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Hospitality no-shows at record high
New data has revealed the number of consumers not showing up for their reservations at hospitality venues is on the rise again.
More than 5,000 British adults were surveyed for Zonal’s latest Go Technology report, created in partnership with CGA by NIQ, in which it was found that while more than two-thirds (68%) of consumers who make bookings said they turn up for all of them, 18% said they cancel in advance, and one in seven (14%) admitted to failing to turn up without telling the venue.
Since the launch of the industry-wide #ShowUpForHospitality campaign in 2021, Go Technology data saw no-shows decreasing. However, this latest insight indicates they have now returned to the same level as three years ago.
Tim Chapman, chief commercial officer at Zonal, said: “No-shows are a £17.59 billion (US$22.84bn) 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 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 more than a quarter (29%) of those who didn’t follow through with a booking citing that they decided it would be ‘too expensive’ as their number-one reason for not showing up.
Chapman added: “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.”
The surveyors were asked what would encourage them to show up or cancel a booking in advance. Almost a third (30%) said a simple cancellation process would encourage advance cancellations, while 28% said rewards and incentivisation would encourage the practice.
A quarter (25%) said that reminders would be a good way to ensure reservations were not missed or cancelled in advance, and a fifth (21%) noted that venues taking deposits would encourage guests to show up.
Karl Chessell, director – hospitality operators and food, EMEA, CGA by NIQ, noted: “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.”
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