Krauma

What Krauma does

Krauma operates a natural geothermal spa and restaurant in Reykholt, West Iceland, approximately 97 km from Reykjavik along road 50. The facility is built directly atop Deildartunguhver, Europe's most powerful hot spring by flow rate (180 liters of 100°C water per second). Water is cooled to bathing temperature via heat exchangers using cold glacial melt from Okjökull and circulated through six pools — five warm (37–43°C) and one cold plunge (5–10°C) — with no chemical treatment, since the exceptionally high natural flow rate continuously refreshes the water. The property also includes a relaxation room with fireplace, infrared cabin, steam bath, and a 70-seat indoor / 60-seat outdoor restaurant serving Icelandic cuisine sourced from seven named local Borgarbyggð farms and producers (tomatoes, vegetables, cucumbers, goat meat, salmon, beef, mushrooms).

The business operates a direct-to-consumer model with five revenue streams: unit-priced spa admissions (Children 500 ISK, Teens 4,160 ISK, Adults 7,900 ISK, Seniors/Disabled 5,790 ISK), rental add-ons (towels, swimwear, bathrobes), restaurant F&B, group and tour-operator bookings (15+ via email inquiry), and pre-paid gift cards. A subscription tier comprises Winter Pass (42,000 ISK), Annual Pass (74,900 ISK), and Clip Card (67,000 ISK for 10 admissions). Distribution is split between self-serve online booking via krauma.is, the Dineout platform (gift cards and restaurant reservations), and B2B2C tour-operator packages that bundle Krauma into Golden Circle and Snæfellsnes Peninsula itineraries.

The company is privately held, founded and opened in 2017, and operates with a lean headcount of 5 employees. It is recognized as a quieter, smaller, and more intimate alternative to the Blue Lagoon and was awarded the TripAdvisor 2024 Travelers' Choice Award (top 10% of destinations worldwide). Ownership is not publicly disclosed; the founding vision is attributed to the Björnsdóttir family, who held the Deildartunga land for over 200 years prior to state expropriation. No funding rounds, M&A activity, parent company, or institutional investors are disclosed.

Name

Krauma

Legal name

Krauma

Website

https://krauma.is

Company type

Private

Founded year

2017

Operating status

Operating

Headcount range

1–10 employees

Short description

Krauma operates a natural geothermal spa and restaurant in West Iceland, fed directly by Deildartunguhver, Europe's most powerful hot spring. It serves international tourists and Icelandic residents with chemical-free mineral baths, saunas, and locally sourced Icelandic cuisine.

Ownership category

akta.pro rank

Product category

Geothermal Spa & Wellness Hospitality

akta.pro primary industry

Thermal Baths, Hot Springs & Saunas (Onsen, Hammams, Banya, Sauna Worlds) (THAJAHAD)

Keywords

• Geothermal spa
• Natural hot baths
• Wellness hospitality
• Restaurant services
• Tourism attractions

Headquarters

HQ city

Reykholt

HQ country

Iceland

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Supply Chain, Infrastructure, Marketing or Sales, Others

Revenue model

1. Spa Admission Tickets: Entry fees for access to natural geothermal baths, relaxation areas, saunas, and steam rooms. Priced by age tier (children, teens, adults, seniors, disabled). Additional revenue from rental of towels, swimwear, and bathrobes.
2. Restaurant and Café: On-site restaurant serving Icelandic cuisine made from locally sourced ingredients. Restaurant seating for 70 indoors and 60-70 on the outdoor terrace. Revenue from food, beverages (including beer, wine, non-alcoholic drinks), and coffee.
3. Seasonal and Multi-visit Passes: Winter pass (valid Oct 1 – Mar 31), annual pass (valid 1 year), and clip card (10 admissions). These provide recurring ticket revenue with upfront payment.
4. Gift Cards: Pre-paid gift cards sold via Dineout platform for both companies and individuals, redeemable for spa admissions, restaurant, or other on-site services.
5. Group and Tour Operator Bookings: Group bookings (15+ people) handled via email inquiry. Tour guides can purchase mass access and package Krauma into tour offerings. Restaurant group offers also available. Revenue from tour operators and group events.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels7 records

Core offering

Krauma operates a natural geothermal bath facility and restaurant at Deildartunguhver, Europe's most powerful hot spring, in Reykholt, West Iceland. The core offering consists of six natural geothermal pools (five warm, one cold) heated by mineral-rich hot spring water with no chemical treatment, supplemented by a relaxation room with fireplace, an infrared cabin, a steam bath, and a 70-seat on-site restaurant serving locally sourced Icelandic cuisine.

Product overview

Krauma is a natural geothermal spa and wellness destination located at Deildartunguhver in West Iceland. The core offering consists of natural geothermal baths (6 pools: 5 warm and 1 cold) heated by Europe's most powerful hot spring, complemented by relaxation facilities including a relaxation room with fireplace, infrared sauna, and steam bath. An on-site restaurant serves Icelandic cuisine with locally sourced ingredients. Gift cards are available for individual and corporate gifting. The spa opened in 2017.

