2026 World Cup sparks uneven hotel price surge amid tourism slump

In this week’s roundup of the most important developments in the hotel and hospitality sector, we spotlight the key partnerships, brand launches, and policy changes shaping the industry’s future. From Wyndham’s alliance with Ovolo to Dusit’s expansion into France and Landingplace’s forward-thinking midscale concepts, these stories reflect a rapidly evolving landscape driven by experiential travel demand, operational efficiency, and tech-enabled growth.

The 2026 World Cup is providing a notable boost to hotel rates and economic activity in U.S. host cities, despite an ongoing slump in international travel to the country. While significant gains are evident in some cities, others are still awaiting a similar uplift in bookings. The tournament is projected to inject $30.5 billion into the economy, yet challenges persist due to a broader downturn in U.S. inbound tourism and complications such as visa logistics and price inflation.

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Data from the National Travel and Tourism Office illustrates a decline in international travel to the U.S. this year, with a 4% drop as of July 2025 compared to the previous year, significantly impacting non-event tourists. The uneven benefit from the World Cup reflects the current challenges in the tourism sector, which continues to battle political and trade tensions, posing hurdles for the comprehensive spread of economic benefits beyond the host cities. As anticipation builds, the question remains whether the World Cup can offset the ongoing weaknesses in the U.S. travel industry.

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U.S. hotel industry experiences minimal decline in RevPAR amid ongoing challenges

The U.S. hotel industry saw a 0.9% decline in revenue per available room (RevPAR) in October, marking the fifth consecutive month of downturns; however, this was the smallest decline in the period, indicating potential recovery. The downturn was primarily due to a 1.6 percentage-point drop in occupancy, the steepest seen in eight months. Despite these challenges, an increase in the average daily rate (ADR) by 1.5%, the highest in six months, provided some relief, although it remains below inflation rates.

The government shutdown from October 1 to November 12 was initially thought to deter hotel performance, but deeper analysis reveals it wasn't the main factor; demands were already dropping pre-shutdown. Hurricane impacts in 13 markets further exacerbated the scenario, accounting for over 57% of total U.S. room demand declines for October, especially impacting areas like Washington, D.C. Conversely, the top 25 U.S. markets excluding hurricane-struck areas saw a 0.5% RevPAR increase, with strong conventions in cities like San Francisco boosting performance.

Group demand in luxury and upper-upscale hotels was nearly stagnant with a slight 0.4% decline, though luxury-class hotels achieved a 3.7% increase in RevPAR. Looking ahead, U.S. hotel forecasts for 2025 and 2026 have been revised downward, anticipating further decline in RevPAR in late 2025 and early 2026, with expectations of recovery by mid-2026. Globally, there is more optimism, as many regions continue to exhibit positive growth trends, despite specific areas showing signs of weakness.

Travel shifting trends revealed in Tripadvisor's Winter Index

Tripadvisor's latest Winter Travel Index indicates a significant increase in travel plans for the upcoming winter season, with 60% of travelers intending to take trips and a 45% rise in bookings compared to the previous year. Despite ongoing economic uncertainties, the surge reflects renewed confidence in spending, as 52% plan to allocate more funds for travel this year. Preferences include both cold urban destinations like New York City and London, and warm-weather escapes such as Cancun and Bangkok, showcasing a diverse range of interests.

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Activities remain a focal point in travel planning, with 93% of travelers considering cultural sightseeing, nature exploration, and shopping significant. Generational differences suggest that Gen Z and Millennials gravitate towards engaging activities, whereas older generations prioritize relaxation. Furthermore, the holiday season's influence is apparent, with 86% considering it in their travel decisions, often driven by family connections and cultural experiences. These findings derive from a comprehensive Consumer Sentiment Survey through Morning Consult and encompasses data from multiple countries.

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Strategic business travel management boosts company revenue

A recent study by the Global Business Travel Association (GBTA) and the American Society of Travel Advisors (ASTA) reveals that U.S. companies with well-managed business travel programs can achieve up to 30% higher revenue compared to their peers. The research analyzed over 3,200 U.S. firms across 17 industries, showing a clear link between strategic travel management and improved company performance. Insights from the study spotlight a 0.20% revenue increase for every 1% rise in managed travel spending, emphasizing the importance of flexible yet disciplined travel policy frameworks.

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The study, titled "Quantifying the Return on Investment of U.S. Business Travel: Company Benchmarking Analysis," offers actionable data for organizations to enhance their travel spending. Factors such as firm size, industry variations, and travel policy design significantly influence travel expenditures and returns. For instance, larger firms enjoy economies of scale, while smaller firms often rely heavily on travel for growth. Notably, a strategic approach to business travel, balancing policy controls with flexibility, emerges as a common characteristic among growth-oriented enterprises, highlighting the necessity of data-driven benchmarking to optimize investment value.

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UK government introduces controversial holiday tax

The UK Government has reversed its previous stance and decided to introduce a holiday tax, aiming to increase revenue but potentially raising domestic travel costs significantly. This decision, made unexpectedly after prior assertions that no such tax was forthcoming, could lead to an additional £518 million in costs for UK tourists, according to UKHospitality. Concerns have been raised about inflation, as businesses may pass these costs onto consumers, effectively increasing the VAT rate for tourists to potentially 27%—one of the highest in Europe.

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The proposed tax rates would surpass those in major European cities like Paris, Barcelona, and Rome, potentially affecting the competitiveness of UK's tourism industry. Visit Britain data highlights that UK residents made over 89 million overnight trips within England in 2024, indicating the potential scale of the impact on domestic tourism. UKHospitality has voiced strong opposition, citing conflicts with the government's efforts to reduce the cost of living and plans to engage with the government on these economic consequences. However, the government plans to pause for consultation before finalizing the tax's implementation.

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London plans tourist tax to align with global destinations

London is expected to introduce a tourist tax, which would align the city with other global destinations that charge overnight visitors. The move could have a modest impact on price-sensitive demand, driven by new administrative costs for hotels and travel operators. Supporters highlight the potential for targeted funds to enhance services and marketing, although actual effects will depend on the levy’s structure, exemptions, and the reinvestment strategy for the collected revenue.

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Typically, a tourist tax manifests as a per-night charge, similar to fees in other European cities. While advocates argue it supports visitor infrastructure, opponents fear it might reduce competitiveness among budget-travelers, especially during off-peak seasons. Effective application involves critical decisions like whether to use a flat or percentage-based charge and including exemptions to balance impacts on diverse guest demographics. Operational challenges include implementing billing systems and compliance measures, especially for smaller operators.

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Significantly, the tax's acceptance could grow if revenues are transparently reinvested in the visitor economy, such as improving safety and transport. While unlikely to affect airlines directly, tour operators might adjust strategies—potentially curtailing London stays or redirecting tourists to tax-free zones, indirectly affecting spending in other industries. A well-executed levy could thus boost overall demand by enhancing visitor experiences, while a poorly designed one risks shifting demand to alternative destinations.

Google's AI tool aims to transform travel booking

Google is developing an agentic AI tool to help users book flights and hotels, partnering with major OTAs and hotel groups. This initiative seeks to simplify and enhance the booking experience by aggregating offers and enabling real-time pricing. Google has stated it will not become an online travel agency, thereby not acting as the merchant of record, which addresses some investor concerns amid declining travel company shares.

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This development may lead to decreased website traffic for travel companies as Google's ecosystem could capture more bookings directly. While the AI currently operates under user guidance, it is anticipated to gain more autonomous features by 2026, signaling a significant shift in the travel industry landscape. This evolution reflects Google's strategic move to remain central in the travel planning process without directly disrupting the existing OTA market.‍