Creating a nav menu

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I am not very familiar with WordPress so my knowledge with this is limited. I am working on a travel website where I need to show navigation menu and I am not sure how I can achieve the desired behavior. Here is my case:

I need to show destination based drop-down menu and another as category based. Like

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Destinations
  -Delhi
      -Destination1
      -Destination2
      -More Destinations
  -Mumbai
       -Destination1
      -Destination2
      -More Destinations
   More

For categories I need to show them as 

Category
  -Adventure
  -Hills
  -Romantic
  -More

For category part I can create a parent category with child categories and can assign categories to posts as applicable but now sure how to achieve hierarchical menu structure for destination part.

Is there anything like hierarchical tags in WordPress or what are the possible ways to achieve this?

Thanks in advance

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  1. First, be sure your theme supports wp_nav_menu which is goes into a template file – such as header.php – with the template tag function

    <?php wp_nav_menu( $args ); ?>

    which also requires a function in functions.php. See http://codex.wordpress.org/Function_Reference/wp_nav_menu

    That will initiate the WordPress 3 menu system that will appear in Dashboard>>Appearance>>Menus

    Next, read http://codex.wordpress.org/WordPress_Menu_User_Guide on how to make a menu with custom links that point to each category permalink, i.e. yourdomain.com/category/mycategoryname

    Form the page structure with parent/child pages first, and then make the menu to follow your page structure.