close

Hospitality sector loses £17.6bn a year due to no-shows with one in seven not turning up since reopening

Woman working at the front desk of a hotel wearing a facemask

The hospitality sector is losing £17.6bn a year due to no-shows, according to new data highlighting the costly impact caused by customers not turning up for their bookings.

As a result, hospitality companies such as UKHospitality, Zonal, CGA, Bums On Seats and Wireless Social have joined forces to highlight the issue of no-shows, with the group launching a new initiative, #ShowUpForHospitality.

The campaign is aimed at educating customers, as well as providing insight, tools and tips to operators to help mitigate the impact.

Story continues below
Advertisement

Research from Zonal and industry insight firm CGA, reveals that since the 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.

The report identifies a strong correlation between no-shows and age, with 18–34-year-olds the worst offenders when it comes to no-shows.

Over 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- to 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%).

There are ways operators can help mitigate no shows. According to the report, over half of consumers (55%) are willing to pay a no-show fee if they didn’t turn up whilst nearly as many (51%) would be happy to pay a deposit to secure a booking.

Some 36% said they would be more likely to show up if the venue simply reminded them by phone, SMS, email or app.

UKHospitality is one of the supporters of #ShowUpForHospitality. Chief executive, Kate Nicholls, said: “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.

“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.”

download the campaign pack to learn more, join the conversation and help spread the message and encourage customers to #ShowUpForHospitality via LinkedIn, Instagram and Twitter.

Tags : MARKET DATARESEARCHUKHospitality
Zoe Monk

The author Zoe Monk

Leave a Response