"Summer cottages provide an exclusive but inexpensive accommodation alternative for families or small groups visiting Iceland from abroad - opposed to hotel rooms, which often are unsuitable for family vacations and can be prohibitively expensive," says Petur Oskarsson, the co-owner of Viator summer cottage rental agency.

Foreign tourists looking for affordable accommodation in Iceland without compromising on exclusivity and convenience get great value for their money while staying in a summer cottage, rather than in a hotel or a guesthouse. Traditional options for accommodation while on holiday in Iceland sometimes prove too costly for families and small groups. 160 owners of summer cottages have taken advantage of Viator's convenient booking service. These privately owned summer cottages are available in all parts of Iceland.

There are 14,000 summer cottages in Iceland, and more are being built. The cottages are used both by Icelanders as well as foreign visitors. Most of the summer cottages in the country are privately owned, but some belong to labour unions such as The Commercial Workers' Union (VR) and The Association of Academics in Iceland (BHM). About 40 summer cottages belong to each one of the associations which are hugely popular amongst members, especially during summer.

Nearly half of all summer cottages in Iceland are located within an hour's drive from Reykjavik, the country's capital, where 65 percent of the population lives. Most of the summer cottages that are built today are made of wood imported from the Baltic countries - Estonia, Latvia and Lithuania - as well as from Finland and Russia.

Northern Lights from a geothermal pool

Each year, the Northern Lights attract thousands of people to Iceland, mostly from Europe, America and Asia. The Japanese are especially keen on seeing the Northern Lights. Iceland's location is ideally suited for gazing at the Northern Lights because of its geographical location as well as the fact that they country is easily accessible in winter.

"About 80 percent of our customers spend their time here in Iceland during the summer season, which coincides with the traditional school holidays in Europe and North America," says Oskarsson. Those visiting the country in winter can expect a different kind of experience, such as sitting in a hot-tub heated with geothermal water while gazing at the Northern Lights.

160 summer cottages available for rent online

Viator represents the owners of 160 summer cottages in all parts of Iceland who make their cottages available for rent online. The service began in 2002 and was founded by Mr Petur Oskarsson and Ms Bjarnheidur Hallsdottir.

All summer cottages available for rent include hot and cold water as well as heating. They include a fully equipped kitchen and one or more bedrooms but they are individually furnished and decorated.