Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget

Post originally Published March 19, 2024 || Last Updated March 19, 2024

See how everyone can now afford to fly Business Class and book 5 Star Hotels with Mighty Travels Premium! Get started for free.


Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Get There for Less


Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget

Getting to the Algarve in southern Portugal doesn't have to break the bank. With a few insider tricks, you can find cheap flights and arrive ready to maximize your trip budget.

Timing is everything when booking budget airfare. Be flexible with your dates and closely monitor fares for sales and flash deals. Set up price alerts on Google Flights to notify you when the cost drops on your preferred route. Midweek flights are generally cheaper than weekends. Try flying out on a Tuesday or Wednesday and returning on a Thursday or Saturday. Pack light to avoid baggage fees that can quickly eat into your savings.
Consider nearby airports too. Flying into Seville, Spain could save you money over arriving straight into Faro. It's just a 2.5 hour bus or train ride across the border. Ryanair and easyJet offer lots of cheap connections throughout Europe.

Don't limit yourself to major carriers. Discount airlines like Jet2, Vueling, and Transavia serve Portugal. TAP Air Portugal occasionally has good sales, especially if you book early. Sign up for their emails to get alerts.

Once there, use buses and trains to get around. Rede Expressos runs between major cities for budget fares. Book in advance online for the best rates. Portugal's intercity trains are modern and efficient. Purchase your tickets online and download the app to save.

Renting a car is affordable and offers flexibility. Just avoid the counter fees by booking through rental sites like Rentalcars.com. Automatic cars tend to cost more, so consider learning stick shift beforehand. When gas and tolls are factored in, sharing rides or tours can be comparable for long distances.
For real steals, keep an eye out for mistake fares that occasionally pop up. Set alerts on Secret Flying and Scott's Cheap Flights for rare deals like $99 roundtrip flights from New York. They go fast when found, so you have to be ready to book.

What else is in this post?

  1. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Get There for Less
  2. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Hostels and Guesthouses Beat Hotels
  3. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Take Advantage of Free Transportation
  4. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Eat Like a Local
  5. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Drink Local Wine and Port
  6. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Explore Nature and Beaches
  7. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Find Free Entertainment
  8. Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Shop Local Markets and Stores

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Hostels and Guesthouses Beat Hotels


Luxury resorts and high-end hotels line the Algarve coast, but budget-conscious travelers can find quality lodging for a fraction of the price. Hostels and guesthouses allow you to sleep comfortably and save your cash for the experiences you came for.

Portugal is hostel heaven, with options ranging from bare bones to stylish boutique. Private single or double rooms beat cramming into dorms and come with linens, lockers, and en-suite bathrooms. You’ll also have access to self-catering kitchens to whip up cheap meals.
Lisbon Lounge Hostel Porto and Gallery Hostel Porto get rave reviews for their downtown Porto locations, daily breakfasts, and lively social scenes. In Lagos, the Funky Monkey Hostel Lagos has a pool and bar right on the beach. The Goodnight Hostel Lisbon is steps from vibrant Bairro Alto.

Stay in a restored townhouse at the Lisbon Poets Hostel, with architectural details that mimic the city’s tiled facades. Or channel the 1960s surf scene at The Free Spirit Hostel in Alvor. Wherever you stay, you’ll get insider tips from the knowledgeable staff.
Hostels average just €15-25 ($16-27) per night for dorms and €40-60 ($43-65) for private rooms. That frees up cash for activities like surf lessons, pub crawls, and day trips along the coast. You’ll meet fellow budget travelers to team up with and split costs too.
For more privacy, boutique guesthouses known as residenciais and pensãos deliver charm at affordable rates. Unlike hotels, these family-run spots include breakfast and you’ll get personalized attention during your stay.

The 14-room Casa d’Alagoa in Faro has a leafy courtyard and bold decorative tiles, steps from the city’s historic center. In Lagos, the chic but laid-back Nice Way Bellamar offers a pool and sundeck. Tivoli Guest House in Tavira has just five rooms inside a renovated 100-year-old townhouse.
Staying at a guesthouse gives you a local experience and a ready source of insider travel tips from the owners. Rates average just €40-70 ($43-75) per night for single or double occupancy with breakfast included. You won’t find better bang for your buck along the Algarve coast.
Avoiding big chain hotels and resorts means more money for experiences that make your trip special. Who wants to be cooped up in a generic room when you could be beach-hopping along dramatic coastline or exploring cliffs and caves?

