Airbnb opens doors of Cuban homes

AIRBNB operates in 190 countries and 34 000 cities around the world, but its latest addition could be a momentous one.

The online lodgings marketplace now offers properties for rent in Cuba, becoming one of the first US companies to establish itself there since President Barack Obama and Cuban President Raúl Castro announced in December that they would restore diplomatic ties after more than 50 years.

Expanding an internet service to Cuba means overcoming a host of challenges, including spotty web access, limited payment options and the stillongoing US embargo. So Airbnb is starting small: US travellers can choose from about 1 000 listings throughout the country, mostly concentrated in Havana.

The company says its model — stay in somebody’s home, pay less than a hotel would charge — will help it facilitate travel that won’t pave over Cuba’s unique character, forged by decades of isolation from its northern neighbour.

“Think about the big hotel chains coming in, with mass development,” said Nathan Blecharczyk, Airbnb’s cofounder and chief technology officer. “The idea is to support growth in travel that isn’t disruptive, that actually celebrates and preserves Cuba as a distinct destination.”

In February and March, the company sent employees on trips to learn more about the existing network of holiday rentals. Only about 4% of Cuban homes have internet access, so Airbnb had to find local intermediaries to help manage listings and connect hosts with customers.

That led to the problem of paying hosts, most of whom asked for cash. That’s not how Airbnb works; travellers pay online, and the site takes a 3% cut and transfers the rest to a host’s bank account.

So Airbnb had to contract a licensed money remitter to make payments on its behalf.

The company chose Floridabased VaCuba, which specialises in sending cash and gifts to families in Cuba.

“What Airbnb has done is quite creative,” said Collin Laverty, the founder of Cuba Educational Travel, which organises US exchange programmes.

As Airbnb tries to expand its Cuban network, it is likely to find some hosts unaccustomed to American travel standards — among other things, many homes don’t have hot water.

The company will also remain limited by US laws: It can’t show Cuban properties to users outside the US or directly help Cuban hosts design adverts for their rentals. And although the US has relaxed travel requirements for people visiting Cuba for reasons such as professional research, and “support for the Cuban people”, it still bans visits that are explicitly for tourism.

Airbnb’s first step into Cuba is probably only the beginning, says Dan Restrepo, a former adviser to Obama on Latin America and the Caribbean who has consulted for Airbnb on its Cuba expansion.

“So little has happened between the US and Cuba for so long, I don’t think anyone really knows how this will develop.”

But, he said, “this creates connectivity between two peoples in a way that is outside the reach of government on both sides”.

This creates connectivity between two peoples outside the states’ reach