The FIFA World Cup 2026 was expected to be a once-in-a-generation windfall for the US hospitality industry. With the tournament expanding to 48 teams and 104 matches across North America, hotel operators across the United States anticipated sold-out inventory, soaring room rates, and a surge in international arrivals. However, less than a month before kick-off, many hotel owners and operators say the promised tourism boom has yet to materialise.

According to recent reports from the American Hotel & Lodging Association (AHLA), hotel bookings in most US host cities are tracking below expectations despite strong ticket sales for the tournament. The development is raising concerns among hospitality stakeholders, destination marketing organisations, and tourism boards that geopolitical uncertainty, visa barriers, and rising travel costs are dampening inbound demand.

The concerns are particularly striking because FIFA and tourism authorities had projected the World Cup would inject billions into the US economy and generate massive occupancy gains across key gateway cities including New York/New Jersey, Los Angeles, Dallas, Houston, Seattle, Kansas City, San Francisco, Boston, Miami, Philadelphia, and Atlanta.

Hotel Occupancy Falling Short of Expectations

An April AHLA survey covering more than 200 hotels across the 11 US host cities revealed that nearly 80% of operators believe bookings are lagging initial forecasts. Some destinations reported demand levels below regular summer averages, contradicting earlier assumptions that World Cup travel would create unprecedented compression across the hospitality sector.

Kansas City, Boston, Philadelphia, Seattle, and San Francisco emerged among the markets seeing the weakest early booking performance. In several cases, FIFA reportedly released previously blocked hotel inventory back into the market due to slower-than-expected pickup.

FIFA ticket sales remain strong, but fans appear increasingly cautious about committing to long-haul travel to the United States. International travellers are booking later than usual, shortening booking windows and creating uncertainty for hotel revenue managers.

The situation has led some US hotel executives to describe the World Cup as potentially becoming a “non-event” from a hospitality demand perspective, particularly compared with earlier projections promoted by FIFA and local organising committees.

Visa Delays and Geopolitical Tensions Impacting Demand

One of the biggest concerns raised by hotel operators is the impact of stricter US immigration and visa policies. Reports indicate that visa processing delays, expanded vetting requirements, and uncertainty surrounding entry rules are discouraging travellers from key football markets.

The Trump administration’s Visa Bond Pilot Program also created negative headlines globally after requiring visitors from some countries to pay bonds ranging between US$5,000 and US$15,000 to secure tourist visas. Although exemptions were later introduced for certain World Cup ticket holders, the policy reportedly damaged traveller confidence.

Travel industry executives warn that the combination of stricter border controls and heightened geopolitical tensions — including the ongoing Iran conflict — is affecting consumer sentiment around travel to the US. Some international fans are instead choosing to attend matches in Canada or Mexico, which are co-hosting the tournament.

For destinations like the San Francisco Bay Area, concerns extend beyond visas alone. Hotel operators there say international booking volumes remain well below expectations, particularly from Middle Eastern and Asian source markets traditionally associated with high-spending travellers.

Rising Costs May Be Pricing Fans Out

Another factor impacting demand is pricing. Airfares to the US remain elevated, while some hotels in host cities significantly increased rates in anticipation of tournament demand. Industry observers now believe some properties may have overestimated what travellers were willing to pay.

Reports suggest hotels near New Jersey’s MetLife Stadium were charging upwards of US$1,300 per night during peak match periods. Similar pricing spikes have been observed in Dallas, Miami, and Los Angeles.

Hospitality analysts say these aggressive pricing strategies may have backfired by pushing travellers toward alternative accommodation platforms such as Airbnb and short-term rentals. Airbnb bookings linked to the World Cup are reportedly outperforming traditional hotel bookings in several host cities.

The trend mirrors what has occurred during previous mega-events, where travellers increasingly seek flexible and lower-cost accommodation options outside the conventional hotel sector.

Domestic Travel Replacing International Visitors

Another emerging pattern is the dominance of domestic travellers over international fans. AHLA’s findings indicate that US-based travellers are currently driving most bookings, while the anticipated wave of overseas football supporters has not yet arrived at expected levels.

For the hospitality industry, this presents a challenge because international visitors typically stay longer and spend more on accommodation, dining, shopping, and entertainment. Domestic travellers, while still valuable, often generate shorter stays and lower overall destination spend.

Tourism economists also note that mega-events can displace regular business and leisure travel. Some corporate travellers may avoid host cities during the tournament period due to congestion and higher prices, offsetting potential gains from football fans.

Optimism Remains for Late Surge

Despite current concerns, many tourism authorities and hotel operators remain cautiously optimistic that demand could still accelerate closer to the tournament.

Kansas City tourism officials argue that airline bookings, fan festival registrations, and flight demand indicate strong underlying interest that has not yet fully translated into hotel reservations.

Boston has also reported an upward trend in June and July bookings compared with last year, suggesting some markets may still benefit as travel dates approach.

Industry stakeholders point out that international travellers are increasingly making last-minute bookings due to economic uncertainty and flexible travel habits developed during the post-pandemic era.

Nevertheless, the current booking slowdown has become a warning sign for destination planners globally. Hosting mega sporting events no longer guarantees automatic hotel occupancy gains, especially amid geopolitical instability, rising travel costs, and changing consumer booking behaviour.