Or rather, what is the definition of a combinatorial algorithm and a linear algorithm, resp.?
To make it clear because obviously the first responders misunderstood the question: I am not looking for a definition of an algorithm running in linear time vs non-linear time. A linear algorithm is somehow related to linear programming, which is a technique for finding or approximating solutions to linear optimization problems.
Since NP-hard problems are so hard, there is a whole field trying to find approximate solutions. The traveling salesman problem for instance has several approximate solutions which run in polynomial time and produce a solution which is within a given bound of the best solution.
Some of these approximating algorithms are called a linear algorithm, others a combinatorial algorithm; and the latter seems to be preferred (Why?). These are the two concepts I would like to understand.
The issue is one of problem formulation.
Just as you said Traveling Salesperson Problem (TSP) is NP-hard precisely because it has a discrete problem formulation (the salesperson either visits a city or not at a particular time). This discrete formulation makes the problem, and it’s algorithm, combinatorial. (Note that not all combinatorial problems are NP-hard; consider sorting algorithms.)
However, the Linear-Programming (LP) relaxation of TSP results in a linear algorithm. This is because the problem has been reformulated such that the salesperson visits a city a certain proportion of the time. The main reason for using an LP relaxation is because the relaxed version can be solved in polynomial time. However, the solution to the LP relaxation is not necessarily a solution to the original problem.