Great Deals on Accommodation

Supply exceeds demand when it comes to accommodation in downtown Reykjavík. As a result, hotels and guesthouses have lowered prices, compared to last year, Morgunblaðið reports. This could make it tough for many of those to stay in business, believes Kristófer Oliversson, head of FHG, an association for businesses offering hotel and accommodation service.

A search on the website expedia.com for the least expensive accommodation in this area revealed that several guesthouses and hotels offer prices between ISK 5,000 and ISK 8,000 (USD 40-64; EUR 36-58) for overnight stay.

Kristófer states that smaller places have few options other than to offer special deals when demand is down. “Demand affects prices,” he states. “There is no longer enough for everyone, so it is not abnormal for prices to go down.”

According to figures from the Icelandic Tourist Board, the number of tourists who arrived in Iceland through Keflavík International Airport was down by 18 percent in October, compared to the same month last year.

According to a harmonized index of consumer prices, price for accommodation is now similar to 2017 levels. Meanwhile, the foreign exchange rate index is down by 12 percent since November 2017. That suggests prices, when measured in foreign exchange, are down.