Prices tend to rise closer to the travel date.
- Travel off-season – Summer is peak tourist season, while late fall and winter offer better deals.
- Consider location – Staying slightly outside major cities can reduce costs significantly.
- Use online platforms – Websites and apps often provide discounts and last-minute deals.
Conclusion
Finding cheap accommodations in Iceland is entirely possible with proper planning. From hostels and guesthouses to farm stays and campsites, there are options for every type of traveler. By being flexible with your dates and locations, you can enjoy the breathtaking beauty of Iceland without stretching your budget. Embrace these budget-friendly options and make your Icelandic adventure unforgettable!

