United States tourism economy faces inflation and World Cup demand challenges

The economic impact of international tourism in the United States remains below pre-pandemic levels when adjusted for inflation. While travel and tourism-related exports reached $20.9 billion in May 2026—surpassing the $20.3 billion recorded in May 2019—the real economic value is 21% lower than the 2019 level once inflation is accounted for.

Simultaneously, the anticipated economic boost from hosting the World Cup has not yet reached U.S. hotel operators. An American Hotel & Lodging Association survey indicates that room bookings in many of the 11 host cities, including Kansas City, Boston, Philadelphia, San Francisco, and Seattle, are trailing typical seasonal demand. In major markets like New York City, Los Angeles, Dallas, and Houston, demand has remained flat.

Factors contributing to lower-than-expected hotel demand include high tournament ticket costs, transportation expenses, and visa processing concerns. Additionally, some travelers are opting for short-term rentals via platforms like Airbnb and Vrbo instead of traditional hotels. In some instances, hotel operators significantly raised nightly rates in anticipation of the event, which may be deterring potential guests.