Bus Hostel Reykjavik

What Bus Hostel Reykjavik does

Bus Hostel Reykjavik operates a privately held, ~118-bed budget accommodation property at Skógarhlíð 10, 105 Reykjavik, co-located with Reykjavik Terminal, Iceland's main bus and transportation hub. The recently renovated (May 2025) property comprises 13 private twin/double rooms and nine shared dormitories in 4-, 10-, 16-, and 20-bed configurations, supported by 15 shared bathrooms, three dining areas, and a 24/7 shared kitchen. The hostel is run by a small team using the godo.is property management system, a 24/7 automated self check-in process, and smart locker luggage storage.

The business operates a hybrid direct-to-consumer and channel-partner GTM model. Direct bookings come through the hostel's own website (bushostelreykjavik.com) and OTA listings on KAYAK and Booking.com. A network of channel partnerships - Gray Line, Smart Bus, Flybus Iceland, Destination Blue Lagoon, and RSS Tours - provides tour bookings, airport transfers, and lagoon transfers, generating both commission revenue and walk-in traffic. Ancillary revenue streams include smart locker rentals (1,490-2,990 ISK per 24 hours, up to 30 days), 24/7 food and beverage vending via Ramen Sheep, outdoor clothing rental, and group booking services for parties of 6+. Accommodation pricing is split between a Standard/Flex rate (refundable up to 24 hours prior) and a Non-refundable rate (paid upfront at booking).

The hostel is privately held with no disclosed funding, no institutional investors, no parent company, and no publicly available revenue figures. It is governed by Icelandic law under the entity name "Bus Hostel Reykjavik." Recent strategic activity - the May 2025 renovation, new locker and clothing rental launches, and expansion of the partner channel - indicates an effort to grow revenue per guest within a fixed physical footprint.

Name

Bus Hostel Reykjavik

Legal name

Bus Hostel Reykjavik

Website

https://bushostelreykjavik.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Short description

Bus Hostel Reykjavik is a privately held, ~118-bed budget hostel at Reykjavik Terminal offering private rooms and shared dorms, with ancillary revenue from airport transfers, tours, smart lockers, food vending, and outdoor clothing rental targeting budget travelers and groups visiting Iceland.

Ownership category

akta.pro rank

Product category

Hostel Accommodation

NAICS

Other Traveler Accommodation (72119)

SIC

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

akta.pro primary industry

Private-Room Hostels (THAMAIAB)

akta.pro secondary industry

Traditional Dormitory Hostels (THAGAGAA)

Keywords

• Hostel accommodation
• Budget lodging
• Shared dormitories
• Airport transfers
• Guided day tours

Headquarters

HQ city

Reykjavík

HQ country

Iceland

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Accommodation bookings: Revenue from private rooms (double/twin) and shared dorms (4, 10, 16, 20 bed dorms). Two rate options: Standard/Flex (cancellable up to 24 hours prior) and Non-refundable (paid upfront at booking)
2. Airport transfers: Direct airport transfer service to and from Keflavik Airport departing from the hostel
3. Tour bookings: Commission revenue from booking partner tours including Golden Circle, South Coast, and lagoon visits. No additional cost to guests booking through the hostel.
4. Luggage locker rental: Smart locker rentals for luggage storage after check-out: Large lockers 2,990 ISK per 24 hours, Medium lockers 1,490 ISK per 24 hours
5. Food and beverage: Sales of ramen soups, udon, noodles, and oat meal from vending machines at entrance; draft beers, wines, organic snacks and juices available
6. Outdoor clothing rental: Rental of high quality outdoor clothing delivered to guests at the hostel for exploring Iceland

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels4 records

Core offering

Bus Hostel Reykjavik operates a budget hostel at the Reykjavik Terminal offering private twin/double rooms and shared dormitories (4, 10, 16, and 20-bed configurations), totaling more than 100 beds across 13 private rooms and multiple dorms with 15 shared bathrooms. Revenue is supplemented by add-on services including hourly airport transfers (Flybus), lagoon transfers (Blue Lagoon, Sky Lagoon), guided day tours (Golden Circle, South Coast), outdoor clothing rental, smart locker luggage storage, and 24/7 shared kitchen access with food and beverage vending.

Product overview

Bus Hostel Reykjavik is a recently renovated hostel (May 2025) located at Reykjavik Terminal, offering accommodation across two core product lines: Private Twin/Double Rooms and Shared Dormitories in configurations ranging from 4 to 20 beds. It supplements its core lodging with a suite of add-on services including airport transfers (Flybus Iceland), lagoon transfers (Blue Lagoon, Sky Lagoon), and day tours (Golden Circle, South Coast) booked through partner Gray Line Sightseeing, outdoor clothing rental, luggage storage with smart lockers, 24/7 shared kitchen access with Ramen Sheep vending machine, and organic snacks and beverages at reception. The hostel also offers group booking services with dedicated facilities and a partnership program for trade partners.

