Hostelling International Iceland

What Hostelling International Iceland does

Hostelling International Iceland (legal name: HI Iceland / Farfuglar ses) is a non-profit membership organisation headquartered at Sundlaugavegur 34, 105 Reykjavík, Iceland (SSN 470312-1060). It operates a portfolio of 18 hostels distributed across virtually all inhabited regions of Iceland — Reykjavík (Loft and Dalur), the South Coast (Vík, Eyrarbakki), Southeast Iceland (Höfn, Berunes), the East Fjords (Seyðisfjörður Old Hospital, Seyðisfjörður Harbour, Húsey), North Iceland (Dalvík-Gimli, Sæberg, Kópasker), the Westfjords (Broddanes, Korpudalur), West Iceland (Grundarfjörður, Fljótsdalur, Vagnsstaðir) — plus the Reykjavík Eco Campsite and ancillary facilities such as restaurants, cafés, saunas, geothermal hot tubs, and a venue barn. Many properties are adaptive-reuse conversions of historic structures including a 19th-century hospital, mid-century schools, farmhouses, and a traditional Icelandic turf house.

The core technology stack is a direct-to-consumer online booking platform at hostel.is, supplemented by third-party OTAs (HostelWorld, Booking.com, godo.is) and a dedicated group-booking inquiry form. Bookings, member sign-ups, and group enquiries flow through the website; several properties maintain individual social media presences on Facebook and Instagram. The organisation is a member of Hostelling International, a global federation of youth hostel associations in approximately 80 countries, providing international distribution, a shared membership program, and quality/sustainability standards.

Revenue is generated through three principal streams: per-night accommodation fees across dormitory beds, private rooms, family rooms, campsites, and cottages; recurring annual HI Membership fees that unlock discounts at HI hostels worldwide and are required at some properties; and ancillary services including tour bookings (via Tourdesk), restaurant/café sales, horse-riding tours (Húsey), and venue hire. Customer segments span solo travelers, backpackers, families, group organisers, road trippers, digital nomads, nightlife-seekers, and sustainability-conscious travelers. Pricing is not publicly disclosed and varies by property, room type, and season.

Name

Hostelling International Iceland

Legal name

HI Iceland / Farfuglar ses

Website

https://hostel.is

Company type

Private

Founded year

1939

Operating status

Operating

Short description

Hostelling International Iceland (Farfuglar ses) is a Reykjavík-based non-profit operating 18 hostels across Iceland, offering budget accommodation, campsites, group bookings, and tours to backpackers, families, groups, and sustainability-conscious travelers under the global Hostelling International brand.

Ownership category

akta.pro rank

Product category

Budget Hostel Accommodation

NAICS

Rooming and Boarding Houses, Dormitories, and Workers' Camps (7213), Other Traveler Accommodation (72119)

SIC

Hotels, Rooming Houses, Camps & Other Lodging Places (7000)

akta.pro primary industry

Student & Youth Hostels (Youth Organization/HI-style) (THAGAGAH)

akta.pro secondary industry

Traditional Dormitory Hostels (THAMAIAA)

Keywords

• Budget hostel accommodation
• Hostel network operations
• Sustainable tourism lodging
• Group travel accommodation
• Member-based hospitality

Headquarters

HQ city

Reykjavík

HQ country

Iceland

HQ region

Europe

Offices16 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Marketing or Sales, Technology or R&D, Supply Chain

Revenue model

1. Hostel Accommodation: HI Iceland operates 18 hostels across Iceland offering dormitory beds, private rooms, family rooms, campsites, and cottages. Revenue is generated through per-night accommodation fees charged to guests.
2. HI Membership: As a non-profit membership organization, HI Iceland generates revenue through membership fees. Members receive discounts on accommodation at HI hostels worldwide.
3. Additional Services: Additional revenue streams include tour bookings, restaurant/cafe services at select hostels, horse riding tours (Húsey), and venue hire for events.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

HI Iceland operates a network of 18 hostels across Iceland offering dormitory beds, private rooms, family rooms, campsites, and cottages to budget-conscious travelers, backpackers, families, and groups. As a non-profit membership organization affiliated with Hostelling International, it also sells HI memberships providing discounts at hostels worldwide, and offers ancillary services including tour bookings, restaurant/café services, horse riding tours, and event venue hire.

