Expedia Gains License for Cuban Market

Image: PHOTO: Expedia logo. (photo via Flickr/Viaggio Routard)
Image: PHOTO: Expedia logo. (photo via Flickr/Viaggio Routard)
Gabe Zaldivar
by Gabe Zaldivar
Last updated: 5:10 PM ET, Tue May 23, 2017

Expedia joins travel agencies, tour groups and Airbnb as ways to procure accommodations in Cuba.

Reuters reports the popular travel website has secured a general license to book American travelers into hotels and bed-and-breakfast locales throughout the destination. Non-U.S. travelers can also get in on the efficient booking method thanks to a license Expedia garnered from the U.S. Treasury Office of Foreign Assets Control.

Travel to the island nation had been difficult until the Obama administration eased restrictions for travelers, instituting a list of 12 acceptable reasons Americans might give to be allowed travel to the communist country.

Reuters quotes Veronica Vega, Expedia area manager for the Caribbean: "I see a lot of potential. We are talking about the largest country in the Caribbean with significant hotel expansion plans. We are very excited about being able to facilitate travel and give people the independence to select their itinerary."

The report explains that the easing of restrictions has led to a rise in Cuban visits-up 13 percent last year (4 million). Americans helped the cause with a remarkable 74 percent uptick in U.S. based trips to the Caribbean nation.

The report states that an impressive number of tourists will visit over the decade: "A survey recently showed the number of American visitors alone could multiply sevenfold to 2 million by 2025."

Greg Geronemus, co-CEO of guided tour company smarTours, tempered things a bit when he spoke to Travel Pulse's Lisa Iannucci recently: "While Cuba is still an intriguing and fascinating destination, we've seen interest slow down a bit."

The CEO explains that while Cuba remains a once-in-a-lifetime opportunity, hoteliers may be pricing themselves out:

"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."

Expedia is tossing its hat into the game, but it comes at a late stage when the market has set its price point.

"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,'" said Geronemus.

Consumers are used to getting a deal when it comes to booking through the likes of an Expedia, so this could prove to be an economic hurdle to the American traveler.

[READMORE]READ MORE: Expedia to Acquire Majority of SilverRail [/READMORE]

This may all be a case of the market correcting itself, however. While airlines cool on an abundance of flights to Havana, cruise lines are busting to get down Cuba's way.

It's anyone's guess as to the current administration's full effect on Cuban travel, but it's clear that it remains a viable and popular option for many.

Of course, you will still have to meet one of the 12 demands mentioned above, according to Reuters. Doing that should be a breeze and, thanks to Expedia, so is booking that Cuban hotel.


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