Pricey World Cup Fails to Deliver Early Travel Boom for US Hotels and Airlines

Pricey World Cup Fails to Deliver Early Travel Boom for US Hotels and Airlines

 NEW YORK, June 11 (Reuters) Just hours before the FIFA World Cup kicks off, the massive tourism surge that hotels, airlines and travel operators had anticipated has yet to materialize, raising concerns about the economic impact of the tournament on the United States travel industry.

For years, the World Cup was expected to generate a significant windfall for American tourism businesses. Instead, many hotels and airlines are reporting weaker-than-expected demand, forcing them to lower prices as international and domestic fans stay away.

Industry analysts point to a combination of factors behind the sluggish start, including expensive match tickets, visa challenges and the complex logistics of traveling between 16 host cities spread across the United States, Canada and Mexico.

"The overall outlook is disappointing," said Vijay Dandapani, CEO of the Hotel Association of New York City. "There's no other word I can use."

The association has slashed its forecast for hotel room revenue linked to the tournament by 60%, reducing expected earnings from the event to approximately $60 million.

Flight Bookings Fall Despite Global Event

New data from aviation analytics firm Cirium shows flight bookings from Europe to most World Cup host cities during June and July are down by an average of 3.8% compared with the same period last year.

The decline is particularly noticeable in New York, which will host the World Cup final on July 19. Bookings from Europe to the city have dropped 15.8%, according to Cirium.

FIFA had projected that around 1.2 million fans would visit New York during the tournament. However, local hotel officials now expect closer to 500,000 visitors.

Dandapani noted there has been a modest increase in recent bookings from supporters traveling from the United Kingdom and Norway, offering a small sign of optimism as the tournament approaches.

Traditional World Cup Travel Model Under Pressure

The slow start suggests the traditional World Cup tourism model may be changing. Historically, international supporters have traveled long distances and spent heavily to follow their national teams throughout the competition.

This year, however, high travel costs, expensive accommodation, elevated ticket prices and visa-related concerns appear to be discouraging many fans from making the trip.

Domestic demand has also failed to compensate for the shortfall. While soccer continues to grow in popularity in the United States, it has not yet generated the same level of nationwide enthusiasm seen in many European and South American countries.

Hotels Hope for Late Booking Surge

Despite the disappointing early numbers, hotels remain hopeful that demand will strengthen as the tournament progresses.

According to hospitality analytics company CoStar, average hotel bookings across World Cup host cities are up only 0.5% compared with a year ago — a far smaller increase than many businesses had expected.

Industry executives are now betting on a late surge in travel after the group stage concludes, particularly if high-profile teams advance deeper into the competition and fan interest intensifies.

One segment that is outperforming traditional hotels is vacation rentals. Companies such as Airbnb have reported record demand linked to the World Cup, suggesting some travelers are opting for alternative accommodation options instead of conventional hotels.

As the tournament begins, the travel industry will be closely watching whether last-minute bookings can rescue what was expected to be one of the biggest tourism opportunities in recent years.