Backpacking Algarve, Portugal On A Budget In 2025

Is Algarve, Portugal good backpacking destination?

Yes! For everybody asking themselves the same question, Algarve is a great backpacking destination. 

Generally backpacking in Portugal is a great way to explore the country.

We will get into all the details in a second, but here is a quick overview.

Pros

• Easy to get around – despite what many people may think, the Algarve is easy to get around by public transport which is amazing for day trips in Algarve. It is also cheap! For example, a regular bus ticket from Faro in the east to Lagos in the west is less than 10€.
• High level of English spoken – I was impressed by how widely spoken English is in Algarve. That shouldn’t come as a surprise given the number of British tourists, but it is highly appreciated!
• Lots of hostels – you can choose between many hostels along the Algarve coast, great for saving money and making friends as a solo traveler.
• It is safe – Portugal constantly ranks as one of the top 10 safest countries in the world! As a solo female traveler, that is always reassuring information. 
• Great weather – The Algarve has an ideal climate, with many sunny days throughout the year. 

Cons

• Public transport – yes, it is a pro and con in Algarve. Bus schedules aren’t published online, websites don’t work, and there aren’t many daily lines off-season. 
• Crowded – Algarve tends to get very crowded in summer. Albufeira is infamous for stag and hen parties and tour groups.
• Seasonal – following the previous point, tourism in the Algarve is very seasonal. If you visit in winter, you will find many places empty, compared to absolutely packed in summer. 
• Increasingly expensive – despite everything I read before coming, the Algarve is not a cheap destination. And I visited the Algarve in November!

Algarve Bucket List For Backpackers

Are you wondering what the best things to do in Algarve are? 

Here are some of the things you should add to your backpacking Algarve itinerary.

1. Kayak to the Benagil Cave

A day trip to Benagil Cave is one of the most popular activities to add to your Algarve itinerary. You can’t get inside the cave from land, and the best way to visit is to join a kayak tour.

This kayak tour has great reviews, and if you go with them you can enter the caves as well!

Generally, kayaking in Albufeira is one of the best activities to add to your Portugal itinerary.

2. Have a night out in Albufeira

You can’t come to Albufeira and not discover the infamous nightlife. I mean, of course, you can, but why not take a look at least?

The Albufeira Strip reminded me of Bangkok’s Khao San Road. It has the same chaotic vibes, with many small bars blasting music and tempting you to come in with free shots.

3. Stroll the city center of Faro

Faro has a charming Old Town, and one of the best things to do in Faro is to discover the hidden corners while strolling the cobblestone streets.

4. Find the best beaches in Lagos

Lagos beaches are stunning. The best part is that you can access them on foot! That’s right, you don’t need a car to swim on some of the most picturesque beaches in the Algarve.

If you want to access hidden beaches, you should join one of Lagos kayak tours! It is an affordable and fun activity to add to your Algarve backpacking itinerary.

5. Discover Ria Formosa Nature Park

Algarve is home to rich animal life, and you can visit Ria Formosa Nature Park and observe many unique birds in their natural habitat.

6. Visit the medieval town of Silves

I was very impressed by the small town of Silves. It is a perfect day trip away from the coast. 

You can also go wine tasting in the area!

7. Learn to surf in Algarve

Algarve offers some great surfing spots. Experienced surfers can rent equipment all along the coastline, with Sagres being one of the most popular spots. 

If you never surfed before, book a beginner surf lesson in Albufeira here!

8. Watch the sunset at the westernmost point of continental Europe

Enjoy the unobstructed view of the sun setting over the Atlantic Ocean in Sagres. 

Officially, the westernmost point of continental Europe is a couple of kilometres away in Cabo Sao Vincente. You can take a bus from Sagres or rent a bike and cycle.

Where To Stay In Algarve For Backpackers

If you are backpacking without a car, you will want to choose one or two places as a base and discover the rest of the region on day trips.

I don’t recommend changing locations every day for multiple reasons:

• transportation takes time out of your day, even when it is a short drive
• repacking your backpack every day sucks, even if you pack light in a personal item-sized bag
• check-in and check-out times leave you with having to wait around or take your bags with you

Generally, I’d stay in Lagos or Faro because they have the most backpacker hostels.

Lagos: Best for day trips

Lagos has a bus and train station that is practically in the city center. That makes it a fantastic base for exploring the region on day trips, as most popular spots are less than an hour away.

You can take a bus to Sagres, the westernmost point of Portugal, or a train to Silves, a stunning medieval town.

Lagos is also a great place to stay if you want to spend your time on a beach, as the most stunning beaches are within walking distance from the city center.

