World Cup: FIFA, US hotels clash over canceled booking reservations, pricing
Gilbert Ekugbe
A dispute has emerged between the hotel industry and FIFA over how accommodation for the upcoming World Cup has been managed, with hotels claiming that large-scale room reservations distorted demand forecasts and created what they describe as “artificial demand”.
The American Hotel & Lodging Association said hotels across the United States made long-term investments based on official projections tied to the tournament, but argue that early booking patterns by FIFA disrupted the market.
As reported by BBC Sport on Wednesday, the association said “The large-scale bookings made by FIFA in all cities shaped revenue forecasts, staffing plans and preparations. This booking policy ‘manufactured artificial demand’ and masked the fact that tourist flow is going to be lower than predicted.”
It also claimed that up to 70 percent of rooms initially reserved by FIFA in cities including Boston, Dallas, Los Angeles, Philadelphia and Seattle have since been cancelled.
FIFA rejected the allegations, insisting its booking process followed agreed procedures with hotel partners.
A FIFA spokesperson said: “All room releases were conducted in line with contractually agreed timelines with hotel partners — a standard practice for an event of this scale.”
The spokesperson added: “In many cases, room releases were made ahead of established deadlines to further accommodate requests from hotels. Throughout the planning process, FIFA’s accommodations team maintained consistent discussions with hotel stakeholders, including room block adjustments, agreeing to rates, confirming room types and regular reporting, supported by townhall and ongoing communication.”
Prices in host cities rose sharply after the World Cup draw, when fans learned where their teams would be playing. While rates have eased by around 20 percent in recent weeks, accommodation in major cities remains expensive.
Rooms in places such as Boston are still averaging more than $300 (£224) per night, forcing many supporters to look further outside city centres for cheaper options.
An England falcon Chris Hancock, who has attended four previous World Cups, said fans are adapting their travel plans to stay within budget.
“We always tend to stay out of town a little bit and cut the cost that way, so we’re not in the middle of Dallas, Boston or New York,” he told BBC Sport.
“If you’re out of the city centres where everything’s happening, you can get some cheaper deals,” he added. “We’re working within that budget. And at the minute we should be well under that.”
Despite the disagreement, the AHLA said it expects demand to strengthen as the tournament approaches.
“We know that many fans are still waiting on tickets and schedules to become clearer before finalising plans,” the association said. “We believe bookings will pick up in the weeks ahead. Hotels are ready to welcome guests and ensure that they have the best possible experience.”
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