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Is it better to travel in Spain and Portugal by bus or train?

Hello travelers around Europe, what would be the cheapest way to travel by bus in Spain and Portugal in order to visit big and small towns? Next year, I plan to visit the above countries and I know that TGV is not cheap and i am not interested to get anywhere expressly. I am also ready to travel by local slow regular trains stopping on my way with no rush is this is better? Do these trains still exit? I know that train has passes but what about buses? Before anyone asks tours are a bit out of budget. Thanks a lot.

TGV does not operate in either country, it is French. The rail networks are operated by Renfe and CP. Highly unlikely any pass on either rail network will be value but you will have to do the maths comparison. Buses are cheap and operated by local firms in many instances and would require looking to each one's website.

Hi,

Very nice idea to travel slow by stopping trains.

It is still very much possible and an enjoyable way to travel. You'd better hurry though, since the sword of Damocles is hanging above most of the old railway lines

To avoid any disappointment it must be mentioned that you won't find any "ancient" classic looking trains in Spain. Not even on the most remote branch lines. There are no trains anymore with opening windows sadly. OK, one notable exception is the Palma - Soller line on the island of Mallorca.

Stopping trains are a great way to travel, because you don't need to buy tickets in advance(fares are fixed, just buy the ticket at the station before deparature and these trains rarely if ever get full, in fact most of them are struggling to attract passangers). Also in many middle sized cities high-speed trains stop at new stations located well outside the city center or even outside the city(!) requiring a transfer by bus or taxi, but slow trains use the old stations located near the centers. The views from these slow trains are way more superior to the high-speed ones, because the slow trains use the original lines which are anything but straight.

A good example is the Madrid - Segovia route: The high-speed trains take about 30 minutes but the station is far away from the old town and the train is running through one of the longest tunnels of the world for almost the whole way. The journey is no more interesting than taking the subway in New York.

The slow trains on the old line take about 2 hours, but take you over the Guadarrama mountains with nice views and the old station where they arrive is a short walk from the old town.

What you need to avoid are the deep blue HS lines, there is almost always some alternative option running on the old lines, except to Toledo where only expensive HS trains go with compulsory seat reservation(better buy the tickets a day in advance!), but at least they terminate at a wonderful Neo-Moorish style historical station with a short walk away from the old town.