World Cup Drives Up Hotel Prices in Host Cities

2 weeks ago 0

Hotel prices in all 16 cities hosting the FIFA World Cup have surged, with rates much higher compared to the same time last year, as reported by FCM Consulting. Thirteen of these host cities have experienced a night-by-night increase of at least 80%. With the tournament set to begin soon, it is poised to be the largest World Cup ever. The event will unfold across the United States, Canada, and Mexico. Although expected to significantly benefit the U.S. economy, there are worries that high ticket and hotel costs might deter fans from attending.

Why It Matters

The demand for tickets has been somewhat sluggish. Newsweek reported that resale prices for some matches have dropped sharply. One group-stage game now costs under $100, and many games still have over 1,000 tickets available. Thousands of tickets remain unsold across the host cities. U.S. cities rank highest in unsold tickets, but most surplus tickets are for low-demand matchups. U.S. President Donald Trump commented on the ticket cost for the U.S. team’s opening game against Paraguay, saying, “I wouldn’t pay it either, to be honest with you.”

Cities With Biggest Hotel Price Increases

The trend of costly tickets is reflected in hotel pricing. The average night rate stands at around $499 across host markets, a rise from $438 before the tournament schedule was released, according to the FCM Consulting report. Match nights see an average rate of $524, versus $398 on non-game nights. The U.S., hosting most of the tournament’s games, shows significant variation in hotel rates.

Boston tops U.S. markets with an average nightly rate of $611, followed by New York/New Jersey at $593. Conversely, Houston offers the most affordable rates, averaging $205 per night. Vancouver leads as the priciest host city overall, with average rates near $890, partly due to its limited hotel supply, offering around 22,700 rooms.

Mexico’s host cities are witnessing the highest percentage hikes, though they started from much lower base prices. In Guadalajara, rooms that averaged $90 last summer are now $511, marking the largest overall price increase among host cities.

Low Hotel Bookings

Hotel bookings are below expectations for the World Cup period, say city hotel owners and representatives from the hospitality industry who spoke with Newsweek. The American Hotel and Lodging Association found that bookings are lagging 80% below initial projections. In response, the U.S. State Department eased travel restrictions for attendees, waiving a $15,000 deposit requirement for visa applicants from 50 countries if they hold a valid World Cup ticket.