- Most hoteliers report World Cup bookings below forecasts.
- New York hotel revenue forecast cut by 60 percent.
- AAHOA cites visa barriers as top demand constraint.
"I would not say demand is absent, but the booking pace has been slower and less predictable than what many hotels expected," Patel told ET. "International travellers are paying more attention to visa processing, border policies and travel costs than they have in previous World Cup cycles. Those factors can certainly influence travel decisions."
The numbers tell a similar story. The Hotel Association of New York City cut its forecast for World Cup-related hotel room revenue by 60 percent to around $60 million. FIFA had projected 1.2 million visitors to New York during the tournament, but the city's hotel industry now expects around 500,000.
Flight bookings from Europe to most host cities for June and July are down 3.8 percent from a year earlier, while bookings to New York have fallen 15.8 percent, according to airline analytics firm Cirium. Several New York hotels have cut room rates to attract visitors, with New York Hilton Midtown halving its tournament rates to $415 per night from December levels.
Neal Patel, Blue Chip Hotels managing partner, said the hospitality sector went into the tournament with massive expectations, driven by FIFA's early communications and room block commitments.
"Unprecedented ticket prices are creating severe sticker shock, stringent visa processing and immigration barriers are actively deterring international fans and the broader macroeconomic environment is making travellers cautious. The demand exists, but it's heavily domestic and highly fragmented, lacking the sustained international boom we prepared for,” he said.
Airfares to the U.S. rose sharply from markets like India, partly due to fuel price hikes linked to the U.S. - Iran war. Air India also cut weekly flights to North America, its most important international market, by 39 percent. Ticket prices for the tournament itself have surged, with some final match tickets reported at as high as $7,598.
Govind Gaur, WanderOn, chief executive officer said queries from India were quite active until December last year but dropped significantly from the end of February.
"The U.S. - Iran war, increase in fuel prices and hardened visa policies have dampened demand," he said.
Another report by the AHLA, titled FIFA World Cup 2026 Hotel Outlook, found that 80 percent of hoteliers across 11 host cities reported bookings below forecasts. Between 65 and 70 percent cited visa barriers and geopolitical concerns as the main constraints on international demand. About half reported room block releases after FIFA's early commitments were scaled back.
