ANALYSIS: Pricey World Cup keeps fans away, hits US hotels, airlines

NEW YORK — Hours before the World Cup kickoff, the boost to travel and tourism expected from the year’s biggest sporting event has yet to fully materialize.

For years, the tournament was expected to deliver a windfall for the U.S. travel industry, which is now grappling with declining international visitors amid what rights groups describe as a climate of heightened caution and uncertainty.

The surge of fans that hotels had anticipated has not arrived in expected numbers, forcing many properties to cut rates. Flight bookings have softened as ticket prices have risen sharply. Expensive match tickets have further dampened demand, and industry analysts say overall excitement appears more muted compared with previous World Cups.

The weak start suggests that the traditional World Cup travel model—reliant on international fans willing to travel long distances and spend heavily to follow their teams—may be losing strength. High costs, visa requirements, and the complexity of attending matches across 16 host cities in three countries have discouraged many potential visitors.

U.S. travelers, in a country where soccer remains less popular than in Europe and Latin America, have not been enough to offset the gap in international demand.

“It’s overall a disappointment. There’s no other word that I can say,” said Vijay Dandapani, CEO of the Hotel Association of New York City. He said the association has cut its forecast for World Cup-related hotel revenue by 60%, to roughly $60 million.

The International Federation of Association Football (FIFA) declined to comment.

Last-minute demand yet to materialize

Flight bookings from Europe to most host cities for June and July are down an average of 3.8% year-over-year, according to Cirium, even after a broader pullback in European travel to the United States last year. Bookings from Europe to New York, which will host the July 19 final, have dropped 15.8%.

FIFA had projected about 1.2 million fans would descend on New York City alone. However, the hotel association now expects closer to 500,000 visitors, according to Dandapani.

He noted a small recent uptick in bookings from fans in the United Kingdom and Norway, calling it a “positive sign.”

Hotels are still hoping for a late surge after the group stage concludes, despite early indicators remaining weak. Across host cities, average bookings are up just 0.5% compared with a year earlier, according to CoStar.

Some hotels are already discounting rooms. Dandapani said the New York Hilton Midtown, the city’s largest hotel, has cut World Cup rates by about half to $415 per night compared with earlier advertised prices.

Hilton said in April that it was seeing strong bookings driven by New York, while Marriott noted in May that “there is still a lot left to book” as later-stage matchups had not yet been finalized. Hilton declined further comment, and Marriott did not immediately respond to requests.

“Some fans are skipping the World Cup altogether,” said Andy Milne, an England supporter and author of That World Cup Guy. “Friends of mine are going to Ibiza to watch every match on TV for a fraction of the price. Others are heading to Las Vegas. It still costs money, but far less than tickets, travel, hotels, and stadium transport.”

Even affluent travelers—who typically support luxury sports tourism—are delaying bookings until matchups become clearer or their teams advance, according to luxury travel companies.

High ticket costs and visa hurdles weigh on demand

Fans from more than half of qualified countries require visas to enter the United States, adding cost and uncertainty for travelers already concerned about stricter border enforcement. In one recent case, U.S. authorities denied entry to a Somali referee over alleged security-related concerns.

FIFA’s ticketing strategy has also faced criticism. Organizers introduced record-high base prices and dynamic pricing, which increased costs as the tournament approached. Expanded resale flexibility has further driven up secondary market prices and drawn regulatory scrutiny.

The cheapest tickets in major host cities such as New York and Miami now approach $1,000, according to TicketData.

Even if prices fall closer to key matches, analysts say last-minute demand may remain limited because international travelers still face visa processing delays, high airfare, and complex logistics.

Vacation rentals, however, are showing stronger momentum. Airbnb said the World Cup is on track to be its largest-ever event. Data from AirDNA shows bookings are rising in several host cities, particularly for budget and mid-range rentals.

Average daily rental rates across host cities are currently about $218, though new bookings are averaging around $335 as of June 8, reflecting rising last-minute pricing.

“There is significantly more leisure demand in these cities because of the World Cup. That is unmistakable,” said Jamie Lane, chief economist at AirDNA.

Despite uneven hotel performance, short-term rentals and select urban markets continue to show pockets of strength as the tournament approaches. -Reporting by Doyinsola Oladipo in New York and Aishwarya Jain in Bangalore; Additional reporting by Shivansh Tiwary; Editing by Sayantani Ghosh/Reuters