Understanding the Problem
Previous GO Technology data had measured no-shows as decreasing, however the latest research shows they’ve now returned to the same level as three years ago. This relapse highlights the extensive and stubborn problem they present.
In order to tackle this ongoing issue, it’s important to first understand why guests fail to honour bookings. The most common culprits include the following:
- Keeping options open by booking a few venues is something one in ten (10%) admitted to doing, this leading to letting all but one venue down.
- Simply forgetting about a booking is something 17% admitted to.
- Last-minute changes in plans are responsible for over a quarter (27%) of consumers ultimately failing to fulfil their bookings.
In addition, cost concerns (29%), and some more forgivable reasons were listed including somebody else in the group cancelling (14%), and illness in the group (21%).
The consequences for operators are stark. Empty tables. Wasted stock. Disproportionate labour costs. Lost revenue.
But what can be done to reverse this negative trend?
Five key considerations for tackling no-shows
- Simplify the cancellation process – Almost a third of consumers (30%) say they’d be less likely to no-show if cancelling a booking was easier. For this purpose, venues should prioritise user-friendly digital cancellation, while maintaining phone lines for older demographics who prefer more traditional methods.
- Offer incentives – Not every operator will welcome the idea of paying to avoid no-shows. But more than a quarter (28%) of consumers admit incentives could encourage them to show up. Accordingly, small rewards, such as a complimentary drink, could turn missed bookings into loyal advocates.
- Provide timely reminders – Reservation reminders can deter no-shows for a quarter (25%) of guests. Well-timed nudges, the day before or on the booking date, via SMS, email, or app notifications, have proved most effective.
- Introduce deposits or no-show fees – Deposits can motivate more than a fifth (21%) of potential no-shows to stick to their reservations, although operators must tread carefully. Younger consumers, in particular, tend to perceive such policies as punitive, making the right balance key for avoiding deterrence while protecting against losses.
- Build empathy and awareness – Consumers who feel connected to a venue or understand the impact of no-shows on the industry are less likely to miss bookings. Correspondingly, campaigns like Zonal’s #ShowUpForHospitality have drawn attention to the £18bn annual cost of no-shows. The scale and impact of the problem emphasises how important it is to nurture customer allegiance and educate them on their role in supporting the sector.
Click here to access the latest report. GO Technology is based on an exclusive survey of 5,000 nationally representative British consumers. To discuss the research and ways CGA by NIQ helps businesses drive loyalty, email client director Andy Dean at andy.dean@nielseniq.com.
