US hoteliers are expressing concerns over the potential impact of the upcoming World Cup on their bookings, as numbers are falling short of expectations in nearly all host cities. A recent report by the American Hotel & Lodging Association (AHLA) highlights a discrepancy between actual bookings and Fifa’s claim of over five million tickets sold, a statement that Fifa denies.
Factors such as exorbitant match ticket prices, local transportation expenses, taxes, and the current political climate have deterred potential visitors. This situation has raised worries that the projected economic boost from the event might not materialize as anticipated.
The AHLA, the largest hotel association in the US representing over 32,000 properties and 80% of franchised hotels, also places blame on Fifa for allegedly reserving an excessive number of rooms for its own use, creating an artificial sense of demand.
The AHLA revealed that many hotels across various cities, including Kansas City, San Francisco, Seattle, Philadelphia, Boston, LA, New York, Houston, Dallas, Miami, and Atlanta, reported underperforming bookings. These hotels had made significant investments based on official forecasts, which predicted substantial job creation and economic gains from the World Cup.
Despite Fifa’s rebuttal of the AHLA’s accusations, claiming adherence to contractual agreements with hotel chains, the situation remains challenging. Hotel prices initially surged after the draw announcement but have since decreased by about 20% in recent weeks. Nevertheless, prices in cities like Boston still exceed $300 per night, posing a challenge for budget-conscious fans.
One fan, Chris Hancock, shared his strategy of staying outside city centers to reduce costs and stay within a $75 per person per night budget. The AHLA remains optimistic, expecting occupancy rates to strengthen closer to the tournament dates as more fans finalize their travel plans.
Meanwhile, Airbnb anticipates the World Cup to become its most significant hosting event, surpassing even the 2024 Olympic and Paralympic Games in Paris.
