- Expected World Cup tourism boost yet to materialize.
- New York hotels cut rates to attract visitors.
- Vacation rentals outperform hotels in host cities.
THE WORLD CUP tourism boost expected in the U.S. has yet to materialize. Hotels and airlines in host cities are reporting weak demand due to high costs, visa requirements and travel logistics.
The tournament was expected to boost U.S. travel, but hotels are cutting room rates and flight bookings remain weak as ticket prices rise, according to Reuters.
Analysts say the World Cup's traditional reliance on traveling international fans is under pressure. The Hotel Association of New York City lowered its forecast for World Cup-related hotel room revenue by 60 percent to about $60 million.
"It is overall a disappointment. There's no other word that I can say," Vijay Dandapani, CEO of the association, told Reuters.
Airline analytics firm Cirium data show 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, host of the July 19 final, have fallen 15.8 percent.
FIFA projected 1.2 million visitors to New York during the tournament, but the city's hotel industry now expects about 500,000, Dandapani said. He cited an uptick in bookings from fans in the United Kingdom and Norway as a "positive sign."
Hotels are hoping for a pickup in demand, but CoStar data show bookings across host cities are up just 0.5 percent from a year earlier.
Several New York hotels have reduced room rates to attract visitors, Reuters reported.
Dandapani told Reuters that New York Hilton Midtown halved tournament room rates to $415 per night from December levels.
Meanwhile, soccer fans cite cost as a major obstacle.
"Some fans are skipping the World Cup altogether," Andy Milne, an England supporter and author of “That World Cup Guy,” told Reuters. "Friends of mine are heading to Ibiza to watch every match on TV for a fraction of the price. Others are going to Vegas. It'll still cost money, but far less than tickets, travel, hotels and transport to the stadiums."
Reuters reported that visa requirements and the cost of attending matches across 16 host cities in three countries have weighed on demand, while U.S. travelers have not filled the gap.
FIFA's ticketing policies have drawn criticism after organizers introduced higher base prices, dynamic pricing and uncapped resale pricing, according to Reuters. TicketData shows the cheapest tickets in cities such as New York and Miami now approach $1,000.
Vacation rentals have bucked the trend. AirDNA data show bookings, particularly for budget and economy rentals, are running higher in host cities including Boston and Los Angeles.
“There is way more leisure demand in all these cities because of the World Cup. That is unmistakable,” Jamie Lane, chief economist at AirDNA, told Reuters.
Airbnb told investors in May that the World Cup is on track to become its largest event ever.
A separate SiteMinder report found U.S. hotels are poised for a stronger summer, with September reservations up 11.8 percent from a year earlier and room nights rising 11.5 percent.
