New figures from Zonal’s latest GO Technology report, in partnership with CGA by NIQ, reveals that the number of consumers not showing up for their reservations in pubs, bars and restaurants is back to a record high, with 14% of guests not honouring reservations or informing venues in advance that they need to cancel.
The survey of more than 5,000 British adults, highlights that whilst more than two thirds (68%) of consumers who make bookings say they turn up for all of them, 18% cancel in advance and one in seven (14%) admit to failing to turn up without telling their venue. Since the launch of the industry-wide #ShowUpForHospitality campaign in 2021, GO Technology data had measured no-shows as decreasing. However, this latest insight shows they have now returned to the same level as three years ago, highlighting the significant and persistent problem they present.
When looking at the reasoning for no-shows, the findings revealed a direct link between the current financial landscape and the rise in no-shows, with 57% saying that they are severely or moderately affected by the cost-of-living crisis, and over a quarter (29%) of those who didn’t follow through on a booking, citing that they decided it would be too expensive, as their number one reason for not showing up.
To prevent no-shows and help keep revenue flowing, understanding what would encourage people to show up or cancel a booking in advance and then implementing the necessary tools to achieve this, is key. When asked what would make guests less likely to miss a booking, the following came out on top:
- Simple cancellation process (30%)
- Rewards and incentives (28%)
- Reservation reminders (25%)
- Deposits (21%)
- Loyalty/Loyalty schemes (17%)
Commenting on the findings, Tim Chapman, Chief Commercial Officer at Zonal said: “No-shows are a £17.59bn problem for the hospitality sector and the issue does not seem to be going away – in fact, this research suggests it has been exacerbated recently by the cost-of-living crisis.
“The report also reveals that those most likely to no-show are high-spenders and frequent visitors, which makes them very valuable customers to the sector. It is imperative that we get to grips with the problem, putting in measures to help customers keep in touch and working together to educate consumers about the damage not showing up can do to their much-loved local pubs, restaurants and bars.”
Karl Chessell, Director – Hospitality Operators and Food, EMEA, CGA by NIQ added: “Our research shows no-shows remain a hugely frustrating issue for restaurants, pubs and bars. Bookings are a double-edged sword for hospitality, helping venues to plan better and fill tables but bringing the risk of substantial missed sales, at a time when margins and growth are under pressure.
“Fixing the problem is easier said than done but there are steps that all venues can take to mitigate losses, and technology has a major role to play in making the bookings process more effective for operators and guests alike. As we approach the crucial Christmas period, reducing no-shows is going to be a top priority for everyone in the sector.”
Join the conversation and help us make no-shows a thing of the past
No-shows cost the hospitality industry an estimated £17.59 billion in lost sales every year. Join our group of passionate industry supporters to help spread the message far and wide and encourage customers to #ShowUpForHospitality.
