Hyatt is Testing Elimination of Free Breakfast at Hyatt Place Properties
#31
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That's a concern given Hyatt's own marketing material says the gallery breakfast is indeed a brand standard: https://www.hyatt.com/development/ourbrands/hyattplace.
#32
Join Date: Jul 2003
Location: CT/ Germany - Ich spreche deutsch
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UPDATE! Just looked at it and the Standard room is less expensive than with Breakfast. Cannot believe they charge Euro 18 for a breakfast at a Hyatt Place! What a rip off!
Last edited by christianj; Mar 19, 2018 at 5:44 am
#33
Join Date: Feb 2003
Posts: 4,113
I don't stay at a lot of Courtyards. To whom do these properties appeal to? The "free breakfast" upper-middle chains seem like good value to all upper-middle travellers, regardless of whether they have status. The "full service" properties are good if you're high elite (with Marriott, gold or better). Who gets good value at Courtyards? The brand makes little sense to me; it seems like just about everyone would do better elsewhere, especially since the pricing at Courtyards is rarely appealing.
I have stayed at several new CYs recently, mostly in LatAm. Maybe Fairfield is changing their image, but my perception of the brand is decidedly a notch lower.
Similarly, newer HPs I stay at in LatAm feel more upscale and in the CY category. I don’t like the older HPs, but the new formats are nice.
I think the lesson is that with a gazillion hotel brands out there, there is something for everyone. On topic, I see a possibility of what Hyatt may be looking at here as in line with this CY positioning. That’s all.
#34
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That's very true. Though 'pocket cash' isn't exactly how I would put it. Even with free breakfast, it can be hard for me to eat within the per diem for two reasons : 1. Usually, I get pulled into business dinners with colleagues, collaborators, partners, etc, that can be a bit costly, and 2. It isn't always cheap to eat healthily on the road (like I do at home). Replacing fries with fruit even at a cheap restuarant costs an extra $5. Choosing the cobb salad with chicken entree over the burger another is 10 bucks or more. at fast casual places (etc). A free breakfast is often the difference between having my costs covered by the per diem and being out another 20+ bucks a day.
#35
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I seriously doubt a lower occupancy level is going to be good for anyone in the long run. Eliminating the free breakfasts will cost them certain customers, but is there anyone who would stay there, switching from another brand, because they eliminated free breakfasts?
Generally higher occupancy levels keep room rates down and attract more paying customers - which in theory would be Hyatt's goal. I doubt Hyatt corporate offices give a d@mn if certain customers feel the lobby is a zoo in the morning. As for lower costs for the hotel, possible rate decrease: nope, not buying that one in this lifetime. Lower costs for hotel, higher profits for hotel, not benefits for customers.
Generally higher occupancy levels keep room rates down and attract more paying customers - which in theory would be Hyatt's goal. I doubt Hyatt corporate offices give a d@mn if certain customers feel the lobby is a zoo in the morning. As for lower costs for the hotel, possible rate decrease: nope, not buying that one in this lifetime. Lower costs for hotel, higher profits for hotel, not benefits for customers.
The HP I stay at for 30+ nights per year in Latin America still has a great breakfast buffet. I'd hate to see it go away, as it's one of the main drawing points for me.
#36
Join Date: Dec 2013
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First off, higher occupancy means higher room rates, not lower rates.
Second, if the hotel cuts breakfast, some people won't care, and some people will go elsewhere. It's not all black or white; it's in the middle. If some people go elsewhere, then you have more empty rooms and the hotel will decrease rates marginally as a result. So lower costs from breakfast, lower room rates; unclear if overall the number of customers goes up or down as a result. Change in profits unknown.
#37
Join Date: May 2005
Posts: 4,731
I am sorry but in my humble opinion you are contradicting yourself. On one hand, you say if there is high occupancy then the hotel will lower the room rates. On the other hand you say that if the hotel has lower costs, they will keep profits to themselves rather than pass anything on to customers.
First off, higher occupancy means higher room rates, not lower rates.
First off, higher occupancy means higher room rates, not lower rates.
The lower costs comment was with reference strictly to the breakfasts: if the hotel lowers its cost by eliminating that, then unless they see a significant loss of the price sensitive customers what they save on breakfasts will be treated as profit, and not returned to customers in the form of lower rates. It would not be an exaggeration to consider the end of free breakfasts as a rate increase from the perspective of price sensitive customers.
#38
Join Date: Apr 2014
Programs: Hyatt Diamond, SPG Plat
Posts: 182
In US Hyatt Places I never eat breakfast because they are too gross. Those powdered eggs are an abomination. However, LatAm Hyatt Places (for example, Tijuana and La Paz) have fantastic, fresh-cooked breakfasts that are much higher quality than the US HPs. As a Globalist, it doesn't matter to me financially if they remove the free breakfast at American HPs. However, as a frequent traveller to Latin America, if I weren't a Globalist the removal of breakfast at HPs would be an incentive to stay at a local hotel that might provide a well-priced, tasty breakfast that would be better and cheaper than an HP's.
#39
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Join Date: Mar 2000
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I do wonder how foreign hotels, even in the mid-range, manage to serve "real" eggs on their breakfast buffets, while I have NEVER seen real eggs on a mid-priced American motel buffet.
Eggs are neither hard to cook nor expensive. And EVERYONE knows what "processed" scrambled eggs taste like -- and no one likes them. Yet the USA motels refuse to serve them. I guess the cost/labor differential is too high to justify this improvement. Hyatt prefers to serve cage-free instant eggs over normal eggs. That doesn't make sense to me, but must make sense to their accountants.
#40
Join Date: Nov 2011
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The lower costs comment was with reference strictly to the breakfasts: if the hotel lowers its cost by eliminating that, then unless they see a significant loss of the price sensitive customers what they save on breakfasts will be treated as profit, and not returned to customers in the form of lower rates. It would not be an exaggeration to consider the end of free breakfasts as a rate increase from the perspective of price sensitive customers.
As to breakfast, they're awful, yet the regular HP menu is reasonably good IMO. I would much rather have a credit against the regular menu.
#41
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#42
Join Date: Jul 2002
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Count me in the category of those who prefer the Hyatt Place breakfast to those at the Hampton Inn, HIX, Country Inn or Fairfield. And Hyatt House is usually even better. I've stayed at exactly one Courtyard in the last ten years because of their breakfast policy (and that was because our corporate rate included breakfast (albeit over on the Residence Inn side of the joint building)). And I won't book Hyatt Places in Europe, either (unless I'm at LHR where I'm just staying overnight and plan on having breakfast in the lounge at the airport). So although the breakfast isn't perfect, it's still one of the main reasons I stay at a HP, since, as noted, they are often as much or more expensive than most of the properties they compete with. I agree with MarkOK that for those of us on lower per diems, free breakfast can make the difference between an OK lunch or dinner and a decent one. It's also the hassle factor of having to go find a Denny's or a McDonalds vs. getting something in the lobby. Anyway, if this is a trend with US Hyatt Places, I for one will be looking around a lot more.