Chiloé

Where to stay

Budget beds cluster along Blanco Encalada and near the bus terminal on Calle San Martín in Castro. The palafito hostels on Calle Pedro Montt hang over the Gamboa estuary and book out first, so grab one early if you want the water view.

Getting around

• Intercity buses from Puerto Montt include the Pargua-Chacao ferry in the ticket price. No need to book or pay for the crossing separately.
• Eat lunch at the Feria Artesanal on Lillo near Castro's waterfront. Empanadas de mariscos are cheap and beat anything you'll find in a sit-down restaurant at three times the price.
• A return bus to Dalcahue for the Sunday crafts market costs just a few pesos from Castro's terminal, and you can catch a short passenger ferry from there to Isla Quinchao for almost nothing.

When to go

Hostels have open beds and lower rates May through September; December through February fills the island fast as Chilean families take summer holidays and backpackers stack up in Castro.