While not a raging party town, Otavalo has several cozy bars and clubs. It's easy to find a place with a local group playing traditional Andean music. One of my favorite spots is Peña la Jampa (tel. 06/2922-988), on Modesto Jaramillo between Quito and Quiroga, which churns out Spanish rock, merengue, and salsa. Cover is $3 (£2); open 10pm to 3am on Friday and Saturday.
For dancing, check out the Habana Club (tel. 06/2920-493), on Quito and 31 de Octubre. For a more mellow, boho scene, try Casa de Arte Da Pinto (tel. 06/2920-058), Calle Colón 410, between Bolívar and Sucre. This place features creative artwork on the walls, tables, and floors, and serves up pizzas, burgers, beer, and wine.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.