• TOP Hostel: Cloud 9 Hostel
• Social Hostel: Olive Hostel
• Party Hostel: The Old Town Hostel

Sagres: Best for surfing and nature

Sagres is a quiet small town, ideal for spending days on the beach, surfing or swimming in the crystal clear water.  

It is a perfect place for everyone who wants to disconnect and enjoy time in nature. You can choose between many outdoor activities, such as cycling, hiking or surfing.

• TOP Pick: Sagres Natura Surf Camp 
• Social Hostel: Algarve Surf Hostel Sagres

Albufeira: Best for Nightlife

Albufeira has a reputation as a party central of the Algarve. If you want to party, that is where you will find all the parties. 

The Albufeira party zone is not just “the Strip” but also the city center. Karaoke bars, cheap cocktails, free shots, and sports bars are all over the city.

But Albufeira is more than just a party city!

It is also a great place to base yourself to try out surfing and visit the stunning Benagil cave. The city is well connected by bus to the rest of the region, ideal for day trips. 

You could consider staying in Albufeira or Portimao for central Algavre, but I think Albufeira is a better choice for backpackers.

• TOP Pick: Musical Hostel
  Party Hostel: Rich & Poor Hostel

Faro: Best for eastern Algarve

Faro is considered an airport city, and people tend to leave it as soon as possible.

However, Faro is a great place to base yourself if you want to discover the less visited eastern side of the Algarve. 

• TOP Pick: Casa da Madalena Hostel
• Budget pick: Hostellicious

getting around algarve without a car

I am not going to lie to you, the best way to discover Algarve is by car. The car gives you flexibility and allows you to visit hidden gems away from public transport. 

So, why are we using public transport when backpacking Algarve?

To rent a car in Portugal, you must have a credit card. Debit cards are not accepted for paying a security deposit, and the agency may refuse to deliver a car, even if you successfully booked online.

There is a way around this, as some agencies will let you rent a car with a debit card – issued by a traditional bank! Revolut is not accepted, for example. 

However, if you don’t have a credit card, you are required to buy full insurance. In some cases, the insurance costs more than a car!

That being said, I didn’t rent a car when backpacking Algarve, and I still had an excellent time!

It is possible to discover Algarve without a car! Public transport in the South of Portugal is far from perfect, but surprisingly good. 

If you decide to rent a car, I used this company to compare prices and rental conditions of all companies offering rental car services in the Algarve. 

algarve buses

The biggest downside to public transport in Algarve is the lack of bus schedule information online.

For some reason, bus times are not published on the official bus station websites, and bus provider websites don’t work.

That would make you think there are no buses, which is far from the truth! Almost every town and village in Algarve is connected by local buses. 

They might be sporadic and slow, but they exist!

That being said, this unofficial website – Algarve bus info, maintained by a local, is a lifesaver!

This person went to the bus station and did what the official website should’ve done – published bus schedules online!

You can also see the bus prices on the site, but on average the local bus costs around 5€ per hour of driving.

Local bus prices don’t change regardless of when you buy – unlike Flixbus and Alsa tickets.

You can buy a ticket at the bus station or on the bus in cash – if you are getting on the bus outside the main station.

Algarve Trains

A train runs from Lagos to the Spanish border, connecting most towns in the Algarve, such as Portimao, Silves, Albufeira (kind of), Faro, Tavira, and more. 

The Algarve train is a cheap and reliable form of transport between the cities in the region.

You can find a schedule and book tickets online on the national operator’s Comboios De Portugal website. 

However, a train will only get you so far.

As you can see on the network map, the train does not go to the coast. Also, a train station in some cities, like Albufeira, is very far from the actual city center.

A train is a great option to travel from one city to another, but not if you want to explore the Algarve beaches.

Best Time To Visit Algarve

The Algarve has a Mediterranean climate with hot summers and mild winters, so it is usually pleasant year-round. However, tourism in the region is very seasonal, and most places are empty in winter. 

Low season (April to June, September to October)

The low season is the best time to visit the Algarve as a backpacker. 

The region is not packed with summer holidaymakers, but the weather is fantastic to take advantage of everything the Algarve has to offer!

High season (July and August)

If you want to save money and avoid big groups of “all-inclusive” tourists, you should avoid the high season. 

However, there are some advantages of backpacking Europe in summer – you can easily make friends as hostels are full of backpackers and the sea temperature is perfect. 

Off-season (November to March)

Finally, we have winter. As the weather gets colder, most tourists leave the region, and some businesses tend to close until spring. 

Still, I believe Portugal is one of the best places to backpack in Europe in winter!

Algarve is one of the warmest places in Europe in summer, and the temperature is one of the essential factors when backpacking Europe in winter. 

If you travel on a budget and you are not solo, winter is a great time to enjoy Algarve without crowds. 

