With Obama’s blessing, Airbnb opens Cuba lodging listings to world
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 U.S. 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.
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.
In other news, Starwood signed a deal on Saturday to renovate and run three Cuban hotels, returning U.S. chains to the island more than 50 years after American hotels were taken over by Fidel Castro’s socialist revolution. In a once-unimaginable arrangement, a hotel owned by the tourism arm of the Cuban military will become a Sheraton Four Points.
Starwood’s chief of Latin America operations, Jorge Giannattasio, said the company will invest millions to renovate and rebrand the Quinta Avenida, Santa Isabel and Inglaterra hotels, train and hire new staff and reopen the hotels by the end of the year. The Quinta Avenida is owned by Gaviota, a military-run tourism conglomerate. The Santa Isabel and Inglaterra, which are run by other state agencies, will be operated as part of Starwood’s Luxury Collection brand.
It’s unclear, however, how long Starwood can be called an American company. On Friday, Starwood called off a $12.2 billion buyout agreement with Marriott in favor of an offer from a group of investors led by the Chinese insurance company Anbang.
This story was originally published March 20, 2016 at 1:37 PM with the headline "With Obama’s blessing, Airbnb opens Cuba lodging listings to world."