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Blue Lagoon Iceland

Blue Lagoon is one of Iceland's most popular attractions. Founded in 1992 to utilize the benefits of the local geothermal seawater, Blue Lagoon is often mentioned as one of the top global travel destinations and must-visit places. In 2012 the volcanic spa was named one of 25 wonders of the world by National Geographic.

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Today, Blue Lagoon Iceland is a modern and sleek hospitality and wellness resort powered by sustainable energy. The complex features two luxury hotels, a subterranean spa, a mineral-rich lagoon, four restaurants and four retail stores. The company also sells its skincare line and health and wellness products in physical stores and through an online store.

Business case

In 2018 the Blue Lagoon opened the Retreat, a luxury SPA resort where guests can relax and be pampered in luxury all year round.

As they kept expanding their operations, the Blue Lagoon quickly realized that they had outgrown their software setup. At the time, they were using multiple software solutions that didn’t give them the unified view and management capabilities they needed. This prevented them from transforming the company as they wanted. The Blue Lagoon started researching software systems that could support their ambitious growth plans.


“We needed a holistic solution for our hotel, restaurants and retail operations. We were already using Microsoft Dynamics as our ERP system and were very satisfied with the platform. That is why we selected LS Central and Microsoft Dynamics 365 Business Central,” says Sigurdur Long, Chief Information Officer and Chief Digital Officer at Blue Lagoon. 

LS Central for hotels is a unified solution that covers retail, restaurant, hotels, activities, and member management within a single platform. All the functionality resorts need is already part of the solution, so companies don’t need to invest time and resources in software integrations.

The Blue Lagoon took advantage of the forced closure caused by the Covid-19 pandemic to implement LS Central. They managed to meet their goal of implementing the new solution in record time, and just in time for the reopening of the spa and resort to guests.

The Blue Lagoon’s strategy is to always stay on the latest version, with frequent, effortless software upgrades. "Our booking engines and hotels are open 24 hours, so it is vital for us to have a system running on the most recent version at all times," Long says. By staying on the latest version the company can take advantage of the latest innovative technology released by Microsoft and LS Retail. 


Blue Lagoon is already seeing great benefits from the solution, especially in terms of data and self-service. “We even exceeded our expectations, observing almost 90% uptake on our self-service checkout kiosks. After the pandemic, our guests are more demanding and require more self-service and automations, so we must deliver that to stay competitive,” Long says. “LS Retail does not only assist us with the technical infrastructure and frequent upgrades, but also understanding how guests behave and how we can serve them better.”

The Blue Lagoon will now focus on developing self-service on the web to enable guests to customize their experience at the Blue Lagoon before arrival and on the spot with a variety of experiences and services. The company is also working on a mountain resort in Iceland's interior highlands and an exclusive high-end luxury hotel, for which they plan to use all the standard functionality available within LS Central for hotels.

“With LS Retail software solid infrastructure and ability to stay up-to-date, the future is bright at the Blue Lagoon,” concludes Long.




Blue Lagoon Iceland

Our booking engines and hotels are open 24 hours, so it is vital for us to have a system running on the most recent version at all times, like LS Central.

Sigurdur Long, CIO & CDO
Blue Lagoon Iceland

LS Central and Microsoft Dynamics 365 Business Central provided us with one unified solution, covering retail, restaurant, hotel, activities, and member management. And it does not require us to do any integrations.

Sigurdur Long, CIO & CDO