Understanding prices in Iceland can feel a bit like decoding a secret language—especially if it’s your first time visiting. But once you know what drives the costs here, it becomes much easier to plan a trip that feels both memorable and good value.
At Ourhotels.is, we welcome guests from all over the world to the west of Iceland, and one of the most common questions we hear is: “Why is everything so expensive?” The answer lies in a mix of geography, seasonality, and the unique way of life in Iceland.
Iceland is a remote island with a small population, and many goods have to be imported. This affects the price of everyday items like food, fuel, and building materials. On top of that, wages are relatively high, and businesses must operate in a harsh climate with long winters and strong weather conditions. All of this is reflected in the prices you see—whether you’re booking a room, filling up your rental car, or ordering a meal.
Accommodation is often one of the biggest parts of a travel budget, and understanding how Icelandic prices work can help you choose wisely. In popular areas, prices tend to rise in the high season (June–August) and around holidays. Booking early and staying in locally run places can make a real difference. Ourhotels.is focuses on comfortable, simple stays in great locations across West Iceland, helping you get more value from your trip without sacrificing the experience.
Take Hvítá Inn in Borgarfjörður, for example. Located close to Borgarnes, it’s a great base for exploring waterfalls, hot springs, and the quiet countryside. Here, you’re paying not just for a bed, but for easy access to nature, free parking, and the calm of rural Iceland. When you compare that to staying in a big city hotel, you’ll often find that countryside inns offer more space, more character, and a more authentic feel for a similar or even lower price.
Further north on the Snæfellsnes Peninsula, The Stykkishólmur Inn gives you a front-row seat to one of Iceland’s most charming coastal towns. Prices in small towns like Stykkishólmur reflect both the cost of running a business in a remote area and the growing popularity of the region. But staying here can actually save you money in other ways: you can walk to restaurants, the harbor, and viewpoints, and you won’t need to drive long distances every day. Less driving means less fuel, which is one of the higher costs in Iceland.
If you’re heading even farther west, Ísafjörður Inn in the Westfjords offers a different kind of value. The Westfjords are more remote, and that remoteness is part of the price—but also part of the reward. You’re paying to be in a place with fewer crowds, dramatic fjords, and a slower pace of life. In Ísafjörður, you can often find good deals outside the peak summer months, and the town has a nice balance of services, restaurants, and outdoor activities. By choosing a simple, well-located inn like Ísafjörður Inn, you can keep your accommodation costs reasonable while still enjoying one of the most spectacular regions in the country.
When you look at Icelandic prices, it helps to think in terms of overall value rather than just the number on the receipt. Many things that cost extra in other countries are included here: Wi‑Fi, parking, and often breakfast at smaller inns. Tap water is safe and excellent, so you don’t need to buy bottled water. Nature itself is the main attraction, and most of it is free to access. If you plan your days around hiking, scenic drives, and small-town walks, you’ll find that your daily spending can stay surprisingly manageable.
A few simple tips can help you get the most from your budget in Iceland:
– Travel slightly off-season (spring or autumn) for better room rates and fewer crowds.
– Book your stays early through Ourhotels.is to secure good prices at Hvítá Inn, The Stykkishólmur Inn, and Ísafjörður Inn.
– Use your accommodation as a base for day trips, reducing fuel costs and time on the road.
– Take advantage of included breakfasts and cook simple meals when possible, especially in more remote areas.
Understanding Icelandic prices is really about understanding Iceland itself: a small, wild, beautiful country where everything has to work a little harder to exist. When you know what goes into the cost of your stay, it’s easier to appreciate the value you’re getting—clean, comfortable rooms, warm hospitality, and unforgettable landscapes right outside your door.
Ourhotels.is is here to make that balance easier. Whether you choose the riverside calm of Hvítá Inn near Borgarnes, the coastal charm of The Stykkishólmur Inn, or the dramatic fjord views from Ísafjörður Inn, you can explore West Iceland with a clearer idea of what you’re paying for—and why it’s worth it.
