Booking data for the past 15 months shows pubs the big winners in the cost of living squeeze, increasing bookings while fine dining restaurants feel the pinch.
The data finds diners now choosing mid-range venues such as pubs and cafes during these tough economic times.
The mid-range venues, defined as having a price point of $21-40, now enjoy nearly half (48 per cent) of all bookings in Australia, which is up over 10 per cent from the 37 per cent share in January last year.
By contrast, venues classified ‘premium’ and fine dining have experienced a decline of 28 per cent over the same period.
The data comes out of ResDiary – a commission-free booking system with a variety of pricing plans, established in 2006, and now seating over 185 million diners each year.
In an attempt to better understand the impacts of inflation, interest rates and the rising cost of living on hospitality, the company mined its data on bookings since the beginning of 2022.
It says the insights show that pubs and cafes are the trend winners, with an overall increase in bookings.
“The data shows Australians still have the desire to head out and enjoy a good quality meal, however we can see people choosing mid-range options, and are experiencing ‘booker’s remorse’ for higher end venues as they cancel plans a higher percentage of the time,” reports Stefan Overzier, APAC Head of Customer Service and Support.
ResDiary offers the following insights into the impact the current economic climate is having on the industry:
Interest rates go up, booking numbers go down
There has been a significant effect on diner bookings since May 2022 when the RBA increased the cash rate, from a low of 0.1 to 3.6 per cent, in an effort to combat inflation.
Increase in booking lead times
A key stand-out trend over the past year is that Australians are planning ahead of time more and booking an extra 2.2 days in advance (February 2023 vs February 2022).
Mid-range venues win
Diners are still heading out but preferring venues with a lower price point, resulting in a decrease in cancellations in pubs from May to October.
Rise in cancellations for fine-dining
An 88 per cent increase in cancellations since May, dubbed ‘Booker’s remorse’.
