THE RUNDOWN OF A 7 DAY ROAD TRIP OF SOUTH-WEST ICELAND,
ON A BUDGET:
We aren’t experts and everyone has different tastes but read on if you could use a bit of guidance and a cost estimate (they can be useful!). On a global comparison scale, hostels in Iceland were fairly pricey but some of the nicest quality hostels we’ve stayed in!
- REYKJAVIK
– BUS HOSTEL: £26 for a single bed in a 20-bed sharer room (unisex).
Pros: free car park; free WIFI; super clean; nice staff; 24 hr check in (they were chill when we were early!); kitchen facilities; buses from the car park on various excursions; Reykjavik is a lovely city to be close to; with lots to do!
Cons: small kitchen; a bit of a walk from the city centre (but there’s lots of parking in the centre too so you can drive in!); arguably a little pricey for such a busy room.
*101 Street Food (£): a wonderful little fast food Cafe type place in the city centre; on our visit the staff went above and beyond giving everyone in the place a free dessert; the food was delicious, prepared quickly and great value for money! Not many veggie options.
*Kaffi Brennslan (££): this quaint detached cafe was great for anything from a vegan hot chocolate with oat milk cream to a Viking beer. It had a lovely cosy atmosphere whilst being clean, modern and full of life. There were games to play and books to read upstairs too!
- OLAFSVIK
–BIKER’S PARADISE: £36 for a private double room, shared bathroom.
Pros: incredible view from the hillside cottage; free parking facilities; self check-in; free WIFI; kitchen facilities; lovely rooms; in the heart of Snaefelsnes peninsula.
Cons: our double room was fairly small; the communal spaces were quite small and the atmosphere was calm and quiet so if you’re wanting to cook your own meals/watch TV etc. you might not have complete freedom to do so (but honestly it would be more fun looking out of the window!); there is not ample to do in Olafsvik itself but it’s a great pit-stop.
*Sker Restaurant (££): this restaurant was super quiet when we were there but had a great view of the harbour and a good menu to choose from. Great fresh fish dishes, free parking!
- THINGVELLIR NATIONAL PARK
–HERADSSKOLINN HISTORIC GUESTHOUSE: £61 for a private double room, shared bathroom.
Pros: the history! Honestly, this place is full of character and the staff are super friendly; it has a free car park and is close to a petrol station; the place is grand and explains its history clearly that it used to be a school and Nobel Prize winner, Laxness used to work there; there is a restaurant on site; free WIFI; good bathroom facilities; nice rooms with big windows for Northern Light spotting; low light pollution; eccentric- think The Shining cross with The Grand Budapest Hotel (see below); stunning views; lake side; close to the Golden Circle and Silfra.
Cons: no kitchen facilities and limited restaurant choice but for that in the accommodation; if you’re easily spooked, there is something a little eerie about staying in an ex-boarding school, particularly when it’s quiet season (but honestly it adds to the experience); may be difficult to get to!
- VIK
–The Barn Hostel: £52 for a 10 bed sharer double room, shared bathroom.
Pros: wonderful staff; free WIFI; 24 hr check-in; amazing kitchen facilities with lots of extras such as a communal coffee-machine; free parking; double beds(!); communal games to play; cosy, modern feel; bar on site; nice bathrooms; great value for money; close to Vik and Reynisdrangar Cliffs.
Cons: not really in Vik; would be essentially impossible to get to without a car; few shops super nearby.
- HOF
–Fosshotel Glacier Lagoon: £101 for a private double room.
We never got the chance to stay here because of a change of plans- a bit too far East in some bad weather for our little car, but it looks like an amazing and remote location from which to see the Northern Lights!
- SELFOSS
–Selfoss HI Hostel: £42 for a private double room, shared bathroom, shared hot-tub!
Pros: great value for money; allowed us to change the night of our booking at no added expense; extensive kitchen facilities; close to a shop; close to other small towns; hot tub; friendly staff; free WIFI; free parking (limited in busier periods); Selfoss is quite a busy town; close to the supermarket.
Cons: shared bathroom; dated furnishings.
It’s clear from this list that we weren’t dining out much by anyone’s standards, so Bonus Supermarkets were our best port of call for budget food! Iceland has so much to offer, particularly in the bigger towns so venture further afield than we managed if you can and please leave comments with your recommendations for the next time we visit! Go to the market in Reykjavik on a Saturday to try fermented shark (though we wouldn’t recommend you try much!)
SIDE-NOTES:
Obviously, we stayed at these locations in winter so experiences may differ based on season, perhaps prices will too. But we’d recommend all of the above without a doubt!
The best websites to check on are: HostelWorld, Air BnB and booking.com and if you have flexibility and a limited amount of time, leave booking late in quiet seasons, or look for those with free cancellation in case of bad weather.
Places We Roam 
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