U.S. hotels are calling the World Cup a 'non-event' and 80% warn bookings are falling short of expectations, report finds | Fortune

"FIFA predicts games would touch six billion viewers globally, and expects the influx of travelers and tourism will help contribute to a projected $30.5 billion economic windfall for the three host countries of the U.S, Mexico and Canada."

"Of more than 200 hotels surveyed across the 11 U.S. host cities, nearly 80% said hotel bookings are tracking below initial forecasts, a new report from the American Hotel and Lodging Association (AHLA) found. Though FIFA data shows more than five million tickets have already been booked for the event, "indicators suggest the anticipated economic lift may fall short of expectations," the report said."

"Most respondents noted trouble with overseas visitors obtaining visas, in addition to other geopolitical challenges, as the primary factors slowing down travel demand. Other U.S. hotels said FIFA created "an artificial early demand signal" with an overcommitment to hotel blocks."

"In March, FIFA exercised an opt-out clause in its contract and cancelled thousands of hotel rooms in all 16 of the World Cup host cities, including Philadelphia and Dallas, to accommodate shifting demand. According to a FIFA spokesperson, the organization's accommodations team worked closely with hotels to adjust room blocks, including on rates and room types."

FIFA leadership compares the upcoming World Cup’s global reach to multiple Super Bowls and projects billions of viewers worldwide. FIFA also forecasts a $30.5 billion economic benefit for the U.S., Mexico, and Canada driven by tourism and travel. U.S. hospitality groups express skepticism, citing a survey of more than 200 hotels across 11 host cities. Nearly 80% report bookings tracking below initial forecasts, even with over five million tickets already booked. Hotels point to visa difficulties for overseas visitors and other geopolitical factors reducing travel demand. Some hotels also cite FIFA’s early hotel-block commitments as creating an artificial demand signal. FIFA later cancelled thousands of rooms after exercising an opt-out clause and adjusted room blocks with hotels.

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