According to Zonal’s latest Go Technology report, which was in partnership with CGA by NIQ, 14% of guests have not honoured bookings or not cancelled in advance.
However, the survey of more than 5,000 British adults also found a fifth (21%) said the risk of losing a deposit would make them more likely to honour a booking.
Zonal chief commercial officer Tim Chapman 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 those most likely to no show are high-spenders and frequent visitors, which makes them very valuable customers to the sector.
“It is imperative 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 pubs, restaurants and bars.”
Double-edged sword
What would make guests less likely to miss a booking:
- Simple cancellation process (30%)
- Rewards and incentive (28%)
- Reservation reminders (25%)
- Deposits (21%)
- Loyalty/loyalty schemes (17%)
CGA by NIQ director of hospitality operators and food EMEA Karl Chessell said the research showed no-shows remain a hugely frustrating issue for the sector.
He added: “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 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.”
Previous research from Zonal revealed the reasons why hospitality guests hadn’t turn up for bookings with having a change of plans (27%) topping the list.
This was followed by others in the group cancelling (21%), people booking multiple venues to ensure they would get in somewhere (20%), a member of the group falling ill (20%) and forgetting (15%).
New data
In the latest report, the findings were slightly different with deciding it was too expensive becoming the top reason (29%).
A change in plans was second (27%), illness third (27%) and forgetting about the booking was fourth (17%).
While 14% said they hadn’t followed through with a reservation because someone else in the group cancelled and one in 10 (10%) booked more than one venue.
Moreover, data from the firm last year outlined the strangest reasons customers had cancelled a booking including “seagull problems”, “my sister wants to eat at home”, “my kids don’t care” and “my friend has an unexpected council meeting”.
