The golden beaches of the Algarve attract admirers from around the world. This is especially true in the height of summer when the beaches can feel overcrowded. However, despite the Algarve’s popularity, there are still many great deals to be found in this sun-kissed corner of Portugal.
Budget-friendly hotels are scattered across the region, and if you can embrace a bit of charming decor, you can secure amazing rates (under €75 a night for a double even in August)—though it’s advisable to plan ahead. Additionally, you will discover ways to eat well, explore sustainably, and embark on island adventures without exceeding your budget. Below is a comprehensive rundown of the top ten ways to save money in the Algarve.
Plan Your Visit Outside of Peak Season
Room rates soar during July and August when visitors flock to the beautiful beaches. You can save upwards of 25% or more by visiting during the shoulder season—June and September. During this time, you’ll still experience delightful warm days, although ocean temperatures may be a bit cooler. May and October are also lovely months to visit, attracting even fewer crowds. For significantly lower rates (often half of high season), aim for a visit between December and February. Daytime temperatures hover around 16°C (61°F)—ideal for hiking and outdoor activities, with hardly any crowds.
Discover the Most Affordable Ways to Reach the Algarve
Flying into Faro places you directly in the Algarve. However, consider traveling via Lisbon. Sometimes, substantial savings can be had by flying into the Portuguese capital, with a drive of less than three hours (or a slightly longer train ride) to reach the Algarve. Another airport option is Sevilla, located just across the border in Spain. Depending on your destination, the trip from Sevilla airport to Tavira in eastern Algarve can take only two hours.
Consider Staying in a Hostel
Lodging typically constitutes one of the largest expenses during travel; however, you can flip the script by selecting a budget-friendly hostel. The Algarve boasts stylish hostels, many featuring outdoor pools, spacious terraces, and communal lounges for mingling with fellow travelers. Many hostels also come equipped with shared kitchens, enabling you to save even more by preparing some of your meals. Notable hostels can be found in Lagos, including recommended spots such as Old Town.
Camp to Save Even More Money
Thanks to its mild weather and access to beaches and nature parks year-round, the Algarve is a prime location for camping. You will discover a range of well-equipped campgrounds throughout the region, some equipped with restaurants, swimming pools, tennis courts, and Wi-Fi access. Standout choices include Orbitur Sagres, positioned along the dramatic Costa Vicentina, and Camping Albufeira, one of the top campgrounds in Portugal. Even though it’s not beachside, Salema Eco Camp receives accolades for its forested surroundings and commitment to sustainability, coupled with an array of activities available.
Utilize Train Travel Instead of Renting a Car
The high cost of rental cars combined with escalating fuel prices can make renting a car less economical. You can save money and reduce your carbon footprint by traveling on the train. Portugal’s rail network offers excellent service from Lisbon, connecting to key destinations such as Lagos and Vila Real de Santo António (on the Spanish border), with stops including Portimão, Faro, and Tavira along the way.
Explore with the Vamus Algarve Bus Network
Improvements to bus service in the Algarve have drastically enhanced travel options. The Vamus Algarve, launched in late 2021, operates various routes throughout the region, with an Aerobus (No 56) connecting Faro airport to important towns like Lagos and Albufeira. You can enjoy stunning coastal scenery with the 52 EVA Cliffs Line, which stops at Carvoeiro, Praia da Marinha, Benagil, and many other iconic beaches along the route. For shorter travel distances, consider ride-sharing apps such as Uber and Bolt.
Purchase Picnic Ingredients from Local Markets
Cut food expenses by sourcing ingredients from local markets. Contrary to the expensive farmers’ markets you might find in the US and UK, Portugal’s mercados offer inexpensive yet high-quality local products. Here, you can find fresh breads, cheeses, olives, smoked meats, fruits, vegetables, wine, and essential items for your meals. If your accommodation features a kitchen, fresh seafood straight from the boat is also available at reasonable prices.
Opt for DIY Activities Instead of Organized Tours
While sunset cruises and guided mountain biking trips can be enjoyable, they can also significantly impact your budget. By planning activities that allow for self-guided exploration, you’ll save money. Renting bikes for a day of cycling along the coast or hiring paddle boards and kayaks at numerous beaches (like Meia Praia) are affordable options for seaside fun.
Seek Out a Tasca for Affordable Meals
Tascas are small, often family-run restaurants offering delicious meals at budget-friendly prices. Typically found away from more touristy areas, these establishments attract a local crowd. The menu focuses on fresh, simple dishes—often featuring bacalhau (salted cod), lulas fritas (fried squid), and other well-prepared favorites. Many tascas offer a prato feito (‘fixed plate’ or daily special), typically sourced directly from local markets. Lunchtime is ideal for a visit, as many tascas are closed for dinner, making midday the perfect time to enjoy a hearty meal.
Discover the Algarve’s Islands
For an unforgettable experience, plan a day to visit one of the Algarve’s barrier islands. Spend your afternoon relaxing on the beach and savoring the calm coastal environment (certainly guaranteed due to the absence of cars). The journey itself is enjoyable; from Tavira, you can catch an affordable ferry to Ilha de Tavira, a stunning 11km-long escape featuring dunes, woods, and pristine sandy beaches. Alternatively, you can reach Faro’s islands, including Ilha Barreta (also known as Ilha Deserta or ‘Deserted Island’), an easily accessible, remote island experience for just a few euros on the ferry.
Daily Costs in the Algarve
Hostel room: from €22-40 ($23.30-42.50) for a dormitory
Basic room for two: €40-80 ($42.50-85)
Self-catering apartment (including Airbnb): from €100 ($106)
Train ticket Lagos-Tavira (110km/68mi): €9.50 one-way ($10)
Um cafe (espresso): €0.80-1.30 ($0.85-1.37)
Bifana (pork cutlet sandwich): €3-5 ($3.18-5.30)
Dinner for two: €40-70 ($42.50-74.20)
Cerveja (beer) at the bar: €2-4.50 ($2.10-4.80)
