The economic boost many hotels expected from the FIFA World Cup has not fully arrived yet, according to a new industry survey. Hotel operators in several U.S. host cities say room bookings have been weaker than expected ahead of one of the world’s biggest sporting events.
Hotels Seeing Lower-Than-Expected Demand
An April survey from the American Hotel & Lodging Association found that hotels in many of the 11 U.S. cities hosting World Cup matches are not experiencing the major surge in bookings they had anticipated.
Cities including Kansas City, Boston, Philadelphia, San Francisco, and Seattle reported bookings running below normal seasonal demand. Meanwhile, hotels in New York City, Los Angeles, Dallas, and Houston said demand has remained mostly flat compared to a typical spring or summer season.
Hotel industry leaders had hoped the tournament would bring a massive wave of international travelers and boost occupancy rates significantly.
Travel Concerns Impacting Tourism
Industry officials say several factors are slowing demand from international soccer fans. Concerns over U.S. visa wait times, rising travel costs, expensive match tickets, and transportation expenses are reportedly discouraging some visitors from booking trips.
Michael Black, general manager of the Cloud One hotel in Manhattan, said many in the hospitality industry expected stronger numbers.
“I think everyone had hoped the games would lead to an influx of bookings, but with all going on in the world and the USA’s involvement, events are playing out differently for everyone,” Black explained.
Mexico Also Facing Similar Challenges
The softer demand is not limited to the United States. Mexico, which is co-hosting the World Cup alongside the U.S. and Canada, is also seeing lower-than-expected hotel occupancy.
According to the Asociación de Hoteles de Ciudad de México, hotels in Mexico City are currently only around 30% to 36% booked ahead of the tournament’s opening match on June 11.
High Hotel Prices May Be Hurting Demand
One major issue appears to be rising hotel prices. Many hotels sharply increased room rates after the World Cup schedule was announced, expecting fans would be willing to pay premium prices.
Near MetLife Stadium in New Jersey, some hotels that normally charge around $200 per night reportedly increased prices to $800 during tournament matches. Rates before the July 19 final were reportedly climbing above $1,300 per night.
Ronan Evain, executive director of Football Supporters Europe, said experienced soccer fans often wait for prices to drop closer to the event.
“Fans that are used to traveling for tournaments know that this price will always go down,” Evain said.
He added that many fans may already have booked cheaper accommodations farther away from stadiums or chosen short-term rental platforms like Airbnb and Vrbo.
Airbnb Seeing Strong Growth
While hotels face slower bookings, short-term rental platforms are experiencing stronger demand. Data firm AirDNA reported an increase in short-term rental bookings in metropolitan areas around Kansas City, Seattle, San Francisco, Dallas/Fort Worth, and Miami/Fort Lauderdale compared to last year.
Airbnb recently stated that the number of guests expected to stay in its properties during the tournament may even surpass the company’s numbers during the 2024 Paris Olympics.
Experts Say Expectations May Have Been Too High
Some economists believe hotels may have overestimated the economic impact of the World Cup.
Andrew Zimbalist, an economics professor at Smith College, explained that major global events often reduce regular tourism and business travel because of concerns about crowds, security, and higher costs.
“The general problem is that soccer tourists — and expected congestion, high prices and security concerns — push away normal business travel and tourism,” he said.
Some Cities Still Optimistic
Despite the slower start, tourism officials in several host cities remain hopeful that bookings will improve closer to the matches.
In Vancouver, Canada, hotel occupancy is currently lower than last year, but industry leaders believe demand could rise as the tournament approaches.
Kansas City officials also remain optimistic despite survey results showing nearly 90% of local hotels reporting weaker-than-expected bookings.
Hotel executives, including Pebblebrook Hotel Trust CEO Jon Bortz, say occupancy rates are still generally higher than last year across many host cities, though some markets are performing better than others.
“We haven’t seen anything that would cause us to think it’s going to be less than what we were expecting,” Bortz said. “Maybe other people had much grander expectations.”
