No shows are costing UK hospitality industry 16 billion a year
ResDiary, the restaurant reservation provider, today revealed restaurateur’s opinions on the controversial topic of no-shows. In a flash poll, the team found that their customers are calling out for a solution to better protect their businesses and prevent losses, while still providing the best availability to their customers.
In the UK, the rate of people not turning up for bookings is estimated as anywhere between 5-20%, depending on the restaurant. In an industry that generated approximately £82 billion in 2014, this could mean a growing loss of anything from 4 to 16 billion pounds every year.
As a list of global restaurants, including the Clove Club in London, move to a ticketing solution – the industry starts to re-assess the booking structure as it stands today. The poll results show that 80% of restaurateurs see ticketing as a positive move into the future of bookings and as such ResDiary has created a pre-payment tool to facilitate this.
Hari Farzin, Digital & Marketing Director at ResDiary commented:
“No-shows clearly aren’t a new problem for operators, rather they are a well-documented scourge of the hospitality industry. With this recurrent issue damaging restaurant revenues, ResDiary has developed an integration with payment provider Stripe Connect, allowing restaurateurs to use secure tokenization within the booking process for both online and internal reservations. This integration will play a vital part in reducing lost revenue through no-shows and late cancellations. In addition owners are able to offer genuine customers seats at their desired times; both yield management and customer satisfaction is improved.”
If the industry looked to ticketing as a plausible solution and thereby reduced their no-shows to just 1,5%, it could save up to 15 billion pounds a year. It could also improve customer satisfaction, as guests who are keen to book at popular venues will be guaranteeing their arrival.
Communication with customers and clear cancellation policies will be needed in order to gain support with UK diners, as this new technology takes hold.