Backpacking in the Algarve: this is how you do it: costs, route and more (2025 tips)

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Backpacking in the Algarve: this is how you do it: costs, route and more (2025 tips)

Backpacking in the Algarve is a great way to explore this beautiful part of southern Portugal on a budget. Thanks to the good public transport connections, the nice climate and the low prices, the Algarve is ideal for a backpacking adventure. It is only a three-hour flight from the UK and there are more than enough hostels and other affordable accommodations spread along the beautiful coastline.

Are you planning on backpacking in the Algarve or taking an awesome road trip anytime soon? Then take a moment to read through this guide, because I have a wealth of useful information to share. I will give you insight into the costs to expect, the best places to visit, interesting sights and important things to look out for before you go.

Backpacking in the Algarve: how much time do you need?

If you are going backpacking in the Algarve it is wise to think about how much time you want to spend in this region. After all, you do not want to run and fly every day to tick off as many sights as possible. The number of days you ‘need’ also depends on whether you travel by public transport or with a rental car.

I recommend taking 2-3 weeks when backpacking in the Algarve. This will give you enough time to travel from east to west with optional stops along the west coast in the Algarve. Further down the page you will find my recommendations for routes and stops.

Backpacking in the Algarve: When to go?

Although the Algarve is a fantastic destination all year round, some times are better than others for backpackers.

The best time to backpack in the Algarve is spring, between April and early June . The rainy season ends at the end of March and nature will then be in full bloom. Temperatures will then be around 20-24 degrees and it is still low season. Prices will then be a lot lower and it will also be a lot quieter in the villages, cities and at the sights.

If you can only travel during school holidays, then May holidays is the best time to backpack in the Algarve . Accommodation is cheaper in the May holidays than in the summer holidays and it is also not too hot to walk with a full backpack. In the summer, the temperature can rise to 38 degrees! If you come during the May holiday, you can expect a pleasant 22-25 degrees.

Alternatively, late summer is also a good time to backpack in the Algarve. Late September early October is not so hot anymore and most summer guests have left. Besides the temperature, the prices of accommodation also drop and the surfing season starts on the south coast. The ‘disadvantage’ of these months is that the nature looks very dry and arid.

Baloiço Panorâmico do Pico Alto — Are you also coming to the Algarve soon to watch a beautiful sunset like this?

Backpacking in the Algarve: costs

One of the reasons Portugal is popular among backpackers is the relatively low costs for accommodation, food & drinks and transport. Of course, the country is not as cheap as Thailand or Bali, but it is a fact that it is cheaper than the UK. Portugal has appeared on the radar for many tourists in the past decades, which is why it attracts more and more visitors every year. This has caused prices to rise, but it is still possible to discover the Algarve on a small budget.

While prices for eating out and transport don’t change much, accommodation prices increase significantly during peak season. That’s why I recommend coming outside of peak season to keep your expenses down. So how much does backpacking in the Algarve cost? Let’s look at four categories: accommodation, food & drink, transport and activities.

The fortress at Sagres, at the most south-western point of the Algarve.

Cost of accommodations

The Algarve is rich in accommodation of all shapes and sizes. Of course there are your standard high end hotels and resorts, but in most places you can also find budget accommodation such as hostels, B&Bs and apartments.

If you are backpacking alone, hostels are the cheapest. Moreover, you will meet other travellers there and you can exchange tips and do activities together. If you are travelling together, a small apartment or B&B can sometimes be almost the same price as two beds in a hostel. The advantage is that you have more privacy.

These are the costs of budget accommodation such as hostels and apartments in the Algarve:

In low season you pay on average between €17.00 – €25.00 per night for a bed in a hostel;
During high season you pay on average between €25.00 – €35.00 per night for a bed in a hostel;
In low season you pay on average between €55.00 – €75.00 per night for a small apartment;
During high season you pay on average between €75.00 – €110.00 per night for a small apartment;

High season runs from early June to late September. Prices are lowest in winter; highest during summer holidays.

Backpacking in the Algarve: Cost of food and drink

Eating and drinking in the Algarve is a lot cheaper than in the UK. You will see this in the supermarket, but also when you go out to eat. Avoid the fancy restaurants and sit where you see most Portuguese and you will see that you will have to do your best to get the bill above €20.00 pp.

