As you'd expect, hotels are the most expensive type of accommodation in Iceland. You can of course take the VIP road but keep in mind you won't find them everywhere on the island. The capital Reykjavík, however, has all types of hotels from luxury rooms and amenities to basic necessities.
Outside the capital, it depends on the area.
Whichever hotel you pick, we strongly recommend you book well in advance. This is particularly the case in summer or during the end-of-year celebrations.
Picking the right hotel will be based on several criteria:
For reservations, Booking.com, offers the widest choice of hotels all around the island, even in the remotest corners, so this will be your best bet.
Prices vary enormously depending on the amenities offered and the hotel category, but for a general idea, it is rare to find a room under €150 per night. So it's pricey for a whole family but more often than not in Iceland, kids get special discount.
There are many hotels in the capital, but in the island's other regions the hotels are frequently “summer hotels”. This means highly variable amenities: from classic hotel rooms as you'd find anywhere else to the bare-bones “Sleeping Bag Accommodation” rooms where you have to bring your own sleeping bag.
The price however will reflect this, about half as much for SBA. There are several hotel chains with sites all around the island, such as FossHotels or the 13 Edda Summer Hotels (now Icelandair Hotels) that offer some great value. In fact, some local schools and college housing units are transformed into basic hotels during the summer to handle the influx of tourists.
So there really is every type of offer: private or common showers and toilets, breakfast included or not.
As a result, rates vary a great deal, but here are a few examples for July 2021:
If you opt for a Sleeping Bag Accommodation package, as mentioned, you can expect half rates.