In Xela we decided to go to San Pedro la Laguna an not directly to Panajachel. So we took again a Chicken Bus through the mountains down super steep and narrow roads. Always a good feeling if the bus has to back up to get around a corner with just a narrow border before the deep plunge...
San Pedro is a little laid back town on the Lago Atilan. We stayed at Mr. Mullets just around the corner of the docks, a really nice place. The lake is surrounded by (inactive) volcanoes, quite a sight! We went kayaking and swimming and enjoyed the great view. The first evening we stayed in San Pedro was some kind of local festival going on. We joined the few guatemalans which where dancing in front of the stage. Around three-quarter of the spectators where only standing around, supposedly their church doesn't allow them to dance...
To go to Pana we took one of the many ferries on the lake. Pana itself was a little busier and more touristic than San Pedro, which we preferred more.