The official currency of Laos is the Lao kip, abbreviated LAK. The Bank of the Lao PDR, the country's central bank established in 1968, issues banknotes in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 kip. Coins exist in denominations of 10, 20, and 50 att (100 att equals 1 kip), but these have effectively disappeared from circulation due to negligible purchasing power. As of recent years, the exchange rate fluctuates between approximately 15,000 to 22,000 kip per US dollar, though this varies with economic conditions. The kip is a non-convertible currency outside Laos, meaning travelers cannot exchange it in foreign countries and should convert remaining kip before departure.
Laos operates as a de facto multi-currency economy. United States dollars circulate widely, particularly in tourist areas like Vientiane, Luang Prabang, and Vang Vieng. Thai baht functions as a parallel currency in border regions, especially in provinces adjacent to Thailand such as Savannakhet and Champassak. Hotels, tour operators, and higher-end restaurants typically quote prices in dollars while accepting payment in kip at prevailing exchange rates. Small vendors, local markets, and provincial businesses predominantly transact in kip. This creates a practical requirement for travelers to carry multiple currencies. Change is often returned in a mix of currencies regardless of how payment was tendered.
ATMs exist in Vientiane, Luang Prabang, Pakse, Savannakhet, Vang Vieng, and Thakhek. Major banks including BCEL (Banque pour le Commerce Exterieur Lao), Lao Development Bank, and Joint Development Bank operate ATM networks that accept international cards bearing Visa, MasterCard, and Cirrus logos. Daily withdrawal limits typically range from 2,000,000 to 3,000,000 kip per transaction, with most machines permitting multiple consecutive withdrawals. Transaction fees charged by Lao banks range from 20,000 to 50,000 kip per withdrawal, in addition to whatever fees the card-issuing bank assesses. ATMs dispense only Lao kip. ATM availability drops significantly in smaller towns like Phongsali, Luang Namtha, and Attapeu, where machines may be absent entirely or frequently out of service. Villages and rural areas lack ATM infrastructure completely.
Credit card acceptance remains limited. Upscale hotels in Vientiane and Luang Prabang, established tour companies, and some international airline offices accept Visa and MasterCard. A surcharge of 3 to 5 percent often applies to credit card transactions to offset merchant processing fees. Outside major tourist centers, credit cards have minimal utility. Small guesthouses, local restaurants, transport providers, and market vendors operate on cash exclusively. American Express and Discover cards have virtually no acceptance. This cash-dependent infrastructure requires travelers to carry substantial amounts of physical currency.
Banking hours follow a general pattern of Monday through Friday, 8:30 AM to 3:30 PM, with closures for lunch between 12:00 PM and 1:00 PM at some branches. BCEL, the largest commercial bank in Laos with branches in all provincial capitals, offers foreign exchange services during business hours. Currency exchange is also possible at exchange booths in airports and at some hotels, though rates are less favorable than banks. The Wattay International Airport in Vientiane maintains exchange facilities, but rates there typically run 2 to 5 percent below mid-market rates. Black market currency exchange exists but carries legal risk and significant potential for counterfeit notes.
Western Union and MoneyGram maintain agent locations in Vientiane, Luang Prabang, and other major towns for international money transfers. Processing times range from immediate to 24 hours depending on the sending country and method. Agent locations correlate with BCEL and Lao Development Bank branches. These services provide emergency funds access when ATM or credit card options fail, though fees range from 5 to 15 percent of the transfer amount depending on the sum and speed selected.
Accommodation costs in Laos span a wide range based on location and property type. Vientiane guesthouses charge approximately 80,000 to 200,000 kip per night for basic rooms with private bathroom and fan. Mid-range hotels in the capital city range from 250,000 to 600,000 kip per night with air conditioning and more amenities. International hotel chains like Crowne Plaza Vientiane and Salana Boutique Hotel command rates from 800,000 kip upward. Luang Prabang accommodation costs run approximately 20 to 40 percent higher than equivalent Vientiane lodging due to tourism demand and UNESCO World Heritage Site status. Budget guesthouses near the Royal Palace Museum area start around 120,000 kip. In provincial towns like Thakhek, Savannakhet, and Pakse, guesthouse rates begin near 60,000 to 100,000 kip per night.
Food expenses vary dramatically by venue type. A bowl of khao piak sen from a street stall or local market costs 15,000 to 25,000 kip. Plates of larb or tam mak hoong at neighborhood restaurants range from 20,000 to 40,000 kip. A meal of grilled ping kai with sticky rice runs 25,000 to 35,000 kip at casual establishments. Tourist-oriented restaurants in Vientiane and Luang Prabang charge 60,000 to 150,000 kip for main dishes, with Western food and pizza often priced at the higher end. Beer Lao, the dominant domestic beer brand produced by Lao Brewery Company since 1973, costs approximately 10,000 to 15,000 kip for a 640ml bottle in local settings and 25,000 to 40,000 kip in tourist restaurants. A khao jee sandwich from a morning market vendor typically costs 10,000 to 15,000 kip.
Transportation costs follow predictable patterns. Local buses within Vientiane charge flat fares of 3,000 to 5,000 kip regardless of distance. Tuk-tuks, the motorized three-wheeled vehicles ubiquitous in Lao cities, operate without meters and require price negotiation before departure. Typical tuk-tuk fares in Vientiane range from 20,000 kip for short trips to 50,000 kip for longer cross-city journeys. Luang Prabang tuk-tuk rates run slightly higher at 30,000 to 80,000 kip depending on distance and tourist season. Motorcycle taxi fares cost approximately half the tuk-tuk rate for the same distance.
Intercity bus travel provides the primary overland transport option. VIP buses operated by companies including Naluang Company and Soutchai Travel connect major cities with varying levels of comfort. A Vientiane to Luang Prabang VIP bus covering approximately 385 kilometers costs 110,000 to 150,000 kip and takes 9 to 11 hours depending on road conditions. Vientiane to Pakse routes spanning roughly 677 kilometers range from 150,000 to 200,000 kip for VIP service with scheduled travel times of 12 to 14 hours. Local buses cost 30 to 50 percent less but involve more frequent stops and less comfortable seating. Sleeper buses on overnight routes include reclining seats or bunk beds, with fares typically 20 to 30 percent above standard VIP bus prices.
Domestic flights operated by Lao Airlines, the national flag carrier founded in 1976, and Lao Skyway connect Vientiane with Luang Prabang, Pakse, Savannakhet, and other provincial airports. A one-way Vientiane to Luang Prabang flight covering the distance in approximately 40 minutes costs between 600,000 and 1,200,000 kip depending on booking timing and season. Vientiane to Pakse flights range from 800,000 to 1,400,000 kip. Domestic aviation schedules change seasonally, with reduced frequency during the monsoon period from May through October. Flight cancellations occur due to weather, particularly in mountainous regions served by airports like Phongsali and Xam Neua.