I am on a budget and have never stayed in a hostel. I am traveling alone for 3 days and want to see some sights. Has anyone ever stayed at these places before or something similar? Should I pay extra to get an individual room or go the dorm style?
Hostels are actually a good choice when you're travelling alone, as you're very likely to meet some interesting people and even co-travellers for some day trips.
Whether you should stay at a dorm or a private room is pretty much up to you, and how much of a private person you are. Or how difficult you find it to sleep.
The guest houses I do not know other than the names. There are a few hostels you can choose from, Loft Hostel which is downtown and great if you're going to Reykjavik for the night life. Then there is the Reykjavik Downtown Hostel which is more of a boutique hostel, Kex Hostel which is a popular, stylish hostel with a great atmosphere, Reykjavik Backpackers with a prime location and a great backpacking atmosphere and finally BusHostelreykjavik, with great atmosphere and probably the best prices. I can see on the map here on the site that the pin for Bus Hostel Reykjavik is completely off. It is located downtown Reykjavik, right between the Bus Central and Perlan - The Pearl, in walking distance from pretty much anything and they have free bikes for their guests :) Bus Hostel also has very cheap rental cars if you want to take a trip on your own out of town.
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