Expensive Flights From Vietnam And Thailand Block Laos’ Tourism Expansion, Preventing Thousands From Experiencing Its Unique Heritage And Scenic Beauty

Published on December 8, 2025

The rising cost of airfares between Vietnam, Thailand, and Laos is severely limiting the growth of Laos’ tourism industry. While Laos boasts a rich cultural heritage and breathtaking natural landscapes, high travel expenses, especially on airfares, are deterring thousands of potential visitors from experiencing these unique attractions. Despite efforts to promote the country as an accessible destination, the ongoing issue of expensive flights continues to hinder tourism expansion, leaving Laos’ tourism potential underutilized. The situation is especially challenging for Vietnamese and Thai travellers, who make up a large proportion of international visitors but are now finding it difficult to afford the journey.

The Lao Ministry of Information, Culture, and Tourism’s Department of Tourism Promotion revealed that over 3.06 million international visitors arrived in Laos during the first eight months of 2025. Among the visitors, Thai nationals topped the list with 977,675 arrivals, while Vietnam came in second with 790,403 visitors.

According to the General Statistics Office of Vietnam, Laos also witnessed a significant number of its citizens traveling to Vietnam. In the first ten months of 2025, more than 158,000 Lao visitors entered Vietnam, and October alone saw over 10,500 Lao visitors, reflecting a substantial 123% increase in arrivals compared to the same period in the previous year.

Vietnamese tourists are attracted to Laos for several reasons: its proximity, easy access, a visa exemption policy, and its rich cultural and heritage sites. Laos’ appeal as a cultural destination, featuring beautiful landscapes, historic temples, and traditions, draws a large number of visitors from neighboring Vietnam. However, despite these advantages, Laos faces challenges, particularly when it comes to the cost of travel, especially by air. High airfares are a major concern, with limited flight availability contributing to the expensive travel costs.

Currently, Vietnam Airlines operates 12 flights per week from Hanoi and Ho Chi Minh City (HCMC) to Vientiane and Luang Prabang. Vietjet Air only operates the Hanoi to Vientiane route. A round-trip flight from Hanoi to Luang Prabang costs between VND7 million (Vietnam Airlines) and VND8.2 million (Laos Airlines). These airfares are often comparable to the cost of a full tour package to Thailand, which is more affordable and popular among tourists.

The high price of airfares poses a challenge to Laos’ competitiveness as a travel destination. Tour operators, such as Vietravel, offer weekly tours to Laos in collaboration with Vietnam Airlines, which are priced at over VND10 million for a five-day itinerary. While these tours give travelers a chance to explore Laos, the cost remains a significant barrier when compared to Thailand, where similar tours are offered at much lower prices, ranging between VND7 million and VND8 million.

Despite its cultural and natural attractions, Laos mostly appeals to middle-aged and older travelers who are drawn to more traditional and slow-paced tourism experiences. The country does not yet have the vibrant or lively services that typically attract younger, adventure-seeking tourists. As a result, Laos has not been able to expand its market base significantly beyond this age group.

The limited options for affordable air travel and the slow pace of tourism development mean that Laos has been slow to compete with its regional counterparts, such as Thailand. However, there are still opportunities to boost tourism numbers. BestPrice Travel offers tours from Hanoi to Luang Prabang, with prices starting at VND15.5 million for a 5-day, 4-night trip with Laos Airlines, and multi-country Indochina tours starting at VND60 million. However, the high cost of travel continues to put pressure on the pricing of these tours, limiting their appeal to a smaller customer base.

One of the most affordable ways to visit Laos from Vietnam is by overland travel. Tours from Hanoi to Vientiane and Luang Prabang via the Cau Treo border gate are available for as low as VND7.5 million for a 6-day itinerary. However, the overland journey takes two full days, which many tourists find unattractive due to the long travel time and discomfort.

For tour operators, reducing travel time and offering more flexible and affordable tour packages is key to making Laos a more competitive destination. Tour operators can design tours ranging from short 3-4 day trips to longer in-depth experiences. This flexibility would make Laos more appealing to a broader range of travelers. Additionally, expanding direct flights to Laos would further attract customers, especially those traveling with families, older tourists, or first-time outbound travelers.

The prospect of introducing low-cost carriers to the Vietnam-Laos aviation market could also be a game-changer. If a budget airline enters the market, it would likely drive down the price of airfares and make Laos a more affordable destination. This would increase the number of tourists willing to travel to Laos, thus boosting the country’s tourism industry.

The expansion of the aviation market could also foster cross-border tours and tourism promotion campaigns between Vietnam and Laos, creating a favorable environment for both countries’ tourism sectors. This would not only benefit Laos but also provide Vietnamese tour operators with more opportunities to tap into the growing demand for cross-border travel experiences.

Vietnam Airlines Corporation has indicated its intention to explore new cooperation models and expand its network in Laos to accommodate the growing market. In addition, the airline has urged Lao authorities to consider reviewing some of the infrastructure fees, which could help make Laos a more competitive destination in the region. By lowering these fees, Laos could improve its attractiveness for tourists and create more opportunities for bilateral tourism and trade.

Expensive flights from Vietnam and Thailand are limiting Laos’ tourism growth, preventing thousands from exploring its rich heritage and stunning landscapes. High airfares make it difficult for potential visitors to afford the journey, hindering the country’s tourism expansion.

while Laos faces challenges in terms of high travel costs and competition from neighboring countries like Thailand, it still has significant potential to attract more visitors. By improving flight accessibility, offering more affordable travel options, and targeting a broader range of tourists, Laos can enhance its position as a leading cultural and heritage destination in Southeast Asia.