Marina Grande is where ferries to and from the island dock, and is located at sea level. Visitors can travel uphill to Capri and Anacapri from here.
The center of Capri town has at its heart the Piazzetta. Uphill to the east, the area is known as Tiberius because it is where the Villa Jovis archaeological site is located. Downhill to the south, there is Marina Piccola and the Faraglioni sea stacks.
The center of Anacapri is along Corso Giuseppe Orlandi. From here, buses depart for the Blue Grotto and the lighthouse, where there are a number of beach clubs.
Roads open to traffic on Capri
There is only one road open to traffic on Capri (the provincial highway), which crosses the entire island from Marina Grande to the Punta Carena lighthouse. The only secondary roads are towards Marina Piccola (from Capri town) or towards the Blue Grotto (from Anacapri). The centers of both Capri and Anacapri are pedestrian traffic only.
There isn't one area that is better than another; it's more a matter of taste and travel style.
Hotels located in Marina Grande are convenient because they are near the port where ferries dock and a large public beach, much of which is free. You can reach the town of Capri with the funicular, and this location is especially suited to families and those staying on the island for just a short time.
Hotels in Capri are the most popular, especially those located near the Piazzetta. If you like to go out in the evening and be near night clubs, and enjoy a cosmopolitan and glamorous atmosphere, then you should book an accommodation here. However, prices are higher here and the beach is quite a distance by foot or bus.
Hotels in Anacapri are quieter and often less expensive, perfect for travellers who enjoy nature and a peaceful atmosphere. Buses run frequently to Capri until late at night.