Key Takeaways
- Nearly 80 percent of hotels in U.S. World Cup host cities report bookings below projections while short-term rentals surge.
- Hotels raised rates over 400 percent in some markets, pricing out fans who turned to Airbnb and Vrbo instead.
- FIFA canceled 70 percent of hotel room blocks nationwide, creating unexpected inventory that favors flexible STR operators.
Nearly 80 percent of hotels in U.S. World Cup host cities are reporting bookings below projections, while short-term rentals are seeing stronger demand in markets including Kansas City, Seattle, San Francisco, Dallas, and Miami.
In Houston, short-term rental bookings for June and July rose 53 percent year over year, according to an NPR report citing data from the American Hotel & Lodging Association (AHLA).
Airbnb said guest demand during the tournament could surpass the 2024 Paris Olympics, potentially making the World Cup the platform’s largest event to date, even as some host cities report slower-than-expected hotel bookings.
Why hotel bookings are trailing expectations
Industry analysts point to several factors, including visa delays, high travel costs, elevated hotel pricing, and growing competition from Airbnb and other STR platforms.
Some hotels increased room rates significantly ahead of the tournament, leading some travelers to seek lower-cost alternatives. Smith College economics professor Andrew Zimbalist told NPR that regular business travel may also decline during the event because of congestion concerns and shifting tourism patterns.
Related: Early Houston World Cup demand is lower than expected
In March, FIFA released thousands of hotel rooms across all 16 host cities after exercising an opt-out clause tied to reserved inventory blocks. According to the AHLA, roughly 70 percent of FIFA’s group hotel inventory nationwide has now been released back into the market.
Despite more than 5 million tickets sold, many hotels are still reporting booking levels below earlier forecasts.
For STR operators near World Cup venues, the gap between hotel pricing and traveler demand may create an opportunity to capture guests seeking more flexible or affordable accommodations.
