Paraguay is a relatively small country and internal flights are thin on the ground. Perhaps the most useful service for travelers is the Grupo de Transporte Aéreo flight to Bahía Negra and the Pantanal Paraguayo.
The new Encarnación airport, Aeropuerto Teniente Amín Ayub González, receives infrequent Sol del Paraguay charter flights from Asunción, but is inconveniently located some distance outside of the city, near the town of Capitán Miranda. Flights link Asunción with Ciudad del Este en route to/from Brazilian destinations.
Cycling is not yet a popular pastime in Paraguay. There are no bicycle lanes and drivers can be unsympathetic to cyclists. You will struggle to find equipment outside the major cities.
You can travel by boat up the Río Paraguay to Concepción and Bahía Negra. You will need to hire a local boatman if you plan on exploring the Pantanal region. Costs can be high.
Bus quality varies from luxury services with TV, air-conditioning and comfortable reclining seats to bumpy sardine cans with windows that don't open and aisles crammed with people picked up along the way. Typically you get what you pay for – the best services are only slightly more expensive, so there's no need to scrimp.
Larger towns have central terminals with separate offices for each company. You can expect to be approached by touts shouting potential destinations at you. Take your time and pick your company wisely.
Car & Motorcycle
It is not cheap to rent (or buy!) a car in Paraguay, but it can be worth it if there are a few of you. Flexibility is your main advantage, although buses go most places accessible to an ordinary car. Anywhere away from the main rutas and you'll need a 4WD (around US$100 per day). Companies often charge extra mileage for distances above 100km and gas costs about 50% more than in neighboring countries. Better deals are available for longer rentals. Remember to keep your headlights on at all times.
Most rental agencies accept a home-country driver's license, but it's wise to back it up with an International Driving Permit – the lack of one is a favorite scam for soliciting bribes.
In Asunción, taxi fares are metered; don't get in the taxi if it's not. In other cities they often are not metered, but no trip within city limits should cost more than 50,000G in Ciudad del Este and 40,000G elsewhere (usually less). Drivers in Asunción legally levy a 30% recargo (surcharge) between 10pm and 5am, and on Sunday and holidays.
There are no passenger-train services operating within Paraguay.