Hotel bookings for the Fifa World Cup are likely to fall short of expectations as demand for accommodation is not as strong as anticipated, a new report has found.
The American Hotel & Lodging Association (AHLA), which represents major chains, independent hotels, management companies, bed and breakfasts and more across the United States, has released a report on market analysis ahead of this year's World Cup.
After surveying hoteliers across the United States’ host cities, AHLA found that anticipated demand has not translated into strong hotel bookings due to a number of factors.
The report found that 80 per cent of respondents said hotel bookings are tracking below initial forecasts, despite five million tickets sold.
Around 65 to 70 per cent said that this was due to visa barriers and geopolitical concerns, although these factors often rank as a top constraint on World Cup-driven travel.
Forecasts show that domestic travellers are outpacing international travellers, which AHLA says threatens the economic impact the World Cup was expected to generate.
Some host cities are even reporting that bookings below the usual June or July summer demand they have without a major event scheduled, including Kansas City, Boston, Philadelphia, San Francisco and Seattle.
The report also notes that the cost of travel is impacting travellers. The strong dollar, high airfare costs and elevated fuel prices are making the US a more expensive destination compared to past tournaments.
AHLA pointed similarly to the Fifa room block overcommitment, which saw the football organisation reserve thousands of rooms ahead of the games.
AHLA said block reservations were thought to have created an artificial anticipation for demand, with roughly half of respondents saying room blocks have been released back to the hotel, meaning properties will now have to work to fill the rooms themselves.
After Fifa cancelled some hotel block reservations in Dallas and Arlington, it told local Texan outlet KERA that it booked the rooms first for its operations staff and media, and added that it adjusts its reservations as the number of attendees solidifies.
Only around 25 to 30 per cent of respondents are reporting meaningful uplifts, most of which are accommodations with strong leisure demands or confirmed team-based camps such as in Atlanta.
“Hotels across host markets have spent years preparing for the World Cup, and while there is real excitement, the data points to a more nuanced outlook,” said Rosanna Maietta, president & CEO of AHLA.
“A range of factors have tempered early optimism, though forward indicators show there is still meaningful opportunity ahead.
“To fully realise that potential, the US and Fifa must ensure a welcoming and seamless experience for international travellers.
“That means avoiding unnecessary cost increases on visas and transportation to and from the games, and discouraging local jurisdictions from adding last-minute tax hikes that hurt the games and consumers.”
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