According to the Department of Tourism Promotion of the Lao Ministry of Information, Culture and Tourism, Laos welcomed more than 3.06 million international visitors in the first eight months of 2025. Thai travelers led with 977,675 arrivals, followed by Vietnam with 790,403 arrivals, ranking second in the region.

The General Statistics Office of Vietnam reported that more than 158,000 Lao visitors came to Vietnam in the first 10 months of 2025. In October alone, Vietnam welcomed more than 10,500 Lao visitors, up 123 percent.

Laos attracts Vietnamese tourists thanks to its close distance, convenient transportation, visa exemption policy, and the appeal of cultural and heritage destinations. However, travel costs to Laos remain high, especially by air. The limited number of flights keeps airfares consistently expensive.

Vietnam Airlines provides 12 flights per week from Hanoi and HCMC to Vientiane and Luang Prabang; Vietjet Air operates only the HCMC – Vientiane route. Direct round-trip airfares for Hanoi – Luang Prabang range from more than VND7 million (Vietnam Airlines) to VND8.2 million (Laos Airlines), nearly equivalent to a full tour package to Thailand.

Pham Van Bay, Deputy Director of Vietravel Hanoi, said high airfares and service costs make Laos tours less competitive.

“Laos does not yet have price support or stimulus policies, nor joint cooperation among stakeholders to secure the best prices, so both airfares and land tour costs are difficult to reduce, even though Laos has very attractive tourism products, beautiful landscapes, friendly people, and a strong traditional relationship with Vietnam,” he said.

Vietravel operates weekly tours to Laos with Vietnam Airlines, costing more than VND10 million for a 5-day itinerary. With this price point, Bay said Laos cannot compete with Thailand tours priced at VND7–8 million. Meanwhile, Laos mainly appeals to middle-aged and older travelers who enjoy traditional, slow-paced tourism, and does not yet offer many unique or lively services attractive to younger travelers.

BestPrice Travel is offering tours from Hanoi to Luang Prabang via Laos Airlines at VND15.5 million (5 days 4 nights), as well as Indochina multi-country tours priced from VND60 million. Bui Thanh Tu, Marketing Director of the company, said high airfares are putting pressure on tour prices.

A Hanoi-based travel company that once operated a 4-day tour priced at nearly VND13 million has also paused the route due to low demand.

Meanwhile, overland tours from Hanoi – Vientiane – Luang Prabang via Cau Treo border gate cost only from VND7.5 million for a 6-day itinerary, but tourists have to spend two days on roads, so the tours remain unattractive.

Increasing competition, new carrier

Recently, a Thai low-cost carrier announced a new direct route connecting Hanoi with Luang Prabang. Santisuk Klongchaiya, CEO of Thai AirAsia, said the inaugural Luang Prabang – Hanoi flight has an occupancy rate of 87 percent. Tickets are currently offered from VND1.79 million one way.

“Hanoi is a popular destination not only for Thai and Lao travelers but also for international visitors. The new route will increase choices for passengers and enhance competitiveness,” Santisuk shared.

Bui Thanh Tu said the new direct flight is a positive sign for the Mekong tourism market. The flight time is shortened to just over an hour, making the destination more accessible. This route also has strong potential for cultural and leisure tours, as well as cross-border itineraries within the region.

For tour operators, reduced travel time helps lower Laos tour costs and makes products more competitive. Businesses can design flexible tour packages from 3–4 days to in-depth experiential trips. In addition, direct flights help expand the customer base, especially families, older travelers, and first-time outbound tourists.

This also creates favorable conditions for cross-border tours and for tourism promotion campaigns between the two countries.

The entry of another low-cost carrier is expected to energize the Vietnam–Laos aviation market and create downward pressure on current fares.

Vietnam Airlines Corporation said it is studying new cooperation models and the possibility of expanding its network in Laos to match market growth. The airline also recommended that Lao authorities consider adjusting some infrastructure fees to increase the destination’s competitiveness and create better conditions for bilateral tourism and trade.

Ngoc Ha