Loyalty was one of the big topics in the hospitality sector last year and, with our research showing nearly one in three restaurant, pub, and bar patrons are very or somewhat likely to switch which venues they choose to be loyal to, we can expect it to be the same in 2025.
At the same time, the industry faces another pressing issue: no-shows. During 2024, these surged to a record high of 14%, reflecting both the volatility of consumer behaviour and the pressure on operators to deliver consistent value. To thrive in this landscape, hospitality venues must redefine loyalty strategies by balancing in-venue excellence with targeted, data-driven outreach.
A bespoke approach
The reality of changing habits means that consumers are becoming more adventurous and less tethered to specific brands. Our research, in partnership with CGA by NIQ, found that nearly 34% of restaurant customers are likely to switch venues, compared to 29% for pubs and 30% for bars. This is especially true for the younger generation, with adults aged 18-44 exhibiting the highest tendency for switching, driven by a desire for variety and new experiences.
On the other side, older consumers and parents tend to exhibit more loyalty. Older adults, having spent decades forming relationships with venues, value consistency and familiarity. Similarly, parents prioritise venues they trust to deliver reliable service for their families. These differences underline the need for tailored strategies to foster loyalty across diverse demographics.
Loyalty schemes: what works and what doesn’t
While loyalty schemes have proven effective in some other sectors, their success in hospitality hinges on their ability to address consumers’ key motivations — primarily financial savings. Our GO Technology report revealed that members-only pricing is the most appealing type of loyalty programme, favoured by nearly half of respondents. Points-based systems, cashback offers, and deals on frequently purchased items also ranked highly.
However, barriers to adoption remain significant. Upfront membership costs, subscription commitments, and perceived lack of value deter many potential participants. Operators must design schemes that are simple, transparent, and directly aligned with guest expectations. This could include eliminating upfront costs or introducing flexible, opt-in programmes that demonstrate clear, immediate benefits.
Combatting No-Shows
No-shows continue to be a persistent issue for operators and the recent rise to a record 14% no-show rate exacerbates the financial strain on operators already grappling with tight margins. Addressing no-shows is not just about mitigating financial loss; it’s also about maintaining customer trust and operational efficiency, both of which are integral to building long-term loyalty.
Fixing the issue is obviously easier said than done. However, operators can look to mitigate the issue by putting in place measures such as ensuring the cancellation process is as simple as possible (our insight shows that 30% of UK consumers say this would encourage them not to no-show without notifying the venue). More than a quarter (28%) meanwhile, said rewards and incentives for turning up would help, and 21% said the same of deposits.
The power of personalisation and communication
Beyond loyalty schemes, personalised communication plays a pivotal role in keeping guests engaged. According to our GO Technology research, 90% of consumers are open to joining a loyalty programme, and 73% want to hear about deals and rewards from their favourite venues.
Email remains the most preferred communication channel, followed by social media and text messaging. Regardless of the chosen channel, personalisation is key. Segmenting audiences by demographics, preferences, and behaviours allows operators to tailor their outreach. Younger consumers, for example, may respond well to frequent, visually engaging updates on social media, while older patrons might prefer concise emails highlighting value-driven offers.
Moreover, timing matters. While 30% of consumers welcome weekly communications, a slightly higher percentage prefer monthly updates. Striking the right balance ensures that communication feels relevant rather than intrusive.
A holistic approach to building loyalty
While technology and data-driven strategies are crucial, they are not substitutes for the fundamentals of hospitality: exceptional food, drink, service, and atmosphere. Poor experiences can quickly erode trust and loyalty, especially given the high expectations of today’s consumers. Operators need to continue to invest in staff training, and quality control, to ensure guests consistently leave with positive impressions.
Loyalty in hospitality is no longer about simply retaining customers — it’s about creating advocates. By combining exceptional in-venue experiences with thoughtful, targeted communication and well-designed loyalty programmes, operators can nurture deeper connections with their guests.
To address challenges like high no-show rates and shifting consumer preferences, venues must adopt a proactive, flexible approach. This includes leveraging customer data to understand behaviours, tailoring offerings to meet diverse needs, and fostering trust through transparency and value.
In an era where competition is fierce and spending power is limited, loyalty is hard-earned. However, by focusing on what truly matters to their guests, hospitality venues can turn fleeting visits into lasting relationships.
By Kara Purves
Group Marketing Director at Zonal
blog
Loyalty schemes in hospitality: What top CEOs think
Loyalty is currently a hot topic in the hospitality industry but there remains a lot of confusion. What do consumers mean when they say they are loyal to on-trade brands? Is it the same as for other retail brands? How can the sector create and maintain customer loyalty? Does it genuinely add value to the bottom line – or does it really just boil down to discounting? To answer these – and more – questions, we gathered eight of the industry’s top operators for a chat about all things loyalty.