Iceland is an increasingly popular destination and has a wide range of accommodation offers, from camping to luxury hotels you'll find something for every taste and budget.
This is not a densely populated island, so real estate is at a premium, but you can still find accommodation quite easily if you book well in advance.
After the price factor, the other main deciding factor will be the region.
Some regions have more offers than others. The capital Reykjavik, for example, has many options for accommodation, but it can be much harder to find a place to sleep near popular tourist sites, such as near Jökúlsárlón in the south of the island.
If you are exploring the central highlands, you'll probably know already that in some areas only shelters are available. Whether you are hiking, or cozy in a bed & breakfast, or lounging at the thermal spa, your trip may take you from a trek shelter to a fancy hotel.
So Iceland has shored up its accommodation offer for visitors, but depending on the time of year it is often essential to book. In summer or during the festive winter season, for example, you'll be quite limited in your options if you haven't booked well ahead of time, even several months in advance, for hotels in Reykjavik during the end-of-year holiday season.
Booking.com offers lots of accommodations in Iceland, even in some remote locations, from hotels to B&Bs and camping, something for every budget.
Iceland remains aligned with northern Europe and an expensive country, so camping is by far the most affordable form of accommodation.
Youth hostels are also quite affordable, but there aren't very many in the country. This mid-range offers will usually be found in B&Bs across farms and guesthouses, preferred by the majority of tourists.
Finally, the hotel is the tier for those who want to feel a little spoiled, but keep in mind some hotel chains (summer hotels) can be on par or even cheaper than some guesthouses.