Average City Prices
- Per NightCity
- US$58.71 Keflavik
Iceland has quickly become a must-visit destination for backpackers. Whether you want to experience the midnight sun during the summer months, or go in search of the Northern Lights in the winter, Iceland is one of the best places in the world to see Mother Nature in all her glory.
Thanks to its recent popularity amongst backpackers, there’s a growing selection of hostels in Iceland to choose from. Whether you’re looking for the best prices, or you’d rather stay in a private room, the best hostels in Iceland have everything you need for a comfortable stay.
Look out for hostels with their own bar, heated outdoor patios and free breakfast. Some of the best hostels in Iceland also offer events like free movie nights and music events. Much like the country itself, hostels offer a blend of modern design, home comforts and a welcoming atmosphere.
Like most people, you’ll probably start your Iceland adventure in Reykjavik. The majority of hostels in Iceland are in the capital, but if you’re planning a road trip around the island, you can also find cheap accommodation along the way. Specifically, check out Akureyri, Grundarfjordur and Breiddalsvik.
Iceland is known for its breathtaking natural beauty, which includes glaciers, roaring waterfalls, active volcanoes and lava fields that resemble alien landscapes. During the winter months you might also get a chance to see the Northern Lights, which is an essential item to tick off the bucket list.
For some of the best whale watching in the country, head to the northern town of Húsavík, which is also less than an hour’s drive from the stunning Lake Mývatn. There’s also the black sand beaches of Reynisfjara, the Hekla volcano in the South and the solitude of Hornstrandir Nature Reserve.
You have a few different options for getting around Iceland. If you have the time, one of the best options is to rent a car and take a trip around the Iceland ring road. You can make friends with other travellers at your hostel when you arrive and split the costs of renting a car and accommodation.
There are also a number of bus companies that run routes to Vik, Myvatn, Akureyri, Hofn and the highlands. Most services are reduced or stop running altogether in the winter, but when they are running you can buy tickets online or from the BSI bus terminal in Reykjavik. If you’re really pressed for time there are domestic flights to Akureyri, Egilsstadir and Isafjordur in the Westfjords.
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