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Take Advantage of Free Transportation


Portugal offers excellent and often free transportation options to help stretch your travel funds even further. While flights and rental cars can ding your budget, public transportation allows you to traverse the country at little to no cost once there. Make the most of these low-cost and no-cost transport methods so you can reallocate cash to sundowners overlooking the sea.
Portugal’s train system covers the country efficiently with direct routes connecting major hubs like Lisbon, Porto, and Faro.While fares aren’t dirt cheap, snagging a ticket in advance online can save up to 65%. The rails link the Algarve resort towns, so you can beach hop from Albufeira to Vilamoura to Alvor without a car. Lines also reach inland spots like Évora and Coimbra to sprinkle some culture into your coastal trip.

Better yet, pack light and take advantage of Portugal’s free train transport for kids under 12 and youth under 18 when accompanied by an adult. You won’t pay a cent. Teens can also score discounts, so don’t let age limit your family’s adventures. With several trips under my belt, I’ve found the train app indispensable for planning routes and booking on the go.
Buses fill in the gaps, shuttling you from train stations onwards to your destination. Portugal’s long-distance coaches drive the same routes far cheaper than trains. Snag advance-purchase discounts between cities and consider bus passes to maximize savings on multiple journeys.
Within towns, public transportation is an even bigger budget boon. Lisbon’s buses, trams, metros, and funiculars mostly run on refillable Viva Viagem cards you can purchase at metro stations. Porto offers a similar Andante card for unlimited travel. Hop on and off as you please without per-ride costs adding up.

Many outposts like Lagos have no local bus fare at all – just hop aboard wherever you see a stop. Ride out to the stunning Ponta da Piedade cliffs or golden Praia de Dona Ana without a cent. When heading for wineries in Algarve wine country, check routes with free vineyard shuttles to avoid taxi costs.

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Eat Like a Local


Indulging in local cuisine is one of the greatest joys of travel, and the Algarve offers culinary delights that won’t devastate your daily budget. Savoring authentic dishes at corner tascas (taverns) and markets explodes flavor without inflating costs. You’ll gain an edible education in regional specialties from seafood to savory pork.
Seafood reigns supreme by the seaside, so sidle up to a harbor joint for the catch of the day. Grilled sardines – a Portuguese national obsession – cost just a few euros and pair nicely with vinho verde white wines or Super Bock beer. Don’t miss cataplana, a shellfish stew brimming with clams, mussels and shrimp baked in a traditional copper pan.
Meat lovers can get their fix too. Pork is prepared in endless variations across Portugal. I’m partial to carne de porco à alentejana, cubed pork cooked with clams and drenched in garlicky olive oil. Wash it down with full-bodied Alentejo reds. Bifana pork sandwiches served at snack bars offer a tasty, wallet-friendly lunch.
Queue up at a pastelaria for cod and potato croquettes called pastéis de bacalhau, just €1-2 apiece. You’ll see locals enjoying them morning, noon and night with a strong bica espresso. Tucked into warm, crusty rolls, prego steak sandwiches are another favorite cheap eat.
Don't overlook Portugal's African influences, including piri piri chicken grilled over an open flame. The spicy, tangy marinade adds a kick. Sidewalk rotisseries serve up juicy cuts accompanied by fries or rice for just €5-10. Load up on the hot sauce!

Markets brim with fresh produce perfect for picnicking. Assemble a feast of bread, sheep’s milk cheeses, olives, nuts and ripe fruit for under €10. Wash it down with a crisp vinho verde and soak up the flavors – and the sunshine. Many vendors will slice prosciutto, chorizo or other cured meats to order.

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Drink Local Wine and Port


Beyond seafood and savory meats, no trip to Portugal is complete without appreciating the local wines and ports. Fortunately, you need not shell out a fortune to sample these liquid delights. With a little insight, you can indulge in the region’s best vintages without busting budget.

The Algarve’s warm climate nurtures grapes that produce full-bodied reds and crisp, refreshing whites. Red wine reigns in Alentejano – deep, fruity blends like Alicante Bouschet and Trincadeira. Stop at local vineyards for free tastings and pick up bottles for just €5-10. Many also host free tours and live music events.
Further north, the Minho’s verdant hills yield light and tangy Vinho Verde whites like Alvarinho and Loureiro. These lower alcohol wines pair perfectly with grilled sardines and other seafood. At sidewalk cafes, a glass or carafe typically costs €2-5 – far cheaper than beers or cocktails.

