Southeast Asia has long been a popular region for Indian travellers looking for affordable international getaways, but Laos has now emerged as the cheapest option in 2025. Reports indicate that the average daily spend in Laos is just ₹1,414, which covers accommodation, meals and transport. This makes it significantly less expensive than traditionally budget-friendly destinations such as Thailand, Vietnam and Cambodia.
The findings, first reported by Time Out magazine, place Laos at the top of the affordability chart. A global ranking by Travel and Tour World, backed by research from Canadian financial platform HelloSafe, also recognised Laos as the world's most budget-friendly country to visit in 2025.
Accommodation in the country is notably inexpensive. Hostel beds in Luang Prabang and Vientiane can start from as low as ₹353 per night, while in Vang Vieng prices can drop to about ₹176. Food is equally affordable, with a plate of sticky rice and grilled pork costing under ₹117 per person. Local transport is also budget-friendly: buses and minivans between cities are priced at less than ₹529, while motorbike rentals average at ₹553) a day. The recently launched Laos–China Railway, linking Vientiane to Vang Vieng, offers a scenic journey at roughly ₹706.
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Sightseeing does not strain the wallet either. Entry to Kuang Si Falls and the nearby Bear Rescue Centre is about ₹270, keeping cultural and natural attractions accessible to visitors.
Laos has been described as a quiet and less commercialised alternative to neighbouring countries. With its relaxed pace, rivers, mountains and waterfalls, it offers a contrast to the bustling crowds of other Southeast Asian destinations. According to the Vientiane Times, international arrivals in the first quarter of 2025 rose by 11% compared to the previous year, with more than 1.2 million tourists contributing $426 million in revenue. Domestic tourism has also seen strong growth, with nearly twice as many local trips recorded during the same period.
Although Vietnam and Cambodia remain affordable at around ₹1,768/day, and Malaysia and Indonesia at about ₹2,239, Laos still holds the edge at ₹1,414. Thailand, often associated with budget travel, now averages at ₹2,829/day, making Laos far more economical.
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For travellers who want an authentic cultural experience without overspending, Laos provides a compelling mix of affordability, natural beauty and warm hospitality. From exploring temples and enjoying street food to cruising along the Mekong, visitors can enjoy memorable experiences at a fraction of the cost. As global recognition grows, Laos is positioning itself as Southeast Asia's most affordable travel destination in 2025.
CNBC TV18 
