Beyond Discounts: Three Strategies to Enhance Customer Loyalty
No-shows in hospitality back up to record high
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.
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The truth behind no-shows
What factors are causing consumers to no-show? How does hospitality compare to other sectors? Find out in this exclusive survey of 5,000 hospitality consumers.
No-shows remain an ongoing challenge for the hospitality industry, costing UK hospitality a collective £17.6bn a year in lost sales.
Previous research in 2024 revealed that 60% of consumers want to support the hospitality sector in light of the cost-of-living crisis, however despite this the rate of no-shows has risen from 12 to 14% over the course of the year. With increased cost pressures already presenting a difficult trading environment for hospitality, it’s vital for operators to understand why these no-shows are occurring, as well as exploring potential solutions to combat the issue.
In this report, we reveal the extent of the no-shows problem, including current consumer booking behaviours and the factors influencing no-show rates, as well as how likely consumers are to show up for their booking in hospitality compared to other sectors.
What's in the report?
- Why consumers no show in hospitality
- 2024 consumer booking habits
- How no-shows in hospitality compare to other sectors
- Five ways to combat no-shows in your venue
“No-Shows is a really big problem for the industry. At our restaurant Faber, we charge a £20 per head pre-authorisation (the money is only taken in the event of no show) on every booking, as we have to protect our business. Hospitality is unique in the sense that unlike many other industries, you pay after you’ve received the service. When people don’t show up, not only is the money from the booking lost, but the costs incurred from the stock which was ordered in that we now have to waste and the additional staff which were put in place to support the booking, all add up. It all has a negative effect on business.”
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.
Subscribe to get the latest news, product announcements and industry updates
What other businesses can teach hospitality about customer loyalty
What with Wagamama and Mowgli recently launching loyalty schemes, Deliveroo investing in an advertising campaign to promote its Deliveroo Plus scheme this autumn and the news earlier this year that Pret A Manger was to ditch its much-feted subscription model, customer loyalty is a hot topic in hospitality right now.
But I don’t believe customer loyalty exists. Recently, I was approached by hospitality tech firm Zonal to see if I’d like to work with it on a project around this very subject. I started by telling a story about my love for Honest Burgers. We have an Honest Burgers right opposite our office. In fact, if the fire alarm goes off, it’s our designated meeting point. We have a lot of fire drills.
I loved going in there. The staff were friendly, the music was perfect, and it had plants everywhere that gave a really nice feel to the place. And I had a rather specific, rather odd order. I liked to have the plant burger, but I really like bacon, so I’d always add some of that on top, too. The vegan plus meat combination could have easily been a cause for confusion, but rather than causing issues, it simply became: “Would you like the usual, sir?”
Then, near Christmas, the manager of that restaurant left to go elsewhere. And when I next went in, everything had changed. The staff were still lovely, but the music had changed. She chose the playlists, apparently. The plants were all gone – also hers, brought in from home. And, when I put in my usual order, the waiter reappeared ten minutes later with a question from the chef: “Sir, just to check, did you really mean real bacon with that?”
Loyalty is an overused term in organisations and hospitality, and it’s a dangerous one. Because if leaders believe their customers are loyal they stop trying to impress them, focusing on winning them in the first place, then gradually taking their custom for granted.
Quite simply, if you stay more useful to your customers than the competitors and alternatives, your customers will stay with you. But if someone else becomes more useful – a better product, better price, better experience, more socially desirable brand – then they’ll go elsewhere. But where you can build some sense of loyalty is through your people – as Octopus, AO and First Direct show.
Octopus Energy is taking the highly regulated energy industry by storm by empowering its team to come up with creative ways to solve its customers’ problems. Customers hated the hold music, and so now, should you be put on hold by Octopus, you’ll hear a song from the year you turned 14 – the age that, on average, a person first engages with music. Another example is the Octopus Wheel of Fortune. Every time an Octopus customer enters a meter reading, they can spin the “wheel of fortune” to win anything from 1p to £512 credit on their account, and more than 100,000 of them a month do so. This shows an understanding of the inconvenience of submitting meter readings for customers and actively recognising and rewarding them for doing so.
