Relaxed Restrictions Prompt New Cuba Tours

This is part one of a two-part series on the Cuba tour market

As relations between the U.S. and Cuba continue to thaw, the tour market is heating up as operators large and small roll out a variety of new options, everything from faith-based tours to long weekends in Havana.

While still constrained by the requirements set by the U.S. Department of the Treasury’s Office of Foreign Assets Control for people-to-people programs, some of the new tours are shorter, less expensive and clearly aimed to attract a broader range of consumers than in years past.

This was especially evident with the entry of Apple Vacations into the Cuba market last month.

The operator, which is better known for resort vacations, announced it would be offering two five- and -seven-night Cuba itineraries with fall 2015 departures.

Expanding programs
The Globus Family of Brands is among tour operators already in the Cuba market who are expanding their programs for 2016.

Among new offerings is an 11-day faith-based tour called Spiritual Journey through Cuba.

Alexander + Roberts, which has offered Cuba tours since 2000, is doubling its program for 2016 by adding two new tours.

New from Latour are four-night “Weekend in Havana” tours. The company, which already offers three other Cuba tours, will be announcing further additions, according to Richard Krieger, president of Latour and the Isramworld Portfolio of Brands.

“Latour is expanding our offerings based on market demand,” Krieger said. “Our newest development has been groups looking to visit Cuba through their specific interest, such as photography, yoga and cycling.”

Other tour operators also are expanding departures to existing programs, including Smithsonian Journeys, which recently added a second departure in December to a nine-day program.

Fewer restrictions, more demand
For Globus, which has been offering Cuba tours for three years, the decision to expand and broaden its travel products is due to heightened demand along with the greater ease tour operators now have in obtaining licenses from the Office of Foreign Assets Control under the people-to-people requirements, said Pam Hoffee, vice president of sales and operations for the Globus Family of Brands.

“The ability for tour operators to obtain a general license, which came about with the relaxing of restrictions last December, makes a huge difference,” she said.

“Before, the licenses would only be valid for a year or two, which would mean there would be gaps when the tours couldn’t operate. Now we can plan further out and the traveler can book further ahead.”

Despite the past challenges, Globus’ Cuba tours have been extremely successful, according to Hoffee. “The response has been good all along—our Colonial Cities tour has been sold out every time we offer it,” she said.

With the easing of restrictions, along with signs of improving relations such as the recent announcement by President Obama that the U.S. and Cuba will reopen their embassies in Washington and Havana, travel demand to Cuba is skyrocketing, according to Tom Popper, owner of InsightCuba, which has specialized in Cuba tours since 2000.

“Interest has been absolutely overwhelming since the December announcement and our bookings are double this year over last,” he said.

“Even though people could go legally for years, many didn’t realize it. So much awareness is created when the President goes on TV and talks about Cuba.”

Cuba business at Alexander + Roberts is up by 35% this year, according to Robert Drumm, president. “We’re very upbeat about what’s happening—it seems that people are eager to see Cuba before it changes,” he said.

Despite the fact that competition among tour operators is increasing, Popper and Drumm both said they are not concerned that their business will be negatively affected.

“I think it’s a great thing that more tour operators are getting into it,” Popper said. “The greater ease of people getting there will be good for marketing and bring positive change for Cuba.”

Hotel challenge
An advantage for tour operators already long established in Cuba is access to preferred hotel space, which is not easy to obtain, according to Popper.

“Havana is sold out much of the time, with hotels booked solid,” he said. “More hotels are sure to be built and renovated as tourism increases, but it will take awhile. The engine is just getting cranked up.”

Hoffee also acknowledged that obtaining hotel space is the biggest challenge with Cuba, one reason that one of Globus’ new products is in conjunction with a cruise.

“The challenge with hotels is especially acute with the city of Trinidad, which is part of our colonial cities tour,” she said. “We can’t fulfill demand on our tours there and add the extra departures we would like.”

Another remaining challenge is access to money, with credit cards still difficult to use in Cuba, she added. “That’s why our tours include almost everything—so people don’t have to worry about it.”  

Next time: Tips for selling Cuba