The youth hostel network has a large number of hostels throughout the country [www]. There are also many camping sites. Wild camping” (camping outside camping parks) is not allowed unless you have the landowner’s permission. Holiday villas are another option to consider.
The hotel offer is large and plentiful throughout Portugal.
If budget is an issue and you want a “typical Portuguese” experience, take your courage in both hands and try youth hostels, those hostels that are ubiquitous in the cities and most villages. In most places you can get a double room for 25 to 35 euros (October 2006). Make sure, however, that the quality of the rooms is good.
On the luxury side, you can try the “Pousadas de Portugal”, a network of hotels run by the Pestana Group, which is characterised by the use of beautiful old buildings such as palaces and castles and by excellent and constant service throughout the country. The cuisine of the pousadas is often both expensive and boring, although there seems to be an upward trend (mid-2008).
The “Casas de Campo” (Turismo de Habitação, Turismo Rural, Agro-Turismo) are also inexpensive, quaint and comfortable guest rooms when travelling in the countryside. Do not expect them to be open all year round and try to contact them in advance if your itinerary depends on them.