US hotels brace for World Cup hit as bookings fall short

Sporting Tribune

The World Cup was expected to trigger a major tourism boost across the United States, but early indicators now suggest that expectation may not be met.

A report produced by the American Hotel & Lodging Association (AHLA) shows hotel bookings remain below projections in almost every host city.

The group said this does not align with FIFA’s statement that more than five million tickets have been sold, and warned that “the anticipated economic lift may fall short”.

The AHLA, which represents more than 32,000 properties and over 80% of franchised hotels in the US, said part of the pressure comes from earlier assumptions built around demand that has not fully materialised.

It also raised concerns over FIFA’s initial block-booking of large volumes of rooms, which it says distorted early pricing and demand signals. That approach, it argued, pushed prices up before cancellations later created gaps in availability.

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FIFA rejected the claims.

Hotels say demand has also been affected by high match ticket prices, transport costs, taxes, and broader economic conditions, all of which have reduced travel appetite among international visitors.

With just weeks to the opening game on 11 June, the AHLA warned that lower-than-expected overseas attendance could affect wider economic returns.

The report added that early large-scale bookings shaped hotel revenue forecasts, staffing plans and preparations. It described the situation as one where “manufactured artificial demand” gave a misleading picture of expected tourist flows.

According to the AHLA, up to 70% of rooms initially reserved by FIFA in cities including Boston, Dallas, Los Angeles, Philadelphia and Seattle have now been cancelled.

FIFA, however, said it does not recognise the accusations.

A spokesperson said: “All room releases were conducted in line with contractually agreed timelines with hotel partners – a standard practice for an event of this scale.”

They added: “In many cases, room releases were made ahead of established deadlines to further accommodate requests from hotels. Throughout the planning process, FIFA’s accommodations team maintained consistent discussions with hotel stakeholders, including room block adjustments, agreeing to rates, confirming room types and regular reporting, supported by townhall and ongoing communication.”

Hotel prices initially rose after the tournament draw, when fans learned which cities their teams would play in, but have since eased, with reports of a further 20% drop in recent weeks. Even so, prices in some cities, such as Boston, remain above $300 (£224) per night, well above what many travelling fans are prepared to pay.

Chris Hancock, an England supporter who has attended four World Cups, said his group of five are working to a budget of $75 (£56) per person per night. They plan to combine car hire with hotel, and Airbnb stays outside major city centres.

“We always tend to stay out of town a little bit and cut the cost that way, so we’re not in the middle of Dallas, Boston or New York,” Hancock said.

“If you’re out of the city centres where everything’s happening, you can get some cheaper deals.

“We’re working within that budget. And at the minute we should be well under that.”

The AHLA told BBC Sport it “expects occupancy to strengthen in June and July”, adding that many fans are still waiting for tickets and schedules before confirming travel plans.

It said, “We believe bookings will pick up in the weeks ahead. Hotels are ready to welcome guests and ensure that they have the best possible experience.”

Airbnb has projected that the tournament could become the “biggest hosting event in Airbnb’s history”, surpassing the 2024 Olympic and Paralympic Games in Paris.

Even so, hotels may now rely on last-minute demand during the knockout stages to recover some momentum. For now, expectations remain below early projections, and the anticipated windfall is under pressure.

(BBC)

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