Un Regreso a Havana

Bella
BACKGROUND:
Hilton was one of the last American Hotel chains to leave its mark on the Havana
scene. With its opening of the Habana Hilton (Habana) on March 22, 1958, the Habana
became one of the largest hotels in all of Latin America, boasting a total of 500 rooms
and 25 floors. However, with the rise Fidel Castros prominence and the political shifts in
Cuba, the Habana came to an abrupt close. The pending normalization with the Cuban
government brought forth by the Obama Administration offers the opportunity for
tourists to once again visit the island and for Hilton to reestablish its presence in Cuba.

Knowledge has reached our office that Cuban officials are to consider allowing Hilton
Worldwide to be the first American chain back in Cuba. As the first American hotel
brand, Hilton hopes to return with the energy of the past when nightlife and Cuban
culture reigned supreme. We want to give a new generation of Americans a chance to
live in Cubas glory days, while still enjoying the untouched beauty of beaches and
forests.

SITUATION ANALYSIS:
Before the embargo, Havana was a city filled with drinks, music, and dance hosting
the likes of Frank Sinatra, John Wayne, Eartha Kitt and Fred Astaire. Vibrant colors
filled the streets and classic American cars roamed the streets. Cuba was an escape to
paradise for many Americans. But, when Fidel Castro rose to power all hotels became
government property and tourism was initially banned. A U.S. embargo in 1960 banned
Americans from traveling to Cuba and tourism to the once lively island ceased.

The Obama Administrations current negotiations with the Cuban government hint at a
possible loosening of the embargo between the two. Previously, the American
government required American citizens to qualify for travel to Cuba based on a list of 12
categories, which included reasons such as medicine and culture. Now, new travel
regulations to Cuba allow Americans to travel for leisure at their own will. This comes
from the Obama Administrations and Cuban governments suggestion that one of the
best ways to improve American and Cuban relations is through travel. With American
public opinion favoring trade between the US and Cuba at an all time high, Hilton
Worldwide has the potential to be one of the first American hotel companies to enter
Cuba. As the first hotel Hilton could serve as the American example, the guiding star in
the dark sky, on what hotels should seek to do. Also as the first U.S. chain, Hilton can
capture American travelers that hold loyalty to the brand.
Settling into Cuba and being the first American brand is not without its challenges. Due
to heavy trade restrictions and a communist regime, Cuba does not have the
infrastructure that many Americans are accustomed to. There is also blatant opposition
to the loosening of American-Cuban relations, which could affect travel to our hotel.
Lastly, although many American brands were not allowed to own or franchise in Cuba,
many European and Canadian hotel chains were, which means that Cuba is not a
completely untapped marketthe competition is strong.

PROBLEM
While Hilton seeks to be the first American hotel in Cuba, it must be able to work with
the Cuban government and infrastructure to open a 3-4 star hotel and maintain a
favorable position amongst Americans and Cuban Americans.

SWOT
STRENGTHS WEAKNESSES
Hilton is a strong brand name to Previous tensions with Cuban
Americans and recognizable in government (fallout)
Cuba The same Hilton customer service
The Cuban government favors may not be as easy to promote,
Hilton as being the first American since most of the staff will be new to
business to enter Cuba the brand and hotel business
OPPORTUNITIES THREATS
To be the first American hotel chain Many European and Canadian
in Cuba since the embargo chains already exists
To be recognized as a world class o Melia, Barcelo and Novotel
hotel chain in Cuba once again Americans that are opposed to any
To kick start goods relations Cuban relations
between the US and Cuba The infrastructure is not prepared
Estimates that tourism is expected for the expectations of Americans
to grow by 3 million Americans (telecommunications and internet)
when travel regulations are dropped
Estimated growth in demand for
American world class branded
hotels
RESEARCH AND INSIGHTS
Secondary Research: The Cuban Travel Market
With the government lift on American travel, both governments are looking at ways to
kick start investment on the island. The new possibility of American leisure travelers
means a boost in travel, which the island is not currently prepared to deal with. Although
Cuba is relatively untapped land for American hotel chains, it is important to remember
that there are European and Canadian businesses that have multiple hotels in the area,
below is a list by Trip advisor of the top 20 hotels in Havana, Cuba.

