US Travel Companies Need a Long-Term Perspective to Capitalize on Cuba
MIAMI, May 10, 2017 (GLOBE NEWSWIRE) — Two years after travel restrictions between the US and Cuba started to ease, interest in the island remains strong and growing among US travelers. According to a recent article by The Boston Consulting Group (BCG), more than 2 million US citizens could visit Cuba each year by 2025, accounting for more than half the travelers to the island at that point. The article, titled “Taking the Long View on Cuba’s Tourism Opportunity,” is being published today.
Just 90 miles from Miami, Cuba represents one of the last authentic travel destinations in the Caribbean. Direct flights from the US to Cuba, along with new cruise itineraries that include stops on the island, are making it far more accessible to US travelers. From 2014 through 2016, the number of US travelers to Cuba increased 77%. Moreover, BCG analysis shows that many travelers could begin opting for trips to Cuba instead of other Caribbean destinations, such as the Dominican Republic, the Virgin Islands, Mexico, or the Bahamas.
As US travel to Cuba increases, however, growing pains are inevitable. Travel infrastructure on the island is severely outdated, meaning rough roads, unreliable tourism services, and inadequate customer service levels. In addition, some skeptics say that recent announcements by US travel companies indicate that the industry might have overestimated demand. Several US airlines have scaled back the number of flights to Cuba, and one cruise line has pulled out of the market.
Yet the article suggests that such fears are overblown, and it underscores that the long-term outlook for US travel to Cuba is still extremely positive. “These shifts are the fairly typical of what you see in any fast-growing market,” says Marguerite Fitzgerald, a partner at BCG and the author of the article. “The reality is that US travel to Cuba is still in the nascent stages, and players in all segments are still figuring out how to make it work.”
Key Takeaways for Three Segments
The article offers specific prescriptions for travel companies in different segments:
Despite these challenges, Cuba represents an extremely promising growth opportunity for the US travel industry. “Success will require unusual—and unorthodox—approaches,” says Fitzgerald. “The demand is strong and growing. Companies that take a long-term approach can capitalize on this once-in-a-generation opportunity.”
A copy of the article can be downloaded at here.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or email@example.com.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com.
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