Sunday, August 23, 2015

Scheduled flights to Cuba could hike hotel and tour prices

If an Obama-backed deal to make scheduled air service from the U.S. to Cuba becomes a reality by the end of the year, it could prove a mixed blessing for travelers.

According to many businesses that operate tours to Cuba, the island's inadequate infrastructure and lack of sufficient hotel rooms imply that the surge that would adhere to the resumption of scheduled flights would bring larger costs in each hotel rates and tours, even as receiving to Cuba would turn into significantly easier.

"If scheduled air will be allowed, it can drastically modify the travel scene when it comes to pricing and scheduling," stated Ronen Paldi, president of Ya'lla Tours USA.

On the up side, he mentioned, passengers would be able to book nonstop flights from a lot of U.S. gateways and verify their baggage all the way via to Cuba as effectively as forgo possessing to invest the night in Miami ahead of the morning charter flight, as is now the case. In addition, passengers would not have to spend the $ 236-per-individual handling charge that Cuba now charges charter operators.

Even so, Paldi mentioned, "The demand for travel from the U.S. will boost, and when the Cubans can’t meet the demand, scheduled flights will push [hotel and tour costs] greater than they currently are."

Insight Cuba's Tom Popper agreed.

"Ultimately, scheduled air would be constructive for travelers but not much more cost-successful," he mentioned. "Flight fees will stay the very same, and more flights imply improved demand on Cuba's hotel infrastructure."

For now, American Airlines, Delta Air Lines, JetBlue and United Airlines are watching from the sidelines, even though they appear poised to enter the industry as quickly as legally permitted.

JetBlue has operated charter service to Cuba for several years from Fort Lauderdale and Tampa and launched service from New York to Havana on July 3.

"We have built knowledge operating in Cuba with our charters to help us to be ready to go with scheduled service after permitted," stated JetBlue spokeswoman Tamara Young. "Demand for our JFK flight has been increasing briskly, and we've been at or close to capacity in recent weeks for all our Cuba flights."

American at the moment operates 22 weekly charter flights to Cuba and this year will operate more than 1,200 flights to Camaguey, Cienfuegos, Holguin, Havana and Santa Clara from Miami and Tampa, up 9% over 2014. The carrier will launch weekly Los Angeles-Havana charters on Dec. 12.

"Once we get the green light to offer you regularly scheduled service, we are prepared to go," American spokeswoman Martha Pantin mentioned.

Both Delta and United support efforts to permit scheduled service to resume among the U.S. and Cuba and strategy to serve the marketplace when it's permissible.

Southwest considers Cuba a "good future opportunity" but is focused on other Latin American and Caribbean destinations, stated Alyssa Eliasen, a Southwest spokeswoman.

The three significant GDSs are at operate developing technologies to add Cuba flights to their systems.

"Travelport is ready to instantly make offered in the Travelport technique often scheduled, commercial flights to Cuba for authorized travelers, if and when U.S. carriers receive legal permission to supply such service," mentioned Chris Engle, Travelport's vice president Americas, air commerce.

Amadeus is also prepared at the starting gate.

"Aligned with the current modify of the U.S. law, Amadeus travel agencies in the U.S. will soon be in a position to book flights to and from Cuba for authorized travelers, pursuant to U.S. Treasury Division regulations," stated Amadeus spokeswoman Debra Iannaci. She added that specifics would be released in the coming weeks.

Sabre is also functioning on a new capability for agents to support handle travel to Cuba, mentioned Daniel Duarte, a Sabre spokesman.


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