North American World Cup Host Cities Need Money for Tourists

25.08.2023 - 13:11 / skift.com / Rashaad Jorden / Monica Paul

Good morning from Skift. It’s Friday, July 21. Here’s what you need to know about the business of travel today.

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Destinations across the U.S., Canada and Mexico are ramping up their preparations to welcome soccer’s World Cup in 2026. And they’ll need a substantial influx of money to make hosting the event a success, writes Global Tourism Reporter Dawit Habtemariam. 

Officials at this week’s Destinations International Annual Convention addressed the challenges of welcoming thousands of visitors for the World Cup. Each of the 11 U.S. host cities is responsible for finding ways to pay for tournament-related expenses. Monica Paul, executive director of the Dallas Sports Commission, said the U.S. federal government doesn’t assume most of the cost of major international sporting events, unlike in other countries. 

Visit Kansas City CEO Kathy Nelson acknowledged the difficulties of securing the funding for World Cup-related operations. Nelson said the organization has to appease governors from both Kansas and Missouri, adding that it’s the most contentious issue she’s ever experienced. 

Next, several vacation rental markets that experienced a major post-Covid boom are feeling the effects of oversaturation. That’s causing rental rates to plummet and driving investors to sell their properties, writes Short-Term Rental Reporter Srividya Kalyanaraman. 

Kalyanaraman cites Palm Springs, California as one destination where the surge of licensed vacation rental properties has helped contribute to falling rental rates. She also notes that a growing number of investors in short-term rental properties are looking to exit the sector. Christopher Ledwidge, executive vice president of wholesale mortgage seller TheLender, said supply for rentals went up, and there was a slight drop in demand. Ledwidge also acknowledged that the cost of operating rentals has increased. 

Finally, American Airlines has raised its earnings outlook for 2023 after reporting a strong second quarter, writes Reporter Jess Wade.

The company now expects to earn between $3 and $3.75 per share, an increase from its previous forecast of between $2.50 and $3.50. American said on Thursday it generated a little more than $14 billion in revenue during the second quarter, its highest-ever quarterly revenue. The company also recorded a $1.4 billion profit that Wade notes was made possible in part by a 35% decline in average jet fuel prices.