While considering how to begin your Iceland adventure, whether you're after cozy hotel nights or wild camping under the stars, this guide breaks down your accommodation options to help you choose between campervan travel, rooftop camping, or traditional hotel stays.

Choosing Accommodation in Iceland: What are Your Options?

Planning your big Iceland adventure and wondering where to stay? Choosing between renting a camper in Iceland, going for a car and staying in hotels or guesthouses, or even going for traditional camping, can feel a bit overwhelming, but worry not, we're here to help!

From scenic road trips to off-the-grid adventures, Iceland offers several unique ways to experience the country. 

Here's a quick look at your main options:

Option 1: Car Rental + Hotel Stay in Iceland

The classic approach: rent a car and stay in hotels or guesthouses along your route. This is a popular option for travelers who value comfort, but it can be limiting and often quite expensive, especially during peak seasons.

Option 2: Camper Rental

Renting a camper in Iceland gives you the ultimate freedom to travel and sleep, all in one vehicle. This option is ideal for exploring at your own pace, following a flexible itinerary, and is great for those wanting to save on accommodation costs.

Option 3: Motorhome / RV Rental

Larger than a campervan, motorhome rentals offer a comfortable, all-in-one travel and accommodation option, ideal for exploring Iceland at your own pace. With amenities like heating, kitchens, and bathrooms, they’re great for year-round travel—but remember to stick to designated campsites.

Option 4: 4x4 with Rooftop Tent Rental 

Perfect for the adventurous traveler, a 4x4 with a rooftop tent allows access to remote areas, including the rugged Iceland highland roads (F-roads). You get the freedom of camping with the capability of a strong off-road vehicle. If you are looking for an option that offers a balance between adventure and cost savings, consider renting a 4x4 camper with a rooftop tent.

How to Choose Accommodation in Iceland

Choosing where to stay in Iceland isn’t just about comfort, it’s also about matching your accommodation to your travel style, route, and the ever-changing Icelandic weather. Whether you’re chasing waterfalls on the Ring Road or venturing into the Highlands, here are the key factors to help you decide what’s right for your trip.

Travel Style & Preferences

Are you more of a free-spirited explorer or a comfort-seeking traveler? Campers and rooftop tents offer flexibility and immersion in nature, while hotels offer predictable comfort.

Budget & Cost Savings

Hotels in Iceland can be pricey. Renting a campervan or 4x4 with a rooftop tent often results in significant savings on accommodation and travel costs, making it a budget-friendly option, especially if you're traveling with a group or as a couple.

Itinerary & Driving Route

If you're planning to explore the Highlands or off-the-beaten-path areas, a 4x4 is a must, as F-roads can only be accessed by a 4WD vehicle. For driving along the Ring Road, a motorhome is a great family-friendly option, offering space, comfort, and flexibility. A rooftop tent vehicle, on the other hand, is ideal for solo travelers or small groups who thrive on adventure.

Season & Weather Conditions

While hotels provide consistent shelter, modern campervans and motorhomes are well-equipped for Iceland's unpredictable weather. Just be sure to pack smart and plan according to the season.

Campervan vs. Hotel: Pros & Cons

Both renting a campervan and staying in hotels and guesthouses come with their pros and cons. Let’s break it down:

Renting a Camper in Iceland: Pros and Cons

Pros:

• Total freedom of schedule
• Easy to cook your own meals
• No need to check in or out
• Cost-effective (especially in summer)
• Camp close to natural attractions

Cons:

• Smaller living space
• Must find campsites
• Weather can be a factor

Hotel Stay: Pros and Cons

Pros:

• Comfortable beds and private bathrooms
• Heating and amenities included
• No need to worry about driving at night during winter

Cons:

• Less flexibility
• Can be expensive
• Limited availability in rural areas

Why a Rooftop Tent is Also a Smart Choice

A rooftop tent offers comfort, convenience, and mobility. It’s easy to set up, elevated for better insulation and views, and ideal for accessing off-road locations—without the price tag of a full campervan. 

Pros:

• Great cost-saving option
• Quick setup and pack down
• Comfortable and weather-resistant
• Perfect for F-roads and off-the-beaten-path spots
• More affordable than campervans

Cons:

• Need to pack up tent to drive
• Less indoor space compared to campervans

Motorhome vs 4x4 Camper

Both offer incredible freedom and flexibility, but they suit different travelers. A campervan is perfect for all-in-one travel comfort, while a 4x4 with a rooftop tent is ideal for adventurers looking to explore Iceland’s more remote areas and often at a lower cost.

Which Accommodation is Best for You

We know it can be a hassle to choose between accommodations, which is why we made this handy side-by-side comparison to help you pick the best option for you.

Camping in Iceland: What to Expect?

Iceland has a well-developed network of campsites across the country. Most are clean, affordable, and set in breathtaking locations. You’ll find many campsites offering essential facilities such as toilets, hot showers, electricity, and Wi-Fi. Just be sure to double-check ahead. Campgrounds are great for families, couples, and solo travelers looking for a budget-friendly and authentic Icelandic camping experience.

Frequently Asked Questions:

Is it cheaper to rent a camper than a car + hotel in Iceland?

Yes. Especially during high season, renting a camper van or rooftop tent can save you money on both accommodation and meals.

Do I need to book campsites in advance?

In summer months, it’s recommended but not always required. Many campsites accept walk-ins. Still, planning ahead gives you peace of mind.

Is it safe to sleep in a rooftop tent in Iceland?

Absolutely. Iceland is one of the safest countries in the world, and rooftop tents are designed to withstand the elements and provide a secure night’s sleep.

Final Words: Which Option is Right for You?

If you're looking for a mix of adventure, comfort, and flexibility, we highly recommend considering a camper van or a 4x4 camper with a rooftop tent. They let you travel at your own pace, sleep closer to nature, and access areas that hotel-based travelers simply can’t. For larger groups and families, an RV is a great option, providing both comfort and convenience while cutting down accommodation costs.

Ready to start your journey? Book your camper rental in Iceland and hit the road with confidence.