With the 2026 North and Central America World Cup approaching, the U.S. hotel industry, which had expected a "World Cup boom," is on alert. As demand falls short of expectations, hotel room rates in host cities are dropping quickly.
The Financial Times (FT) reported on the 15th, citing data from analytics firm Lighthouse Intelligence, that game-day room rates in major host cities such as Atlanta, Dallas, Miami, Philadelphia and San Francisco have fallen 30% from early this year. Scott Yesner, founder of Philadelphia lodging management company Bespoke Stay, said, "As panic spreads across the industry, prices are being cut competitively."
At first, the hotel industry expected this World Cup, co-hosted by the United States, Canada and Mexico, to be a savior that would revive U.S. travel demand, which declined last year. The Fédération Internationale de Football Association (FIFA) also was confident of drawing hundreds of thousands of visitors. FIFA President Gianni Infantino had said, "Even if they don't watch the games, there will be far more people who just want to enjoy the atmosphere." In reality, however, even FIFA is said to have canceled a significant number of hotel rooms it had secured.
The biggest reason for weak demand is the expense burden. According to Football Supporters Europe (FSE), following a team through the final at this tournament requires at least $6,900 (about 10.2 million won) just for tickets. That is roughly five times the level of the 2022 Qatar World Cup. On top of that, concerns about inflation stemming from the Middle East war and higher airfares due to rising oil prices have added to soccer fans' burdens, FT analyzed.
Political factors also appear to have played a role. Analysts say the strict visa policy of the Donald Trump administration and geopolitical tensions from conflicts with Iran are damping demand from overseas tourists to visit the United States. Tourism Economics cut its forecast for this year's U.S. visitor growth rate to 3.4% from 3.9%.
Industry responsibility is also being raised. The strategy of pushing high-priced premium rates and minimum-stay requirements in anticipation of a World Cup windfall instead suppressed demand and shifted some fans to shared lodging such as Airbnb, critics said. Alan Ryans of Tourism Economics noted, "It seems hotels thought they could demand excessively high prices," adding, "Expectations were out of step with reality."
The U.S. hotel industry is now pinning hopes on domestic demand or a last-minute booking surge instead of international travelers, but analysts say there are limits to reversing already slowed demand. Some experts also suggest that European fans may skip this tournament and opt for the 2030 World Cup in Spain, Portugal and Morocco.