Dive Brief:
- Despite more than 5 million tickets sold for the 2026 FIFA World Cup, nearly 80% of U.S. hoteliers report that bookings are “tracking below initial forecasts,” according to an American Hotel & Lodging Association report published Monday.
- Demand forecasts show that domestic travelers are outpacing international ones, due in part to ongoing geopolitical conflict and visa barriers, per the report, which surveyed hoteliers across 11 U.S. host markets. Other drivers of softened demand for the event include FIFA room block cancellations as well as the rising costs of labor, insurance and utilities.
- The findings come after several reports have indicated lower-than-expected demand for the tournament, with CoStar predicting a “negligible” domestic impact from the event.
Dive Insight:
Roughly 70% of hoteliers said that visa barriers and broader geopolitical concerns are significantly suppressing international demand, ranking among the top constraints on World Cup-driven travel, per the report.
International World Cup travelers are expected to spend about 1.7 times more than typical international visitors to the United States, according to April research from the U.S. Travel Association. That makes it even more critical to welcome such travelers, per AHLA.
Travelers from abroad are also concerned about airport security screenings and congestion in airports, the report details. And cost pressures are only compounding the issue, as “a strong dollar, high airfare costs, and elevated gas prices make the U.S. a more expensive destination compared to past tournaments,” per the report.
Amid weakened travel demand, hoteliers across several U.S. host markets report booking pace is below expectations for the event.
These cities include Los Angeles, which skewed below expectations for many properties, and New York City, which reported softer-than-expected bookings. Dallas and Houston are also seeing bookings pace below World Cup expectations — more in line with a typical June or July.
Meanwhile, Kansas City emerged as the “most negatively impacted host market,” with roughly 85% to 90% of respondents reporting a booking pace below expectations, per AHLA.
Only a limited number of markets, either with confirmed team basecamps or strong baseline leisure demand, are seeing a “meaningful incremental uplift,” per the report. Miami in particular stands out as a bright spot, with more than half of respondents reporting that bookings are ahead of expectations and typical summer benchmarks.
While several factors have softened demand, “there is still meaningful opportunity ahead” surrounding the event, AHLA President and CEO Rosanna Maietta said in a statement.
To fully realize the event’s potential, “the U.S. and FIFA must ensure a welcoming and seamless experience for international travelers,” Maietta said. “That means avoiding unnecessary cost increases on visas and transportation to and from the games, and discouraging local jurisdictions from adding last-minute tax hikes that hurt the games and consumers.”
AHLA contends that tax hikes, with proposals in cities like New Jersey and Philadelphia, would be felt by visitors and residents alike. Coupled with already high lodging taxes found in these cities, surge taxing is “short-sighted” and would likely deter tourism and create operational challenges for hotels, per AHLA.
Last week, Congress passed a bill to reopen most of the Department of Homeland Security, arriving right as hoteliers were concerned about potential travel disruptions ahead of the World Cup.
