How to Visit the Algarve on a Budget: 14 Great Money Saving Tips

Here’s exactly how to visit the Algarve on a budget, based on my last three trips. These are the easy wins that’ll help you save where it matters… so you can spend more on actually enjoying this ridiculously beautiful part of Portugal.

The Algarve is not known for being a cheap destination, but that doesn’t mean you have to totally discount it if you’re on a budget. With all that natural beauty and wilderness, there’s plenty you can do for less. I’ll give you an idea of my recent Algarve travel costs, so you can tally up what’s important to you and pick and choose.

In the last two years I’ve been solo, with my fiancée and son, and with friends – and it’s not the expensive things that have been the best.

From cheap flights and affordable places to stay, to where to eat and what to do for free, here’s how to have a cheap Algarve holiday without missing out on the good stuff.

How to do the Algarve on a budget

1. Choose a hotel with great food, beds and activities

The cheapest hotel isn’t necessarily the best one for doing the Algarve on a budget. Here’s what to look for:

• A great breakfast that will set you up for the day.
• Highly rated beds for a good night’s sleep.
• On site entertainment like a swimming pool and / or a beach.
• Nearby transport links.
• A fridge in the room for supplies.
• Free coffee / tea in the room.

We had all of this at the W Algarve Hotel with Jet2Holidays. Now, this is in no way a ‘cheap hotel’ but look at the value you get from having all of the above in one. You can get some great deals with Jet2 as a package too – full review coming soon!

2. Make walking the activity

There are some stunning coastal walks in the Algarve, for FREE – including the Seven Valleys Hanging Trail. This was actually one of my favourite Algarve activities last time I went. Next time I’d love to walk it all the way.

We walked from Praia da Marinha to just past the Arco da Praia da Corredoura, about 7km.

If you’re looking for the Algarve on a budget then look to the natural beauty of the area.

3. Chill on the beach with a picnic

Praia da Marinha and Praia de Dona Ana are known as two of the best beaches in the Algarve, but there are many more lining the coast. Choose one that’s not lined with tempting cafes and just take a picnic to keep the costs down.

4. Have lunch or dinner on a budget

When we stayed at the fancy Domes Hotel near Vilamoura Marina we picked up lunch from the little deli corner shop out the front. In fact, a lot of people round the pool at the hotel did.

For just a few euros you could choose your meat, bread and fillings served in a baguette with a can of gin and tonic. That’s the kind of lunch I like. That made us feel a bit better about the cost of dinner…

Oh and be wary of marinas in Portugal – they look good but they’ll charge you a premium for the pleasure. Looking at you Vilamoura.

5. Get the bus from faro airport

A taxi from Faro Airport to Faro was only €15, which I was pretty happy about when I arrived late in the evening by myself. If it wasn’t so late I would’ve got the bus for €2.25.

If you’re going to Albufeira you could get a bus to Albufeira Bus Station for just €6.20 from the airport on the number 56, and then taxi from there to your hotel if it’s too far to walk. Departures are limited though – going up to just 7 in peak season – so you’d need to time it right.

I’ve just checked Uber and it’s showing at around £35 – could be worth it if there’s a few of you and for ease. The other option of course is to book a package holiday where it’s all included and you don’t have to worry about it. See Jet2’s holidays to Portugal!

6. Take ages for breakfast and go as late as possible

If you have a great hotel breakfast, like the one at W Algarve then you can eat as late as possible (a few courses obviously), and it’ll cover you for lunch time too. Just another way a value hotel can be better than a cheap hotel.

7. Find a rooftop bar and nurse a local beer

With the stunning coastline there are some great sunset viewpoints along the Algarve coast, but it’s the rooftop bars that provide the best views.

We went to the Pure Formosa Concept Hotel in Olhão and enjoyed a few margaritas. Local beer is the best choice if you’re trying to save a few pounds though.

8. Use the water ferries

We did a boat tour with Passeios Ria Formosa to the Rio Formosa Islands for €25 from Olhão. It gave us an hour and a half at Ilha da Culatra for lunch and then 30 minutes at Ilha do Farol for sightseeing.

In Ilha da Culatra we went to the Aqua Chill Seafood Bar and I had the best prawn curry ever, with some delightful Portuguese Sangria. Absolutely 100% recommend, although, it did mean I didn’t get any time to look round the island.

On Ilha do Farol, we had a little wander before getting sidetracked in the hunt for a toilet. We ended up buying an ice lolly each out of guilt… and just like that, our time was up.

I’d recommend you take the water taxis out if you want to make more of a day of it and have more time on the islands. They’re €2-3 from Olhao Marina.

But if you want an easy way to explore, without having to work the timetables out, then the tour could be perfect for you.

9. Don’t go out on a boat if the weather is rubbish

When I went with my family we did an expensive boat tour out to the Benagil Cave – it was FREEZING (in June). If there’s a wind then you can save money by doing the Seven Valley Hanging Trails Walk to see the coast – although you obviously wouldn’t get the view of the cave below, just a look in the top, from a distance. The trip is too expensive though to not enjoy every second!

