Keeping festive bookings merry: practical steps to reduce the cost of cancellations

Darcy MacMillan, Solicitor

The festive season can be a busy but successful period for bars, restaurants and hotels, with full tables and good cheer. However a no show or cancellation during this time can be costly. For businesses it is more than a table, it is a loss of income. Businesses should consider the five following steps to be on the front foot with cancelled bookings:

1. Cancellation protections are only as secure as the terms and conditions behind them: having a written contract is important in outlining the booking terms, particularly in relation to deposits and cancellation fees which should be clearly communicated to customers and should reflect a reasonable and proportionate estimate of loss. Businesses can also set out their reasons for any cancellation within the terms, for example due to events beyond their control (e.g. a fire, flood or storm damage).
2. Non-refundable deposits: taking a non-refundable deposit to secure tables during busy festive periods or for larger parties can discourage casual cancellations, while helping to reduce the potential loss if a booking is not honoured.
3. Grace period: limiting the time a booked table will be held for after the reservation time, can encourage guests to arrive promptly for their festive gathering and keeps the flow of waiting customers moving.
4. Booking reminders: sending timely reminders by SMS, email or app notification and actively asking customers to confirm their attendance, ensures customers do not lose track of their reservation amid the seasonal rush and allows businesses to offer tables to other parties if there is a short notice cancellation.
5. Booking incentives: offering a complimentary festive drink or a discount during quieter hours encourages attendance and brings in revenue at times that might otherwise remain quiet.

Taking action now can help bars and restaurants to manage the risk and plan confidently for the season ahead.

Our leisure and hospitality team works closely with bars and restaurants, offering commercial and practical advice to help businesses navigate the challenges of the festive season and beyond. For more information, please contact the team at [email protected] or call 0161 832 3434.