Most albergues do not supply sheets and towels, so plan to bring a lightweight one-season sleeping bag and pack towel. If you really want to save weight, consider carrying just a sleeping bag liner if you are walking in summer.
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Public bathrooms are not frequent on the Camino de Santiago. But, cafes, restaurants and bars are frequent, you may find one or two during the day, and these all have bathrooms that customers can use.
We would recommend that you do not pack a pillow for the Camino de Santiago. We don't think you will need a pillow, unless you're planning to wild camp of course. All albergues and guest houses will have pillows.
The Camino is pretty much a cash economy, and it's a good strategy to have an average of €200 in your pocket, replenishing at ATMs along the way in cities, towns, and some large villages.
Whether you wear a rain poncho or a rain jacket: you'll need rain pants. The best rain pants are full-zip, so they zip on the sides from top to bottom. Then it's easy-on over hiking footwear, and easy off. These are waterproof and breathable too.
One pair of nighttime shorts/pantsYou will often wear them to dinner both in the albergues and out in restaurants. And there will be days when everything is dirty, so you wear your nighttime pants and t-shirt on the trail. For this reason, I recommend quick-dry clothes even for bedtime.
Buy two pairs of shoesI found it a lot more comfortable to be able to put on a dry pair of shoes every morning. That was worth the weight of an extra pair to me.
The difficulty of your first day will largely depend on where you start. For example, the French Way (Camino Francés) begins in the Pyrenees at St. Jean Pied de Port, presenting a challenging uphill climb on the first day. On the other hand, the Portuguese Way (Camino Portugués) starts with a gentler, flatter terrain.
Is there Wifi access on the Camino? Most of the accommodations you stay in the larger towns and cities will have access to Wifi (local charges may apply). For the more rural locations, the access will be very limited however you may find it available in local cafes and eating places en route.
The best approach, especially at the beginning, is to get out and start walking (or cycling if you plan to cycle the Camino). If you are walking the Camino, you're going to want to build up to being able to walk 20km a day comfortably.