Capri

Staying in Capri Town allows easy access to the wide array of amenities, such as high-end fashion stores that you`ll find on Via Camerelle, many charming squares lined with cafes and restaurants and breathtaking coastal views. This area is close by to the Piazza Umberto I, also better known as the `piazetta` (little piazza), the heart of Capri`s elite social scene. This small yet charming square is always bustling with beautiful people (and maybe even some celebrities) throughout the day and night. For people-watching, there is no better place than Piazza Umberto I. Of course, Capri town is closer to Marina Grande, where ferries dock, so most visitors will make their way to the charming Piazetta or hang around the town prior to their departure.

Capri town also boasts a stunning coastal walk, known as the Pizzolungo, which takes you to Punta Tragara, brining you up close to the Faraglioni rocks. The beautiful Gardens of Augustus are located here and Villa Jovis, a Roman villa, is perched above the town and can be reached with an uphill walk, which takes about 40 minutes from Piazetta in Capri.

When looking for hotels in Capri Town, you should keep in mind that Capri is a luxury destination. There aren`t many `true` budget hotels on the island and even mid-range hotels will be more expensive than most other places on the mainland in Italy.

Anacapri

Capri`s second habitation, Anacapri, is a welcome relief from the bustle of Capri Town. It can be easily reached by bus from Capri. Bear in mind that the bus journey can be a little hair-raising for nervous travelers. The road curves around the edge of a mountain and it often doesn`t feel like there`s much spare room on the tarmac.

Anacapri is home to some of the islands main attractions, such as the Monte Solaro chairlift and Villa San Michele. It is also a slice of the real local life of Capri. Not nearly as glamorous as Capri Town, Aacapri offers more of an Italian, local feel. This town also offers a great place to shop for souvenirs and local handicrafts, as well as some lovely and quiet piazzas and a good selection of restaurants. For a quiet, laid-back atmosphere, head to Anacapri. Both towns get crowded during summer, but Anacapri certainly has a more tranquil feel.