Another industry you may not think to look at for loyal customers is white goods, but online retailer AO is one of the highest rated UK retailers of any kind on Trustpilot. That’s in no small part down to the fact that one of its core values is: “Treat every customer like your own gran.” But, more than this, staff are supported to deliver on this promise. Stories are manifold, from delivery drivers paying for pizzas when a new oven can’t be fitted in time for dinner to local teams arranging for an AO branded van to visit a six-year-old van fan on his birthday.
Likewise, banks are about as well known for building loyalty among customers as utility firms and white goods retailers, but talk to any customer of First Direct and most will extoll its virtues. Again, this is down to first-class customer service delivered by teams supported to do so. First Direct famously “hires for the smile, trains for skill”, and then enables its teams to listen to customers and act with empathy – no scripts, no call handling time targets and calls answered by real people.
The hospitality industry has a huge advantage over others in this, as a people-focused sector with colleagues who know that customer experience is crucial to delivering a great experience. There are other complexities to this, of course (the ambition of the leadership to provide excellent customer experiences, great training, a fundamental understanding of what drives your customers’ decision making, a recognition that not everything in good business must deliver an immediate return on investment).
However, while I maintain that customers are not loyal to businesses, I do believe they are loyal to other people – and these can be your people, assuming you give them the correct support and tools.
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Five tips for growing your loyalty scheme with ad-hoc rewards
Loyalty schemes can be a great way of increasing visit frequency among your guests, and increasing guest spend when they do visit. But how can you utilise ad-hoc rewards to grow your loyalty scheme? Discover five tips for growing your loyalty scheme with ad-hoc rewards.
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Zonal launches delivery management platform
We’re excited to announce the launch of our new cost-effective and user-friendly platform designed to revolutionise how businesses manage their delivery service providers.
Zonal Delivery offers seamless integration into the three major online -delivery service providers, Uber Eats, Deliveroo, and Just Eat and simplifies multi-channel and multi-unit menu management. This enables operators to enhance their delivery services efficiently, with key features including:
- Direct Order Integration: Receive third-party orders directly into your Zonal EPoS or kitchen management system via ticket printing.
- Centralised Management: Manage items, menus, and modifiers all from one dashboard, and easily increase prices across multiple channels simultaneously.
- Dynamic Prep Time Management: Edit prep times and prioritise orders to ensure timely service.
- Comprehensive Reporting: Access detailed reporting capabilities for informed decision-making.
Zonal Delivery is designed for businesses of any size, enabling operators to manage single or multiple locations and delivery service providers effortlessly from one interface. The platform allows for instant publication of changes to menus and pricing with just one click, streamlining operations and enhancing service quality while improving the bottom line.
Commenting on the launch, Tim Chapman, Chief Commercial Officer, Zonal, “With the launch of Zonal Delivery, we are giving our customers the opportunity to capitalise on this growing market and enhance their delivery operations, increase efficiency in their hospitality venues and drive profits through delivery channels.
“We are committed to helping our customers thrive in a competitive landscape by providing them with the technology they need to succeed.”
Jonny Findlay, Commercial Manager at Hub Box said, “I would definitely recommend Zonal Delivery to other operators, the direct integration into our EPoS has made receiving orders much easier. We can manage this depending on the demand in the kitchen meaning an improved customer experience and reduced pressures on our staff.”
Get the latest news and insights from Zonal
Tipping bill: What does the new law mean for your hotel?
5 ways to get your hotel Christmas-ready
GO Technology: The truth behind no-shows
How to manage your pre-orders during the festive season
What other businesses can teach hospitality about customer loyalty
The Impact of the Climate Crisis on Your Hospitality Business: Why Carbon Accounting & Climate Action Matters Today
Top 10 Support Queries: Quick Solutions to Save you Time
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Zonal wins the double at the Restaurant Readers’ Choice Awards
We are excited to share that Zonal has topped not one, but two categories at the Restaurant Readers’ Choice Award winning both the EPoS and Technology categories.
Restaurant Readers’ Choice Awards are a result of an extensive survey sent to their restaurateur audience, asking them to vote for their favourite suppliers to the trade. The winners are the companies which their readers believe offer the best customer service, reliability, offer the best product range and go the extra mile.
Zonal was recognised for its EPoS system and wider technology suite, which are used in over 17,000 hospitality businesses.
