Travelucion’s In-House web development team creates appealing websites exclusively for our proprietary network. Travelucion does not build websites for third parties; rather it increases corporate web presence annually by adding new and interesting websites to its portfolio of Cuba web properties to further increase Cuba related online traffic and, subsequently, revenues. Travelucion’s revenues have experienced a startling month-on-month 250% increase since Jan 2015. Travelucion has evolved into one of largest online marketing and information platforms for Cuba. The Company now has 432 websites that are exclusively focused on promoting the various cities, towns, provinces, islands, resorts, and a whole array of special interest topics related to Cuba including famous Cuban people, sports, food, law, health, etc. Travelucion has also developed a strong social media platform consisting of passionate Cuba social media followers across Facebook, Twitter, Pinterest and Instagram consisting of over 100,000 followers.
International visitors to Cuba reached 3 million people in 2014 bringing in approx. US $2.6 billion in tourism revenue (source: CompassCayman.com). In December 2014, U.S. President Barack Obama announced the U.S. and Cuba would normalize diplomatic relations with Cuba. President Obama was also the first acting president in 50 years to visit Cuba in March 2016. Improved commercial relations with the United States will potentially inject billions of dollars into the Cuban economy. President Obama relaxed some of travel restrictions for U.S. citizens, U.S. citizens are now allowed to import $400 of Cuban goods, direct banking & U.S. debit and credit cards are permitted in Cuba, and U.S. telecommunications are allowed to export and offer services and infrastructure in Cuba. With the relaxation of rules for American travelers to Cuba, growth in travel to Cuba is on an upward trajectory. Already in 2016, American visits to Cuba were up over 50% and are expected to continue to grow to around 10 million people a year assuming all travel restrictions are lifted (source: International Monetary Fund). A general tourist travel prohibition for Americans remains in place but there are new regulations in which travelers to Cuba no longer have to ask for government permission and instead can see if they qualify for one of 16 categories of travel permitted under a general license.
Travelucion’s revenue growth since the Obama gave his historic speech in December 2014 has increased by 250% through the end of 2015. This represents a large interest from the rest of the world who want to go to Cuba before the embargo is potentially lifted as well as an elevated interest from the American travelers which is expected to continue to grow. The increasing U.S. interest in Cuba can be seen by the increase in the number of visits to Travelucion’s websites. Before December of 2014, only 11% of visitors to the Cuba-centric websites were American but this shot up to 33% of visitors after Obama’s announcement. However, given the general U.S. tourist ban still in place, this online American traffic represents only 3% of the Company’s online booking sales as the conversion rate on American traffic is still quite low compared to other countries. The Company sees this as latent demand and as excellent growth potential without any additional marketing initiatives.
Travelucion is set up to handle the travel requirements of qualified U.S. travelers to Cuba. The Company allows permitted U.S. travelers and non-U.S. travelers the ability to indulge in high end hotel and spa accommodations or create uniquely Cuban travel packages with exclusive private home rentals, exotic/antique car services and access to a multitude of guided or self-discovery tours across Cuba in addition to basic hotel and car rental bookings.