No-shows cost hospitality sector £17.6bn a year, new research shows

By BigHospitality

- Last updated on GMT

No-shows cost hospitality sector £17.6bn a year, new research shows

Related tags: noshows, ukhospitality, Restaurant, Casual dining

No shows cost the hospitality sector around £17.6bn a year, with over a quarter of 18-34-year-olds failing to show up for reservations, new research has found.

Since the hospitality sector reopened, one in seven (14%) people have not turned up to their reservation, with one in eight (12%) people saying they are more likely to no-show than they were before the pandemic, data from hospitality technology expert Zonal and industry insight company CGA has shown.

The findings also show a strong correlation between no-shows and age, with 18–34-year-olds the worst offenders. According to the research, more than a quarter (28%) of 18-34-year-olds have not honoured their bookings, compared to just 1% of those aged 55 or over.

This is partly explained by the fact that younger adults are more frequent bookers in comparison to other age demographics, the statistics reveal. Nearly three quarters (73%) of 18-34-year-olds say they have made a reservation since April — well above the national average of 60% and older age groups like 65+ (52%).

As a result of such figures, hospitality companies and leaders including Zonal, CGA, UKHospitality, Bums On Seats and Wireless Social have joined forces to highlight the issue of no-shows with a new campaign. Called #ShowUpForHospitality it is aimed at educating customers on the impact of not turning up for bookings, as well as to provide insight, tools and tips to operators to help mitigate the impact.

“We have launched the #ShowUpForHospitality campaign to highlight the impact no-shows have on our industry as well as to showcase how important it is to support hospitality businesses as they begin to rebuild,” says Olivia FitzGerald, chief sales and marketing officer at Zonal.

“The knock-on effects caused by no shows are considerable. Staffing and stock levels are left seriously compromised in addition to the lost revenue for a table that could’ve been taken up by other willing guests, and all this comes with a significant cost to hospitality businesses.

“Pubs, bars and restaurants play a vital role in our communities and it’s important we continue to support them after this challenging time. While the pandemic has prompted a new-found appreciation and understanding of hospitality among many consumers, there is still more to be done in encouraging them to always honour their booking or tell the venue in advance.”

“No shows have been a blight on the industry for many, many years, but with tens of thousands of hospitality businesses in such a fragile state following prolonged periods of closure and heavily-restricted trading, they are currently deeply damaging to venues,” says UKHospitality chief executive, Kate Nicholls.

“Our pubs, bars and restaurants deserve our support and it’s encouraging that this research shows there is a growing realisation among customers of the need to honour their booking or let the venue know they can’t make it. But it also highlights the fact that no shows still happen far too often, with younger customers particularly responsible, and that really can’t go on.

 “We need a revitalised relationship between venues and their customers – and for people to be supportive and respectful of these businesses as they rebuild from the pandemic.”

To support the #ShowUpForHospitality sign up here

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