The top four hotels represent the feel that Hilton will bring to Cuba, which means that
they pose the greatest threat especially the Hotel Saratoga. The Hotel Saratoga
claims to be Old Havanas grandest hotels. It is a location that attracts those looking to
combine cultural and historical exploration of the city with enjoyment of its world-
famous nightlife. Refurbished in 2005, the hotel is managed and owned by the Cuban
government. Being that Hilton is moving into an unknown market, we are unsure of the
market forces we will have to deal with. It is plausible to question whether the Cuban
government will allow Hilton to be a true competitor with the Hotel Saratoga and match
or excel the standard set forth. In order to get a better idea of what people are saying
about the Hotel Saratoga and the kind of experiences people have while at the hotel, I
have attached a few recent reviews.

Insight #1 Hilton will

experience strong
competition from
European and Cuban
owned/managed hotels in
Havana. The Hotel
Saratoga is the strongest
competitor in the area
claiming to offer visitors a
mix of luxury and culture.
From these reviews, we get the idea that:

We are going to be dealing with some technology issues (internet)

The expectations of luxury are relatively low
When traveling to Cuba, some are interested in the culture and people as
opposed to the food and customer service.

The Saratoga building is off limits to our possible management and the PR team
believes that our return to Cuba Hilton should emphasize a fresh start. Considering this
important factor, the PR team suggests a host building that requires less of an
investment while reflecting Americas history in Cuba. Many believe that Hilton should
return to the hotel that it once managed and owned in the 60s, but Hilton is no longer
managed by the Hilton Family and although we want to pull from the Hiltons previous
grandeur, we want emphasis on a new start in Cuba under the current regime. Our hotel
opening its doors in Cuba is a sign for American trade and commerce, something that
has not existed for a while. For this reason we believe that Hilton should take over the
Hotel Nacional de Cuba and call it the Havana Bella Hilton, which is Beautiful Havana
Hilton.
HOTEL NACIONAL DE CUBA

Located in Havana, the team believes that this space

is not only a good because it would require the least
amount of investment, but also because of the history Insight #2 The Hotel
held by the hotel. Firstly, the hotel is considered a Nacional allows us to
UNESCO world heritage site; this means that the push the image of
location and hotel will draw our publics attention luxury, while working to
automatically. The design firm responsible for Hotel
Nacional also designed Penn Station and Columbia spread the history and
University two iconic structures in New York City, a culture of Cuba. We
city that many from around the world visit constantly. would not change the
Additionally, the hotel was home to music shows (Nat history of the hotel; we
King Cole, Eartha Kitt, and Frank Sinatra), casinos, will instead flourish with
and clubs. This building is a direct representation of it.
the American-Cuban fusion.
CUBAN INFRASTRUCTURE
One of the biggest struggles we are going to face with Americans and their expectations
is the Cuban lag in regard to telecommunications and Internet. We are not going to be
able to boast high-speed Wi-Fi and efficient business centers. According to Reuters,
Cuba is looking for foreign investments, infrastructure is one of the many sectors
(agriculture, sugar, nickel, real estate, etc.) ripe for investment. The lifted embargo will
intrinsically improve infrastructure, but our initial opening may not allow for the high-
speed accessibility that so many Americans want. Our message to American tourist
should focus on the Cuban experience as cultural and natural.

AMERICAN AND CUBAN AMERICAN ATTITUDES

In a study conducted by Bendixen and Amandi International, polls showed that about 51
percent of Cuban-Americans favor the normalization of relations between the U.S. and
Cuba, while 40 percent of Cuban-Americans disagree. The small difference between
those that do and do not favor means that in opening a hotel in Havana, we will be
treading delicate waters. On the upside, the poll does show that there is more
acceptance of the Presidents new policy with Cuba. In addition, 56 percent of Cuban-
Americans believed in an easing of travel restrictions. That being said there are very
specific ideas and messages we should promote and avoid.

