Near-term challenges for travel players eyeing Cuba

• The travel sector will face some near-term challenges as companies expand into Cuba, according to analysis from Moody's.
• Cruise line operators (CCL, RCL, NCLH) face limited port infrastructure in Cuba which will limit growth. Larger ship trips are unlikely until considerable construction is taken up.
• Hotel chains (MAR, HOT) looking to bring well-known brands to the island also infrastructure issues. Government-controlled employee compensation is also in the mix.
• Priceline (PCLN) appears to be in a better position to benefit from travel to Cuba with its simpler business model.