If you stay in a hostel, you will have a kitchen at your disposal where you can prepare your own meals. The Algarve also has the well-known Lidl and Aldi supermarkets where you can get groceries cheaply.

This is approximately how much you will spend when visiting a Portuguese restaurant:

You already have a daily special for €12.00. Freshly caught fish or steak will be a bit more expensive. Think of €16.00 – €20.00.
Drinks are served for €1.50 to €2.00. Not only is that a lot cheaper than the €3.25 for a coke in the UK – you also get 33 cl instead of a miserly 20 cl.
Skip the starters and go for couverts, often consisting of some bread, olives, olive oil and sardine pate. Per person that costs around €3.00.
Desserts are often very cheap : around €4.00 for a piece of cake such as a cheesecake.

A typical Portuguese restaurant where delicious fish dishes are on the menu.

Backpacking Algarve: Cost of transportation

The Algarve has an extensive bus network and a train line running from east to west. This makes it easy for backpackers to travel between most major cities, but you will sometimes have to be patient.

On this page you will find more details about public transport, but for backpackers this is the most important information:

From the airport, AEROBUS 56 departs to the largest cities such as Faro (€4.00), Albufeira (€10.00), Portimão (€13.00) and Lagos (€15.00).
There are also a lot of local buses that take you between the big cities and small towns. The best way to find them is to ‘just’ use Google Maps to find departure times and stops.
The Algarve railway line runs from Vila de Real de Santo António to Lagos. Between Faro and Tunes (just past Albufeira) you can change trains to Lisbon and beyond.
Train ticket prices vary depending on the type of train and whether you travel first or second class, but are affordable in any case.
For a single ticket between the two outer stations of Faro and Lagos you pay between €7.50 and €13.00!

backpacking in the algarve: The west coast of the Algarve.

Backpacking Algarve: Costs of activities

After accommodation, activities are where you can save (or spend) the most money. Group excursions are cheaper than private tours and you can sail along the Algarve coast for €20.00. By choosing a few cheap but well-reviewed excursions, you can easily save tens of euros while still doing incredibly fun outings.

Check out five examples of budget-friendly activities in the Algarve below:

A boat trip in Lagos along the famous Ponta da Piedade costs €20.00 per person.

A Stand Up Paddleboard excursion from Albufeira costs €35.00 per person.

Kayak along the coast of Lagos with a guide from €25.00 per person.

Experience an underground adventure in the Tech Salt salt mine in Loulé for €25.00 per person.

Visit the zoo in Lagos for only €16.00 per person.

As you can read above, there are plenty of activities to do for around €25.00.

Backpacking in the Algarve: routes & destinations

Most of the sights in the Algarve are on the coast. From the Spanish border to Fuseta you will find beautiful long sandy beaches. At Faro you will find the Ria Formosa nature park off the coast and from Vilamoura to the west coast you will find the impressive rock formations and cliffs that you see on every postcard.

I recommend the following backpacking routes and destinations for your backpacking adventure in the Algarve:

Backpack route 1: 14 days by public transport

This 14 day route takes you to most of the major cities such as Albufeira and Faro and some smaller ones such as Silves and Sagres. You will also visit two of the most popular sights: the Benagil cave and the Ponta da Piedade. The route runs from east to west and from Sagres you can easily take bus 56 back to Faro airport. Below the route you will find a map with all the destinations mentioned..