❄️ Spending winter in Europe?
Here are the best winter in Europe backpacking itineraries!

How to get to Algarve, Portugal?

It is easy to get to Algarve from all over Europe. You can either fly directly to Faro airport, take a bus or train from Lisbon or Spain.

Flying To Algarve

Algarve airport is in Faro, the biggest city in the region. You can fly to Faro from all over Europe, and most flights are by low-cost operators such as Ryanair and EasyJet!

How to get from Faro airport to the city center of Faro?

Once you land in Faro, you still need to get to the city center. 

Don’t worry if you don’t have a car, as there is a local bus Proximo to the city center of Faro for 2.80€. 

You can take line 14 or 16, they both stop in front of the Airport, just outside the arrivals terminal. 

If you want to skip Faro entirely, take an “Aerobus 56” to Albufeira, Portimao and Lagos. It uses the same bus stop as lines 14 and 16. Check the schedule and ticket prices here.

Traveling To Algarve By Bus Or Train

If you come to Portugal from outside of Europe, you will most likely land in Lisbon. Once in Lisbon, you can take a train or bus from Lisbon to Algarve. 

Alternatively, you can take a bus from Spain and combine exploring Algarve with backpacking Andalusia! It takes just 3h by bus from Sevilla to Faro! 

🚌 I used this website to book buses in Portugal!
Remember that bus prices increase as the travel date approaches!

Vegan Restaurants In Algarve

While Algarve does not take the prize for the most vegan-friendly place I ever visited, it was surprisingly easy to be vegan there. 

You will have to do your research in advance, as you’re probably used to by now.

Algarve cuisine is mostly fish-based, and I didn’t come across any accidentally vegan traditional Algarvian foods. 

So why do I still think Algarve is a good travel destination for vegans?

Firstly, every city I visited had at least one fully vegan or vegetarian restaurant. Secondly, there are Indian restaurants everywhere – and they all have a vegan menu!

Can you drink tap water in Algarve, Portugal?

Yes, tap water in Algarve, Portugal is safe to drink. Some towns, like Albufeira, have free drinking water fountains all over the city!

Is Algarve Expensive?

Before diving into a backpacking budget for the Algarve, let’s address a common misconception: Portugal isn’t as cheap as it’s often claimed to be.

The Algarve is far from a budget-friendly destination, with high-season prices for hotels, rental cars, and restaurants comparable to the Western European average.

You can still do it on a budget though!

Instead of eating out for every meal, you can buy food in the supermarket and prepare it yourself.

Drinks are surprisingly affordable, with cocktails around €5 on the Albufeira strip.

Public transport is also budget-friendly, averaging €5 for an hour-long journey and about €1.50 for local city buses.

Backpacking Algarve Budget

Your budget for backpacking Algarve will vary greatly depending on when you visit.

Algarve is a very seasonal destination, so you can expect prices to be significantly higher in summer. 

For a budget-friendly backpacking trip to the Algarve, I recommend you budget 40-60€ per day.

Accommodation and activity costs can vary greatly, with room and car rental prices often doubling during high season.

In contrast, transportation and food prices tend to remain steady. From my experience, menus I checked online in the summer matched the prices I saw in November.

I spent, on average, 40€ per day for a week in Algarve in late October/November. 

I stayed in budget-friendly accommodation, went on day trips by public transport, and had some of my meals at my accommodation – such as breakfast and a couple of dinners. 

If you plan to party, take surfing lessons, or organize day trips, your expenses will be on the higher end of the range. 

Eating out is expensive in Algarve – an average vegan meal in a restaurant was around €15. Preparing your food yourself is one of the best ways to save money when backpacking. 

In my experience, the price of accommodation and activities changes depending on the season. Food and public transport prices are pretty stable throughout the year.

Is backpacking Algarve safe for solo female travelers?

Yes, the Algarve is a very safe destination for solo female travelers. Portugal is generally one of the safest countries in the world, according to the Global Peace Index. 

English is widely spoken in the Algarve, so there is no language barrier.

However, you should always keep an eye on your belongings and use common sense. Be careful in areas that tend to get crowded – such as the Albufeira strip, as there could be pickpocketers.

Final Thoughts: The Algarve on a budget

To conclude, the Algarve is an excellent backpacking destination. 

The stunning Portuguese coastline is great to visit any time of the year, but sunny, warm days are the best. The Algarve is not cheap, but can be done on a backpacker’s budget!

You don’t need a car to visit the Algarve. Public transport is cheap, and you can book day trips with transfers for places that are not accessible by public transport. 

Are you continuing your trip to northern Portugal? Check out my backpacking Portugal itinerary to plan the rest of your trip!

If you liked this article, let me know in the comments, and share it with your friends wondering if you can visit the Algarve without a car!