A Blog by Jonathan Low

 

Mar 21, 2016

AirBnb, Starwood and Marriott Sign Deals. Cuba Libre. Sort Of.

On Saturday night I returned from a week in Cuba. Like all Americans are currently required to do, I went as part of a 'people to people' cultural exchange, this one organized by American Public Media. Our ostensible goal was to trace Ernest Hemingway's Cuban steps which are not hard to find as he appears to have had at least one daiquiri in every bar on the island.

But more importantly, our trip gave us a sense of the island, some of its major cities: Havana, Cienfuegos, Santa Clara and the colonial town of Trinidad del Mar. It is a beautiful and beguiling place. The scenery is gorgeous, the light is transcendant, the music is fabulous, the food is excellent, the architecture is imposing, the people are warm and friendly (even, or rather, especially) to Americans  - and the possibilities are endless. As one participant on our trip said, 'why would you go to Florida if you could come here?'

Well, maybe someday. The news about Airbnb and the other hotel chains is interesting because until this past week, Cubans had no access to banking or credit (nor credit cards), no retail machines with which to swipe purchases, bad housing, bad roads, no mail service to the US and many other places, a primary airport  in Havana soon scheduled to handle 100 flights a day which has no ramps, one baggage carousel, few porters; the country has little wifi or internet and almost no mobile service with the rest of the world (for most).

That said, if the Cubans have learned anything in the 58 years they've been cut off, it is how to make do. There are lots of iPhones, though from where they come no one knows or will say. They use Google. They text and email. Students use laptops as the picture above shows (taken at the National Arts University which used to be the Havana Country Club - whatever you feel about Fidel and the revolucion, you have to admire their sense of humor...). They connect with each other and soon, hopefully, with the rest of the world.

What is especially interesting about Cuba as a pilot project is that once they get the go-ahead, their ability to connect with the rest of the digital world may teach something to the rest of us who have had decades to take it for granted. JL

The Associated Press reports:

Airbnb's new authorization was announced on the morning of an historic three-day trip by Obama to Cuba and a day after Starwood Hotels announced that it had signed a deal to run three Cuban hotels. Airbnb said world travelers could begin booking in Cuba in April 2, the anniversary of the country's start of operations on the island. Marriott said it had also gained authorization to pursue a deal in Cuba.



Online lodging service Airbnb is allowing travelers from around the world to book stays in private homes in Cuba after the San Francisco-based company received a special authorization from the Obama administration, Airbnb announced Sunday.
Airbnb was the first major American company to enter Cuba after Presidents Barack Obama and Raul Castro declared detente on Dec. 17, 2014. The service handles online listing, booking and payments for people looking to stay in private homes instead of hotels. Cuba has become its fastest-growing market, with about 4,000 homes added over the last year.
Airbnb had only been allowed to let U.S. travelers use its services in Cuba under a relatively limited Obama administration exception to the half-century old US trade embargo on the island. The expansion of that license gives Airbnb the ability to become a one-stop shop for travelers seeking lodging in private homes, which have seen a flood of demand from travelers seeking an alternative to state-run hotels.


Airbnb's new authorization was announced on the morning of an historic three-day trip by Obama to Cuba and a day after Starwood Hotels announced that it had signed a deal to run three Cuban hotels, becoming the first U.S. hotel company in Cuba since Fidel Castro took power in 1959 and took over the island's hotels. Airbnb said world travelers could begin booking in Cuba in April 2, the anniversary of the country's start of operations on the island.


Also on Sunday, Marriott International Inc. said it had gained Treasury Department authorization to pursue a deal in Cuba. The hotel company, which is based in Bethesda, Maryland, said it is in talks with potential partners on the island. Its CEO, Arne Sorenson, is in Cuba with Obama's delegation.
All hotels in Cuba are now owned by government agencies and many are known for poor service and decrepit infrastructure. Foreign hotel chains operate some of the island's larger and more luxurious hotels, which are running at full capacity thanks to a post-detente boom in tourism that saw visitor numbers surge nearly 20 percent last year.


One of the first openings in Cuba's centrally planned economy came when the government allowed families to rent rooms in their homes for a few dollars a night, starting in the 1990s. That has become a full-blown private hospitality industry, with many Cubans using capital from relatives abroad and even foreign investors to transform crumbling homes into the equivalents of small boutique hotels.
Many websites allow foreigners to book Cuban private homes, known as "casas particulares," but none has emerged as a dominant player. Many travelers still find it hard to guarantee bookings and make electronic or credit card payments. Airbnb is promoting its service as a solution to those problems in Cuba

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