Affordable Getaways: Budget-Friendly Resorts in Iceland


Arvinda Dixit

Iceland is usually considered to be an expensive travel destination despite its reputation for having breathtaking landscapes, geothermal wonders, and a distinctive culture. Even though it’s true that Iceland can be an expensive destination, there are still plenty of opportunities for tourists to experience this Nordic jewel without blowing their entire travel budget.

Picking more affordable resorts in Iceland that provide the same level of luxury and amenities as their more expensive counterparts is one of the most effective ways to cut costs while traveling in Iceland.

This article will provide you with an overview of some resorts in Iceland that are accessible to travelers on a limited budget, with the goal of assisting you in the process of planning an unforgettable vacation while staying within your means.

The Laxa Hotel, Myvatn

The Hótel Laxá is a wonderful option for vacationers on a budget, and it offers a location in northern Iceland’s Myvatn region, which is known for its scenic beauty.

Budget-Friendly Resorts in Iceland

The hotel has rooms that are both comfortable and affordable, making it an excellent home base for exploring the natural wonders that are located in the area.

Myvatn is well-known throughout the world for its geothermal hot springs, breathtaking volcanic landscapes, and diverse array of avian life. The Hótel Laxá provides a variety of amenities, such as a restaurant that serves delectable regional cuisine, a comfortable lounge, and a helpful staff that can assist you in organizing your excursions.

The nearby Myvatn Nature Baths offer an alternative that is less expensive than going to the Blue Lagoon. Here, you can relax in the invigorating geothermal waters without having to worry about busting your budget.

The Sunna Guesthouse, Reykjavik

Visitors to Iceland typically begin their journey in Reykjavik, the nation’s capital. It is possible to spend a lot of money to stay in the center of Reykjavik, despite the fact that the city is famous for its thriving culture and nightlife.

Budget-Friendly Resorts in IcelandThe rooms at the Guesthouse Sunna are comfortable and clean, and they are located within easy walking distance of many of the city’s most popular points of interest.

You can stick to your financial plan while still enjoying the picturesque streets of Reykjavik, seeing the world-famous Hallgrmskirkja Church, and indulging in some retail therapy on the fashionable Laugavegur shopping street.

The atmosphere at Guesthouse Sunna is one of friendliness and warmth, and as a result, you will feel right at home in the capital of Iceland.

Eystri Gistiheimili lfheimar, Borgarfjordur

Gistiheimili lfheimar is an excellent option for those who want to get away from the crowds and discover the unspoiled natural beauty of East Iceland.

Budget-Friendly Resorts in Iceland

This guesthouse in Borgarfjordur Eystri provides lodging that is, all the same, very comfortable at very reasonable rates. You’ll have the opportunity to completely submerge yourself in the serene environment, which features picturesque fjords, vibrant fishing villages, and miles upon miles of hiking trails.

A shared kitchen is available for use by guests of the guesthouse, which is good for vacationers who wish to cut down on the costs of eating out by preparing their own meals. It would be a shame to pass up the chance to go on scenic hikes in the area or to see the puffin colonies that are located nearby.

Hotel Geysir, Centre of The Golden Circle

The Golden Circle is one of the most well-known tourist circuits in all of Iceland. It takes visitors to some of the country’s most famous attractions, including the Geysir geothermal area, the Gullfoss waterfall, and Thingvellir National Park.

Budget-Friendly Resorts in Iceland

It’s a must-see destination but be prepared for crowds and high prices while you’re there.

On the other hand, Hotel Geysir provides guests with an option for reasonably priced lodging that is located smack dab in the middle of the Golden Circle. This resort is friendly to those on a tight budget and offers comfortable rooms with breathtaking views of the geothermal landscape in the area.

After a short time spent at the well-known Geysir and Gullfoss waterfalls, you can easily make your way back to the warm and inviting hotel to unwind. Make it a point to stop for a bite to eat at the hotel’s restaurant, where you can indulge in traditional Icelandic fare while taking in the scenery.

Westfjords, The Hotel Flokalundur

The Westfjords of Iceland are a remote and less-visited region, making them ideal for travelers looking for solitude and natural beauty in their vacation destination.

Budget-Friendly Resorts in Iceland

The Hotel Flokalundur, which can be found in the teeny-tiny village of Flokalundur, is a wonderful place to get away from it all and offers reasonable room rates. The hotel provides guests with a breathtaking view of Vatnsfjordur Bay and serves as an ideal home base from which to explore the wild landscapes of the Westfjords.

