Cheap Accommodations Road Trip Iceland
Are you looking for cheap accommodations for your road trip through Iceland? During our trip, we stayed in various affordable places like hostels and B&Bs. In this guide, we share our experiences with cheap accommodations in Iceland so you can save some money on your trip. On average, we paid around $80 per night for two people (prices from 2022). Not bad, right?
You can check out all the accommodations we visited on our Google Maps travel guide Iceland!
Accommodation Reykjavík
Reykjavík (update 2025: we stayed at Blue House B&B, but it seems this place does not exist anymore)
For our first nights in the capital of Iceland’s, we stayed at The Blue House, just outside the city center. The rooms were basic and not the cleanest of our trip. Overall, however, it was fair. We received a code via SMS to enter, allowing us to check in at any time. The main building offered a simple breakfast, which was included in the price. It was nice for a late arrival at Keflavik Airport. Free street parking was available.
Iceland Road Trip Day 1: Hella
In Hella, we stayed at Hotel Kanslarinn. It was the only actual hotel of our road trip. Located right along the Ring Road, it was a perfect stop after exploring the Golden Circle! We had a comfortable stay with breakfast included. We had our own room with private bathroom. Keep in mind that there isn’t much to do in the area. Parking was easy. Cooking facilities were not available.
Accommodation in South Iceland
In Vík, we stayed at The Barn Hostel. It was one of the most modern hostels we visited. We booked two beds in a shared dorm, which was fine in this modern place! The hostel had a cozy atmosphere with a bar to relax in the evenings and a spacious kitchen area. So prepare your own meal and save some additional costs. Parking was free.
Iceland Road Trip Day 3: Höfn
Höfn is a great stop along Iceland’s Ring Road in the south. We stayed at Höfn Hostel. We had a private room with shared bathroom and kitchen. The accommodation was quite new and still partly under construction during our visit. The town itself has supermarkets and a few restaurants. The kitchen was equipped sufficiently. Plenty of parking spaces were available.
Accommodation North Iceland
Near the stunning sights of the Diamond Circle, we stayed at Vogar Travel Service. Here we had a private room with shared facilities. There was a kitchen for cooking and multiple parking space.
Accommodation Akureyri
Akureyri (unfortunately we cannot recommend the accommodation we booked in this city)
Unfortunately, our stay in Akureyri was quite disappointing. Guesthouse Akureyri felt more like a student dorm, so we woundt recommend this place. However, Akureyri itself is a great stop with a lively center, plenty of restaurants, and good facilities. If you plan to stay here, we recommend finding another place to stay.
Cheap Camping Stay Borgarnes
Camping Fossatun bij Borgarnes
Our favorite and most unique stay was our last one in a cabin at Camping Fossatún. The accommodation is located near Snæfellsnes. The cabin was quite simple, with just a bed. However, the campsite had a shared kitchen and nice hot tubs heated by natural springs! It was our favorite accommodation of our Iceland road trip.
Conclusion: Cheap Accommodations Roadtrip Iceland
Finding cheap accommodations for a road trip through Iceland is definitely doable! Many options include guesthouses and hostels, but we often had a private room while sharing facilities like bathrooms and kitchens. This helped us keep our budget low, leaving more money for Iceland’s breathtaking attractions.
Don’t forget to check out our full Iceland road trip itinerary, where we share the best sights to visit!
