Should Breakfast be free or provided at all

Well, IMHO breakfast is nice to have provided. Travelers want to have breakfast before going out to town. If there's no breakfast, people will go to a near supermarket or just eat in town but breakkie is crucial for the guests, so as well to a hostel, IMHO.

Depending on your clients and facilities, it could be either a light breakfast (usually included in the price) or topped with a massive ham, eggs, cheese combo (charged).

I think portioning makes no sense, it's either too much (waste) or not enough (complaints) and all you can eat just sounds better anyway... but that's just my two pennies. ;)

Surely there's no such thing as a free breakfast (or lunch)?

Indeed, nothing is free. However, there are some costs which can add up to the value. Let's take the sheets for example. Many hostels especially in Germany still charges for sheets. Many hostels charges for internet or breakfast. Offering it as included is simply a head ahead competition.

I think the whole thing about values and advantages. We were among the first hostels to offer free internet in Budapest... the reason behind was Internet is quite cheap, around 40EUR a month for an ADSL. If I have constant use of internet 1 hr per person per day, it costs 0.05EUR per person. If other hostels won't offer free internet, I get an advantage on value for almost "no cost". If they offer free internet but I charge, I have a disadvantage. If people would hang around and queue for the internet, I'd might consider charging though (Offers and demands, spiced up with some game theory!).

We had the same thing for laundry... offered free laundry, then people brought their fistful of underwear and socks every day. Then we've restricted this option for 3 nights stay. We actually do have people extending because if they pay for another night, they don't have to pay for the laundry, so it's a promotional deal for them and good for us as well (it's a win-win situation: a load costs us a euro, offered for 5 so they think they win 5EUR discount on stay but actually we won 10EUR by spending 1EUR ;) )

About breakfast: There is the Globetrotters in Dublin offering FULL IRISH breakfast included in their stay. They would have charged 25EUR for a dorm in January, so I considered staying there if it wouldn't be that away from the hostel conference... We chose Camden Place because of the same ratings, better location to the conference and less price. I paid 9EUR for an Irish breakfast in town, so both hostels would be at the same price at the end. However, if it wasn't for the conference, I would have stayed at Globetrotters at the first hand, because I was desperate for an Irish breakkie.

You are absolutely right for charging people for breakfast but once you do, you have to make the price up to it's value. As opposed to UK, Hungarian food is cheap, it costs us about 0.5EUR per person to provide our light breakfast (we also bulk buy), so we can afford breakfast included. If the request would be a massive breakfast, we would apply that demand but it would be charged then. I think if you would offer a full Scottish breakfast included and increase your prices by the same price as it would cost in a pub, people would still do choose you.

Talking about free business lunches... It's not free but it's worth offering a "free" lunch for colleagues, friends, etc. We also offer free stay for hostel staff. I don't mind giving a room for anyone who works in a hostel as it will be beneficial: If anyone in the industry recommends us because he/she had a boasting Budapest experience, it is beneficial for both sides. It's just promotion to motivate anyone visiting us... and it works! ;)

The hostels I worked at had free Breakfast but our rates were a but higher than the competion. The fact is people like free stuff even if it is really not free at all as mentioned above. There is that word again "perception" always make the guest think they are getting more than they really are. I believe the term is called "value added". When I was in culinary school we were constantly talking about how to get the guest to think thay were getting a better deal than they really were.

I think I wouldn't call it perception but expectation. With super high rating and super high prices comes big expectation because of what you said, people want their value for their money.

A price like 5 or 6 eur for a breakfast I would expect a feast since I'm well aware how much that costs per person.

My view as a guest: In days of YHA hostelling I always prepared my own breakfast because it was better value than paying for the hostel breakfast. Then I became annoyed when some Scottish YHA hostels made breakfast compulsory (ie the charge for it was compulsory) and I got something inferior to what I would have had if I had user their (always excellent) self-catering kitchen.

By the way, don't use the term "Continental breakfast" (as contrasted with "English/Irish breakfast"). A continental breakfast of juice, cereal, rolls, toast, croissants, slices of cold meat/cheese and hard-boiled eggs (eg Sir Tobys) is just as good as the best English breakfast, whereas one glass of artificially-flavoured fruit drink, 2 slices of bread/toast, margarine and jam/vegemite and one cup of coffee (2 not allowed) (eg a hostel in NW London) is also called a "continental breakfast", I call it pathetic. And there are hostels that promise a breakfast and don't care if it all runs out before everyone is served (eg Green Tortoise Seattle).

If the hostel does not have self-catering facilities, breakfast should always be included. And I expect at least one stage better than the second example above. If it costs £5 or 6 euros or more, I will prepare my own, and will resent it if they don't have facilities for that.

And yes, I do know the Globetrotters in Dublin. The best hostel breakfast in the world! Any combination of anything, all you can eat!!