Zonal’s CEO, Stuart McLean said: “It’s fantastic to receive this vote of public approval. The recognition reflects our ongoing commitment to delivering reliable and effective solutions that meet the needs of our customers. This award is a testament to the dedication and hard work of the entire Zonal team, their focus on providing exceptional customer service and maintaining high standards has been essential to our success.’
Considering a switch to Zonal’s EPoS? Discover why Restaurant readers chose us as both the Best EPoS and Best Technology supplier of 2024.
Get the latest news and insights from Zonal
Beyond Discounts: Three Strategies to Enhance Customer Loyalty
Tipping bill: What does the new law mean for your hotel?
5 ways to get your hotel Christmas-ready
GO Technology: The truth behind no-shows
How to manage your pre-orders during the festive season
What other businesses can teach hospitality about customer loyalty
The Impact of the Climate Crisis on Your Hospitality Business: Why Carbon Accounting & Climate Action Matters Today
Top 10 Support Queries: Quick Solutions to Save you Time
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The Impact of the Climate Crisis on Your Hospitality Business: Why Carbon Accounting & Climate Action Matters Today
Guest blog by Net Zero Now
The climate crisis is no longer a distant threat but is already having a very real impact on the hospitality industry. That impact is both direct, resulting in increased costs as supply chains are put under increasing pressure and the cost of energy increases, and indirect, driving new attitudes and expectations of customers, employees, and investors.
But with these challenges come opportunities – to improve your bottom line, to establish yourself as a leader in an increasingly eco-conscious market and to increase the value of your business.
Understanding the Impact of Climate Change on Hospitality
The hospitality industry is uniquely vulnerable to the effects of climate change. Rising temperatures, extreme weather events, and shifts in global ecosystems directly affect the supply chains that businesses rely on, resulting in higher costs and lower / less reliable availability.. Energy prices are also likely to soar as demand for cooling increases and fossil fuel resources become scarcer.
Indirectly, the climate crisis is changing the attitudes of the people who make your business thrive – your customers, your employees and your investors.
- Consumers are increasingly seeking out businesses that align with their values, particularly when it comes to sustainability – 69% of consumers worldwide have changed the products and services they use due to concern about climate change and 64% of British consumers willing to pay up to 10% more for sustainable foods and drinks (YouGov, 2024).
- Employees, especially younger generations, prefer to work for companies that take meaningful action on climate issues – 60% of Britons agree that climate change is the biggest threat to civilisation, with this sentiment being particularly strong among Gen Z (70%) and Millennials (63%) (YouGov, 2024).
- Investors are placing greater emphasis on environmental, social, and governance (ESG) criteria, meaning businesses that credibly address their environmental impact will have access to more funding and will receive a premium valuation of their business (IMD, 2023).
Businesses also face increased regulatory pressure. In the UK, larger businesses (£36m+ t’over) are already required to report Scope 1 and 2 emissions under the Streamlined Energy and Carbon Reporting (SECR) regulations. These requirements are expected to expand in the near future, reducing the threshold to include more businesses and increasing the reporting requirements to include Scope 3 emissions (the emissions from your supply chain, including all the food and drink you buy throughout the year). This is particularly relevant to the hospitality sector which contributes up to 15% of the country’s greenhouse gas emissions (Net Zero Now, 2024, and where Scope 3 emissions account for c.70-95% of emissions, the vast majority of which comes from the food served (see Figure 1).
Figure 1: Emissions Sources from different types of hospitality business
Source: Net Zero Now Customer analysis; Cool Food 2022
The Challenge and Opportunity of Tackling Scope 3 Emissions
As Figure 1 also shows, as an industry, we have a long way to go to meet the 2030 targets for carbon emissions per meal. Getting anywhere near these targets will take more than removing plastic straws and adding a few LED lightbulbs, hospitality businesses need to understand their full carbon footprint, including Scope 3 emissions, and find ways to minimise their climate impact.
