Yep - Avalon is the "town area" and Two Harbors is the "camping area." If you are just doing a day trip, Avalon is a better choice. Lots of little shops, restaurants, beach & beach activities. If you want to see the interior of Catalina, there should be a tour from Avalon. A helpful hint - if you are prone to motion sickeness, I suggest taking something before your boat ride. It always gets me.