Don’t overlook rosés, especially from up-and-coming wine regions like Lisbon. Portuguese pinks have a dry, mineral edge that makes them ideal beach companions. You can still find bottles in shops for under €5.
While on the coast, be sure to try medronho – a strong brandy made from the berries of the arbutus shrub. Locals sip the digestif straight or mixed into cocktails. You’ll spot dozens of homemade varieties at roadside fruit stalls. Just €10 buys you a whole liter!

No trip to Portugal is complete without port, the beloved fortified wine from the Douro Valley. While vintage bottles command astronomical prices, you can still snag great ruby and tawny ports for under €20 – a treat worth the splurge. Many restaurants offer port pairings with dessert for just a few euros more.

Traveling east, don’t miss out on Setúbal’s Moscatel de Setúbal. This amber-hued sweet wine has notes of apricot and orange blossom. At just €10-15 per bottle, it’s Portugal’s hidden gem.

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Explore Nature and Beaches


The Algarve’s 100 miles of coastline offers endless opportunities for nature lovers to explore – all while staying within a tight budget. You need not shell out for pricey excursions to experience the region's spectacular cliffs, grottos, and golden beaches. Renting a car or riding local transportation lets you beach hop to your heart's content for free.
One must-see natural highlight is Ponta da Piedade, a series of weathered sea stacks and arches jutting into the ocean just outside Lagos. Arrive early to beat the crowds and witness the morning sun illuminating the sandstone. The views of the grottoes and blue water below are breathtaking from on top. For a closer look, clamber down the makeshift steps carved into the cliffside. Numerous lookout points allow you to gaze out at the Atlantic as waves crash against the rocks.

The nearby Praia do Camilo also stuns with its secluded cove framed by ochre cliffs. Descend the long staircase to bask on the quiet sands away from the summer masses. Pack a picnic and make a day enjoying this hidden gem. Drive 15 minutes west to reach the Ponta de Alfanzina lighthouse, where a clifftop footpath yields more stunning vistas free of charge.

Those seeking endless golden sands at bargain prices need look no further than Fuseta Island, accessible via short ferry from the town of Olhão. The sleepy isle offers 7 miles of beach with few buildings or crowds, transporting you to a deserted tropical paradise minus high-end resort costs. Wander dunes dotted with fishermen’s shacks before cooling off in the calm blue waters. For under €3 roundtrip, the ferry provides easy and affordable island access.
In the west, Praia da Bordeira charms with its crescent cove wedged between carved cliffs. Strong swells draw surfers while sunbathers bask on the rust-colored sands. Nearby, the relatively quiet Praia do Amado also rewards with incredible vistas as the waves roll in. Stop for lunch at a tiny seaside café, or simply curl up with a book as the afternoon unfolds.
Algarve road trips reveal endless gems: tucked-away grottos, jagged peninsulas, even a slice of the Sahara Desert. Pack along a few snacks and road trip east towards Castro Marim. Here, walk towering dunes that feel transplanted from North Africa yet sit just a stone's throw from the village below. Or press onward to Tavira, where a 7km offshore sandbar creates the illusion you’re floating far from shore.

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Find Free Entertainment


Entertainment doesn't have to demolish your daily budget in the Algarve. With insider knowledge, you can fill your itinerary with free and low-cost activities to immerse yourself in local culture. Exploring the region’s vibrant performing arts scene, summer festivals, and outdoor diversions will let you experience authentic Portuguese traditions without paying a premium.
Wandering Lisbon and Porto, you’ll chance upon impromptu concerts and performances unfolding on street corners and public squares. Lisbon boasts a lively fado scene, the nationally treasured soulful ballads sung in somber tones. Shows frequented by tourists charge steep admission, but you can often catch singers in neighborhood taverns for the price of a drink. In lesser-visited Coimbra, university students dressed in traditional capes continue the fado tradition.

Porto pulsates with creativity too, from pop-up theater and dance showcases to outdoor cinema screenings. Grab a spot at an all-ages street performance, or catch an up-and-coming band at Musicbox, Porto’s premier live indie venue. Creative wall murals and street art installations further fuel artistic inspiration across these culture-rich cities.

