Cuba Is ‘Huge Opportunity’ for U.S. Travel Companies, BCG Says

Around after two years, there is a hope of seeing some ease in travel restrictions between the US and Cuba. Cuba can be seen as a “huge” but challenging opportunity for U.S. based cruise or airline or the hotel companies as well according to a report by the Boston Consulting Group.

As per the latest article from the Boston Consulting Group i.e. BCG; over 2 million US citizen could visit Cuba every single year by the year 2025. The article titled as “Taking the Long View on Cuba’s Tourism Opportunity” is being published.

According to the estimations of BCG study, more than 2 million Americans could visit last year which does not include the Cuban Americans.

On one side the travel to Cuba is increasing but we cannot ignore the quality of travel infrastructure on the island which really needs maintenance. You can only witness outdated and rough roads, inadequate customer service levels, unreliable tourism services and much more complications like these. In addition to that, some skeptics think that recent announcements by US travel companies indicate that the industry might have overestimated demand.

Well, traveling from the US to Cuba has already included very low levels from the last two years since the former Cold War allies announced a détente and after Obama eased the travel restrictions to the island.

According to a report, “The reality is that U.S. travel to Cuba is in its nascent stages, and all the players are still learning how to make it work.”

BCG had not thought about the sudden cast of Donald Trump as US next former president who is not in favor of normalization of relations

In order to promote tourism, the Cuban government is planning to double the hotel capacity by the year 2030 through partnerships with foreign companies. Right now, Starwood is the only U.S. hotel company who is carrying out its operations in Cuba.

BCG also stated that’ There was also an opportunity for expanding cruise lines to Cuba.’ A number of U.S cruise operators have started offering lines to Cuba in the past year. They have to deal with multiple challenges like adding a cultural element to their trips to comply with U.S. government rules on travel to Cuba.

The best possible solution regarding this is that the U.S. companies and the Cuban government should work together to resolve some of these issues.

As for the airlines, they require dealing with the increasing demand for flights to Havana. To that, BCG advice, “They could carry out campaigns to lure Americans to other Cuban cities and tap into Cuban demand for flights to the United States.”


London Luton Airport is setting new records by becoming the busiest Airport serving a total of 15 million passengers with its services in a year which is the highest in its 79 years of history.

“Fifteen million passengers over 12 months is a significant milestone for us.”- A statement from Nick Barton, CEO of LLA.

LLA remains the only airport in London which is not attached to the facility of a direct express-style rail service. To which they hope that the government and the train operators will introduce four fast trains per hour from central London.

To extend its services, the airport actually had launched 20 new routes in 2015.

And to meet the demand of a huge number of passengers, LLA is currently undergoing a £110m redevelopment process which is estimated to be completed by the year 2020. It will help the airport officials to handle up to 18mmpa which is approximately 50% more than today.

This transformation will let the airport to get new stunning features and a complete redesign of the terminal for a quick, efficient, friendly and convenient passenger experience. It also includes the doubling of the existing retail space and will feature new options in shopping, dining, and entertainment. You will also witness a new executive lounge, a multi-storey car parking, and the Oyster card services through to the terminal building.

This redevelopment process will increase the capacity of passengers to 18 million per year by 2020.  To meet the needs of the passengers, a huge amount has been invested in the redevelopment project.

The transformation is going well and the passenger experience will be significantly improved within the next three years as per the estimation.