This is a great question and it doesn’t really have a simple answer. Here are a few things to consider:
Your budget for the trip
Iceland isn’t exactly the cheapest country to travel to. For those who are budget conscious, a camper might be a good option. When you start comparing hotel-, Airbnb- or guesthouse cost with the cost of renting a camper you might be surprised. Let us save you some time and tell you that the camper is way, way cheaper (unless you’re staying in someone’s dog house in the garden)! Not only is it cheaper because of the cost of accommodation. It’s also cheaper because you can cook some of your meals in the camper instead of eating out all the time. Normally you can’t do that in hotel rooms, except if you pay a lot of money for a room with a small kitchen.