Beyond urban settings, the Algarve coast draws crowds each summer for its lineup of festivals and fairs. Lagos celebrates its maritime heritage annually through the Sea Festival, with nautical parades, watersports contests, and fireworks over Ponta da Piedade. Lagoa holds a traditional Fish Festival where you can sample sardines and seafood stew without paying restaurant markups.

The medieval Aljezur Sweet Potato festival honors the town’s history with reenactments, workshops, sweet potato delicacies and live music, all free to experience. If visiting in June, catch festivities for Santos Populares, the region’s largest event featuring elaborate parades and performances all week long leading up to St. John’s Day.

The Algarve countryside holds plenty of diversions costing absolutely nothing. Pressing inland reveals rolling vineyards ripe for self-guided wine tours. Follow scenic hiking trails between tidy rows and sample vintages during tasting hours, often complimentary. Some wineries even offer free food pairings to complement their malbecs and moscatels.

Get back to nature by exploring the peaceful Ria Formosa lagoon stretching along the eastern Algarve coast. Spot flamingos and other birdlife from the water, or wander boardwalks and nature trails through protected wetland habitats. Pack a lunch and make a day of birdwatching and soaking up the tranquility.

Golfers can score discounted tee times during twilight hours, and many courses open practice areas free of charge. Newbies should book a intro lesson to refine your swing without breaking the bank. Surfers can rent boards affordably and test their skills on beginner beach breaks before graduating to world-class waves.

Portugal on the Cheap: How to See the Algarve on a €50 a Day Budget - Shop Local Markets and Stores


Getting lost wandering colorful markets and quaint shops lets you experience authentic local life in Portugal while scoring artisan goods and fresh foods at a fraction of store prices. Although global chains and souvenir stalls tempt tourists, heading off the beaten path to shop small unearths deals and immerses you into everyday culture.

Lisbon’s winding streets hide hole-in-the-wall shops offering handmade ceramics, embroidery, lacework and jewelry for under €10. Hunting for azulejos – the decorative tiles adorning facades across Portugal – yields quality pieces priced far below what you’ll find at airports and monuments. Just one vivid tile makes an ideal, lightweight souvenir.

Porto charms with boutiques hawking Porto-exclusive brands of soaps, linens and leather goods. Shopowners share insights into traditional techniques of production. Along the Algarve coast, tiny ateliers craft cork items, from fashionable purses to functional bottle stoppers – all quintessential Portuguese mementos.

Markets brim with bargains if you know where to go. Lisbon’s massive Feira da Ladra flea market sprawls Tuesdays and Saturdays in the Alfama district, with stalls proffering vintage apparel, antiques, and random relics from just €1. Bargain hard and you’ll leave with armfuls. Lagos’ Mercado Municipal offers fresher finds like figs, almonds, cheeses and sausages to sustain you on the cheap.

Every town holds a weekly market hawking household goods, used books, clothing and more at deep discounts. Ask your guesthouse host for tips on the best spots and days. These mutable markets pack up before sundown, so early arrival ensures the best selection. Don’t be shy about haggling, especially near closing time.

Beyond the markets, touring Portugal’s fishing ports lets you select seafood straight from the source. Coastal warehouses display the morning’s haul on long tables, from crustaceans and bivalves to octopus and salt cod. Prices start shockingly low, so you can stock up on shellfish for a fraction the restaurant cost. Grab what looks best each day and improvise savory Portuguese stews back in your rental kitchen.

Don’t restrict bargains to goods – Portugal’s cities offer scores of free experiences if you know where to look. State museums often open their doors gratis on Sunday mornings, while landmarks like Belém Tower waive entry on the first Sunday of each month. Time your visits accordingly and soak up the sights for free.

In university cities like Lisbon, Coimbra and Porto, sit in on a lecture or peruse expansive libraries open to the public. Porto’s iconic bookstore, Livraria Lello, opens early so bibliophiles can explore its neo-Gothic interior free of charge before the crowds hit.

Peeking into churches and cathedrals reveals intricate architecture and artwork at no cost. Sitting in on fado performances in neighborhood taverns offers free entertainment as the singers pass the hat. Strolling parks and gardens lets you appreciate their beauty without spending a cent.

See how everyone can now afford to fly Business Class and book 5 Star Hotels with Mighty Travels Premium! Get started for free.