Iceland being tourist gold rush country these last few years it should come as no surprise that nightly prices in out of way semi-decent hotels and guesthouses in the country in high season will be on par with good hotel rooms in downtown Amsterdam, London or Geneva.
No, we are not kidding in the least. Take a look at this example or this one. Both are farm-stay guesthouses and both pretty good considering but the nightly rate over summer months reaches 185€ / 250$ for a simple double with breakfast. Not horrible mind you but a bit steep for a farm-stay.
We understand it is not easy running a hostel, guesthouse or hotel for tourists in Iceland. This is not a cheap country by any stretch and the government has its hands deep in everybody´s pocket. But raising prices 50 to 60% between March and June for example is simply amazing. Such vast price fluctuation is not normally the case elsewhere.
And it goes without saying if simple farm-stay is costing this much the hotels will charge at least as much. Thus a one week drive around the country in July for example might add up to 1.200€ / 1.600$ for decent accommodation only. Rather pricey don´t you think.
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