Product overview

HI Iceland operates a network of 18 unique and sustainable hostels across Iceland, including properties in Reykjavik (Loft and Dalur), South Coast (Vik, Eyrarbakki), Southeast (Höfn, Berunes), East Fjords (Seyðisfjörður Old Hospital, Seyðisfjörður Harbour, Húsey), North (Dalvík-Gimli, Sæberg), West Fjords (Broddanes, Korpudalur), West (Grundarfjörður), and Central South (Fljótsdalur, Kópasker). The portfolio includes traditional hostel dorms, private rooms, family rooms, campsites, cottages, and tiny houses. Key facilities include restaurants (Berunes), cafes and bars (Loft, Dalur), saunas and hot tubs (Sæberg geothermal hot tub, Seyðisfjörður Old Hospital sauna), event venues, and outdoor activity providers. The organization emphasizes sustainable travel with eco-certifications including the Nordic Swan Eco Label and adaptive reuse of historic buildings.

Differentiator

Problem solved

Functional benefit

Products and services

• Loft HI Hostel Award-winning social hostel in downtown Reykjavík featuring a rooftop bar, terrace, events programming, and Nordic Swan Eco Label certification, targeting social travelers and nightlife seekers.
• Dalur HI Hostel Eco-hostel in Reykjavík's Laugardalur neighborhood offering private rooms, shared dorms, free WiFi, cafe bar, outdoor terrace, guest kitchen, laundry, and electric car charging with Nordic Swan Eco Label, targeting families and nature-seeking travelers.
• Vík HI Hostel Hilltop hostel in South Iceland offering views over Vík town and Reynisdrangar sea stacks, with modern fittings and proximity to black sand beaches, targeting road trippers and nature tourists.
• Broddanes HI Hostel Family-owned hostel in West Fjords, converted from a 20th century school with mid-century modern design, 180-degree windows, bird watching facilities, and kayaks for hire, targeting nature and adventure travelers.
• Dalvík - Gimli HI Hostel Family-run hostel in Dalvík fishing town near Trollaskagi peninsula, offering ferry access to Grímsey Island and Arctic Circle experiences, targeting families and adventure travelers.
• Grundarfjörður HI Hostel Hostel in Snæfellsnes peninsula near Kirkjufell mountain, offering proximity to whale watching tours and an area inspired by Jules Verne and Halldór Laxness, targeting nature and cultural tourists.
• Fljótsdalur HI Hostel Traditional Icelandic turf house hostel overlooking Eyjafjallajökull glacier, offering historic atmosphere with over 2000 books on Iceland, targeting cultural and heritage travelers.
• Kópasker HI Hostel Hostel in northeast Iceland near Melrakkasletta peninsula, gateway to remote wilds with access to Arctic Henge and Ásbyrgi canyon, targeting adventure and remote-area travelers.
• Seyðisfjörður - Hafaldan Old Hospital HI Hostel Charming historic hostel in converted 19th century hospital, featuring sauna spa, eclectic furniture, mix of dormitories and private rooms, targeting cultural and relaxation travelers.
• Seyðisfjörður - Hafaldan Harbour HI Hostel Basic budget hostel established in 1975 on the north side of Seyðisfjörður fjord with self-catering kitchen and laundry facilities, targeting backpackers and budget travelers.
• Húsey HI Hostel Hostel and horse farm offering farm life experiences, horse riding tours, seal and bird watching in East Iceland, targeting equestrian and nature tourists.
• Berunes HI Hostel Farmstay hostel on East Iceland fjord offering cozy rooms, tiny houses, historic Old Hostel, restaurant with local seasonal dishes, and Cittaslow municipality affiliation, targeting food and cultural tourists.
• Korpudalur HI Hostel Remote hostel in West Fjords in a former family farmhouse, offering hiking routes and venue hire in a converted barn, targeting adventure and event travelers.
• Höfn HI Hostel Hostel in southeast Iceland near Vatnajökull National Park, gateway to glacier exploration and Lónsöræfi hiking area, targeting glacier and nature tourists.
• Sæberg HI Hostel Sustainable hostel on the north Iceland coast offering dorms, private rooms, camping, cottages, and geothermal hot tub with fjord views, targeting nature and relaxation travelers.
• Eyrarbakki HI Hostel Coastal village hostel on the South Coast near Golden Circle, offering modern fittings, large kitchen, and proximity to hiking and lava tube caves, targeting road trippers.
• Reykjavík Eco Campsite Campsite next to Dalur HI Hostel offering camping facilities for campervans, caravans, and tents with access to city attractions, targeting budget road trippers and campervan travelers.
• Group Booking Services Group travel accommodation services with dedicated inquiry forms for groups requiring private rooms, shared accommodations, breakfast, packed lunch, and multi-hostel stays, targeting group trip organizers, schools, and tour operators.
• HI Membership Hostelling International annual membership providing discounts on accommodation at HI hostels worldwide, targeting repeat budget travelers seeking ongoing value.

