Unless you have chosen to camp, it is imperative to reserve as soon as possible if you intend to travel in July or August. Year after year, accommodations including mountain huts have been filling up earlier, making it difficult to secure specific establishments on late notice. These constraints are especially true in Reykjavik in the end of July and beginning of August as well as during the weekend of the Gay Pride festival and the Reykjavik Culture Night. Elsewhere in Iceland, the demand for accommodations often exceeds the supply in the villages of Vík and Höfn in southern Iceland (the area surrounding the Skaftafell National Park), as well as in the Mývatn region in north-eastern Iceland.
That being said, with only very rare exceptions, we are always able to come up with accommodations solutions for our clients, even for last minute reservations. But the category and location of your accommodations may then not be what you were expecting.