With Cuba in damage control, Sunwing shifts focus to “hidden gems”; 26 Cuban hotels removed

This story was updated on Monday, November 18 at 2:21 p.m. EST.

After weeks of several high-profile power outages in Cuba, Sunwing Vacations is steering its value-minded customers to “hidden gem” destinations that are less precarious.

In an exclusive interview with PAX this week, Samantha Taylor, chief marketing officer at Sunwing Vacations Group, said that while Cuba is traditionally a popular choice for sun-seeking Canadians, recent events concerning the country’s power grid may lead some customers to book their vacations elsewhere this winter. 

“Cuba has had some volatility in the last few weeks and that may shake consumer confidence,” Taylor said. “There are incredible places to go in Cuba, and we are very happy with the product we're supporting, but we also recognize that if clients are a little uncomfortable, we need to give them options that provide better value than the classic, more traditional places.”

Sunwing, as a result, has assembled a list of “hidden gem” destinations that typically don’t get the same exposure as some of the more popular all-inclusive hotspots.

The list includes sun-kissed places like Puerto Plata and La Romana in the Dominican Republic; Freeport in the Bahamas; Panama; Roatan, Honduras and San Andres, Colombia (which is new to Sunwing’s portfolio).

Not only do these destinations tend to attract fewer crowds (compared to Cancun, for example), but they also respond to the market’s desire to experience different cultures, at more affordable prices, Taylor said.

“Canadians are looking for more value when it comes to everything,” she said. “Prices are going up, things are expensive. They’re looking for options. There are lots of places offering incredible value.”

Sunwing is also serving a new generation of travellers – customers that are “looking for a little more adventure and uniqueness,” Taylor added.

Knowing what alternatives are out there is something travel advisors could benefit from as they present options to their clients this winter, she said.

About the blackout

Cuba has traditionally been a haven for cheap and cheerful all-inclusive vacations. 

But will low prices be enough this season to entice Canadians to visit the Spanish-speaking island that’s known for its seaweed-free beaches, mojitos, cigars, vintage cars, salsa music and friendly people?

Cuba, which Sunwing has served since 2005, is in damage control this month, just as the winter booking season sets in, as it recovers from a string of highly-publicized incidents relating to its national power grid.

Last month, the island’s electricity failed several times, leaving some ten million residents in the dark for days. Major airports and most resorts, however, continued to operate during the blackout, using generators.

The outage hit areas that are frequented by tourists, such as Varadero and Havana, and while noble efforts were made to accommodate visitors at resorts, reports on the ground painted inconsistent pictures of food shortages and air conditioning failures. 

“During the blackouts, most hotels [sold by Sunwing] were not affected because [more than 90 per cent of properties] were on generators,” said Taylor, recapping the incident.  

Guests staying at Sunwing-approved hotels that had no power were moved to hotels that did, she said.

The October blackout was also specific to some areas, and not others. Cuban destinations like Cayo Largo, a small island that Sunwing took under its wing in 2022, and Cienfuegos on the island’s south coast weren’t impacted, Taylor said.

Cuba then suffered another blow, this month, after Hurricane Rafael ripped through the island as a Category 3 storm, knocking out power once again. In this case, the electricity was restored immediately, instead of days, says the Cuba Tourist Board.

A dent in tourism

As winter nears, Cuba is now tasked with convincing Canadians that it is still a safe and reliable vacation destination.

“Our message to the Canadian travel advisor community, and Canadians in general, is that tourism is one of the economy’s priorities,” said Lessner Gomez, director of the Cuba Tourist Board in Toronto, in a statement Thursday (Nov. 14).  “The Ministry of Tourism has been preparing for the winter season to deliver better services, uninterrupted supplies, better airport experience and more and new car rentals. Cuba’s main attractions continue to be there, along with the beach, the people, and good value for money.”

At the present time, 100 per cent of facilities in Cuba have electricity, Gomez said.

But the recent power failures have put a dent in tourism. Up until October, Canadian arrivals in Cuba were trending similar to last year’s levels, Gomez said.

“As of November 12, we were 97 per cent of 2023, with a slight decrease as a result of the hurricanes that went through the country,” he said.  

October’s island-wide power glitch, combined with recent hurricanes, have indeed led to some cancellations and slower bookings, Gomez told PAX.

“Some customers who had plans to travel to Cuba at this time have cancelled, [whereas] others moved their vacations to later dates. In all truth, the majority of customers kept their travel plans,” he said.

“We are deeply grateful for the entire travel community’s support.”

Plan B, activated

Nonetheless, the situation has led to some pivots at Sunwing, which, over the years, has sent more customers to Cuba than anyone else.

Sunwing, one could argue, is one of Cuba’s strongest travel partners, and it’s a relationship valued by travel advisors (the high attendance numbers seen at Sunwing’s Cuba events for the trade speak volumes).

It’s a delicate dance, but the tour operator, faced with the possibility of losing revenue, at the start of lucrative winter, is promoting other places that may still appeal to Cuba-loving audiences.

In the Dominican Republic, Puerto Plata and La Romana are alternatives to popular Punta Cana, where prices are rising, Taylor said.

“People who may have thought of [Punta Cana] as an affordable destination are getting priced out a little bit. Overall, it’s becoming a more expensive destination,” she said.