Quantifiable outcome

• 40% lower carbon footprint through adaptive reuse compared to new construction
• +1 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

One partnership is on record.

• Hostelling InternationalcoreStrategic or Co-development PartnerHI Iceland is a member of Hostelling International, a global non-profit federation of national youth hostel organizations spanning approximately 80 countries. The partnership provides HI Iceland with global brand recognition, international marketing platforms, a worldwide membership network, and access to shared standards and sustainability programs. Hostelling International sets quality and sustainability standards that HI Iceland follows.

Scale indicators4 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Bus Hostel Reykjavík: Independent Reykjavík hostel built around a converted bus theme. Directly comparable in target market (budget travelers, backpackers), geography (Reykjavík), and product (dorms, private rooms, social common areas).
• Hostelling International Scotland: Sister national hostel federation in the HI network. Runs a comparable non-profit hostel network targeting backpackers, families, and group travelers with a similar focus on heritage properties and sustainable operations in a high-cost tourism market.
• Hostelling International USA: Sister national youth hostel federation under the same Hostelling International umbrella. Operates a comparable model — non-profit hostel network, membership discounts, sustainability focus — and shares brand standards, though serving a different geography.
• Kex Hostel Reykjavík: Independently operated hostel in central Reykjavík offering dorms and private rooms. Direct competitor for the same backpacker/budget-traveler segment in Iceland's capital, competing head-to-head with Loft HI Hostel for HostelWorld rankings and bookings.
• Hostelling International Norway: Sister Nordic national hostel federation under Hostelling International. Operates an equivalent non-profit hostel network model with similar sustainability focus, membership structure, and adaptive use of traditional buildings in a comparable Nordic market.

Broad incumbents

• Wombat's Hostels: Established European hostel chain with properties in multiple cities. Similar in core offering (dorms, social spaces, group bookings) but at a larger for-profit scale and without the adaptive-reuse heritage positioning of HI Iceland.
• MEININGER Hotels: European hybrid hotel-hostel brand combining private rooms and dorms. Comparable in budget-conscious positioning and group/family segment targeting, but operates a broader accommodation portfolio rather than a hostel-only model.
• Generator Hostels: Large European hostel chain operating design-led properties in major cities. Comparable product (dorms, private rooms, social bars) and target customer (international backpackers), but operates as a for-profit, broader-portfolio incumbent rather than a focused national non-profit.
• A&O Hostels: European budget hostel and hotel chain operating across multiple countries. Overlaps with HI Iceland in budget traveler segment, dorm accommodation, and group booking capabilities, but operates at significantly larger scale as a commercial enterprise.

Others

• HostelWorld: Global hostel-focused booking platform and distribution partner for HI Iceland. Not an operational peer, but the dominant third-party channel driving bookings and the source of Loft HI Hostel's repeated Best Hostel in Iceland awards.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Instagraminstagram.com/loftreykjavik
• Xx.com/hi_iceland
• Facebookfacebook.com/Hostelling.International.Iceland
• LinkedInlinkedin.com/company/hostelling-international-iceland

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hostelling International Iceland