1) We should avoid the hazy situation with what happened in the past regarding the
Havana Hilton when Fidel Castro rose to prominence. If it does come up, we should
point to the fact that the incident is in the past and that in coming back to Cuba we
are happy and honored to be one of the first hotels back. There is no bad blood.

2) Many Cuban-Americans oppose lifting the embargo; they see the move as ceding to
the Castro regime and Communist Cuba. We have to be careful with how we talk
around the political climate in Cuba. We need to be clear that we do not support the
oppression of the Cuban people and see opening our hotel as an opportunity for
many Cubans to make wages and seek potential growth.

3) Approximately one-third of Cuban-Americans would actually visit Cuba if restrictions

were lifted. Many oppose investing in Cuba due to mistrust and would willfully
boycott the Castro brothers. We should not put forth the message that Cubans get
the chance to travel back to their homeland as many still have resentments. What
we can do however, is focus on the millennial, since many of the opposed Cuban-
Americans are those that have dealt with Cuban exile directly. Polls point to the fact
that those that support the normalization are young, American-born or recent
immigrants, with 60 percent of those under the age of 50 agreeing with Obama.
4) We also should not directly campaign
toward Cuban-Americans in Miami, since
only 41 percent agree with Obama. We
should focus on the rest of the country where 3-to-1 believe the U.S. and Cuba
should have closer ties.

All this is mind, we have to anticipate possible boycotts and protests at our hotels in
Miami, where much of the opposition lives. Cuban Americans are important to our
business and we do not want to make them feel as though we do not care, so we need
to put out a message in which we explain the potential benefits of offering employment
and a opportunity for a revitalized city and people. We can compare how they help
many of their family members in Cuba, to our efforts. We are there to bring Cuba back
to its more glorious days, will it happen overnight? No. But, we will help kick-start its
revitalization. With over 50 years of an embargo, Cuba has seen no change in its
political set-up, this does not mean that Cuban citizens should suffer financially.

RECOMMENDATIONS FOR PRIMARY RESEARCH

Secondary research has given us a great start on understanding the market, however
as with all research that isnt conducted for our own specific purposes, we can only take
small portions of information. We need to conduct our own research to see what
American travelers think of Cuba and what expectations they have in regard to
amenities and what they expect to get out of their travels there. Many Europeans and
Canadians have traveled to Cuba to experience the culture and natural beauty of the
island, but we cannot base all of our assumptions on non-American travelers because
there are characteristics that set Americans apart from other nationalities. We need to
conduct research to figure out what general perceptions of Cuba are. Many Cuban-
Americans know what Cuba is like for their families or what it was like for them in the
past, but we need a fresh survey on what people think of Cuba and its political system,
whether an American brand opening a hotel there is troublesome, whether they would
think to travel to an American branded hotel, and whether they would view our venture
as supporting the regime. We also have to figure out the best channels for spreading
our messages. We want to appeal to millennials, but when it comes to travel we have to
figure out where our messages will have the best punch. Qualitative data is what is
necessary for all of these questions and it is best to start with small focus groups that
are a mix of Cuban-Americans and Americans. Based on findings from these focus
groups we will be able to come-up with questions for a survey in which an agency would
conduct and collect results for. These findings would help to craft a more specific
message and help us determine the most effective channels and spokespersons.
GOALS
To be recognized as the hotel brand of choice in Havana, Cuba

OBJECTIVES
To increase American and Cuban-American awareness of the Bella Havana
Hilton by 20 percent three months prior to the March 22, 2017 opening date
To increase first weekend reservations to 80 percent occupancy on opening
weekend

PUBLICS

PRIMARY
American millennial travelers (seeking out adventure and culture)
Cuban-American millennial travelers (seeking to learn their cultural roots)
Nature/adventure enthusiasts

Many of the publics in this category are Internet and social media savvy. The best ways
to reach these publics would be to avoid traditional media and instead seek out more
inventive and creative ways to engage them. These publics are also looking to see all of
the recreational and fun things they can do on the island. There should be a strong
emphasis on adventure and nightlife for these publics.

