Lagos is the Algarve's backpacker capital — cliffs, kayaks and hostels inside a small walled town.
Inside the town walls
Hostels fill the old town around Rua Lançarote de Freitas, five minutes from the marina and ten from the first cove beach.
What a day costs
Dorm €20–35 in summer and half that in winter, a prato do dia €10–14, and the beaches are walkable. Around €40–70 a day, roughly $45–80.
Getting around cheap
The regional train crawls along the Algarve from Lagos to Faro for a few euros, and Vamus buses cover Sagres and Luz. The town itself walks.
Free by day
The clifftop path from Praia do Camilo to Ponta da Piedade, the town walls, and Meia Praia's four kilometres of open sand.
Rua 25 de Abril
The bar street in the old town, busy from ten. Hostels run sunset trips to Ponta da Piedade that fill up earlier in the evening.