Iceland Hotels
If you’re visiting in summertime, you won’t regret bringing an eye mask with you. During the height of summer there is no actual darkness and in the Northern part of the country the sun might just dip for a few minutes below the horizon.
Hotels
The hotels are usually fairly basic around the island but you can usually get a room even in August just by phoning them up and reserving it before you get there. They are very clean and well maintained, light and airy with nothing at all that could even remotely be considered ‘dingy’. They are expensive though.
Fosshotels is a chain of tourist class hotels. The chain focuses on friendlier atmosphere. Fosshotels are situated all around Iceland, close to the island’s most treasured nature spots.
Inns of Iceland feature low priced guesthouses in Reykjavík.
Icelandair Hotels which include the Edda summer hotels and the Icelandair hotels. Icelandair Hotels are upscale, Scandinavian style hotels located in most major cities of Iceland. Most notable is the Nordica on the outskirts of downtown Reykjavík. For luxury accommodation in downtown Reykjavík, 101 Hotel is the only design hotel and celebrities’ most favourite one.
Outside of Reykjavík, one of the best hotels in Iceland is Hotel Budir on the Snaefell Peninsula.
Guesthouses
Guesthouses are between hotels and hostels in prices and services. At some times if travelling in groups the guesthouses can be cheaper than the hostels. Guesthouses will usually have more space than a hostel with a shared bathroom that is cleaner and less crowded.
Domus Guesthouse is one of the better guesthouses in Reykjavik. Their winter season lasts longer than others so their prices in May are cheaper than the Salvation Army hostel and the HI hostel outside the city. It is conveniently located near Laugevegur (the main street for shopping and bars) and the owners are very nice.
There’s also a new guesthouse in Eyrarbakki Rein Guesthouse that just opened(march 2008).
Hostels
Iceland has many hostels throughout the entire country. They can be found on Hostelling International Iceland.
Camping
If you’re travelling on a budget, camping is your best bet. There are sites located throughout the country, especially at places you’d want to visit. They range from fully-equipped (hot showers, washing machines, cooking facilities) to farmers’ fields with a cold-water tap. Expect to pay 500-1000 Kr per person per night.
If you intend to camp in Iceland you must be prepared for the cold, 3 season sleeping bags are essential and an inner, I would also highly recommend thick pyjamas and a warm hat! A bedding roll is also useful as you may end up sleeping on very rough ground…and that’s just not very comfortable at all!
Don’t wait until last minute to find a place to camp. Campers and mobile homes have become immensely popular among Icelanders and they take up a lot of space. You could arrive at a large camping ground that’s so filled up with campers and mobile homes that you’ll have no place to pitch your tent.
Mountain Huts
Trekkers will need to use some of the mountain huts, either government or privately-run. These range from dormitory accommodation to fully-staffed facilities. Booking ahead is likely to be necessary at popular times of year (and they may only be accessible in summertime).