Cuba is great and part of the fun is discovering places to stay by yourself - we stayed in many casas particulares (private homes) - some better (and friendlier) than others, but none were dire. A great way to meet locals, especially if you find ones where you can communicate with the owner (ie if you speak Spanish, or they speak English).
When travelling around, taxi drivers (some licensed, some not) hang around bus stations to offer shared rides - which can be cheaper and get you to your destination much quicker.
Remember to take cash - cards don't work in ATMs and changing money on a card, or buying anything on a card is punitively expensive - around 12% charge.
Avoid Varadero if you can - you may as well go to the Costa Del Sol.
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