Day 1: Market Day & Crater Lake
Plaza de Ponchos Market
Arrive early at the Plaza de Ponchos — the largest indigenous market in South America. Hundreds of Otavaleño vendors sell hand-woven textiles, Panama hats, alpaca blankets ($5–30), carved tagua nut jewellery, and hand-painted ceramics. The Saturday market is the biggest, spilling into surrounding streets, but a smaller version runs daily. Haggle gently — start at 70% of asking price. Breakfast at a market food stall — hornado (roast pork) with mote (hominy corn) for $2–3.
Laguna Cuicocha
Take a taxi ($15–20 one way) or tour to Laguna Cuicocha — a stunning volcanic crater lake 18km west at 3,068m. The turquoise water fills a caldera with two islands at its centre. Walk part of the 14km crater rim trail (4–5 hours full loop) for views of Volcán Cotacachi and the surrounding páramo. A shorter 2-hour section gives you the best viewpoints. Boat rides around the islands cost $3.
Otavalo Town Evening
Return to town for dinner at La Cosecha Café ($4–8) for organic Ecuadorian dishes with highland ingredients, or Quino for creative quinoa-based meals ($5–9). Walk the colonial streets around Parque Bolívar — the whitewashed buildings glow in the evening light. Try a canelazo (hot cinnamon sugarcane spirit drink, $1–2) from a street vendor — perfect for cool highland evenings at 2,530m.