[LA] How to save money in Laos as a budget traveller

The cost of living is not high in Laos so many may not see a need to save. But for the thrifty traveller who likes to save and make their dollar stretch, this post is for you!

While you’re here, check out my posts on Luang Prabang, Nong Khiaw, and Oudomxay too~

1. Save on Money Exchange

With Chinese-owned businesses via WeChat pay

Get a better exchange rate by exchanging money with Chinese-owned businesses via WeChat pay instead of withdrawing from an ATM. There are more Chinese-owned businesses in Northern Laos than I had expected. Some advertise their money exchange service outright while others provide it if you ask. I tried this in Luang Prabang with a hostel owner and in Oudomxay with a supermarket. They prefer, and provide, better rates for WeChat pay over RMB cash as they can use the money straight away. I’ve done this in Supermarket Dansavan in Oudomxay and Lucky Hostel in Luang Prabang.

To demonstrate this:

• SGD->RMB->Lao Kip via WeChat pay with Chinese-owned businesses
  • Exchanged 300 RMB for 945k kip with SGD$55.96 deducted from my bank account
  • This works out to 16.88k kip for every Singapore Dollar exchanged.
• SGD->possibly USD as intermediate currency->Lao Kip via ATM withdrawal
  • For 2000k withdrawn from the ATM, SGD$134.44 was deducted from my account. This includes fees charged by the Laos Bank and no extra charge from my card issuer (Youtrip)
  • Withdrawals in Laos incur a withdrawal fee, levied by the local bank. This can range from around 20k-40k per transaction or a percentage of the withdrawal amount. There was also a maximum amount I could withdraw, which was 2000k for the ATM I withdrew from.
  • This works out to 14.88k kip for every Singapore Dollar exchanged

With other travellers

This may take a bit of luck but if you enter Laos via the borders, there may be travellers who are looking to clear their Laos kip before heading to their next destination. Well, that was me. I may be the minority but you can still try your luck and maybe make a friend!

I was crossing from Huay Xai into Chiang Kong, Thailand, and wanted to clear around USD$24 equivalent of Lao Kip. Many travellers at the border were trying their luck at the ATM, which unfortunately had already run out of cash. No one appeared interested in exchanging some baht / USD for my kip, supposedly because they had run out of cash too.

In the end, I found some travellers at my hotel in Chiang Rai who were headed to Laos and were happy to exchange their baht with me at the mid-market exchange rate. I was happy too, since ATMs in Thailand also charge expensive withdrawal fees.

2. Save on Accommodation

I mostly searched for accommodation places only after reaching the location when I travelled in Laos.

Pros

• Flexibility in my itineraries
• Flexibility to swap to another hostel if I didn’t enjoy my stay or found a better deal elsewhere
• Cost-savings
  • Platforms such as Booking.com charge a set percentage of commission fees for bookings made through them. Whilst some hostels offer the same rate to you even when you book directly with them, my experience in Laos is that the rates tend to be better. This can also mitigate the currency conversion differences since listings on Booking.com tend to quote in the more stable USD than Lao KIP. The exchange rate set by the hostel can come as a shock to some.
  • For example, Sythane Guesthouse listed rooms from 14 USD (close to 300k kip) on Booking.com. In contrast, they offered me between 150k kip and 250k kip (depending on the room type) when I visited
  • Some accommodation places not listed on online sites are affordable (and decent enough) options to consider. In the end, I stayed at a bungalow in another guesthouse, not listed online, at 150k kip per night. You may also consider booking these places in advance by contacting them via WhatsApp!

Cons

• However, there are exceptions, such as when discounts are available for certain bookings to reward members for loyalty to the site. So it is best to compare the prices quoted by the hostel/hotel/guesthouse versus the listed price to get the better price.
• Also, you run the risk of being left with minimal options if the sought-after ones are fully booked. I arrived in Nong Khiaw on a Friday morning in Nov 2023 to fully booked accommodations. Or at least the 4 that I asked were.
• Lastly, the search for accommodation places after you arrive can be time-consuming and tiring if you have to visit multiple establishments a certain distance away.

Ultimately, you’ll need to weigh the pros and cons to make a call on whether it is worthwhile to do it. Another tip is to ask for fan rooms as these tend to be cheaper than air-conditioned rooms!

3. Save on Food

I typically prefer choosing street-side stalls that feel more authentic and local than restaurants with English menus catering mostly to foreigners. This preference also had cost savings for my food budget. In Laos, hawkers set up stalls in markets or the town centre near meal hours with pre-packed dishes in plastic bags or banana leaves. The dishes are wide-ranging and include offerings such as pork stews, fish dishes, vegetable dishes, boiled eggs in soy sauce, steamed crab meat, and soup. To accompany the dishes, the hawkers typically have glutinous rice available too. Whilst the glutinous rice from some stalls was cold and hard when I had them, these meals were generally pretty tasty and delicious!

Most stalls sell a serving of glutinous rice for 5k kip and a bag of dishes for around 10k kip to 20k kip. A good local market to visit in Luang Prabang is around Phetsarat Road.

4. Save on Transport

I try to take public and shared transport or walk where I can. However, you will need to hire a tuk-tuk at some point in Laos and these can make up a significant portion of your daily expenses.

• Always agree on the price before getting on the tuk-tuk to avoid unpleasant surprises.
• Know that prices can typically be negotiated so if you are quoted an unreasonable price, do counteroffer! It is highly likely for you to get a lower rate if you counteroffer.
• There are many tuk-tuks around so know that you have bargaining power
• It also helps to know roughly the reasonable rate for a trip of a certain distance – this will help you gauge if the price quote is excessive