CNBC·2026-02-15 14:24Core Insights - The free breakfast model in the hotel industry, once a staple, is now facing economic pressures and evolving business models, leading to potential reductions or eliminations of this offering [1][2][4] Industry Trends - Many hotel operators are viewing free breakfast as a cost burden, with brands like Hyatt and Holiday Inn making changes to their breakfast offerings to cut costs [2][3][4] - The trend of reducing or eliminating free breakfast is part of a broader strategy to cut costs across various hotel services, including housekeeping and amenities [3][4] Consumer Expectations - A significant majority of travelers (78%) still prefer free breakfast during their hotel stays, with only 8% paying for breakfast, primarily at higher-tier hotels [11][12] - Among upper midscale and midscale hotel guests, 47% consider complimentary breakfast a "need-to-have" feature, indicating its importance in guest satisfaction [13] Brand Responses - Brands like Best Western and Holiday Inn Express continue to support free breakfast as a key part of their value proposition, emphasizing its role in guest loyalty and satisfaction [16][18] - In contrast, luxury brands are beginning to eliminate free breakfast offerings, opting for alternatives like bonus points or discounted meals [9][22] Future Outlook - The hotel industry may see a bifurcation in breakfast models, with higher-end customers moving towards paid options while budget-conscious travelers continue to seek free offerings [10][24] - Experts predict that while free breakfast may remain in some form, hotels will increasingly explore new models, such as breakfast credits or bundled packages, to manage costs while maintaining perceived value [23][25]