I know what you’re thinking – “it’s too expensive”, “it’s too complicated”, “we’re too busy” – and until recently, you might have been right. But…
- It’s cost effective: Quite apart from being the right thing to do for your planet, taking positive climate action is the right thing to do for your business. Access to the Net Zero Now Carbon Accounting and Climate Action platform is available from c.£100 per site per year, while the resulting reduction in energy and water use, food waste, staff attrition, etc can save the average site thousands (UK Hospitality estimate the average pub / restaurant could save up to 20% on energy bills through energy efficiency measures alone)
- It’s straightforward: The global guidelines on “carbon accounting” are undeniably complex, but thanks to Coca Cola, Pernod Ricard, Heineken UK, The Sustainable Restaurant Association and many others, business are now able to follow the Net Zero Hospitality Protocol – an industry standard methodology for measuring and reporting emissions that ensures consistency of measurement across the sector as well as clarity on what and how to measure your emissions
- It’s quick & easy: As a Zonal customer, this is where you have a huge advantage. Zonal’s new partnership with Net Zero Now allows you to measure the largest part of your carbon footprint – the food and drink you have bought throughout the year, without lifting a finger. By integrating Zonal technology with Net Zero Now’s carbon accounting platform, we can provide you with accurate, detailed and regular analysis of your carbon emissions through the Net Zero Now platform. Where the data is available, we can even provide this on a site by site basis with no additional work from you.
and , as if all of the above wasn’t enough
- It’s good for your business: The Net Zero Hospitality Protocol includes criteria for Certifying your business, first as “On The Road to Net Zero” and ultimately as a “Net Zero” business, giving you a clear and credible way to communicate to your customers, employees, investors and other stakeholders and access the commercial benefits of taking positive climate action.
Ready to turn the climate challenge into a business opportunity? Discover how Net Zero Now’s integration with Zonal can help you accurately measure, manage, and reduce your carbon footprint. Start your journey towards sustainability today—contact the Zonal team and see how we can support your business in leading the way to a net zero future.
Sources:
- British attitudes towards sustainability in 2024: Key insights from YouGov data
- Climate change: change to consumer behavior 2019 | Statista
- Sustainable carbon credits strategy for the hospitality industry | Deloitte UK
- From data to decarbonisation: A roadmap for hotels to reach net zero | SMS
- Urgent action needed for a Net Zero hospitality sector, says new report
- Top 5 Ways for Hospitality Businesses to Reduce Energy Usage – Unyfi
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Martyn's Law Update: Terrorism (Protection of Premises) Bill moves through Parliament
A landmark debate in September at the House of Commons is set to change the face of venue safety laws in the UK.
The Terrorism Protection of Premises Bill or ‘Martyn’s Law’ was discussed by MPs in September; an anti-terrorism bill in memory of 29-year-old Martyn Hett, who was killed alongside 21 others in the 2017 Manchester Arena bombing. The law is currently under review by the Public Bill Committee and is set to come into action over the coming weeks.
The main aim of the Bill is to protect the public from the impact of terrorist attacks and to prevent physical harm. It comes after the terror threat for venues in the UK has been described as ‘substantial’ by officials, who have revealed that 43 terrorist plots have been foiled since 2017.
Mainly aimed at concert halls, stadiums and other crowded venues, Martyn’s Law outlines new specific safety measures for most public venues based on different capacities, meaning hotels and other hospitality venues will be affected when the law becomes official.
The Law calls for mandatory safety training and ‘practicable public protection procedures’ in venues with a capacity of 200 – 799 (known as standard tier and raised from 100 in September to create a more appropriate scope of duty).
Whereas in larger venues with a capacity of over 800 (enhanced tier), more rigorous measures are required such as additional security staff and minimum CCTV requirements.
Martyn’s Law will have large implications on the hospitality industry, however, many hospitality providers are clearly seeing the benefit to public safety, with 100 venues publicly backing the bill, including McDonalds.
Since we last talked about Martyn’s Law in February of this year, there have been some adjustments to the proposed requirements. Here we discuss the biggest changes for hotels and other hospitality providers to help you prepare for the new legislation.
Standard Tier Requirements
There is a focus on practical and effective safety training to prepare for a terrorist event, including practice runs by team members.
Since the bill was first proposed, the requirements for training have become more prescriptive and involve safety procedures for the following:
- Evacuation
- Invacuation
- Lockdown
- Communication with staff and customers.
This more active approach aims to raise and maintain awareness of anti-terror measures amongst hotel staff so they can be implemented effectively in the event of a terror attack.
A ‘responsible person’ will implement these measures and ensure adequate training takes place and all safety measures should be clearly communicated with the regulator.
In summary, since the Government consultation on Martyn’s Law, there is now less emphasis on paperwork and a greater focus on ensuring that all your employees fully understand how to deliver the anti-terrorism measures to reduce physical harm.
