We were in the area in April and thought about staying in Sarlat but decided to stay in a village called Montfort about 10 minutes away. We were travelling around each day and found it better returning to a quiet place without worrying about traffic and parking. It depends on how long you will be there but if it's longer than 2 or 3 days you may prefer staying in a quieter village and just traveling into Sarlat for the markets and a bit of shopping or dinner some nights. Sarlat is certainly lovely but there are so many other beautiful places to see that are accessible by car. We loved Domme, La Roque-Gageac and Beynac but also travelled to Rocadamour and then to the very interesting caves Gouffre De Padriac. Unfortunately we missed out on seeing Font du Gaume as you have to book online ages in advance but we loved Lascaux. We also loved the wine - and the castles!
If you prefer something smaller than Sarlat but want to be within easy driving distance of there and gorgeous Domme, I can recommend staying around La Roque Gageac. It is one of 'les plus beaux villes' and is definitely worth a visit. We were not up the cliff face, but just outside the village (I assume you have a car?) in self-catering accommodation - a 'gite'. There's not much in the Perigord-Noir region of the Dordogne that isn't gorgeous!Edited: 10:35 am, June 17, 2012
We spent a week in Beynac last summer, up near the castle, and found that we might have enjoyed a situation with a few more options for restaurants, grocery shopping, and the like. Domme might be slightly better than Beynac on that score, but I don't think I'd want to drive within the walls of Domme that much--Cencac-et-St. Julien, just below Domme, might be a little more convenient. St. Cyprien seemed like a really convenient town, big enough, but easy to get in and out of. La Rocque Gageac has lots of restaurants (we made the short trip over from Beynac several times).
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