Puerto Plata, on Dominican’s Atlantic north coast, has surfing in Cabarete and the 27 waterfalls of Damajagua, a national park. Iberostar Waves Costa Dorada and adults-only Select at Casa Marina are two resorts Sunwing is recommending here.

La Romana, meanwhile, is home to Altos de Chavon, a 16th-century Mediterranean village replica, and Saona Island, known for postcard-perfect beaches, mangroves and coral reefs. Sunwing’s recommendations, here, include adults-only HM Alma de Bayahibe (which is new to the portfolio) and Dreams Dominicus La Romana.

Laid-back Freeport (Grand Bahama) in the Bahamas also offers "incredible value," Taylor said. Here, Sunwing's property recommendations include Lighthouse Pointe at Grand Lucayan and Viva Fortuna Beach by Wyndham.

In Mexico, Sunwing has returned to Mazatlan, a beach town on the Pacific coast known for its 21 km-long malecón (boardwalk), shrimp, Pacifico beer, banda music and historical old town. Mazatlan is generally less expensive than its neighbour down the coast, Puerto Vallarta, a six hour-drive south.

Sunwing’s hotel recommendations in Mazatlan include Riu Emerald Bay and Dreams Estrella del Mar.

Then there’s Central America. Whether it’s San Andres (Colombia), Panama or Roatan (Honduras), "you have a mix of adventure, great weather, diving and cultural opportunities,” Taylor said.

In San Andres, Sunwing recommends Grand Sirenis San Andres (also new to the portfolio) and Decameron Aquarium; in Panama, the Riu Playa Blanca and Riu Plaza Panama; and in Roatan, the Infinity Bay Spa and Beach Resort and Fantasy Island Beach Resort, Dive and Marina.

Taylor pointed out that Sunwing’s destination partner, Nexus Tours, operates in all of its Central America destinations, providing the same transfer, concierge and excursion services that customers would receive in Mexico or the Caribbean.

To be crystal clear

To be crystal clear, Sunwing isn’t discouraging customers from visiting Cuba. After all, Cuba is a big island, with its own hidden gems.

READ MORE: On Location: Cuba's “Pearl Of The South” – PAX unpacks Cienfuegos, Melia Trinidad Peninsula with Sunwing

Trinidad (Cienfuegos) is one example. As PAX learned during a Sunwing-hosted visit to Trinidad last year, it’s a destination filled with Spanish colonial architecture and history. A blast from the past, where cobblestone streets are lined with 18th and 19th century buildings.

The surrounding Valley de los Ingenios is also a designated UNESCO World Heritage Site. Nature lovers: come one, come all. Sunwing’s recommendations, here, include Melia Trinidad Peninsula and Memories Trinidad Del Mar.

If anything, Sunwing is banking on the hope that Canadians will return to Cuba this winter, en masse, as usual.

“We hope people will feel more confident [about Cuba] with every week that goes by,” said Taylor. “We're doing absolutely everything to make sure Canadians have confidence.”

26 Cuban hotels removed

But what will it take?

Taylor says it comes down to ensuring Canadians have some consistency when they visit Cuba (which, to be fair, has its own set of challenges, from increased U.S. economic sanctions to deteriorating infrastructure).

This has been on Sunwing’s radar for a while now, long before the October power outage. Taylor revealed that Sunwing recently removed 26 hotels from its Cuba portfolio due to quality issues based on customer feedback. 

“We didn’t feel the hotels were up to standard with what guests would actually like to experience,” she said of the removal process, which began earlier this year.  “We are working very closely with the tourist board to ensure that the product we’re offering meets expectations.”

Sunwing is not publicly announcing which Cuban hotels it has cut, saying that doing so would have a negative impact on the resorts and create a potential ripple effect with other tour operators. 

However, in a follow-up email to PAX, Sunwing confirmed that customers who have booked a Cuban resort that has since been removed from its product line have been notified either directly, or through their travel advisors who managed the booking, and have been provided with alternate hotel options for their upcoming vacation. 

New framework for Cuban hotels

Sunwing is also developing a framework for Cuban hotels in an effort to bring some transparency to the booking process.

“What does a five-star hotel in Cuba look like? What does a three-star look like? What we see from our customer feedback is that Canadians want some transparency in what they’re getting. They don’t want any surprises,” Taylor said.

At any rate, after everything that has happened, there’s a genuine belief that some customers may take a break from Cuba this winter.

“We have to recognize and respect that,” Taylor said. “The island will be ready for them when they're ready to come back, and we hope to earn that trust back again. We're doing the heavy lifting now to make sure we’re fixing the foundation and that we have an excellent product selection for this winter.”

“…But while we're doing that, we're providing other options, because we know this is an expensive week for people, and we want to make sure they're making the best choice with their money. We want to remove any anxiety from that choice.”

Work with us

Sunwing’s message to travel advisors this winter? Work with us.  

“Advisors need to educate themselves on what they're comfortable with selling and we can help with that,” Taylor said. “We can bring some transparency to hotels that are sure bets.”  

Sunwing will be hosting more FAMs to Cuba this year, “so advisors can see that things are stable” and “become advocates for Cuba,” Taylor said.

“We know Canadians have a love affair with Cuba, and if advisors feel confident that they can put clients in hotels that are going to be great experiences, then we can rebuild this together.”

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