Puerto Montt was settled by German settlers in 1852. The Chilean government gave land to German settlers, who must have felt quite at home since the area looks like Bavaria, with a temperate climate, a huge lake with views of two snow-capped active volcanoes, Osorno and Puntiagudo. 
We visited the first Chilean national park, established in 1913, the Vincente Rosales park, where we saw the Saltos del Petrohue waterfall that is spectacular because of the aqua blue glacial waters that cascade through black volcanic rock.
Next, we visited Puerto Vargas, established in 1853, where the founder of both Patagonia and North Face lived and died here in 2015 (and donated thousands of acres in Patagonia)
It is truly a gorgeous area, think Lake Como in Bavaria with snow-capped volcanoes. We also stopped briefly at the German Museum.
Next, we visited Frutillar, another German town. It is also on the lake with views of the volcanoes.
When we were boarding the ship in Puerto Montt, we saw lots of people at the beach.. it is their summer here and temperatures were in high 70s and low 80s. 