B&Bs, more commonly known here as guesthouses, are the preferred types of accommodation if you're visiting Iceland. They are found everywhere on the island, even in the most remote areas far inland, and when it comes to value for money they are unbeatable.
The vast majority of hosts catering to tourists in Iceland use Booking.com, so that's where visitors can find the largest selection of guesthouses even in the farthest corners of the island.
All these establishments take reservations, but you'll need to plan ahead, especially when booking during summer and holiday seasons. Some bustling tourist sites and bigger cities like Reykjavík have enough hosts to ensure you can book easily, but in some of the more remote areas there are only a select few options. This is the case for example with Jökulsárlón or Lake Mývatn.
Picking the right guesthouse for you will be based on several criteria:
Another useful resource is HeyIceland (formerly Farm Holidays), a chain of about 170 rural B&Bs, "farm inns", and shelters, located all over the country which offers travelers accommodation and various amenities.
These can takes many forms: farms, guesthouses, country hotels, chalets, cottages... And the packages are different too, from bed and breakfast with private or shared bathrooms to camping in your own sleeping bags.
The various accommodations are divided into 4 categories, similar to hotel "stars", offering a different level of quality and service (with private or shared bathrooms, for example). Breakfast is of course available as an option in B&Bs.
Farm inns often offer other services such as horseback riding, fishing and hunting expeditions, golf, etc... This type of accommodation is probably the most popular among tourists as it's more personal, hosts can help with useful advice and insight into life in Iceland.
Remember to book well in advance during the June to August season. As mentioned, guesthouses really offer the best value for money depending on the category and the options chosen. Here is the list of accommodation options and rates
Rental of rooms in a farmhouse building. The rooms are simple and comfortable and some are offered with private shower/WC.
Rental of rooms in a farmhouse building but with a private entrance, or in a separate building, bungalows, or other dependencies, some with private shower/WC.
Closer to hotel services, more luxury and amenities, and rooms are better equipped. These rooms are in category 4, the top class, with private shower/WC.
Cottages are more independent, with kitchens equipped for the number of people in the reservation. Duvets are provided, but guests must bring sheets or rent them on site.
Sleeping bag accommodation: These accommodation options have rooms for 1 to 4 people, but as the name suggests these are just bare beds sometimes just mattresses on the floor. Breakfast is as you can imagine not included in this package.
Cottages — A, B, C, or D
Cottages are much like AirBnB full holiday rentals charged per day or per week. These are very well maintained with shower/WC. You are provided with warm duvets and can rent sheets for a fee or bring your own, and all cottages have a full kitchen equipped for the number of people in the booking.
The difference between A, B, C, and D categories is mainly a matter of size, comfort, and additional equipment. Initially, visitors are asked to keep the cottage clean. Room cleaning during the visit is possible on request at an additional cost.
As you can see, the range of services and the category of bed and breakfast is rather vast, so the price range is quite broad, but generally it's hard to find a double room in a guesthouse for less than €100 per night. On the bright side, as is often the case in Iceland, children are almost always entitled to discounts.
Prices vary depending on:
Here are a few examples for July 2021: