Hotel room bookings in the United States’ World Cup host cities have lagged behind what many in the industry expected as the tournament approaches, according to an April survey by the American Hotel & Lodging Association. The association’s survey results, shared with the Associated Press, indicate that room demand has been weaker than typical seasonal patterns in several host markets and only steady in others.
In Kansas City, Boston, Philadelphia, San Francisco and Seattle, a majority of hotel operators told the association that bookings were running behind typical seasonal demand. In New York City, Los Angeles, Dallas and Houston, the association said hotel operators reported demand was flat so far compared with a regular spring and summer.
The association cited factors that could be dampening travel by international fans, including uncertainty and travel concerns, worries about wait times for U.S. visa processing, and the overall cost of attending the tournament. Those costs can include high ticket prices and transit expenses in some host cities.
“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,” said Michael Black, general manager at the Cloud One hotel in Manhattan.
The lack of lift from the World Cup has also surfaced in pricing and consumer behavior, with some hotels raising rates after the tournament schedule was announced. The association pointed to examples near MetLife Stadium in New Jersey, where one hotel that normally charges about $200 a night was advertising about $800 for nights around World Cup matches, with rates rising to more than $1,300 a night ahead of the July 19 final.
Ronan Evain, executive director of Football Supporters Europe, said many fans are likely waiting for prices to drop and that previous tournament experience suggests hotel owners may later reduce rates if they set them too high. “Fans that are used to traveling for tournaments know that this price will always go down,” Evain said. “There are many examples of hotel owners regretting that they priced too high and then panicking at the last minute and reducing prices.”
Evain also said some supporters have already secured cheaper lodging farther from stadium areas or through Airbnb and other short-term rental platforms. In line with that view, a report from AirDNA said the metropolitan regions around Kansas City, Seattle, San Francisco, Dallas/Fort Worth and Miami-Ft. Lauderdale are seeing an uptick in short-term rental bookings compared with the same period last year.
Beyond U.S. host markets, Mexico—co-hosting the World Cup with the United States and Canada—has also reported room-demand constraints. Hotels in Mexico City, which hosts the tournament’s opening match on June 11, are about 30% to 36% booked, according to the Asociación de Hoteles de Ciudad de México.
The World Cup’s scale may still bring travelers to the Americas, but some industry observers said its economic impact may be muted by the way major events affect other travel. More than 5 million tickets have been sold for the tournament so far, out of more than 6 million expected to be offered for all 104 matches, according to FIFA. Andrew Zimbalist, an economics professor at Smith College, said global events like the World Cup can discourage some forms of regular business travel and tourism.
In addition, some local hotel leaders described only modest increases rather than the kind of windfall FIFA and other tournament promoters had promised. Vijay Dandapani, president of the Hotel Association of New York City, said city hotels were seeing a modest upswing in summer bookings—around 10% compared with the previous year—but said it was still not close to a windfall. In Kansas City, where some 90% of respondents reported bookings below expectations, tourism officials said there were positive indicators ahead.
Derik Detter, market research director at Visit KC, said Kansas City’s occupancy had not followed the trajectory originally predicted by FIFA, but he pointed to “positive indicators for Kansas City on the horizon.” Jon Bortz, CEO of Pebblebrook Hotel Trust, said overall occupancy at the company’s host city properties was up compared with last year while acknowledging that performance varied across markets, with Boston’s matchups faring better than those in some other cities.
The World Cup is expected to run through mid-July, and some hotel operators and industry groups said they are watching for a pick-up closer to the games.