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Who is paying for the Globalist free breakfast?

Who is paying for the Globalist free breakfast?

Old Mar 24, 2023, 6:34 pm
  #1  
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Who is paying for the Globalist free breakfast?

Does anyone know how the free breakfast for Globalist being paid for? Is World of Hyatt reimbursing the cost to hotels? Or, the hotels need to absorb the costs by themselves? Thanks,

How about the suite upgrade? Do the hotels get anything from World of Hyatt for upgrading Globalists with upgrade certificates? Thanks,
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Old Mar 24, 2023, 7:05 pm
  #2  
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Originally Posted by harbourxie
Do the hotels get anything from World of Hyatt for upgrading Globalists with upgrade certificates?
Yes.
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Old Mar 24, 2023, 7:47 pm
  #3  
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Originally Posted by harbourxie
Does anyone know how the free breakfast for Globalist being paid for? Is World of Hyatt reimbursing the cost to hotels?,
Yes, tips too.

Many time when travel with kids under 12, the bill would show 4 adults buffet. When I point out the error before signing, the server would told me No problem, the entire bill is covered by Hyatt.
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Old Mar 24, 2023, 7:53 pm
  #4  
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See also this thread:
How much does Hyatt pay hotels for award nights and program benefits
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Old Mar 24, 2023, 8:45 pm
  #5  
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Originally Posted by jerry a. laska
thanks a lot for the info guys! This explains why some hotels never care about if I actually have 2 adults plus 2 children staying and getting the free breakfast.
For some staycations and mattress runs, i takes kids to stay and wife only joins us for breakfast.
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Old Mar 24, 2023, 9:40 pm
  #6  
 
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The article has been removed. Breakfast is only variable cost to hotel. The cost to restaurant defintely not $80~$100 as shown on the bill. Hard to imagine hyatt corp pay the the full breakfast bill to hotel.
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Old Mar 24, 2023, 10:30 pm
  #7  
 
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I believe WoH reimburses the full 18% tip and some breakfast costs, so not the whole bill. Hotels get some compensation when suite upgrades and club upgrades are used, along with when points / FNA's are used, which scale depending on occupancy. The economic model works as the hotel invests much less in marketing / advertising, leaving that up to Hyatt, and has access to talent from the broader Hyatt network to run operations, etc. in exchange for losing potential revenue to points stays / free breakfasts.
Fluff Ermine is offline  
Old Mar 25, 2023, 4:04 am
  #8  
 
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I am quite sure the hotel has to bear the cost of the Globalist breakfast
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Old Mar 25, 2023, 1:21 pm
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Originally Posted by zack14
I am quite sure the hotel has to bear the cost of the Globalist breakfast
That doesn't really make sense. Do you have any actual knowledge on the subject?
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Old Mar 25, 2023, 1:32 pm
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Originally Posted by SacTownGuy
That doesn't really make sense. Do you have any actual knowledge on the subject?
Why doesn't it make sense? There are minimal incremental costs to providing breakfasts.
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Old Mar 25, 2023, 4:26 pm
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Originally Posted by SP03
Why doesn't it make sense? There are minimal incremental costs to providing breakfasts.
I've got no inside knowledge myself, but as a datapoint when folios have become screwy breakfast almost aways gets adjusted off as a negative "WOH Breakfast Profit Adj." or something similar. This usually happens when the front desk merges a cash stay together with a points stay.

I'm willing to lean towards providing elite breakfasts being a cost of affiliating with the brand, the same way Hyatt Place and Hyatt House has to provide it for every guest or choosing to provide it for Hyatt Prive bookings. It's a marketing cost incurred by the hotel to gain access to Hyatt's best customers.

When globalist comp parking has showed up, a lot of the time it's been a discounted parking rate that's offset by a credit from WoH. TSU redemptions are a flat $40 a night in credit.
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Old Mar 26, 2023, 10:18 am
  #12  
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I'm pretty sure the cost of the Glob breakfast is borne by the property. On a few occasions, I've been given (accidentally) the invoice being sent to Hyatt when I'm staying on a free night award. The cost of the room and suite upgrade (if I used one) was itemized but there was no entry for breakfast or any other Glob bene.
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Old Mar 26, 2023, 12:30 pm
  #13  
 
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If it was the program the benefits would be more consistent. I had a recent stay where the voucher was dollar denominated, I didn't think much of it as the published limit was equal to the most expensive entree. I got some push back at use when I ordered a lesser priced entree and a coffee. I wasn't presented with a bill but it was not a transaction that left me feeling valued.
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