Have you ever planned part of a vacation stay around a free breakfast? Whether it’s sitting down for eggs and waffles or having a coffee and banana to go, complimentary morning meals are a key factor for many travelers when choosing a hotel. Unfortunately, as we head into the summer travel season, some popular hotel brands are reconsidering this popular perk.Take, for instance, Hyatt Place—one of Hyatt’s largest select-service brands—which has long been known for offering complimentary breakfast. But that’s changing at more than 40 U.S. properties, where a pilot program launched in November has removed free breakfast for all guests. The website now states, “Free breakfast at most hotels.” Instead, these hotels offer rate options: some include breakfast, others do not, and guests can pay separately if they wish. Hyatt Globalist members still receive the free breakfast benefit. Hyatt did not respond to Fortune’s request for comment on whether the pilot program has expanded.
Industry analysts have confirmed that a number of hotels are moving to limit or eliminate what guests can munch on in the morning.
“We are aware that some brands have been testing room rate structures inclusive or exclusive of breakfast, grab-and-go options, or programs where complimentary breakfasts are only offered to loyalty members,” Rachael Rothman, head of hotels research and data analytics at CBRE Group, told Fortune.
According to Zach Demuth, global head of hotels research at JLL, Hyatt Place targets value-driven, price-sensitive guests—often longer-stay travelers who prefer larger rooms in secondary markets. At the pilot hotels, guests who opt out of breakfast get discounts or extra loyalty points. Demuth noted, “That consumer is heavily driven by value, specifically price value.” He added it’s too early to judge the program’s success, but Hyatt and others believe replacing free breakfast with alternative benefits could boost demand.St. Regis Macao, part of the Marriott Bonvoy portfolio, is also testing changes. As of March 1, complimentary breakfast was eliminated for Marriott Bonvoy Platinum, Titanium, and Ambassador members at this property. Instead, eligible guests receive bonus points or a local amenity, and Platinum status and above members receive a breakfast discount. On the dining page of the hotel’s website, under “Frequently Asked Questions,” it now states: “Complimentary breakfast is not currently served at The St. Regis Macao.” A Marriott representative told Fortune this is a property-specific test, not a broader brand policy.
Demuth said luxury travelers often don’t value free breakfast as much as other perks. “For luxury brands, giving top-tier loyalty members free breakfast really doesn’t do anything for that member—basically, they could care less,” he said.
Why breakfast still matters
Despite these pilots, Rothman emphasized that major global hotel brands are not eliminating complimentary breakfast across the board. “Breakfast is a cost [for hotel brands], without a doubt, but it can also be a key differentiator and can create value through higher rates and higher occupancy levels,” she said.
CBRE research shows that hotels offering complimentary breakfast outperform those that don’t, with revenue per available room (RevPAR) growth more than doubling that of brands without the amenity since 2013. (The data is based on the public filings of Choice, Hilton, Hyatt, IHG Hotels & Resorts, Marriott, and Wyndham.) This may explain the outperformance of upper-midscale brands, which are more likely to offer breakfast, according to the report.
So why are some brands testing the removal of free breakfast? Demuth explained that many guests prefer to explore local dining rather than eat at the hotel, making complimentary meals less of a draw and more of a cost. “The reality is that, sure, breakfast at a hotel is great, but that doesn’t necessarily allow you to experience the destination,” he said.
For now, complimentary breakfast remains a staple at most major hotel brands, but shifting guest preferences and rising costs are prompting some properties to experiment with new models. Whether these changes catch on more broadly remains to be seen—but for many travelers, that early-morning hotel breakfast is still part of the journey.
This story was originally featured on Fortune.com
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