hotels on the cheap
we were in Iceland a couple of years ago and found some relatively chea[p accomodation at the Hotel Edda chain.
The Hotel Edda chain has hotels situated all around Iceland originally using the unused accommodation in boarding schools during summer. The Hotel Edda chain is still using the unused boarding school accommodation but also use hotel facilities specially built as such.
There are 15 Edda Hotels around Iceland offering accommodation affordable to all from sleeping bag accommodation in dorms to three star hotel rooms with full facilities. Each hotel has a restaurant offering full services from breakfast to dinner. The locations of Hotel Edda is ideal for tourists wishing to see all of Iceland as they are quite evenly spaced throughout the island and visitors can plan their trip with that in mind.
It was still expensive compared to the UK but I guess exchange rates are better now.
Iceland is a must see place on or offroad, give it a go.