The Best Hostels in Iceland for Backpackers, Students, and Budget Travellers

Reykjavik | Akureyri | Keflavik | Snaefellsbaer | Stykkisholmur

Iceland is a beautiful island country that is technically considered part of Nordic Europe. It's a popular tourist destination for its natural beauty and geothermal features.

If you're traveling on a budget, both camping and staying in hostels are popular options. There are a decent number of hostels throughout the country that belong to the organization Hostelling International Iceland. If you're planning to stay at several of these hostels, it's worth purchasing the membership but there are also a variety of hostels that are independent and don't belong to the organization.

The hostels below are spread throughout the country and offer affordable and interesting places to stay for backpackers, students, and budget travelers.

How much do hostels in Iceland cost?

Average Dorm Price $41 ($23 to $63)
Average Double Private Room Price (in a hostel) $89 ($2 to $265)

An affordable hostel for backpackers, students and budget travellers in Reykjavik, Iceland.

Dorm Bed: $5,750.00
Private Room: $6,650.00
Overall Rating: 91%
Loft Hostel is a member of Hostelling International and it's a favorite for backpackers visiting Iceland. One of the main selling factors for this hostel is its great location on a major shopping street. It's also just a five minute walk from Hallgrimskirkja and several other popular sights.

The hostel has a large rooftop cafe that looks out over the city. This is a great place to enjoy a beer or meet other guests. There's also a small lounge where guests can hang out, a shared kitchen where they can prepare food, and a book exchange.

The hostel has four, six, and eight bed dorms as well as double and four person private rooms.
Bankastraeti 7 , Reykjavik, Iceland,

A safe and comfortable hostel for backpackers and students in Akureyri, Iceland.

Dorm Bed: $2,800.00
Private Room: $4,250.00
Overall Rating: 89%
With a population of about 18,000, Akureyri is the largest town in Iceland outside of the Southwest region. If you're looking for a hostel in the middle of town, then Akureyri Backpackers Hostel is a good option. Do come prepared to pay for any amenities you might need, as the base price gets you little more than a bed. One of the biggest selling factors with this hostel is its convenient location in the middle of town, near many cafes and restaurants. The staff are available to answer any questions you might have and they can help you arrange any tours or activities you might want to do in the area.

The hostel has four, six, and eight bed dorms available as well as private rooms if you want a little more space.
Hafnarstrati 98 , Akureyri, Iceland,

A quiet, safe, and affordable hostel for backpackers and small groups in Keflavik, Iceland.

Dorm Bed: $29.62
Private Room: $22.33
Overall Rating: 91%
Keflavik is a town in Southwest Iceland where you'll find the country's international airport. Many visitors enjoy going on a whale watching tour that leaves from the harbor. The town is also relatively close to the Blue Lagoon, so some visitors use the town as a base when visiting the landmark.

If you're passing through Keflavik on your way in or out of Iceland, then Start Hostel is a good option. Most visitors stay here before they catch an early flight out of town. The hostel is quiet and you can be assured a good night's sleep. There are also a variety of facilities available to guests including a shared kitchen where visitors can prepare their own meals. The staff are also available to answer any questions you might have.

The hostel has dorms that sleep up to six people and are split by gender. There are also private rooms that include twins as well as three, four, and five bed family rooms.
Lindarbraut 637 , Keflavik, Iceland,

An affordable hostel for backpackers, students, or budget travellers in Snaefellsbaer, Iceland.

Dorm Bed: $39.87
Overall Rating: 91%
The Freezer is a remote hostel in Iceland that is surprisingly comfortable and fun. If you visit during the peak summer months, you can enjoy a summer theater program that uses the on-site stage. There are also musical instruments that guests can use and a large lounge where guests can hang out. There's a basic shared kitchen where you can prepare your own meals and other amenities include a book exchange, board games, and travel information. As with most of Iceland, if you want to explore the surrounding area you really do need to have your own car. The hostel offers free parking.

There are dorms that sleep four, six, or eight people. This is a surprisingly social and fun place to stay in an isolated setting. It truly offers a unique perspective on Iceland.
Hafnargata 16, Rifi Snæfellsbær , Snaefellsbaer, Iceland,

A quiet, safe, and affordable hostel in Stykkisholmur, Iceland.

Dorm Bed: $3,559.50
Private Room: $4,223.62
Overall Rating: 92%
Stykkisholmur is a small town in the western part of Iceland on the northern Snaefellsnes peninsula. It serves as the gateway to Flatey and it has long been an important commerce center for the area.

The Harbour Hostel Stykkisholmur is a good option if you're spending the night in town. The hostel offers a variety of room types including mixed dorms, family rooms, and private rooms. The dorms sleep either four, eight, or twelve people.

The hostel staff can help you plan your visit and give you ideas about things to do in the area. The facilities are clean and comfortable and the atmosphere is very friendly. The hostel is located right by the harbor and the location is convenient.
Hafnargata 4 , Stykkisholmur, Iceland,

Share This Article