The government hopes that these requirements will enable venues to tailor their measures to suit their operational needs.
Enhanced Tier Requirements
If your hotel or venue falls into the Enhanced Tier category, regulators will need to be informed of any events where 800 or more individuals are attending your event.
The same safety training and actionable public safety procedures apply here as for Standard Tier venues; however, paperwork requirements are more rigorous and all safety measures in place must be adequately documented as proof of compliance. This will also include safety assessments of the efficiency of your hotel’s safety measures.
As with standard tier requirements, there must be a ‘responsible person’ in charge of implementing these measures. However, if your hotel or venue falls under the 800 capacity tier, a ‘senior’ responsible person must be nominated for each event where there are 800 or more individuals attending.
As well as the hotel itself, the surrounding area must be monitored for suspicious activity by using additional staff and/or extra CCTV.
There will be an expected grace period of around 24 months to enable venues to put these plans into place before the Security Industry Authority (SIA) begins regulatory action to enforce the law.
The SIA will have the power to issue compliance notices, limit operations and give out hefty fines to venues of up to 5% of worldwide revenue (AEO) for those who don’t comply. This figure could be in the millions for multi-site hotel chains or venues.
With this in mind, and the bill currently making its way through Parliament, now is the time to get your anti-terrorism measures in place to ensure the safety of your customers and guarantee your venue is compliant.
Resources
Get the latest news and insights from Zonal
Beyond Discounts: Three Strategies to Enhance Customer Loyalty
Tipping bill: What does the new law mean for your hotel?
5 ways to get your hotel Christmas-ready
GO Technology: The truth behind no-shows
How to manage your pre-orders during the festive season
What other businesses can teach hospitality about customer loyalty
The Impact of the Climate Crisis on Your Hospitality Business: Why Carbon Accounting & Climate Action Matters Today
Top 10 Support Queries: Quick Solutions to Save you Time
Subscribe to get the latest news, product announcements and industry updates
Come and see us at the Casual Dining Show & Hospitality Tech Expo 2024!
It’s that time of year again….
Trade show season is nearly here, and we’re thrilled to be back at the Casual Dining Show and Hospitality Tech Expo again this year!
Come say hello!
We’ll be joined by some of our amazing partners at Airship, Toggle, Feed It Back and TiPJAR, so make sure to stop by the stand to see what’s new and learn more about how integrated tech can truly enhance your guest experience and operations.
What’s new?
We’re excited to be showcasing our new Kiosks Integration, available through chosen partners, as well as our new delivery service provider management platform, Zonal Delivery.
Delivery
Whether you’re looking to simplify your delivery order process via one centralised platform, improve order accuracy or discover insights with in-depth reports, Zonal Delivery is a user-friendly solution that will instantly improve your revenue stream.
Kiosks
Whether you’re looking to help your teams achieve more or provide a convenient experience for customers, fully integrated self-service kiosks are a flexible solution that will set your business apart.
Meet the partners joining us on our stand
Hear from our customers
Why North Brewing Company use Zonal’s EPoS
“If there are any operators out there that think they might not be big enough to switch to Zonal, I would say don’t be put off by the big names. Our experience was that Zonal tailored a package that was built just for us, was really specific to us, and was designed around our needs and our drive for great hospitality.”
Matt Gladman, Head of Systems & Continuous Improvement, North Brewing Company
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Brand loyalty in hospitality
How likely are consumers to switch brands? What types of loyalty schemes keep them engaged, and how do customers want to hear from hospitality brands? Discover the answers from 5,000 hospitality consumers.
With consumer spend tightening and visit frequency reduced, a loyal customer base providing that all-important repeat business is the holy grail for operators looking to succeed in today’s difficult trading landscape.
Our previous research in partnership with CGA by NIQ revealed that consumers, on average, feel loyal to 2.1 hospitality brands – but how likely are their choices of preferred venues to change?
In this exclusive survey of 5,000 British hospitality consumers, we reveal how likely consumers would be to switch their preference to a different hospitality brand, how hospitality stacks up against other sectors, and the role loyalty schemes play in ensuring customers keep coming back to you for more.
What's in the report?
- Which consumers are most likely to switch to a competitor?
- How does loyalty in hospitality compare against other sectors?