SECONDARY
Americans with families
Cuban-Americans with families
Retired Americans
European and Canadian travelers
American, European and Canadian competitors

Other than the last category for publics in this section, many are unaware of what they
can experience in Cuba, in addition to the cultural and geographic experiences that we
mention with the primary publics, these publics will want to know about leisure and
relaxation. This publics are traditionally not as savvy and the primary public so in
addition to our digital efforts, we will have to focus some attention on more traditional
means, maybe even day time television.
INTERVENING
Traditional and new media publications and sites
Cuban government

Reaching traditional and new media will entail press releases, pitches, and events. The
Cuban government will be involved throughout most of the process and their
government is different than ours when it comes to private enterprise. We will have to
run everything by them before implementation.

MODERATING
Cuban tourist agencies
Cuban tourist government institutions

The Cuban government manages the tourists agencies, however we will work wi th the
agencies to promote the hotel opening, as all other hoteliers are required to do. We will
be in direct conversation with the agencies throughout the process.

THEME/BIG IDEA
El Gran Regreso a Havana Bella
(The Grand Return to Beautiful Havana)

With this campaign we want to capitalize on the great return back to Cuba and draw on
significant Cuban figures and nostalgia. We want to bring back what had initially made
Cuba the ideal island getaway.

STRATEGY
Position Hilton as the preferred brand in Cuba among American travelers through
traditional and new media outlets
Tactics:
o Schedule a day in Cuba segment (The Grand Return to Beautiful Havana)
with daytime talk show like Ellen, The Today Show, The View, etc. a week
after grand opening
o Secure a feature story based on the grand return to beautiful Havana
segment in major media outlets
o Review all opening weekend comments on trip advisor to see where
improvements are needed
Activities:
Write press release to Ellen, The Today Show, The View, etc.
Contact various outdoor tour companies to schedule activities
 Construct Pitch to media outlets for feature story

Publicize the grand opening of Bella Havana Hilton among American travelers
through media stories and events
Tactics:
o Partner with National Geographic and create a YouTube web series that
documents a group of adventurists visiting Cuba and discovering all the
natural beauty
o Create a blog (Wordpress or Tumblr) to go along with the YouTube
channel
o Create an Instagram page that follows the adventures around on their trips
for quick posts. Integrate all platforms
o Document Gloria Estefans return to Havana through a feature news
exclusive
Activities:
Contact National Geographic to discuss prospective photojournalist
for job
Write pitch for various news outlets in both English and Spanish to
cover Estefans story
Partner with growing industries like cigars and rum to build
anticipation for grand opening
Tactics
o Bacardi could potentially reinitiate its association to Cuba, together with
Bolivar Cigars Hilton would host its grand opening celebration, generating
buzz for a fun night of Cuban classics
o Host a private performance by renowned Cuban singer Gloria Estefan.
This would be monumental since Estefan has always dreamed of
performing in her native country. Speaking to ET magazine Estefan said,
that would be a dream, because Cuba is still in my heart and you can
hear it in my music. This would generate tremendous buzz.

Activities:
Create invitations for grand opening
Send out invitations
Contact Bacardi and Bolivar Cigars
KEY MESSAGE(S)

PRIMARY MESSAGE 1:
Hilton makes its grand return to Cuba
I. The end to the embargo leads to American investment in Cuba once again
II. Travel restrictions are lifted

PRIMARY MESSAGE 2:
Cuba is Mother Nature at its finest
I. Cuba has three natural UNESCO World Heritage sites
II. Marine life is alive and well in Cuba with nonprofits like the Environmental
Defense Fund and Cuban government working to protect the oceans and marine
life

PRIMARY MESSAGE 3:
Hiltons promise to celebrate Cuban culture
I. The hotel Nacional is a UNESCO world heritage site and we will maintain and
publicize the hotels history

