Exploring Iceland on a budget: The Hostel Guide

Exploring Iceland on a budget: The Hostel Guide

Discover Iceland's Cozy and Affordable Accommodations! Dive into my curated list where I unveil my favorite guesthouses and hostels across Iceland, perfect for travelers seeking comfort, charm, and adventure without breaking the bank.
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Iceland, a land where nature speaks in tones of thundering waterfalls, glistening glaciers, and dancing Northern Lights, has long been a dream destination for travelers from all corners of the globe. However, this destination is often associated with it's high cost of travel. This usually leads fellow adventurous travelers to think twice before visiting this unique northern gem. 

Why Iceland Can Be Expensive

Before diving into the world of hostels, let's quickly understand why traveling in Iceland can be pricey. Due to its remote location and reliance on imports, costs for basic amenities like food and transportation are higher than in many other countries. Additionally, Iceland's booming tourism industry has led to increased prices in tourist hotspots.

Hostels in Iceland: What to Expect

In Iceland, hostels are spread across the country, from the bustling streets of Reykjavik to the quiet corners of rural regions near glaciers and volcanoes. They offer a range of accommodations, from private rooms to shared dormitories, catering to different preferences and budgets.

Most hostels in Iceland provide amenities such as free Wi-Fi, communal kitchens, cozy lounges, and sometimes even extras like hot tubs to enjoy the stunning views. They are ideal places to meet fellow travelers, share stories and tips, and even find companions for your Icelandic adventures.

As long as you choose your hostels wisely, your experience can match if not exceed the experience of staying in a 3 star hotel or an airbnb with the added value of getting to meet fellow travellers and getting local recommendations. 

Hostel Recommendations: Your Home Away from Home in Iceland

Here are some of the best hostels I visited across Iceland, each offering a unique experience without straining your budget.

1. Bus Hostel Reykjavik

Bus Hostel Reykjavik
@Karimabn
Good value Hotel. Linen included however bring your towel with you
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Location

 Very well located. It's an easy walk to the downtown area where you can explore museums, art galleries, shops, and local eateries. The hostel's proximity to public transportation also makes it a fantastic base to venture into the city if you don't feel like walking.

Vibe 

The hostel attracts a diverse group of travelers, from solo backpackers to groups of friends, all looking to explore Iceland's wonders. 

Facilities

The hostel offers a variety of accommodation options to suit different needs and budgets, including mixed dorms, female-only dorms, and private rooms. The hostel also offers a common kitchen, a laundry service and a bar.

Why Stay here

Compared to other hostels in the area, Bus Hostel is one of the cheapest available. It's location is perfect to explore the city and the vibe is generally calm and cosy. 

II. Selfoss HI Hostel

Selfoss HI Hostel
@Karimabn
If you're roadtripping around the ring road, this hostel is the perfect stop for your first night on the road
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Location

The hostel conveniently situated in the heart of Selfoss, a charming town in southern Iceland, offering easy access to natural wonders like the Golden Circle route. Its central location makes it an ideal base for exploring nearby geothermal areas, waterfalls, and the scenic South Coast.

Vibe

The hostel has a cozy and friendly atmosphere, perfect for travelers seeking a peaceful and home-like environment. 

Facilities 

The hostel provides comfortable and clean accommodation options ranging from single rooms with shared bathrooms to private rooms, along with amenities like a communal kitchen, free Wi-Fi, and a lounge area for relaxation and socializing.

Why Stay here

Choose Selfoss Hostel for its prime location and its calm ambiance ideal for unwinding after a day of exploration, and its well-maintained facilities that ensure a comfortable and hassle-free stay.

III. Guesthouse Skogafoss 

Guesthouse Skógafoss
@Karimabn
Walking distance from the mesmerizing Skogafoss waterfall
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Location

The Guesthouse boasts a prime location near the majestic Skogafoss Waterfall, one of Iceland's most iconic natural wonders, offering guests breathtaking views and easy access to the waterfall and surrounding hiking trails

Vibe

The guesthouse offers a tranquil and rustic family atmosphere, making it ideal for those seeking a peaceful retreat in nature away from the hustle and bustle of tourists in the evening.

Facilities 

The guesthouse features simple, cozy rooms. Facilities include en-suite bathrooms, a communal dining area, and the unique advantage of having one of Iceland's most famous waterfalls right at your doorstep.

Why Stay Here

Choose this guesthouse for unparalleled location close to Skogafoss waterfall. Nothing beats waking up and starting your day with the mesmerizing views of the waterfall. 

IV. Vagnsstadir Guesthouse

Vagnsstadir Guesthouse
@Karimabn
If you wanna be immersed in total nature, that's the place where you should stay!
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Location

The Guesthouse is nestled in a serene, rural setting in Southeast Iceland, close to the stunning Jökulsárlón Glacier Lagoon and Diamond Beach.

Vibe 

The guesthouse offers a warm, welcoming atmosphere, blending traditional Icelandic hospitality with a quiet, countryside charm. The icelandic quotes on the bedroom walls have their unique charm. 

Facilities

The Guesthouse provides a range of accommodation options, from cozy double rooms to larger family rooms, all designed with comfort in mind. Just keep in mind that this guesthouse does not offer a communal kitchen. 

Why Stay here 

Choose this gueshouse for its idyllic location amidst Iceland's breathtaking natural scenery, its inviting and homely environment perfect for relaxation and potentially spotting northern lights!

I have personally stayed at the 4 hostels mentioned above and would definetly go back again if the opportunity arose. Hopefully  this guide inspires your next Icelandic adventure, offering you a cozy and affordable home away from home amidst the island's extraordinary landscapes and natural wonders. 

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ABOUT THE AUTHOR
Hi there! I'm Karim, a guy in his 20s who fell in love with travel early on. With years of experience travelling solo across continents, I've mastered the art of exploring the world on a shoestring budget, and I'm here to share that knowledge with you. Why Choose Me? Youthful Perspective: As a fellow young traveler, I understand the thrill and challenges of exploring solo. My guides are crafted with the energy and insights unique to our generation. Budget-Savvy: I specialize in stretching dollars without sacrificing experiences. From hidden, affordable gems to smart travel hacks, my guides are perfect for those who want to see the world without breaking the bank. Real-Life Experience: Every tip and recommendation comes from my personal journey. I've lived these experiences, and I'm excited to pass on practical, tested advice. Hopefully I can help you design your itinerary in the best way possible!
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