Hotels in America are now rethinking free breakfast — and it says a lot about current US economy
The rising costs and the state of the United States economy may not be stopping people from traveling, but they have changed the way people spend their holidays. As consumers are struggling in everyday life, prices are beginning to impact even the most common travel benefits. A recent news report has revealed that the once-standard free hotel breakfast, which is provided by many top hospitality chains, may be vanishing. This major announcement comes as many hotel chains across the country now view the complimentary breakfast as a costly perk that harms their already tight profit margins.
Just last year, Hyatt Hotels Corporation decided to pause its complimentary breakfast option at about 40 locations. In a similar move, Holiday Inn dropped the made-to-order breakfast options and adapted to buffet-only service. This move was aimed at keeping the perk while also lowering staffing needs and reducing the food waste, as reported by CNBC. Marriott International has also adjusted its complimentary breakfast perks at some of its luxury properties abroad. For instance, at The St. Regis Macao, the free breakfast option for top-tier loyalty members ended in March 2025. As a replacement, guests are now offered bonus points or the option to purchase breakfast at a reduced price.
Gary Leff, who first highlighted Holiday Inn’s breakfast changes, said that the issue is part of a bigger pattern. He explained that hotels across the industry are looking for ways to lower costs for property owners, and cutting back on free perks like breakfast. He said, “That goes far beyond breakfasts, to things like housekeeping, less often during a stay, less extensive when it’s done during a stay, to bulk toiletries rather than individual mini-bottles to eliminating products like alarm clocks in rooms.” Leff further suggested that hotels serving wealthier guests may find it easier to remove the free breakfast option, since those customers are often willing to pay extra for it.
Moving ahead, research conducted by J.D. Power shows that about 78% of American guests who use hotel dining services choose to eat breakfast on-site, but only around 8% of them pay for it. Additionally, when guests at upper-midscale and midscale hotels were questioned, about 47% said that free breakfast isn’t just a bonus benefit but something they consider essential when choosing where to stay. Many of them even argue that while the quality of food can vary from place to place, the breakfasts are still appealing to them. Therefore, eliminating it can feel like a downgrade to guests, and that negative impression may end up costing hotels more in the long term.
A Hyatt spokesperson commented on this growing trend and said, “As part of our ongoing commitment to delivering value to our guests, including World of Hyatt members, we are continually evaluating breakfast options that best serve our guests and our hotels.” To sum it up, Anthony Capuano, the CEO of Marriott International, said the hotel industry today clearly reflects the so-called K-shaped economy, where higher-income travelers keep spending while more budget-conscious guests are pulling back. “There are economic headwinds and some uncertainty, but we continue to see the consumer prioritizing travel and experiences,” he added.
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