Nearly 65,000 British football fans heading to the United States for next year’s World Cup are being warned to budget for significantly higher costs than expected, amid concerns over “hidden” taxes, service charges and rising tipping expectations.
New research from tax and compliance technology firm Vertex suggests many travellers are unprepared for the scale of additional charges routinely added to food, drink and hospitality bills in the US — a system that contrasts sharply with the UK, where VAT is typically included in displayed prices.
The findings indicate a growing transatlantic pricing divide that could catch out thousands of travelling supporters during one of the world’s biggest sporting events.
The survey found that 69 per cent of Americans believe tourists are often misled by advertised food and beverage prices because they do not include taxes and additional fees.
More than two-thirds of respondents also said they actively pay attention to taxes and extra charges when travelling, suggesting heightened consumer awareness within the US itself of how quickly costs can escalate.
The issue is particularly relevant for visiting fans, who may assume listed prices reflect the final amount paid — only to discover additional charges at the till.
Alongside taxes and service fees, tipping culture — often referred to in the US as “tipflation” — is expected to add further strain on budgets.
The research suggests that 66 per cent of US customers typically leave a tip of 15 per cent or more when ordering food, with almost a third tipping 20 per cent. A further 5 per cent reported tipping above that level.
For drinks, tipping levels vary but remain significant, with 10 per cent and 15 per cent tips among the most common responses.
This differs from the UK, where service charges are more commonly included in bills and tipping expectations are generally lower.
More than half of those surveyed (56 per cent) believe spectators attending major sporting events will pay more than in previous years, adding to concerns that the World Cup could prove considerably more expensive than anticipated once local pricing practices are taken into account.
With hospitality demand expected to surge during the tournament, analysts warn that prices for food, drink and accommodation could rise further still in host cities across the United States.
For UK supporters used to all-inclusive pricing, the combination of taxes, service charges and tipping expectations is likely to require careful budgeting.
While match tickets and accommodation will remain the largest costs, analysts say day-to-day spending on food and drink could escalate quickly if visitors are not aware of the additional charges applied at point of sale.
With tens of thousands of fans expected to travel, the World Cup is set to be not only a major sporting spectacle — but also a test of how well travelling supporters adapt to America’s more complex pricing culture.
Chris Hall, Senior Tax Officer at Vertex, said: “For many UK travellers, one of the biggest surprises in the U.S. can be that the price you see is not always the price you expect to pay. Sales tax, fees and tipping can significantly increase the final bill.
There are nearly 13,000 U.S. sales and use tax jurisdictions/tax authorities imposing sales taxes that can affect food and beverage taxability, depending on the product, location and whether it is grocery, prepared food, beverage, candy, etc.
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