Driven by shifting customer behaviour and the rise of diverse digital restaurant software, the hospitality industry continues to rapidly evolve. But if there’s one thing we know, it’s that consumers around the world are relying more heavily on online reservations.
This is, in part, due to the changes in the post-pandemic hospitality landscape. Restaurants needed to ensure tables are filled with a level of commitment to prevent profit loss while consumers had to scurry to book a spot or risk not getting a table at all.
There are also new trends to consider with developing hospo technology, from AI-powered reservations to open API guest profiles. These new ways in the world of reservations will have a tangible impact on businesses.
Keep up as we dive into global restaurant online booking and reservation statistics and trends, covering major markets from Australia and New Zealand to the United States, Canada and the United Kingdom.
2/3 of diners now make restaurant bookings online
Online restaurant reservations have seen significant growth over the past few years, as customers begin to prioritise convenience and time management.
- The global market for online restaurant reservations is estimated to reach $15.4 million with a CAGR of 9% over the next decade.
- On average, 59% of diners now prefer to book their table online, according to aggregated statistics across multiple report sources.
Nearly half of all restaurant bookings are made on a mobile device
- Mobile phones have become the primary device for making restaurant reservations, similar to the mobile-first shift in many other industries such as online shopping.
- In Australia and New Zealand, 41% of diners use smartphones to secure bookings, followed closely by the 39% mobile booking rates in the UK.
- A review platform survey also found that 45% of consumers in both the US and Canada prefer using mobile reservation apps to book tables.
Cancellations are the #1 challenge for restaurants, but taking booking guarantees can help
- Across the UK, Australia and New Zealand, restaurants report no-show rates between 15-18%. Meanwhile, as much as 20% of restaurant reservations in the US and Canada are no-shows.
In Australia’s fine dining sector, venues saw a whopping 88% increase in cancellations last year presumably due to the rising costs of dining out.
With restaurant profit margins straddling a precarious line between 3-6%, these numbers can lead to significant losses and a lasting impact on businesses.
It’s not all bleak as restaurants cite the use of booking guarantees and deposit policies that have helped protect against cancellations.
Customers often make reservations near mealtimes and on the weekends
- In Australia, New Zealand and the UK, diners typically book around 7PM, with weekends seeing a noticeable surge in online reservations being made.
- In North America, customers are most likely to make reservations between 4-6PM, with Fridays and Saturdays being the most popular days for bookings.
Social media and reviews play a crucial role in both discovery and booking
Up to 47% of diners use social media platforms to discover restaurants, and 40% say they’ve made a booking on social media.
Instagram is a particularly influential platform for restaurant discovery, especially for diners aged between 18-35.
In Australia and New Zealand, more than half of consumers say they are likely to book a restaurant based on positive online reviews, with Google Reviews and TripAdvisor being the most trusted platforms.
Across US and Canada, up to 84% of diners say that online reviews are a deciding factor when selecting a venue to book. Meanwhile in the UK, 71% of customers check review before making a reservation.
Integrated booking system features mean more repeat reservations
Increasingly, restaurants are integrating reservations with additional features to retain customers. This can come in many forms, whether it’s gift cards, loyalty programmes, or events and experiences.
60% of diners in the US and 45% in Australia and New Zealand said they are more likely to book again if a restaurant offers loyalty rewards.
Gift cards offer a whole other financial upside to the restaurant business, as customers spend an additional 20-30% beyond the value of their gift card.
78% of diners in the millennial age group say they would prefer to spend experiences at a restaurant, compared to purchasing an item from a store.
Now that we know the online reservations pie is only going to get bigger, how can you make sure your venue gets a slice?
Now Book It continuously innovates alongside our thousands of venues to build the most powerful hospitality reservations platform, helping restaurant owners boost, manage and gain insights from venue bookings with ease. Speak to one of our team members to get started today!
Data sources: Statista, MetaStatInsight, Toast, Yelp Insights, TripAdvisor, Zagat
