Had a great day out at Hythe. Ferry journey was quick and fairly priced (5.30 return per adult) - make sure you have change for the pay machines! We loved the old ferry :-) Take your camera as if theres a cruise ship in you get a nice view.
At the other end (Hythe) your ticket gives you free travel on the train which goes up and down the long pier, but if the weathers nice just walk it (or at least one leg of the journey). Well worth it.
All in all, I would recommend the ferry option over driving if your just planning on staying or visiting Hythe for the day. Just a few things to note:
Make sure you note the first and last ferry times (different on weekends/bank holidays) and where you are getting it from - we turned up 30 minutes early and then noticed the first ferry is from Hythe side of the Southampton water!
There is parking at the end of the pier (Southampton side) next to where the ferry goes from (same terminal as IoW red jet). Think is was just over £1 per hour - about the going rate around Southampton.
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