The Algarve is not a destination, it is a hundred and fifty kilometres of coast with completely different holidays along it, and the town you book decides which one you get. Three names dominate the search results and they could hardly be less alike: a cliff-backed town with an old centre and the region’s best coves, a purpose-built resort with a famous strip, and a working city that most visitors see only from the airport bus. Here is what each is actually like for a week.
Lagos
What it is. A historic town with walls, a compact old centre of narrow streets and squares, a marina, and the most spectacular stretch of cliff and cove scenery in the region a short walk or drive away.
Who it suits. People who want a town rather than a resort, walkers, photographers, and a younger independent crowd.
The beaches are the region’s best known: small golden coves between sandstone stacks, plus a long sandy beach for space.
The evenings are livelier than the size suggests, with a good bar scene without being a strip.
The trade-off. It is busy in summer, the coves fill, and prices have risen with its popularity.
Albufeira
What it is. The big resort: a large hotel town with a famous nightlife strip, an older centre above the beach, and everything a package holiday needs within reach.
Who it suits. Families wanting facilities and a pool, groups wanting nightlife, and anyone who wants to arrive and not think again until the flight home.
The beaches immediately around the town are excellent and well serviced.
The strip is loud, cheap and unapologetic, and is either the reason to come or the reason not to.
The trade-off. It is the least Portuguese place in the region, which is a fair description rather than a criticism.
Faro
What it is. The regional capital and airport city, with a small walled old town, a working centre, a university, and a lagoon of sandbank islands offshore.
Who it suits. Independent travellers, anyone on a budget, birdwatchers, and people using public transport.
The beaches are on the islands, reached by ferry, which is a small excursion rather than a stroll and keeps them quiet.
Prices are noticeably lower than the resort towns.
The trade-off. No beach at the end of the street, and it is a real city rather than a holiday town.
Choosing between them
Want a walkable old town with the famous coves? Lagos.
Want a hotel with a pool, a beach below and a bar strip? Albufeira.
Want lower prices, the lagoon and no need for a car? Faro.
Travelling with small children? Albufeira for facilities, Faro for the shallow lagoon water, and our guide to Portugal with kids covers what actually matters at each age.
Want quiet and space? None of these three. Look at the smaller towns in between, the eastern lagoon towns or the west coast.
Getting around
The motorway, the A22, runs the length of the region and has been toll-free since January 2025, with a separate slower national road alongside it.
Trains link the main towns along the coast slowly and cheaply.
Buses cover more places than the train and take longer.
A hire car is what unlocks the coves and the west, and is unnecessary if you intend to stay in one resort. Book ahead for summer.
Practical notes
July and August are full, with prices to match and beaches that fill by mid-morning.
May, June, September and October are the sweet spot, with warm sea into autumn.
Winter is mild and quiet, and a good share of the resort infrastructure closes.
Book early for the summer school holidays, which is when the region is genuinely at capacity.
For the region as a whole, its seasons and how it fits into a Portuguese trip, our Algarve guide is the place to start. And for which stretch of sand suits you, our guide to the best beaches in the Algarve covers the three very different coastlines.
The short version
Pick the holiday before the hotel. Lagos gives you an old town and the best coves in the region. Albufeira gives you a full resort with facilities and a nightlife strip. Faro gives you a real city, the lagoon islands, the airport and lower prices. Base yourself once and drive out rather than moving along the coast, since everything is within an hour. Hire a car if you want the coves and the west, and come in May, June, September or October rather than August.
