Honduras is the knee of Central America, bordered to the south by Nicaragua and El Salvador and to the west by Guatemala. It has a 644km (399mi) long Caribbean coast and a 124km (77mi) pipsqueak of a Pacific coast. The Caribbean Bay Islands and, further northeast, the distant Swan Islands are both part of Honduran territory.

Three-quarters of the country is composed of rugged hills and mountains, ranging from 300 to nearly 2850m (984 to 9348ft) in height. Lowlands are found only along the coasts and in major river valleys. Deforestation is occurring at a rate of 3000 sq km (1170 sq mi) a year, which, if continued, will turn the country into a treeless desert within the next 20 years. However, there are still largely untouched areas, especially in the Mosquitia region. Fauna includes jaguars, armadillos, wild pigs, monkeys and alligators and abundant bird life such as toucans, herons and kingfishers.

The climate in Honduras varies between the mountainous interior and the coastal lowlands and between the Pacific and Caribbean coasts. The interior is much cooler than the humid coast, and temperate Tegucigalpa has maximum temperatures varying between 25 and 30°C (77 and 86°F). The rainy season technically begins in May and lasts until October. This means that the interior and Pacific coast are relatively dry between November and April, but on the Caribbean coast it rains all year. The wettest months on the Caribbean coast are from September/October to January/February. The tourist season on the Caribbean coast is between February and April, during the US winter. This is a good time to visit, but prices will be lower and there will be fewer tourists if you avoid this season.

Honduras is an extremely inexpensive destination. For US$15 a day or less, budget travelers will be able to eat three meals and sleep in a relatively clean room. High rollers in the big city can still squeak by on US$50 a day, and that includes a several-course meal or two.

Most businesses deal exclusively in lempiras, and the US dollar is the only currency that's easily exchanged; away from the borders it's even difficult to change Guatemalan, Salvadoran or Nicaraguan notes. Lloyd's Bank in Tegucigalpa will change Canadian, British and German currency. Black-market exchange rates are usually comparable to bank rates.

Most Hondurans do not tip. In places where tourism has left its mark, tipping is more common, usually anything from a little loose change up to 10% of the bill. Bargaining is not as common in Honduras as in other Latin American countries, but at outdoor markets you might be able to save a lempira or two.

May through June are great times to catch several town fairs and celebrations, including a weeklong carnival held in La Ceiba during the third week of May. The coastal lowlands are warm year-round, while the mountainous interior can be cool and rainy, especially between May and October. On the Caribbean coast it rains practically all the time and floods can occur on the north coast, impeding travel.