U.S. hotels say the economic benefits promised by the World Cup have yet to materialize.
NEW YORK (AP) — Promised economic benefits world cup No As expectedat least not yet, for American hotels.
Most of the 11 U.S. cities hosting the world’s most watched sporting events are seeing lower-than-expected room bookings, According to a survey in April By the American Hotel & Lodging Association.
In several cities, including Kansas City, Boston, Philadelphia, San Francisco and Seattle, most hoteliers say bookings are actually lagging behind typical seasonal demand. In other areas, such as New York, Los Angeles, Dallas and Houston, demand so far is on par with normal conditions in the spring and summer, the association said.
hotel association accuses International fans worry about travelworried about U.S. visa wait times and the cost of competing – including high ticket prices and transit fee In some cities, this is a major factor in lower than expected demand.
“I think everyone expects these games to bring in a lot of bookings, but with everything that’s going on around the world and the U.S. being involved, it’s going to be different for everyone,” said Michael Black, general manager of the Cloud One Hotel in Manhattan.
Concerns about lower-than-expected bookings also spread to Mexico, which co-hosts the Games with the United States and Canada. Hotel reservation rates in Mexico City, which hosts the World Cup opener on June 11, are about 30% to 36%, according to the Mexico City Hotel Association.
High price may be a factor
After the game schedule was announced, many hotels raised their prices because they expected fans would pay the high prices if they could buy tickets to the games.
For example, a hotel near MetLife Stadium in New Jersey typically charges about $200 a night, but around the time of the World Cup in June it was advertising $800. Nightly rates soared to more than $1,300 before the July 19 finale.
Ronan Even, executive director of the German-based fan advocacy group European Football Supporters, said many seasoned fans may still be waiting for prices to drop.
“Fans who are used to traveling for games know that price is always going to come down,” Evan said. “There are many examples of hotel owners regretting pricing too high and then panicking at the last minute and cutting prices.”
Others may have found cheaper accommodation away from the stadium or through Airbnb and other short-term rental platforms, he added.
In fact, the metropolitan areas surrounding Kansas City, Seattle, San Francisco, Dallas/Fort Worth, and Miami/Ft. Short-term rental bookings in Fort Lauderdale are up compared to this time last year, according to a recent report from AirDNA, a rental data company that tracks Airbnb and Vrbo bookings.
Airbnb said last week that the number of guests staying at its rental properties during the event is expected to exceed previous estimates and even eventually surpass the 2024 Paris Olympic and Paralympic Games, making it the largest host event in the company’s history.
unrealistic expectations
According to FIFA, more than 5 million tickets have been sold for the event so far, and more than 6 million tickets are expected to be sold for all 104 games.
Andrew Zimbalist, an economics professor at Smith College in Massachusetts, said that while many people attending the games are tourists in need of hotel rooms, global events like the World Cup also tend to discourage other types of visitors.
“The general problem is that football tourists – and the expected congestion, high prices and safety concerns – hinder normal business travel and tourism,” he explained.
Vijay Dandapani, president of the Hotel Association of New York City, said summer bookings at city hotels were up slightly, about 10% compared with last year, but nowhere near the windfall promised by FIFA and other tournament backers.
Paul Hawes, CEO of the Hotel Association of British Columbia, said hotel occupancy rates in Vancouver, Canada, which hosts seven games, are down from the same period last year, but the industry is optimistic that business will pick up closer to the games.
In Kansas City, about 90% of respondents to an American Hotel & Lodging Association survey said bookings were lower than expected, but tourism officials are still holding out for record-breaking visitor numbers.
“While Kansas City’s hotel occupancy rates are not following the trajectory originally predicted by FIFA, positive indicators are on the horizon for Kansas City,” said Derik Detter, director of market research at Visit KC.
Jon Bortz, CEO of Pebblebrook Hotel Trust, a real estate investment company that owns dozens of hotels across the country, was similarly positive.
Overall, he said, property occupancy rates in many host cities are up compared to last year, although he acknowledged that cities like Boston that host large games are doing better than cities like San Francisco that host less demanding games.
“We haven’t seen anything that would make us think it would be lower than we expected,” he said. “Maybe others had grander expectations.”
Associated Press reporters David Skreta in Kansas City, Missouri, Carlos Rodriguez in Mexico City and Jim Morris in Vancouver contributed to this report.
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