As the Spring Statement – the Labour Government’s second Budget since being in power – draws closer (Wednesday March 26) and cost rises come into play on 1 April, those who predict an uptick in revenue this year believe the growth will be 20% on average.
The research, from online booking platform ResDiary’s Beyond the Booking: UK and Ireland Hospitality Trends Report 2025, found while the marketplace will continue to be challenging, there remains continued resilience from businesses and consumers.
The survey found eight out of 10 (82%) operators reported higher than expected operating costs in 2024, with 84% expecting them to be higher still in 2025.
Meanwhile, in a bid to maximise bookings and drive as much traffic as possible this year, 44% of operators are planning more seasonal promotions, 42% will run more events and the same figure will focus on special offers.
No-shows remain a problem
No-shows remain a heavy burden on the sector with 59% of businesses affected by people not showing up for bookings in 2024 and, on average, 7% of all bookings resulted in a ‘no show’ incurring costs of approximately £3,813 annually per venue.
When it comes to combating no-shows, half of operators take a deposit for bookings of a certain number of covers while 8% take a deposit for all bookings.
Other concerns for operators include operating costs (85%), improving profitability (69%), hiring/retaining staff (44%), how they will attract new customers (35%) and how they will cope if they receive fewer bookings/customers (34%).
From a consumer standpoint, almost three quarters (71%) of diners are happy to provide their card details when making their booking, while 65% are more than happy to pay a deposit. Additionally, 74% of consumers strongly disagree with the practice of placing multiple bookings and only attending one of them.
Determination and resilience
Other finding include 81% of people go out for dinner at least once per month, 67% of people go out for lunch at least once per month, 47% of people go out for breakfast at least once per month and 31% of people actively want to dine out more frequently in 2025.
ResDiary commercial director Colin Winning said: “Despite the challenges that the hospitality sector is continuing to face, there is clear evidence of determination and resilience across the industry, with plenty of opportunities for operators to boost trading and drive revenue beyond last year.
“The latest iteration of our report indicates there is proof from operators that technology and smart solutions should be viewed as a driver of revenue and growth, and these solutions are most effective when used as part of a fully integrated wider growth strategy.
“Ultimately, the overall key to unlocking revenue growth in 2025 is resilience against ongoing challenges and an optimistic outlook for the year to come. Operators should concentrate on impactful initiatives that deliver high rewards and returns, instead of spreading themselves too thin to drive real results.”
