Contrary to initial concerns about an underwhelming World Cup boost, several U.S. host cities, including Philadelphia and Kansas City, witnessed substantial economic benefits. Bank of America data indicates a 6.3% increase in card and debit spending in June, primarily driven by higher spending at restaurants and bars, even before accounting for international visitor expenditures. In-person spending across U.S. host cities rose 5% between June 10 and July 5 compared to the previous year, with economists from Bank of America Institute confirming a visible "World Cup effect" on the ground, especially during the knockout rounds.
Hotels in host cities, while not reaching full occupancy during the group stage (occupancy declined nearly 3% from the prior year during the final week of group play), successfully leveraged increased average room rates, which were 21% higher year-over-year. As the tournament progressed into the knockout rounds, demand strengthened significantly. Between June 28 and July 4, hotel demand increased by 2.4% year-over-year, and Revenue Per Available Room (RevPAR) climbed 23%, despite fewer matches compared to the previous week. Philadelphia, boosted by coinciding Fourth of July celebrations, saw its weekend RevPAR jump over 74%, while Kansas City recorded a nearly 50% increase in RevPAR.
Short-term rentals (STRs) also experienced a rate-driven success. While occupancies in some cities remained flat or even declined year-over-year, AirDNA found that booked rate gains near game days exceeded 30% in nine out of 16 host cities. Kansas City, which reduced its STR registration fees, saw an 80% bump in revenue per available night. Overall, host markets saw RevPAR up 43% and Average Daily Rate (ADR) jump 55% for STRs. Many properties, after initially aggressive pricing, adjusted rates by approximately 30% from their peak to better match actual demand.
Despite a 1.8% year-over-year decline in overseas international arrivals to the U.S. in June, undercutting the "tourism boom" narrative, local businesses benefited from the high spending habits of those who did visit. The U.S. Travel Association estimated that World Cup visitors spent over $5,000 per person, which is 70% more than a typical trip, with about one-third staying for more than two weeks. Lodging Analytics Research & Consulting estimated approximately $1.3 billion in incremental hotel revenues across the U.S. from the tournament, leading to a 1% lift in overall hotel revenues so far this year. However, New York City notably scaled back its estimated room revenue increase from $300 million to approximately $165 million, citing factors like high ticket prices, competition from New Jersey hotels, and macroeconomic pressures.
Analysts noted that the World Cup's biggest economic payoff occurred later in the tournament as fans waited for decisive matches before booking. The continued success of teams like Argentina became a significant travel driver. While the overall impact on major U.S. airlines was negligible, niche operators like Norse Atlantic thrived on fan charters. The tournament, while not the "bonanza" some expected for international arrivals, proved to be a "win both for the overall economy and for local markets," especially the host cities, as stated by Joe Wadford, a Bank of America Institute economist.