- Consumer communication preferences
- What guests find appealing about loyalty schemes
Explore our full consumer research series
GO Technology: The truth behind no-shows
GO Technology: Brand loyalty in hospitality
GO Technology: Fixing people’s hospitality bugbears
GO Technology: The value of hospitality – Exploring consumer insights and perceptions
Influence, loyalty and technology: Key guest trends from 2023
GO Technology: The New Loyalty Landscape – How the cost-of-living crisis impacts hospitality
GO Technology: People vs Tech: What guests want in 2023
GO Technology: Identifying the Influencer – Reaching hospitality’s decision makers
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From telephone bookings to AI, GO Technology reports show a decade of change in hospitality
To celebrate 10 years of GO Technology insight, Zonal and CGA take a look back at how tech has shaped the industry over the past decade.
Back in 2014, when David Cameron was Prime Minister, the biggest tech launches of the year were Amazon’s Alexa and Google’s ill-fated glasses. The Apple Watch hadn’t been launched, Apple Pay didn’t exist, and Kim Kardashian married Kanye West.
It was also the year that Zonal entered into a long term partnership with CGA by NIQ, via the launch of the first ever GO Technology report. In the 10 years since, the reports have tracked the adoption of tech solutions in hospitality by consumers and businesses alike.
A decade on, here are the top ways that innovation has reshaped our sector.
Booking and payments
Ten years ago, over half (58%) of consumers said they preferred to make table bookings by telephone. Fast forward nearly a decade, only a fifth (20%) of consumers cite this as their preferred booking method, with nearly half (45%) now wanting to book online. As for using AI tools to book – we didn’t know what that was back in 2014.
Consumer preferences when it comes to paying for food in bars or restaurants have also seen a significant shift. In 2014, GO Technology revealed that only 6% of consumers used digital payment methods for their orders. By 2024, this had increased to 43%, resulting from the rapid adoption of mobile devices for payment as a result of the pandemic.
Data sharing and loyalty
Advances in mobile technology over the last ten years have opened up the potential to tailor services and offers to guests and in turn help drive loyalty. In 2018, GO Technology found that only half (51%) of consumers would be willing to exchange personal information to receive tailored offers, increasing to 64% a mere two years later.
Consumers’ growing desire for value has also led to an increased engagement with brands and loyalty schemes. Back in 2021, less than a quarter (23%) were signed up to more than one loyalty programme, but by 2024 nearly half (47%) of consumers have joined several loyalty schemes, primarily to make the most of deals and promotions available.
The need for speed
Our first ever report also revealed that 17% of young consumers, aged 25 to 34, were frustrated by having to wait to settle the bill at the end of a meal. This has increased to a whopping 75% of young consumers in 2024.
Similarly, people have become increasingly demanding that their food is served in a timely fashion. In 2014 nearly half of consumers (47%) cited waiting a long time for food as their number one frustration when going out for a meal, while this year’s report revealed an increase to nine in ten (91%) consumers who now say long waits and hot food served cold are their top bugbears.
All of which goes to show that investing in tech that can help deliver on these fundamentals is key to business success.
Commenting on the findings, Tim Chapman, Chief Commercial Officer, Zonal, said: “Hospitality has evolved significantly over the past ten years and tech has played a fundamental role in this journey, enabling operators to deliver the fast, seamless and hassle-free experience that consumers have come to demand and in turn, drive growth.
“Looking ahead to the next ten years, there will undoubtedly be more change to come, but one thing we can be certain about is that technology will continue to play its part. However, this doesn’t mean that hospitality will become all about robots and automated processes. The best hospitality experiences remain those that offer the right balance of technology and traditional face-to-face service and that’s never going to change.”
Click here to download the latest report in the series, ‘Fixing people’s hospitality bugbears’.
Get the latest news and insights from Zonal
Beyond Discounts: Three Strategies to Enhance Customer Loyalty
Tipping bill: What does the new law mean for your hotel?
5 ways to get your hotel Christmas-ready
GO Technology: The truth behind no-shows
How to manage your pre-orders during the festive season
What other businesses can teach hospitality about customer loyalty
The Impact of the Climate Crisis on Your Hospitality Business: Why Carbon Accounting & Climate Action Matters Today
Top 10 Support Queries: Quick Solutions to Save you Time