There is a mid-sized airport in Gondar. Ethiopian airlines has daily flights to the city - usually leaving Addis around 0700. Flights are also available to/from Lalibela. Ethiopian Airlines flights are frequently cancelled or rescheduled at short notice, so allow plenty of time if travelling for an international connection. Vans to the city should charge somewhere around 150 birr (2017 jun). Return trips to the airport from the hotels are arranged by most hotels at the same rate.
It is actually possible to get from Lalibela to Gondar in one day by bus. Buy a ticket the night before or earlier for the bus going to Bahir Dar but book it so you get off in Wereta. From Wereta you can grab a mini bus to Gondar. Get to the bus station in Lalibela by 5:30am at the latest if you want to guarantee a seat (not sitting on the floor for 8 bumpy hours) and be prepared to pay 50Birr extra for luggage, exact amount if possible, unless you want to overpay by default when they laugh at your request for change.
Gondar Castle, dubbed the Ethiopian Camelot, is not a single castle, but instead is the name given to the entire complex of castles and palaces in the area. Once you pay 200 Birr (January 2018), which does not include a guide, you can explore all of the buildings inside the so-called royal enclosure. The ticket is also valid at the Fasilides bath.
Gondar is located in a mountainous area ideal for some hiking. Walk up hill to the Goha hotel for a good view over the valley. Other options are to walk to Kusquam church or to Angereb dam and lake (access restricted, but possible). The village of Woleka is just 5 km away, an hour's walk along the main road, but with nice views of the surroundings.
Day Tour For those with very limited time, it is possible to see most of Gondar in a day tour. This will typically include an hour or two's walk in the Simien Mountains (check the get-out section) followed by a break for lunch, then a visit to all the old castles and churches. In one day up and down (200 km) to the Simien Mountains including a two hour walk.
Most tour companies charge anywhere from $50 to $140 USD per person, depending on the number of people. You can easily guide yourself around, it will only cost $15-30 USD.
Spa Leaving the main square north on the road leading up to the Landmark hotel brings you to a roundabout. Close are several Spas perfect if applied after a hard Simien Mountain tour. A fancy one offers Sauna or massage, 300 ETB each. One - more Ethiopian level - place has shower, steam bath and Sauna for 100 Birr altogether.
Injera (http://en.wikipedia.org/wiki/Injera) is the common and indigenous food in Gondar. Bread and other foreign foods can be found in hotels and restaurants.
The pure Tej (without sugar - only from honey), Tela (Korefe, Tiru) are the local famous drinks. They are also common throughout Ethiopia, particularly in the Amhara region, although there is some sugar. Factory beers of all kinds are found. It is very common to get Dashen Beer, as Dashen Brewery is in Gondar.
There are a number of options. Prices start at 150 Birr for very basic rooms. Lower budget hotels like the Zoz Amba (300 Birr), Queen Taytu (150 Birr /180 Birr, but water supply is very problematic), Allianz (300 Birr), Genetics (300 Birr), Yohannes (15 USD) are all in the vicinity of the royal enclosure. (info Jan2018) Check the water supply system and (hot shower) boilers as often they do not not work, or only a couple of hours each day. Most of these places do have wifi. This is just a selection there are many more low budget places in town.
Other (medium range and higher) options
In Gondar you may find young men posing as musicians who wish to take you to an 'authentic' night of Ethiopian music. Be wary of this, as the ruse is simply to take you to a place posing as a traditional tej bar where you will be the only patron and will be prodded into buying alcohol for all the Ethiopians present, as well as tipping the musicians who are playing only because you are there.
Boat trip to Bahar Dar Minibus your way to Gorgora and hop on the Yetananesh. Mixed cargo and passenger government boat with one overnight stay at Gunzula. 278 ETB for foreigners, leaves every Thursday morning at 6am. Good opportunity to stay at the lakeside backpacker and overlander paradise "Tims and Kim's Village".
Many travellers go to Gondar to visit the Simien Mountains, about a 3 hour bus ride 100 km northeast of the city. The park entrance is near the village of Debark where meanwhile there are a number of options for staying overnight.
To visit the park there are basically two options. One is to go to Debark yourself using local transport and contact the National Park office. They will be able to suggest different options (one day, two days or more). To go into the National Park a scout is mandatory. The other option is to go through an agent or agency in Gondar. This will add significantly to your cost (150 to 300 USD pp for a four day trek).
In Gondar you will be approached by many touts offering a wide variety of treks. Keep in mind that using the services of touts will add to the cost of a tour. Contact agencies directly and make sure it is clear what is included in the price and what not, when they offer different options. You may be able to join a group which may cut the cost, but usually prices are determined by an assessment of your experience and bargaining skills. Usually they offer to organize anything you want, but all at steep not to say ripp off prices e.g. 250 US$ for four days with a group of 11 people!
There are many reports of people who did not get what they thought they paid for.
Other travelers report: Well organised, if expensive, trips to the Simien Mountains can be arranged in Gondar through Seyoum at Explore Abbysinia Travel. His office is underneath the Circle Hotel, facing away from the main road. He can also organise very good value guided tours of Gondar, which is worth doing as a guide is effective at warding off unofficial guides and other hassles. Daytrips to the Simien Mountains from Gondar can also be arranged, but you won't have time to do much other than step out of your 4WD for a few minutes to snap some pictures.
It is also straightforward to arrange everything yourself, and definitely cheaper if you aren't splitting the costs with anyone. Debark is the staging point for all treks in the Simien Mountains and can be reached by bus from Gondar. On arrival in Debark, go to the park office in the south end of town (which you will pass on your way in). They will arrange for permits and the mandatory scout, and can find an official guide, cook, mules, and a muleman if desired. They also have gear for rent, although it is low quality stuff.
Unfortunately, a lot of people will hassle you in Debark. Do not hire an unofficial guide off the street -- travelers frequently complain about their experience with unofficial guides!
There is food suitable for trekking available in Debark, but it is cheaper to buy it in advance in Gondar where there is a much better selection. The scout, guide, and muleman will likely expect you to feed them, so bring along extra.
The best hotel in Debark is the Simien Park Hotel, south of the bus station. There are a few other decent places nearby if the Simien Park Hotel is full.
There is a road running from Debark into the park and several trucks run down it each day, but tourists are prohibited from using them. As a tourist, the only way into the park is to hire a 4WD or walk. Although shorter treks are possible, a 5-day trek from Debark to Sankabar Camp to Geech Camp to Chenek Camp and back to Debark via Sankabar (skipping Geech) is about as short as you can get without missing some of the main sights. You need 9 days to trek to Ras Dashen (4533m), the highest peak in Ethiopia, and back without transport.
Former village of Beta Israel near Woleka
Adjacent to the village of Woleka is a former settlement of Beta Israel, the jewish community in Ethiopia. The settlement is also known as the Falasha village. Falasha is a derogatory term meaning landless or wanderers. Nowadays there are no members of the Beta Israel left in this village. Official numbers indicate there are only a couple of thousand jews left in the whole country. Most were airlifted out in the 1990s after Israel recognized them as a genuine Jewish community.
Going to Woleka with a city taxi would cost about 100 birr return. It is worth walking there, taking about an hour (5 km) along the main road to Debark and Aksum. There are mainly three points of interest, the small manufacture where women are making clayware, the small synagogue (inoffical 10 birr entrance) and the cemetary a bit outside of the village (inoffical 50 birr entrance). The village itself is quite charming. Beware of scams and children following you during the whole stay in the village.