If you're feeling overwhelmed by the hustle and bustle of Pucón, the neighboring town of Villarrica is a nice alternative. Nestled right next to a volcano, the town provides beautiful views in a calm and relaxing setting. Spending some time in Villarrica, rather than in Pucón, is also more of a cultural experience, as there are many more locals than tourists here. Founded way back in 1552, the town furthermore has a fascinating history. Stop by the Museo Histórico Arqueológico to see Mapuche crafts and jewelry.
Although the town may not have all of the same tourist amenities that are available in Pucón, there are plenty of places to stay here. Most lodging options are furthermore less expensive than in more touristy areas. There are a number of pleasant cafes and shops here and, seeing as there's a volcano in plain view, hot springs are nearby. If you get a license, you can also go fishing in the rivers.