Backpacking is a fun and great way to see the most of Portugal. There are around 50 youth hostels in Portugal as well as many camp sites and cheap rooms (quartos). There are many bus links providing transport between different towns and you are very likely to bump into many other backpackers along the way. The beaches and coastal resorts of the Algarve are the most popular destinations for backpackers in Portugal and although the prices are fairly cheap be prepared to pay a little more during peak season. When backpacking in Portugal, it's always a good thing to book or phone ahead of arrival especially in August as it gets rather busy and can be difficult to find accommodation.