Day 1: Travel from Faro Airport to Faro. Visit Faro city center and sleep in Tilia Hostel.
Day 2: Excursion to Praia de Faro.
Day 3: Travel from Faro to Albufeira. Visit Albufeira city center and sleep in Boas-Vindas hostel.
Day 4: Visit Albufeira harbor + cheap boat trip to Benagil cave.
Day 5: Travel from Albufeira to Silves and stay in Horta Grande.
Day 6: Explore Silves old town.
Day 7: Travel from Silves to Portimão. Visit Praia da Rocha and stay in PTM DownTown hostel.
Day 8: Explore Portimão city center including the museum and/or take the ferry to Ferragudo and back.
Day 9: Travel from Portimão to Lagos and explore the old town. Stay in Orange3 hostel.
Day 10: Explore the Ponta de Piedade on foot and/or take a cheap boat trip. Take a look at the harbour and Meia Praia.
Day 11: Travel from Lagos to Sagres, stopping en route in Luz or Burgau. In Sagres visit the old fort. Stay at Sagres Sun Stay Day 12: Travel north towards Carrapateira, stopping en route at the viewpoint at Praia do Cordoama, lunch at Praia do Amado and drive the loop of the Pontal da Carrapateira. Stay at Carrapateira Lodge.
Day 13: Travel towards Aljezur, stopping en route at Praia da Arrifana and exploring the old and new parts of Aljezur. Stay at Quinta Almo.
Day 14: Travel from Aljezur back to Faro Airport.

Backpack route 2: 14 days with a rental car

If you have a rental car at your disposal, such as a cheap one from Luzcar, you can visit many more sights that are difficult to reach by public transport. Many of the beautiful beaches on the west coast do not have a bus stop, so having your own car is ideal. In low season you can already get a Kia or C1 for €20 per day including full insurance.

This is the route I recommend if you are going backpacking for 2 weeks in the Algarve with a rental car:

Day 1: Travel from Faro Airport to Faro. Visit the city center of Faro and sleep at Tilia Hostel.
Day 2: Visit Praia de Faro via the bridge.
Day 3: Travel from Faro to Loulé. Visit the old town and the salt mine. Sleep at Loulé Coreto Hostel.
Day 4: Drive to Albufeira to visit the city center and Praia dos Pescadores. Then drive to Carvoeiro and stay in a budget room at Carvoeiro Hotel.
Day 5: Park the car at Praia do Benagil and walk the Percurso dos Sete Vales Suspensos along the beautiful coast.
Day 6: Travel from Carvoeiro to Silves and explore the old town. Visit a vineyard on the way .
Day 7: Travel from Silves to Portimão. Visit Praia da Rocha and stay at PTM DownTown hostel.
Day 8: Explore Portimão city centre including the museum and/or take the car or ferry to Ferragudo and back.
Day 9: Travel from Portimão to Alvor and walk through the dunes. Stay at Dunas Hostel.
Day 10: Travel from Alvor to Lagos and explore the old town. Stay at Orange3 hostel.
Day 11: Explore the Ponta de Piedade by foot and/or take a cheap boat trip. Take a look at the harbour and Meia Praia.
Day 12: Travel from Lagos to Sagres and see the old fortress. Stay at Sagres Sun Stay.
Day 13: Rent a surfboard or book a lesson at Praia do Tonel.
Day 14: Travel from Sagres to Faro Airport.

Backpacking in the Algarve: Preparations & checklist

Good preparation is half the battle. If you are going backpacking in the Algarve, think about things like travel insurance and what exactly you are taking on the plane. Here are some of the most important items to cross off your checklist:

Travel insurance : Check if your current insurance offers coverage during a holiday. If not, take out additional travel insurance.

Visa : As a european citizen you will not need a visa for Portugal.

Compare flights : Skyscanner is a good website/app to compare ticket prices, but then book directly with the airline itself. If something unexpected happens that requires you to make changes, this is in practice very difficult via an intermediary. Transavia and Ryanair flights are the cheapest. I always choose a weekday, since weekend flights are always more expensive.

Vaccinations : There are no mandatory vaccinations to visit Portugal. There are also no recommended vaccinations.

Money : There are more than enough ATMs around and you can pay with your debit card in most places. Not every restaurant has an ATM, so always make sure you have around €100 in cash in your wallet.

Backpacking in the Algarve: a great adventure awaits!

Whether you use the above tips or make your own plan, the Algarve is a fantastic destination for backpackers. There are numerous hiking trails along the coast and thanks to the excellent public transport, you can easily get to all the villages and towns. Moreover, the Portuguese are very friendly and speak a little English in most places.

Portugal is also an extremely safe country and you hardly ever hear of backpackers having bad experiences with the locals.

If you have any questions or suggestions, leave a comment below the post! Have fun on your backpacking adventure in the Algarve.