East Iceland hotels lower prices and attract domestic tourists amid reduced bookings

Hotels in East Iceland have responded to reduced bookings by lowering prices and attracting domestic tourists. This has proven successful for Hotel Hallormsstað, where 80% of guests are currently Icelanders who have travelled to the region to enjoy the pleasant weather.

Many people cooled off by jumping into Eyvindará near Egilsstaðir over the weekend. The hotel manager at Hallormsstað says the good weather in East Iceland is saving the summer after many cancellations from foreign groups. Now, about 80% of guests are Icelanders, a significant change.

Icelanders flocked to the east of the country in large numbers over the weekend to enjoy the good weather. As a result, both diesel and petrol sold out at N1 in Egilsstaðir yesterday. According to N1, the oil distribution underestimated the sales, which were actually 50% more than expected. A swift response ensured a refill was delivered within an hour.

Campsites were overbooked, but the same could not be said for hotels. 701 Hotels operate both Valaskjálf in Egilsstaðir and Hotel Hallormsstað. Hotel manager Davíð Kjartansson says the hotels have struggled with reduced bookings and cancellations from foreign groups.

“The weather here is the best. East Iceland has been hit hard. At 701, we have responded by launching a summer offer specifically for Icelanders. And it has worked wonderfully. But what is saving us this summer is that the weather here is the best in the country. And Icelanders flock here over the summer in the weather,” says Davíð.

At the Egilsstaðir Guesthouse, occupancy was a decent 80%, with the good weather leading to Icelanders filling the gap. The weather effects are greater at 701, and Davíð says the figures speak for themselves.

“We are seeing significant changes from last year. Then there were perhaps 80% groups and 20% individuals. But that has reversed this year. These are about 80% Icelanders and 20% foreign guests,” says Davíð Kjartansson, hotel manager at 701 Hotels.