Both taxis and pre-booked transfers are common choices at Faro airport. The Algarve is a well-established tourist region, so both options are reliable. Here is what differs.
Taxis at Faro airport
Faro taxis are metered and regulated. They line up at the rank directly outside arrivals. Prices are based on the meter, with additional charges for luggage (typically a small flat fee per bag in the trunk) and potential night/weekend surcharges. A ride to Albufeira runs EUR 35-55 by meter.
The main drawback is the queue. When several flights land close together in summer, the taxi line can stretch to 30-40 minutes. Outside peak season, waits are shorter. Taxis are standard sedans; if you have a large group or lots of luggage, you may need two cars.
Pre-booked transfers
Transfer services in the Algarve are well-developed because of the region's reliance on tourism. You book in advance, get a fixed price, and a driver meets you in arrivals. Prices to popular destinations are comparable to taxi meter fares, sometimes slightly less because there are no luggage surcharges or night fees.
You can request specific vehicle types, from sedans to minivans to luxury cars. Child seats can be arranged. There is no queue to deal with.
Price comparison
For most Algarve destinations, taxis and transfers cost within EUR 5-10 of each other. Uber and Bolt, when available, tend to be 10-20% cheaper than taxis. The price difference between transport modes is less significant here than at many other European airports.
When taxis make sense
If you are heading to Faro city center (a short, cheap ride), or if you arrive during a quiet period with no queue, a taxi is perfectly fine. There is nothing wrong with the service.
When transfers make more sense
If you are heading to a villa with an address that is hard to find, traveling with a group larger than four, need a child seat, or arrive during peak summer when taxi queues are long. Also for destinations at the far ends of the Algarve, like Lagos or Vila Real de Santo Antonio, where the meter will tick up significantly and a fixed price gives peace of mind.
A note on ride-hailing
Uber and Bolt offer a middle ground: app-based pricing that is usually cheaper than taxis, with the convenience of cashless payment. The catch is that availability at the airport varies. In summer, you will likely find a driver. In the off-season or at night, it is less certain. The pickup point is at departures level, not arrivals.
Bottom line
The Algarve is one of those destinations where the difference between a taxi and a transfer is small. Pick based on your specific situation: group size, destination distance, time of arrival, and personal preference for planning versus spontaneity.