Differentiator

Problem solved

Functional benefit

Quantifiable outcome

• 24/7 self check-in eliminates wait times for late arrivals
• +2 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Gray Line IcelandcoreChannel Partner/ Reseller/ DistributorGray Line is a major tour operator that partners with Bus Hostel to offer day tours departing directly from the hostel. This partnership provides guests with convenient access to popular tours including Golden Circle and South Coast excursions.
• Smart BuscoreChannel Partner/ Reseller/ DistributorSmart Bus provides airport shuttle services with pickup and drop-off at Bus Hostel Reykjavik, offering hourly transfers to/from Keflavik Airport.
• Flybus IcelandcoreChannel Partner/ Reseller/ DistributorFlybus Iceland offers airport transfer services to Reykjavik, with direct service to and from Bus Hostel as a designated stop.
• Destination Blue LagooncoreChannel Partner/ Reseller/ DistributorDirect transfers to Blue Lagoon departing hourly from Bus Hostel. Partnership provides guests with convenient access to Iceland's most famous geothermal spa.
• RSS ToursminorChannel Partner/ Reseller/ DistributorTour operator offering additional excursion options departing from Bus Hostel Reykjavik.
• Ramen SheepminorGTM or Marketing PartnerFood vendor providing 24/7 ramen, udon, noodles and oat meal options through vending machines at hostel entrance. Partnership enhances guest food offerings without hostel needing to operate a restaurant.

Scale indicators4 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Hlemmur Square Hostel: Hlemmur Square operates a hostel and social hub in central Reykjavik targeting budget-conscious solo and group travelers. Comparable in product mix (dorms + private rooms) and customer base, though its location differs from Bus Hostel's transport-hub positioning.
• Hostel B47: Hostel B47 is a smaller Reykjavik hostel offering basic dormitory and private accommodation for budget travelers. It overlaps directly with Bus Hostel on customer segment (backpackers, students) and Reykjavik-only geography, making it a relevant smaller-scale comparable.
• Reykjavik Downtown Hostel: Operated as part of the Icelandic Youth Hostel network, Reykjavik Downtown Hostel serves budget travelers with dorm and private rooms in central Reykjavik. It is a direct competitive comparable for budget-conscious travelers and student groups, though it operates under a larger association network.
• Loft Hostel Reykjavik: Loft Hostel is a well-known Reykjavik hostel offering private rooms and dormitories with an in-house bar and social programming. It competes directly with Bus Hostel for the same budget traveler segment and is similarly reliant on tour and transfer add-ons to lift per-guest revenue.
• Kex Hostel Reykjavik: Kex Hostel is one of the most established hostels in Reykjavik, operating a similar mix of private rooms and shared dorms in a converted building near the city center. It is the most direct competitive comparison to Bus Hostel in terms of product mix, customer base (solo and group budget travelers), and reliance on Reykjavik tourism demand.
• Krik Guesthouse: Krik Guesthouse offers budget accommodation in Reykjavik with a similar mix of shared and private rooms, targeting backpackers and small groups. Comparable in product tier and customer base, though smaller in scale than Bus Hostel.

Others

• Booking.com: Booking.com is one of Bus Hostel's primary online distribution channels and a critical source of guest reviews. As a global OTA incumbent, it shapes the hostel's demand acquisition economics and is therefore an ecosystem-level counterpart rather than a direct competitor.
• Gray Line Iceland: Gray Line Iceland is one of Bus Hostel's core tour operator partners, providing Golden Circle and South Coast tours that depart from the hostel. It is a supply-side ecosystem participant rather than a competitor, but its commercial relationship is material to Bus Hostel's tour commission revenue stream.
• Hostelworld: Hostelworld is the dominant OTA for the hostel category globally. It is a key distribution partner for hostel inventory like Bus Hostel's and influences the demand funnel for backpackers — the hostel's primary customer persona.

Broad incumbents

• Generator Hostels: Generator Hostels is a pan-European hostel operator with design-led properties in major cities. While it does not currently operate in Reykjavik, it represents the broader incumbent hostel category with greater scale, brand recognition, and operational sophistication — a credible longer-term competitive threat if it enters Iceland.

Market position

Strengths5 records

Weaknesses3 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/BusHostelReykjavik
• LinkedInlinkedin.com/company/bus-hostel-reykjavik

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

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 Bus Hostel Reykjavik