Is Cuba Losing Steam as a Destination?

PHOTO: A 1953 Chevrolet Bel Air leads a caravan of classic cars at Revolution Square in Havana, Cuba. (photo by Jason Leppert)

About a year ago, the Obama administration relaxed the restrictions on travel to Cuba and allowed visitors for “people to people” educational trips. This turned Cuba into a hot travel destination for a little while.

Then, of course, our new administration turned the conversation to Mexico, where there was a proposed wall to be built. That sparked some travelers to travel to and support Mexico.

So where are the travelers today?

“While Cuba is still an intriguing and fascinating destination, we’ve seen interest slow down a bit,” said Greg Geronemus, the co-CEO of smarTours, a guided tour company based in New York City.

He believes that the cause is price-related.

“Cubans are cashing in on the American traveler,” he said. “Cuban hotel prices were extremely high, even at the time of President Obama’s historic normalizing relations announcement in December 2014. However, as frustrating as those high prices were for Americans eager to get to Cuba, the prices were arguably fair because the hotels were full. In other words, demand was matching the supply of hotel rooms despite the elevated prices.”

Fast forward nearly two years and several price increases, and Geronemus says that Cuban hotel prices are on average 100 percent higher than those previous levels:

“Four-star hotels in Havana are twice as expensive as hotels in London and Paris. The latest round of price increases by Cuban hotels will unfortunately make this previously forbidden island forbidden once again for most Americans who simply can’t afford these outrageous prices. Most Americans have been priced out of visiting Cuba, and there are reports of Cuban hotels experiencing a ‘surprising dip in occupancy.

Interestingly, Cuba topped the 2017 Virtuoso Luxe Report in the “most popular emerging destination” and “top destination in danger of vanishing or substantially changing” categories.

“Cuba is definitely the next frontier, and Virtuoso travel advisors are seeing strong demand for it,” said Misty Belles, managing director, global public relations at Virtuoso. “As more opportunities from our partners come into the market, that demand will only continue to surge.”

Unfortunately, when it comes to Mexico travel, Samarah Meil has had a few cancellations.

“We see in our area that during the spring break time frame that Mexico was getting some bad press in the media,” said Meil of Amarillo Travel Network. “We certainly have had more clients travel or requesting to travel to Mexico versus those who have cancelled. The goal of our agents is to be able to provide facts and information to the clients so they can make the decision they feel best. We do use the Department of State website often for inquiries.”

However, when it comes to Cuba, these requests come and go.

“We have given a lot of information, but not as many bookings yet,” Meil added. “The clients have not yet jumped in from our area ongoing, but there is some curiosity. We do hope to increase the sales of this destination.”

Meil’s biggest success with Cuba has been on cruises: “With many hotels investing in Los Cabo and new properties opening up this year and into 2018, I feel Los Cabo will be a frontrunner soon..”

Steve Faber, CruiseOne Franchise Owner and Vacation Specialist in San Rafael, California, says that choices have multiplied exponentially throughout the year this product has been on the market.

“The difference is night and day,” he said. “We always recommend cruises that overnight in Havana. The city comes alive at night, and the lavish show at the Tropicana – made popular in an episode of I Love Lucy – is not to be missed.”

Jerry Desmarais said that having Cuba open to more mass-market cruise lines, like Royal Caribbean and Norwegian Cruise Line, is definitely going to make it more affordable to cruise to Cuba.

“Many cruise lines and travel companies like Apple Vacations have received approval to begin travel to Cuba from the U.S. in the coming year,” said Desmarais, Dream Vacations Franchise Owner and Vacation Specialist in Wilton Manors, Florida.

“There was an initial wave of interest when the travel restrictions changed, but costs and lack of infrastructure has caused some people to put their plans on hold for now,” added Rhonda Day, Dream Vacations Franchise Owner and Vacation Specialist with Vacation Days Travel in Louisville, Kentucky.

“Having said that, I have also seen cruise bookings to Cuba increase,” she said. “Cruising gives people a chance to visit by ship for a day or two, which they believe is enough at this point. I believe it’s going to take several years for Cuba to become a regular stop for U.S. travelers.”

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