SPOKESPERSONS
To show our commitment to the preservation of Cuban culture and our celebration of
the Cuban-American relationship, the team thinks it would be ideal to have the musician
Gloria Estefan as one of the spokespersons. She is from Havana, but her family
emigrated to the U.S. when she was younger. She is a multi-Grammy winner and
popular among older American and Cuban-Americans. She also has a love for her
home country. Other spokespersons would be the National Geographic photojournalists
that would act as the voice for millenials.
EVALUATION
OUTCOMES
Because this campaign is mainly for the opening of the hotel, we have determined that
the objective:

To increase first weekend reservations to 80 percent occupancy on opening

weekend

Would be the best measure to determine whether we were successful in changing

and influencing the behavior of American travelers. We can also look at the booking
rates of specific nationalities to see whose interests was peaked and whether there
is a market for other publics for later PR efforts

OUTPUTS
To determine outputs we have the objective:

To increase American and Cuban-American awareness of the Bella Havana

Hilton by 20 percent three months prior to the March 22, 2017 opening date

This is something that we would measure with occupancy rates the hotel maintains
during and after the grand opening. We can also conduct focus groups and see if
opinions have changed. Surveys can also offer us information on what visitors thought
of their hotel stay. Another thing to look at for evaluative measures would be traditional
rating sites like Expedia and TripAdvisor to see if our message and goal is translating to
the actual experience.

INPUTS
Our goal is to be recognized as the preferred hotel in Havana and to evaluate the truth
to that goal we can look at annual ratings, awards we get and comments by industry
professionals. We can integrate focus groups and surveys to see if the messages and
channels used were appropriate.
TIMELINE

Announcement of hotel plans September 2016

Pitch news outlets September through December 2016

Contact Gloria Estefan & Team September 2016

Pitch National Geographic September 2016

Start first episode of web series with National Geographic March 10, 2017
Continue series until opening

Begin to push Gloria Estefans performance at grand opening March 10, 2017

Grand Opening March 22, 2017

Release Return to Beautiful Havana with Gloria Estefan March 26, 2017

Run cross promotion on mini-documentary with Estefan and Hilton Hotel March 22,
2017 to April 1, 2017
SOURCES:
About us. (n.d.). Retrieved April 10, 2015, from http://www.hotel-
saratoga.com/informacion/about-us

Allen, N. (2015, March 1). Cubas revolution comes full circle with a Hilton in Havana.
Retrieved April 10, 2015, from
http://www.telegraph.co.uk/news/worldnews/centralamericaandthecaribbean/cub
a/11443590/Cubas-revolution-comes-full-circle-with-a-Hilton-in-Havana.html

Chestang, R. (2014, December 14). Gloria Estefan Dreams of Performing in a Free

Cuba, Can She Go Home? Retrieved April 10, 2015, from
http://www.etonline.com/news/155412_gloria_estefan_dreams_of_performing_a_
free_cuba_can_she_go_home/

Cohen, Z. (2015, April 2). Poll: Cuban-Americans Shift in Favor of Normalizing U.S.-
Cuba Relations. Retrieved April 10, 2015, from
http://www.nationaljournal.com/politics/poll-cuban-americans-shift-in-favor-of-
normalizing-u-s-cuba-relations-20150402

Conserving Cuba's vast natural wonders. (n.d.). Retrieved April 10, 2015, from
http://www.edf.org/oceans/cuba

Trotta, D. (2015, April 9). Cuba invites companies to talk about doing business.
Retrieved April 10, 2015, from http://www.reuters.com/article/2015/04/09/us-
cuba-usa-investment-idUSKBN0N02GR20150409

Top 3 Natural Wonders of Cuba that are Listed as a UNESCO World Heritage Site.
(n.d.). Retrieved April 10, 2015, from http://www.cubawanderer.com/top-3-
natural-wonders-of-cuba-that-are-listed-as-a-unesco-world-heritage-site/

20 Best Luxury Hotels in Havana on TripAdvisor. (n.d.). Retrieved April 10, 2015, from
http://www.tripadvisor.com/Hotels-g147271-zff12-Havana_Cuba-Hotels.html