If you’ve been plotting a Southeast Asian holiday but watching your budget like a hawk, here’s some good news: your rupee goes the furthest in Laos this year. Once a backpacker’s secret, this landlocked nation has officially overtaken Thailand, Vietnam, Cambodia, and Indonesia to be crowned the region’s most affordable destination for 2025. From INR 176 hostel stays to turquoise waterfalls you can access for under INR 300, Laos makes indulgence possible without guilt, or a hole in your wallet.
According to a new global hospitality and media study, travellers can get by in Laos on as little as INR 1,414 a day, covering stay, food, and local transport. That’s about the price of a movie date in Mumbai—except instead of popcorn, you’re tucking into steaming sticky rice with grilled pork on the banks of the Mekong.
The numbers back up the hype. In just the first three months of 2025, more than 1.2 million international travellers visited Laos, an 11 per cent increase from last year, contributing over USD 426 million in revenue. Domestic tourism is on the rise too, with nearly 1.4 million locals exploring their own backyard during the same period. Clearly, the secret is out.
Part of Laos’ appeal is how consistently affordable it is across the board. In Luang Prabang or Vientiane, a dorm bed in a hostel costs as little as INR 353, while in Vang Vieng, the price can drop to just INR 176. Meals are equally easy on the pocket. Street food classics like sticky rice with grilled meat cost under INR 120, while a cold Beerlao sets you back only a few coins more.
Even sightseeing is kinder to your budget than elsewhere in the region. Entry to the turquoise Kuang Si Falls near Luang Prabang costs just INR 270, and the ticket includes access to a bear rescue centre. Temples are often free to enter, and the best sights—the Mekong at sunset, saffron-robed monks walking through town at dawn, come without a price tag at all.
Transportation within Laos keeps things smooth for travellers. Buses and minivans between cities are usually under INR 530, while the relatively new Laos–China Railway offers a quick Vientiane–Vang Vieng hop for about INR 700 in second class. Feeling adventurous? Rent a motorbike from INR 550 a day and carve your own route through misty mountains and riverside villages.
Laos doesn’t yet have direct flights from India, but it’s an easy connection away. The most popular routes are via Bangkok, Hanoi, or Kuala Lumpur, with short onward flights to Vientiane, Luang Prabang, or Pakse. Airlines like Thai Airways, Vietnam Airlines, and AirAsia regularly offer competitive fares, making Laos accessible even for a quick long weekend.
Indian travellers need either an eVisa or a visa on arrival, both simple processes that can be sorted online before take-off.
For Indian holidaymakers long used to Thailand’s beaches or Vietnam’s street food, Laos offers a quieter, slower alternative at a fraction of the cost. It’s a place where rupees stretch, sunsets linger, and the rhythm of travel slows to match the gentle flow of the Mekong. In a region where affordability and authenticity are increasingly hard to find in the same package, Laos has managed to deliver both, and for now, it’s the best bargain in Southeast Asia.
(With inputs from various sources.)