While you are here, you can go hiking along dramatic cliffs, visit quaint fishing villages, and even take a dip in natural hot springs.  All of these activities are available to you while you are staying here.

In the restaurant of the Hotel Flokalundur, you can indulge in traditional Icelandic fare without breaking the bank thanks to the restaurant’s delectable seafood dishes.

The Skaftafell Campground, Vatnajokull National Park

Camping is a wonderful choice for visitors to Iceland who are looking to cut costs without sacrificing their enjoyment of the great outdoors. Glaciers, waterfalls, and miles upon miles of hiking trails make Vatnajokull National Park in the southeast an outdoor enthusiast’s dream destination in Iceland.

Budget-Friendly Resorts in Iceland

The Skaftafell Campground is located within the park and provides visitors with a low-cost opportunity to explore this natural wonderland. You will be able to park your camper van or set up your tent in a breathtaking landscape that is surrounded by mountains and glaciers.

The campground features essential amenities, such as restrooms and showers, and serves as an excellent home base for exploring the park’s attractions, such as the Vatnajokull Glacier and the Svartifoss waterfall.

The Hotel Hsafell, West Iceland

The Hotel Hsafell, which is located in beautiful West Iceland, provides a combination of high-end amenities and reasonable room rates.

Budget-Friendly Resorts in Iceland

Although it may be more expensive than some of the other choices on this list, it offers excellent value for the money, particularly if you are looking for a place to stay that is both comfortable and located in a beautiful natural setting.

The Hotel Hsafell enjoys a location that puts it in close proximity to a number of popular tourist destinations, including the Hraunfossar and Barnafoss waterfalls, the Langjokull Glacier, and the soothing Hsafell hot springs. The layout of the hotel is thoughtfully designed to complement the natural beauty of its setting, resulting in an environment that is serene and congruous.

Borgarnes’s Hafnarfjall Cottages

The Hafnarfjall Cottages are a warm and welcoming retreat that won’t break the bank, and they’re located in the picture-perfect town of Borgarnes in West Iceland.

Budget-Friendly Resorts in Iceland

These quaint cottages are ideal for vacationers who want to be close to exciting attractions like the Borgarnes Settlement Center and the captivating Deildartunguhver hot springs but still have the opportunity to get away from it all in a serene setting.

You can cut down on your dining costs by preparing your own meals in the fully-equipped kitchens, all while taking in the breathtaking views that surround you.

Downtown Hostel in Reykjavik, Iceland

The Reykjavik Downtown Hostel run by Hostelling International is an excellent option for budget-minded travelers and those traveling on a shoestring budget.

Budget-Friendly Resorts in Iceland

This hostel, which can be found in the middle of Reykjavik, offers budget-friendly accommodations in both private rooms and dormitory-style dorms.

You’ll be in close proximity to the cultural institutions of the city, such as museums, galleries, and the renowned Harpa Concert Hall, all of which are easily accessible on foot. The communal kitchen is a wonderful place to meet other travelers as well as a great place to save money on food.

Seljalandsfoss, The southern coast of Iceland

The South Coast of Iceland is an area that should not be missed because of the beautiful black sand beaches and breathtaking waterfalls that can be found there.

Budget-Friendly Resorts in Iceland

The Seljalandsfoss Campground provides visitors on a budget with a wonderful opportunity to camp while taking in breathtaking vistas of the nearby Seljalandsfoss waterfall. You can make use of the facilities at the campground, which includes showers and a small café, in addition to the campsite’s advantageous location as a convenient home base for exploring the South Coast.

The Nonni Guesthouse, Akureyri

Akureyri is Iceland’s second-largest city and a hub for cultural activities as well as outdoor adventures.  It is commonly known as the “Capital of the North,” which is a fitting nickname for this city.

Budget-Friendly Resorts in Iceland

The inviting and reasonably priced guestrooms at Guesthouse Nonni can be found in Akureyri, and the entire establishment exudes a sense of community. The botanical gardens of the city, the Akureyri Art Museum, and whale-watching tours in Eyjafjorur Bay are all accessible from here without putting a strain on your finances.

There is no need to empty your bank account in order to take in Iceland’s breathtaking landscapes because doing so is not required. These resorts and hotels across the United States that are easy on the wallet offer travelers who want to discover the Land of Fire and Ice but don’t want to empty their wallets a variety of reasonably priced options to choose from.

Therefore, now is the time to begin planning your trip to Iceland, and you can look forward to embarking on an experience that will live long in the memory while not breaking the bank. Stay in the loop for more enjoyable content. Put our website in your favorites so it’s easy to find and share with your pals.