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The hidden profit potential of hotel breakfast

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Hoteliers spend a lot of time training hotel staff and making sure their property is clean and welcoming. But when it comes to maximizing profits, breakfast can be an overlooked revenue booster.

How?

Because your guests are using “breakfast included” as their primary search filter. If your hotel depends on OTA search traffic, you want to increase your chances of being found. One of them offers breakfast included and displays it prominently.

Revenue management is the science of increasing your hotel’s brand reputation and visibility to maximize room revenue throughout the year.

Part of this methodology is breakfast as a profit center. From setting to service, you’ll learn how to make small changes to your breakfast service that will have a big impact on your guests and your hotel’s reputation.

For example, TripAdvisor’s TripIndex Breakfast surveyed customer habits. 91% of customers surveyed say they prefer breakfast at the hotel. 83% said breakfast service was essential for a positive hotel experience, and 65% said they chose the hotel based on breakfast service.

These figures show that breakfast is the most important meal of the day in more nutritional sense. Below you can see popular OTA search filters.

The filter The filter
The “Breakfast included” filter — Photo by Franco Grasso Revenue Team

“Breakfast included” can have a big impact on your hotel’s OTA visibility, as well as budget and reputation. Google also pays attention to “breakfast” because it knows budget, breakfast service, and guest reviews are important to hotel guests. The algorithm of Otas and Google will favor your establishment if your establishment has excellent recent reviews and a good breakfast option.

Greater visibility can translate into more bookings.

Breakfast on Google — Photo by Franco Grasso Revenue Team
Breakfast on Booking.com — Photo by Franco Grasso Revenue Team

Booking.com even puts information about the rating and the quality of the breakfast in close contact with the “I reserve” button. Such a choice further demonstrates the importance of breakfast in the customer’s mind. Its presence can encourage the user to book.

Breakfast triggers — Photo by Franco Grasso Revenue Team
Breakfast triggers — Photo by Franco Grasso Revenue Team

Guests come to a hotel for many reasons. Some are logistical, they are away from home and need a clean and comfortable room. Others join a wedding party or a family reunion. No matter the reason for travel or budget concerns, breakfast leaves a lasting impression on the guest.

When you think about the impact of breakfast, it’s an investment in the reputation and visibility of the hotel. If you read hotel reviews, you will see that more than half refer to breakfast and/or the hotel restaurant. The breakfast experience for guests indirectly impacts the overall score due to the algorithm ratings.

If the breakfast service is a determining factor in attracting customers, it deserves your attention.

How Hotel Breakfast Affects Your Property’s Reputation

When you think about how people travel in the internet age, you know they search online and read reviews from previous guests.

If the potential customer compares similar hotels, he will rely on the positive reviews and the highest score. Most will pay a few dollars more for the higher rated hotel.

This applies to hotels at all levels. Higher ranked hotels will attract more customers.

You probably already realize the importance of online reviews. Statistics show that 95% of people read online reviews and use them to guide their decision making. OTAs use the breakfast included service as an essential parameter, as you have seen above.

You don’t have to offer a hearty breakfast to make a difference. In the e-book Breakfast as a profit center you can dive into customizing your options for your guests and keep breakfast simple yet satisfying.

For example, most guests who care about breakfast are leisure or (bleisure) guests who stay at least two nights. These are the same types of customers who are most likely to leave reviews. Positive breakfast experiences often result in positive, upbeat reviews that encourage others to book. The more relevant and recent your reviews are, the higher your hotel ranks in OTA search.

Now that you know that breakfast is an essential part of your revenue management plan, you’ll want to know how you can improve yours. In the graphics below, Booking.com offers tips.

Breakfast analysis on Booking.com — Photo by Franco Grasso Revenue TeamBreakfast analysis on Booking.com — Photo by Franco Grasso Revenue Team
Breakfast analysis on Booking.com — Photo by Franco Grasso Revenue Team
Breakfast analysis on Booking.com — Photo by Franco Grasso Revenue Team

Revenue-conscious hoteliers know that small improvements stacked across all categories can make a big difference to your guest experience and results. It is also useful to have the opinion of revenue management experts.

Over the past 15 years, Franco Grasso Revenue Team has worked with around 2000 hotels. Research shows that strong breakfast service combined with revenue management methodology and dynamic pricing pays off in strong brand reputation.

In turn, the property enjoys greater profitability.

Even smaller properties that don’t have proper spaces to serve breakfast could also consider collaborating with nearby operators (as long as they’re reputable and nearby) and take advantage of that increased visibility provided by OTA filters.

conclusion

For hoteliers looking to improve revenue from their property, you can see why breakfast shouldn’t be an afterthought.

Those who improve their breakfast service can help their hotel be the obvious choice for travelers choosing between hotels of similar quality, location and price. A positive breakfast experience leads to more positive reviews and boosts hotel visibility.

Revenue Managers recognize that such visibility boosts occupancy in low season and ADR (average daily rate) in high season. In other words, improving the breakfast experience can lead to higher profits.

Download the ebook for free and start making your hotel breakfast a profit center:

Breakfast as a profit center

Franco Grasso Revenue Team is the global leader in revenue management consulting and outsourcing. In more than 15 years, we have accompanied more than 2,000 hotels in more than 20 countries on 5 continents. The average revenue growth per new hotel is 20%.

Franco Grasso Revenue Team consists of more than 40 experienced revenue managers and hoteliers and 9 offices around the world. Combining the power of AI technology and automation with human expertise and daily consultation, the dedicated revenue manager plans and executes the optimal business strategy for a specific property. We monitor its performance seven days a week to maximize profitability. We identify and distribute the right price daily for each segment and inventory per channel online and offline.

The dedicated revenue manager manages all configurations and content on the hotel’s technical systems (pms, channel manager, otas, CRM etc.), manages daily communications with OTAs account managers, trains and works in tandem with staff internally and shares performance reports with owners and top managers.

Revolution Plus, our RMS, is included in the outsourcing service. 24/7/365 service is on a “No Care No Money” It is therefore risk free. No fixed fees are required. Fees are based on a percentage of incremental revenue earned over the historical best year, pre or post-covid, or over budget.