Nearly 80% of hotel operators in nine of the 11 U.S. World Cup host cities in an outlook report said that reservations are “running well behind early projections,” even though “more than 5 million tickets” have already been sold, according to James Franey of the N.Y. POST. FIFA canceled or released “about 70%” of its room blocks, “flooding the market and triggering cancellations of up to 95% of contracted inventory” in some cities. The American Hotel & Lodging Association mentioned that visa delays, concerns about how they would be treated by immigration officials, soaring airfares, a strong U.S. dollar and geopolitical tensions have “kept international travelers home.” Those visitors were “projected to spend an average of $5,048 each” -- 1.7 times more than typical overseas tourists -- with one-third “planning multi-city stays longer than two weeks.” The study added that American fans are “booking, but they cannot make up the gap offered by bigger-spending international supporters.” According to the CoStar data cited in the report, nationwide revenue per available room is “still forecast to rise 1.7% during the June-July tournament window.” Without the World Cup, it shrinks to 0.2%. Hotels had “poured millions into preparations” -- fan zones, multilingual staff, upgraded security and transportation tie-ins -- only to “pause further World Cup-specific spending when reservations stalled.” The report claimed that now state and local tax hikes “threaten to make the slump worse.” Hotels are “still hoping for a last-minute surge once the knockout rounds begin and casual fans commit to travel” (N.Y. POST, 5/4).
ROOM EXPECTATIONS: An AHLA spokesperson added that the report is based on 205 responses from hotel operators and owners, “many of whom own multiple portfolios across multiple World Cup markets.” THE ATHLETIC’s Bushnell & Crafton noted over 70% of respondents in S.F., Seattle, Philadelphia and Boston also reported that booking pace “was below expectations,” with over 60% saying the same in L.A., NYC, Houston and Dallas. The “rosiest outlooks,” were in Miami, where just over 50% of respondents “reported bookings below expectations;” and Atlanta, at just under 50% (THE ATHLETIC, 5/4). Hotel and Lodging Association of Greater K.C. Exec Dir Andrea O’Hara said that World Cup guests who have already secured their rooms “tend to book for a day or two around specific match days, rather than for an extended period of time.” O’Hara: “What we’re seeing in the pattern is some peaks and valleys in between games.” She added that there is “still potential for more long-term stays” at K.C. hotels (K.C. STAR, 5/5).
