Been playing for a few hours, and according to the manual, I have just enough experience to level up some of my party members (1700 exp). But where do I go to level up? The manual says I can level up in towns but doesn't specify what I need to do.
I've tried looking this up, but all my results talked about a green + on the portrait from the remake that I can't find in this game.

The level up process starts automatically as soon as you have the required experience.

For level 2 you need 5000 exp, for level 3 15000, level 4 30000 ...

Unlike modern games, Blade doesn't level you up automatically as soon as you fulfill the EXP requirement. To level up you need to SLEEP Either in a camp or an inn (the latter being preferable). Or was it that you could do it when you travelled...? Or both? Can't recall the details.

You do not level up in the wilderness. You will level up when you reach a town. (Dungeons count as "town", as far as I remember)