Hostels in Iceland Hostels in Iceland

You are looking for hostels in Iceland? Good news, you have come to the right place.

On this page we list every single city with hostels and other budget accommodations. helps you to find your Iceland hostel and compare its prices on the major booking sites such as Hostelworld, Hostelsclub and So you can sleep on a budget and save money while backpacking Iceland.

All Cities in Iceland

We list every single hostel in Iceland and the world. In total, we have 33 cities in Iceland for you. Please note that not all cities actually have a hostel to stay in. Below you can filter for cities with hostels and with no hostels-type accommodation, but guesthouses and budget hotels. This will help your planning.

All Iceland hostels on a map

Alright, you are more the visual type? Planning your trip with a map is always handy.

Therefore, this map shows you all cities with hostels in Iceland. It will help you to plan your trip. Just zoom in the map and click your destination for more details. Just so you know: If we do not have a hostel in a city, it is likely that there is no hostel in that city.

Our handwritten guide on Backpacking Iceland

Iceland, this scenic country is located at almost an equal distance between mainland Europe and North America. As a result, it is an ideal stopover destination for tourists traveling on trans-Atlantic holidays. In fact, several different airline companies have recently started offering daily trans-Atlantic flights between various European and North American cities, which include several nights' layover in Iceland at a discounted rate.

The entire population of Iceland is only just above two hundred thousand, with half of that living in the capital city of Reykjavik. Outside of Reykjavik, there are only sparsely populated towns and villages dotted around the country. As a result, there is an enormous amount of undisturbed and beautiful landscape to be explored. Iceland is located on the junction of the American and Eurasian tectonic plates, and as a result, it experiences a lot of volcanic activity. There are many active volcanoes and geysers that can be visited in the country. Some of these are located close to Reykjavik and there are several tour companies located in the city that offer regular visits to these attractions.

Iceland is located immediately below the Arctic Circle, and so it experiences long days of sunlight during the summer months and very short days during the winter. However, despite its extremely high latitude, Iceland experiences relatively mild winters due to the moderating effect of the North Atlantic drift (average temperature of zero degrees). However, the summer months can be cool (about nine to thirteen degrees Celsius). One of the main attractions to see in Iceland during the winter is the Aurora Borealis; various tour companies offer visitors the chance to witness this unique and glorious spectacle by transporting them to ideal viewing locations. During the summer months, one of the main attractions to see is the midnight sun, which is visible in the north of the country.

There are also many things to see and do in and around the city of Reykjavik itself. One of the most popular attractions is the Blue Lagoon, a geothermal spa located thirty minutes drive from Reykjavik. It is made from the outflow of a nearby geothermal power plant. The water maintains an average temperature of thirty-eight degrees Celsius and contains minerals such as silica and sulfur. It is also believed to help treat people with skin disorders such as psoriasis. Whale-watching is another popular activity among tourists. Between the months of April and October, tours are available from the main harbour in Reykjavik. Several different species of whale, including minke and humpback, can be seen in their natural habitat.

Icelandic is the official language of the country, however the vast majority of Icelandic people speak
English and are well accustomed to tourists. In recent years, the government has pumped large amounts of money into its tourism industry, and as a result, the country has seen its numbers of tourists increase dramatically. Iceland has been voted as one of the safest countries in the world and is also one of the cleanest, with very minimal air pollution.

There are quite a few Iceland hostels located in Reykjavik, which offer both private and dorm-style accommodation at a reasonable rate. There also Iceland hostels available in other towns around the country such as in Akureyri and Seydisfjordur. In general, Iceland hostels and tourist activities are not too expensive. However, eating out can be very pricey, and tourists who are on a budget are recommended to buy food at grocery stores.

expert for Iceland hostels

Handwritten by local expert for Iceland hostels Shannon Neuber

Travel Tips for Iceland - from the Community

Hey fam! Here are a few more tips from the community, from them to you, and you to them. This space is dedicated for travellers to share their best tips on backpacking Iceland. Have a closer look - the Hostelz community share real hidden gems, insider knowledge and overall impressions of Iceland. Everyone is welcome to add something useful, funny, unexpected and the "absolutely necessary to know before you go" - share, share and then share a little more!

FAQ on Hostels in Iceland

There is a lot of travel planning to do. So let us help you once again by putting together the frequently asked questions:

Finding Hostels and Prices

What hostel booking sites are best to use?

There is several hostel booking sites, such as, and While every platform has its pros and cons, there is a universal truth you as a traveler should be aware of: Not a single booking site can always offer the best prices.

This is where comes in. You can compare all major booking portals with one click.

For you as a traveler, is the best booking site to actually save money.

How much are hostels in Iceland?

Prices always vary, depending on various factors. Weekends tend to be more expensive, same goes for special holidays. Please also take into account local vaction time.

You can search for exacty hostel prices in Iceland here on Pick your destination and pick a date. The system will track down the prices to give an idea of what budget and prices you can expect.

When to book hostels?

If you want to stay at the best hostels, it is a good idea to have your hostel booked around 1 month before you travel. For the regular hostels, booking one week before should be okay. Yet again, this always depends.

We dedicated a full article to the topic of when to book hostels.


Safety and Packing

Are hostels in Iceland safe?

Generally speaking, hostels are as safe as you make them. We highly recommend always to bring your own padlock, using the lockers and taking care of your belongings. Make sure you pick a safe hostel, offering lockers and a safe location. Please always pay attention to the reviews; they can give you a great insight on what to expect and safety tips.

What to pack when staying in hostels?

There is a few basics you should always pack when staying in hostels.

  1. Padlock
  2. Earplugs
  3. Sleeping Mask
  4. Quick Dry Travel Towel
  5. Head Lamp

There is more actually. We wrote a complete guide with more details. Read our full hostel packing list.

Unlock your Hostel Account to Freedom!

Unlock your Hostel Account to Freedom!

Sign up with and get access to exclusive hostel content and much more.

Do you already have an account? Login
Home Pluz