I’d strongly recommend waiting for a sunny day to do your boat tours in the Algarve, or taking a coat!

10. Explore the markets at Loulé

Loulé is something of a legend in the Algarve – a historic market town that absolutely lives up to the hype. The market was brilliant, packed with everything from fresh meats and local cheeses to sweets, trinkets and bottles of something strong, all at really decent prices.

In the covered section, a handful of laid-back bars made it easy to stop for a drink or a bite, giving it a vibe that felt like a smaller, more relaxed version of La Boqueria in Barcelona.

11. Wander the villages and old towns of the algarve

We visited Paderne Village and had a wander around the cobbled streets and church. It was a pretty place but I’d recommend going to Loulé or Olhão towns instead.

The market in Loulé is the thing to do, while in Olhão you can follow the creative trail and see local craftsmen working in their workshops, see the old baths and eat at some of the many restaurants.

I’d definitely recommend the Art Nouveau charm of Café Calcinha. Loved the family running it, and the food too. It was such a warm and welcoming vibe in there, I’d definitely go back to try their cakes and people watch.

12. Eat some meals cheap so you can comfortably splash out on others

Eat where the locals eat for the best prices – unfortunately salaries are still very low in Portugal so the flash tourist restaurants can’t be for everyone. Look for ‘prato do dia’ deals to eat on a budget in the Algarve – that means ‘dish of the day’.

Bifana sandwiches, grilled sardines and pastel de natas will usually be the cheapest options in the Algarve. And remember, all the beachfront restaurants will have a juicy markup.

13. Make eating the activity with a cooking class

Fresh off the plane on my last trip we did a cooking workshop at Taberna Lúcia Ribeiro. It was a wonderful introduction to the local cuisine and vibe, through the energy and passion of Lucia herself.

We worked together in a group to create the speciality local dish Seafood Cataplana. Lucia said she’s happy to take children in the classes even as young as 4. This really made me think about this for our next trip – I think my son would love it. He’d definitely love her!

The food was great, as was the wine – and it’s one of my favourite memories from the last trip.

14. Do the free walking tour in Faro

When I visited the Algarve solo I did a free walking tour in Faro. It was great! I feel like I learned so much more about the city than I wouldn’t have picked up solo. Free walking tours are a great way to experience Algarve budget travel.

Is the Algarve expensive?

When I visited Faro solo I was pleasantly surprised at the cost of the hotel, and of eating out. My two-course restaurant lunch came in at around €20 with wine, and hotels were available in March from £40.

Going with my family we chose the verrrrry nice Domes Hotel in Vilamoura. It was great for sleeping, activities and breakfast, but it did mean we needed to think differently about where to eat for the rest of the day as eating there was so expensive. I mean, it was all sushi and steak.

And on my recent trip with Jet2 it was a mixture of some very fancy experiences and staying at the stunning W Algarve Hotel, with some more affordable Algarve activities like the boat tour and the hike.

As you can see above, there are definitely ways to make the Algarve more affordable. You just have to be prepared to cut back a little!

When is the cheapest time to visit the Algarve?

The cheapest time to visit the Algarve, when it’s still sunny, would be the shoulder season of May and June and then September and October. It’s a very popular spot for UK travellers so the school holidays are going to be crazy prices for hotels, although you can get some pretty sweet flight deals with Jet2.

My aunty actually has an apartment in the Algarve and she’s permanently got a tan so I think you can get lucky with the weather year round if you’re really chasing some cheaper hotel prices.

In the last two years I’ve been twice in March and once in June, and the weather was pretty much the same with a mixture of drizzly and sunny hours in one day. I feel like every time I’ve been to Portugal I’ve just missed ‘the good weather’ – so don’t go when I’m there basically!

How to find cheap flights to the Algarve

Flights to Faro with Jet2 leave from 13 UK airports, including Birmingham, Belfast, Bristol, East Midlands, Liverpool and Bournemouth. They also have flights from London Stansted Airport so there are plenty of options.

Fly midweek for the cheaper options and of course, avoid school holidays.

Look into getting an Indulgent Escapes package from Jet2holidays if you’re travelling for a special occasion. You get Fast Track airport passes, money to spend on board, free drinks and 25kg of luggage too.

How much does a budget trip to the Algarve cost?

Ok, we’re looking at the minimum plus a bit here (which is basically how I buy my wine). I’m looking at a trip in

• Flights: £40–£400 depending on the time of day and year
• Accommodation: £40–£200 per night per room for a good value hotel (W Hotel Algarve starts at £168 per night out of season)
• Food: £30–£100 per day (depending on if you get B&B and if you eat out for lunch and dinner)
• Transport: £5–£15 per day
• Boat tour trip: £20pp
• Boat to Benagil Caves: £50pp