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Home » Portugal’s best beach hotspot is also its cheapest for 5* all-inclusive holidays
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Portugal’s best beach hotspot is also its cheapest for 5* all-inclusive holidays

By staff29 May 2025No Comments3 Mins Read

Portugal is a firm favourite with Brits looking for sun, sea and sand but there’s more good news as one of its best holiday destinations is also where you’ll find bargains for luxury breaks

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Albufeira Beach, Algarve, Portugal
Albufeira is a firm favourite with Brits (Image: Getty Images)

One of Portugal’s most popular holiday destinations is also its cheapest for luxury all-inclusive breaks.

Millions of Brits flock to the Algarve thanks to its year-round sunshine, breathtaking sandy beaches, bustling resorts and wide array of family-friendly activities – and it turns out you could actually bag some luxury bargains there too.

In fact, according to TravelSupermarket research, it’s the country’s cheapest destination for 5* all-inclusive breaks, with a week’s holiday coming in at an average of £1,085. The hotspot has drastically climbed the ranks; last year’s rankings saw it take 16th place, while this year it holds a top 10 position coming in eighth (you can see the full rankings below).

“Go all-inclusive in Portugal and you’ll probably find yourself in the sunny Algarve,” explained Chris Webber, Head of Holidays and Deals at TravelSupermarket. “Thanks to world-class golf courses designed by legendary players, the Algarve is also a golfer’s paradise. Many five-star hotels cater to the golf crowd, with greens access included in the holiday price along with luxurious accommodations. If golf isn’t your bag, you’ll just have to settle for stunning beaches, watersports and coastal hikes through charming, whitewashed villages.”

Tourists sunbathing in Praia do Camilo, Lagos, Faro district, Algarve, Portugal.
The Algarve is full of breathtaking beaches(Image: Getty Images)

One of the big draws to the Algarve is the year-round sunshine. During the peak summer months you can of course enjoy sunny days and temperatures of around 29C, but the region also boasts enviable weather during the winter, when temperatures can stick around 18C with some sunshine, making it a much more tempting alternative to the UK’s typically grey skies.

Depending on the type of holiday you’re after, there are plenty of places across the Algarve to discover. For those who want the nightlife, cheap hotels and plenty of atmosphere, Albufeira or Lagos are sure to be hits (and those golden sand beaches are the ideal spot for sleeping off those subsequent hangovers).

Meanwhile Carvoeiro is often popular with families thanks to its swim-friendly waters and child-friendly atmosphere, while Vilamoura is a charming destination for those who are after a bit more luxury to their stay (and it’s also close to plenty of those world-famous golf resorts).

As for the beaches? You’ll be spoiled for choice. Families tend to flock to Falesia thanks to the sandy shores, crystal-clear waters and the vast array of restaurants and bars in the area (although be warned it is very popular during the summer months), while Praia Marinha is surrounded by a rugged coast and looks like something out of a storybook.

A view of the rock formations on Benagil beach in the Algarve
Benagil has likely already appeared on your Instagram feed(Image: Getty Images)

Meanwhile you’ve probably seen Praia de Benagil on your Instagram feeds, as the beach and its jaw-dropping rock formations are always a hit with the social media crowd. There are plenty of hotels just a stone’s throw away, but if you’re staying a bit further out it’s well worth booking onto a boat tour for a day’s adventure.

Looking for more inspiration for your next break? You can check out the full list of the top 10 best destination for the cheapest 5* all-inclusive breaks below:

  1. Hammamet, Tunisia
  2. Sousse, Tunisia
  3. Dalaman, Turkey
  4. Kefalonia, Greece
  5. Bodrum, Turkey
  6. Cape Verde
  7. Rhodes, Greece
  8. Algarve, Portugal
  9. Egypt
  10. Dominican Republic

You can find more information about holiday packages to these destinations including all-inclusive breaks at travelsupermarket.com.

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