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Iceland Cabins and Cottages: Self-Catering Accommodation

Methven Forbes

1 January 2026 · Updated 11 March 2026

Self-catering cabin accommodation in Iceland occupies a distinct niche between hotels and camping — the privacy and independence of having your own space without the exposure and logistics of tent camping. Iceland's cabin and cottage market has grown significantly in the past decade, driven by deman

Self-catering cabin accommodation in Iceland occupies a distinct niche between hotels and camping — the privacy and independence of having your own space without the exposure and logistics of tent camping. Iceland's cabin and cottage market has grown significantly in the past decade, driven by demand from families and couples who want the freedom to cook their own meals, set their own schedule, and retreat to a private geothermal hot tub rather than a shared pool. The best cabins are booked months in advance for summer.

Types of Cabin Accommodation

Lava field cabins (Reykjanes Peninsula): Scattered across the dramatic lava fields of the Reykjanes Peninsula, these minimalist wooden cabins provide private aurora-viewing locations within 30 minutes of Keflavik Airport and the Blue Lagoon. Some are deliberately isolated — no immediate neighbours, no light pollution. The setting is singular: black lava stretching in every direction, steam from geothermal fields visible on the horizon. Prices from GBP 200 to GBP 400 per night.

South Coast cottages: Properties near Vik, Kirkjubaejarklaustur and the Jokulsarlon area provide access to South Coast attractions from a private base. Many include geothermal hot tubs and views toward the mountains or ocean. Ideal for couples and small families wanting more independence than a guesthouse provides.

Westfjords fjordside cottages: The most remote and scenically dramatic category. Accessible only by gravel fjord roads, these properties provide complete isolation in genuinely wild fjord environments. Suitable for travellers who want to spend time in one location exploring the surrounding landscape rather than driving constantly. Some properties have boat access or kayak rental.

Booking Platforms

Airbnb lists a significant proportion of Iceland's cabin and cottage inventory, including many properties not available through traditional hotel booking platforms. Bungalo and HI Iceland also list properties. Booking directly with property owners through their own websites often provides the best rates and the most detailed information about the specific location and facilities.

Booking Cabin Accommodation

Iceland's cabin and cottage accommodation market is dominated by Bungalo.is and Airbnb, with Booking.com providing limited coverage of the specifically rural options. The Bungalo platform specialises in Icelandic summer houses and cottages and has the most comprehensive selection of rural getaways. Peak booking periods: July and August cabins book out months ahead, particularly those with geothermal hot tubs and fjord views. October and November cabin availability is generally good with no advance booking required. Minimum stays are typically 2 nights for weekend bookings and 3 to 7 nights for summer peak periods. Self-catering is standard — bring food for the full stay as supermarkets may be 1 to 2 hours away from remote cabin locations.

What to Look For

The single most important cabin feature for most Iceland visitors is the outdoor geothermal hot tub — a private tub fed by geothermal water at 38 to 42°C provides the definitive Iceland accommodation experience. Confirm the hot tub is geothermal (constant flow, no heating required) rather than electrically heated (requires advance heating, higher cost). Other key features: view quality (fjord, glacier, or mountain views add significantly to the experience), wood-burning stove (essential for atmosphere in winter), and proximity to supermarket for self-catering provisioning. Check whether the cabin has reliable mobile data coverage if remote working during the stay is required.

Getting around Iceland is easiest by car. Compare rental options and find the best deals on Discover Cars — free cancellation available.

Planning your Iceland trip? Don't forget travel insurance — SafetyWing offers flexible Nomad Insurance from $56.28/4 weeks, ideal for Iceland's dramatic terrain and ever-changing conditions. Get covered before you go and explore with confidence.

Our Verdict

Book early — Iceland's best-value options fill months ahead, especially in summer.