Hotel bookings in Canada and Mexico are outpacing all but one American city ahead of FIFA’s biggest soccer competition, which is unfolding across 16 North American cities starting Thursday.
Vancouver and Guadalajara boast the top occupancy rates at 48%, according to CoStar. Toronto, Mexico City and Monterrey are also more than 40%-booked. San Francisco is the only U.S. city to crack that threshold at 44%.
The data firm analyzed hotel business in 14 of the 16 host cities ahead of the games.
Some U.S. hotel owners say they are getting decent rates. But the foreign host cities hold a number of advantages over their American counterparts, including often more rabid soccer fans and overall affordability.
Tickets to this year’s World Cup games in the U.S. reached record-high prices, with dozens of tickets to the final match already selling for more than $20,000 a seat, according to resale tracker TicketData. Transportation costs also soared.
“When it got down to pricing and being able to make those decisions, there were a lot of aspirational travelers who were probably shut out of the marketplace,” said Dave Guenther, president of luxury sports travel company Roadtrips.
Visa concerns and the U.S. political climate that many foreigners perceive as unwelcoming also dissuaded some international soccer enthusiasts from traveling to the U.S.
The disappointing performance by hotels in U.S. host cities reflects a lost opportunity to boost local economies as much as anticipated. Cities have spent hundreds of millions of dollars related to this once-in-a-generation sporting event. Major investments range from security and stadium upgrades to transit improvements and marketing.
Even though ticket prices for the games can be higher in Mexico, Guenther has had plenty of success south of the border. Demand for travel packages to Mexico City, where Roadtrips is working with five hotels including the Four Seasons, has been strong, which he attributed in large part to Latin American fans traveling there.
Short-term rentals in Mexico are also enjoying a big boost. Guest demand growth for Mexican properties was pacing far higher, as of May 26, than other markets on the two nights around matches, according to data tracker AirDNA.
Price is likely a big driver. Short-term rentals in Mexico are booking at far lower rates than American and Canadian cities, with nightly rates around $100 depending on the city compared with around $300 a night in Kansas City, Boston and Miami.
“Those cheap budget places are going first and fastest,” said Bram Gallagher, director of economics and forecasting at AirDNA.
