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U.S. Hotel Executives Worry Over International Travel Slump as World Cup Approaches – Image Credit Unsplash
The hotel industry in the United States is experiencing a significant downturn in international inbound travel, raising concerns among executives about the potential impact on upcoming events such as the 2026 FIFA World Cup. Industry leaders cite various factors, including geopolitical tensions and changing travel sentiments, as contributing to the decline.
Current State of International Travel
Trevor Simpson of CoStar reports a widespread malaise in the hotel industry concerning international inbound demand to the United States. This decline has been exacerbated by recent tariffs and an “America First” sentiment from the current U.S. administration, which has deterred international tourists. Many markets have struggled to recover to pre-pandemic levels, and the situation has worsened this year.
Regional Impacts
At a recent Lodging Industry Investment Council meeting, executives expressed concerns about the slow return of international travel. Charles Oswald, CEO of Aperture Hotels, highlighted the decline in demand from Canada and the Asia-Pacific region. He noted that San Francisco hotels have seen a significant drop in visitors from China, with numbers now at just 5% of 2019 levels. Similarly, PM Hotel Group President Joseph Bojanowski pointed out the impact on Hawaii and the Pacific Northwest, where Asian inbound travel has historically driven high average daily rates.
Broader International Trends
The decline in international travel is not limited to Asia-Pacific and Canada. Greg O’Stean, Chief Development Officer at Hotel Equities, mentioned a decrease in visitors from Germany and South America. Amish Naik, Vice President of Development at StepStone Hospitality, emphasized the difficulty in regaining positive international sentiments toward the U.S., particularly from Canada and China. Lori Celniker from IHG Hotels & Resorts echoed these sentiments, noting a lack of desire among Canadians to visit the U.S.
World Cup Concerns
The timing of this decline poses challenges for the 2026 FIFA World Cup, which will feature North America, including 11 U.S. cities, as host venues for matches. Executives at the LIIC meeting expressed concerns about whether international travel will recover in time to meet the anticipated demand for the tournament. While the impact on hotel demand remains uncertain, the release of the World Cup group schedules in December will provide more clarity.
Rate Adjustments and Market Reactions
A pressing issue for hoteliers is the premature reduction of room rates in host cities before the World Cup schedule release. Charles Oswald noted a significant drop in rates in Atlanta, describing it as an overreaction. He emphasized the importance of setting rates based on confirmed schedules to avoid unnecessary losses. Joseph Bojanowski suggested that while larger markets, such as New York City and Los Angeles, might maintain higher rates, smaller markets may experience more modest demand.
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