WELCOME HOME
Persons subject to U.S. jurisdiction are prohibited from doing business or investing in Cuba unless licensed by OFAC. Source: Office of Foreign Assets Control
Politics
Economy CUBA PROFILE
Social
Technology
Politics
Economy
Social
Technology
Politics
· Communist state with one political party – PCC · Tight diplomatic relations with U.S. · Political pressure from dissidents and bloggers à advocate for liberation of internet
Ideological shift From centrally planned economy
Larger private sector
Politics
Economy
Social
Technology
Politics
Economy
Social
Technology
· Allowed limited selfemployment · 20 per cent of the workforce in private sector
Economy
· Allow private sale and purchase of homes and cars · Average monthly income- $20 · World Bank GDP forecast – 2.1% in 2015/16 · Mobile phones are now legal
Politics
Economy
Social
Technology
Politics
Economy
Social
Technology
CD seller: “Now I can work without having to hide”
Retired man: “Imagine, I can make more money selling ice cream than I ever did as an accountant for the government.”
Social
Taxi driver: “By working on your own you can make a lot of money but it is uncertain, while working for the state you get a bad salary but it is stable.”
50 year-old home owner: “Those of us who rented our houses to tourists before the reforms now face excessive competition. There are now casas de renta everywhere in Cuba.”
Politics
Economy
Social
Technology
Politics
Economy
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Technology
Technology · · · · ·
Two state-owned internet providers Around 40% access to Intranet 5% access to open Internet Internet cafes - $4.50 per hour Computer ownership legalized in 2007
Market Insight
Competitive Advantage
Opportunities
Challenges
Market Insight
Competitive Advantage
Opportunities
Challenges
Market Insight
• All-inclusive hotels ($50-$250) secluded, lack of cultural interaction, prohibited to invite Cubans • Villas ($30-$35) • Homestays or “casa particular” ($20-$25) - very similar to Bed & Breakfast • Camping ($10-$20)
“Airbnb, a service that lets people rent their homes to travelers, initially didn't bother with traditional ads. Instead it tapped an existing user base on Craigslist, adding a "Post to Craigslist" feature for homeowners to automatically cross-post listings, driving traffic back to Airbnb.” – Source: The Wall Street Journal
Market Insight
Competitive Advantage
Opportunities
Challenges
Market Insight
Competitive Advantage
Opportunities
Challenges
Market Insight
Competitive Advantage
Opportunities
Challenges
Market Insight
Competitive Advantage
Opportunities
Challenges
• • • •
January 2015 - U.S. expanded trade and travel with Cuba Buy and sell property (limited to two properties) First direct flights from U.S. to Cuba - New Orleans and New York US debit and credit cards allowed
Opportunities
Opportunities • Facilitation of bank transfers • Improving technological capability - telecommunications and internet • Growing tourist industry • Established culture of renting homes - “casas particulares”
Market Insight
Opportunities
Competitive Advantage
Challenges
Market Insight
Opportunities
Competitive Advantage
Challenges
• Lack of technological knowledge • Language barrier • Potential government pressure (i.e. can be seen as a competitor because they already tax the “casa particular”)
Challenges
• • • • •
Limited marketing and advertising Competition in online house and apartment rentals Lack of AirBnB brand awareness Limited internet Corruption
Challenges
Customer Profile
American Guests • • • • •
Existing AirBnB users New destination may attract new customers Young travelers Backpackers Culture curious
à The users need an independent accommodation because it gives them a flexible personal experience in the culture.
Cuban Hosts • Families in need for extra income • Individuals working in the private sector → becoming entrepreneurs • Individuals already renting à The user needs extra income because work in Cuba is low paid and there aren’t many options.
Stay tuned!...