Playa Blanca is compact enough to walk end to end in 20 minutes, so most of the town itself is navigable on foot. For the Papagayo beaches you need transport — either a car, a taxi, or the shuttle buses that run from the main promenade in season.
Hiring a car from one of the agencies in town gives you the most flexibility, particularly if you want to make day trips to Timanfaya National Park or the north of the island. Bicycles and electric scooters are available for rent from several points along the promenade.