Differentiator

Problem solved

Functional benefit

Products and services

• Natural Geothermal Baths Six natural geothermal pools (five warm at 37–42°C, one cold plunge at 5–10°C) fed directly from Deildartunguhver hot spring with mineral-rich water and no chemical treatment. Available to individual visitors, families, and groups via online or on-site booking.
• Relaxation Room, Infrared Cabin, and Steam Bath Relaxation room with fireplace, soothing music, and comfortable seating; infrared cabin at 35–55°C for circulation and pain relief; steam bath using water from Deildartunguhver sprayed under benches for detoxification and stress relief. Available to spa visitors as part of the bath admission.
• Krauma Restaurant On-site restaurant serving Icelandic cuisine made from locally sourced ingredients from Borgarbyggð farms and producers. Seats 70 guests indoors and 60–70 on the outdoor terrace with views over Europe's most powerful hot spring. Available to both spa visitors and walk-in diners via table reservation.
• Gift Cards Pre-paid gift cards redeemable for spa admissions, restaurant dining, and other on-site services. Sold to individuals and corporate buyers via the Dineout platform.
• Deildartunguhver Hot Spring Sightseeing Visitor access to view Deildartunguhver, Europe's most powerful hot spring pumping 180 liters of 100°C water per second. Available to all Krauma guests and walk-in visitors.

Quantifiable outcome

• Top 10% of destinations worldwide — TripAdvisor 2024 Travelers' Choice Award

Named customers3 records

Segments2 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Seven partnerships are on record, tiered minor.

• Gróðrarstöðin ÞorgautsstöðumminorOthersLocal Icelandic farm supplying tomatoes to Krauma's restaurant. Part of the restaurant's commitment to sourcing ingredients from farmers and producers in Borgarbyggð.
• SólbyrgiminorOthersLocal supplier providing vegetables, herbs, and strawberries to Krauma's restaurant. Part of the restaurant's locally sourced ingredient strategy.
• LaugarlandminorOthersLocal supplier providing cucumbers to Krauma's restaurant.
• HáafellminorOthersGoat farm supplying goat meat for Krauma's restaurant dishes, including goat products featured on the Krauma Platter and other menu items.
• EðalfiskurminorOthersLocal supplier providing salmon to Krauma's restaurant, featured in dishes such as the Icelandic Salmon main course.
• MýranautminorOthersLocal producer supplying beef used in Krauma's hamburger dishes.
• SveppasmiðjanminorOthersLocal supplier providing mushrooms to Krauma's restaurant, used in dishes such as the barley risotto and Krauma burger.

Scale indicators5 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• GeoSea Geothermal Sea Baths: Geothermal sea baths in Húsavík (opened 2018) offering ocean-view hot pools with mineral-rich geothermal water. Directly comparable natural geothermal bathing product targeting North Iceland tourists.
• Secret Lagoon (Gamla Laugin): Historic natural hot spring pool in Flúðir dating back to 1891, modernized as a tourist attraction. Directly comparable natural geothermal pool experience with similar small-scale, rustic positioning.
• Sky Lagoon: Newer (2021) geothermal spa near Reykjavik's harbor offering a modern luxury thermal experience with ocean views. Directly competes for tourist day-visit demand and is closer to Reykjavik than Krauma.
• Blue Lagoon Iceland: Iceland's flagship geothermal spa in a lava field near Grindavík/Keflavik. Direct competitor for international wellness tourists seeking natural geothermal bathing experiences; Krauma explicitly positions itself as a quieter, more affordable alternative to the Blue Lagoon.
• Hvammsvík Hot Springs: Coastal hot springs resort near Reykjavik featuring eight natural geothermal pools with ocean views. Comparable natural-bath experience positioned for the wellness-tourist segment that Krauma targets.
• Vök Baths: Geothermal spa opened in 2019 in Egilsstaðir, East Iceland, featuring floating pools on Lake Urriðavatn fed by geothermal hot springs. Same generation as Krauma (post-2017) and directly comparable product offering.
• Mývatn Nature Baths (Jarðböðin): Geothermal bathing complex in North Iceland featuring natural pools fed by underground hot springs. Comparable product (natural geothermal baths, restaurant, saunas) targeting similar tourist segments along the Ring Road.
• Fontana Geothermal Baths: Geothermal spa on the shore of Laugarvatn lake on the Golden Circle route, featuring natural steam rooms, hot pots, and lake views. Comparable product mix (baths, steam, sauna) and similar tourist-segment positioning.

Regional players

• Caldea Thermal Spa: Large thermal spa complex in Andorra (Europe's largest thermal center) offering indoor/outdoor lagoons, saunas, and wellness treatments. Comparable thermal-wellness experience but at much greater scale and in a different European geography.

Emerging players

• Laugarás Lagoon: Newer Icelandic geothermal lagoon near Selfoss on the Golden Circle route, opened in the mid-2020s. Comparable bathing product with modern positioning and direct overlap with Krauma's tourist catchment.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• Instagraminstagram.com/kraumageothermal
• LinkedInlinkedin.com/company/krauma

Revenue estimate

Valuation estimate

Number of profiles

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 Krauma