What has prompted a 26% surge in Australian restaurant reservations?
Artificial Intelligence (AI) is increasingly becoming a vital tool in the hospitality industry, with 85 percent of Australian venues incorporating it into their operations
In the face of ongoing economic challenges, Australia’s hospitality industry is not just weathering the storm but thriving, thanks to a strategic focus on Artificial Intelligence (AI) and exceptional guest experiences, according to a recent report from SevenRooms. Hotels have a unique opportunity to harness AI to elevate their food and beverage (F&B) offerings, enhance guest satisfaction, drive revenue growth, and streamline operations.
The report from SevenRooms, a leading CRM and operations platform for the hospitality industry—reveals that reservations across the country surged by 26 percent from Q1 2023 to Q1 2024. This growth is driven by venues that prioritise personalisation and high-quality dining experiences, highlighting the importance of tailored service in today’s market.
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The Restaurant Trends and Diner Expectations report highlights that Australians are not only dining out more frequently but are also willing to spend significantly on premium experiences. One in six diners is prepared to pay between $98 and $291 per person, reflecting a growing demand for dining establishments that offer more than just a meal. These venues are becoming the coveted ‘third place’ (a social environment that complements home and work) offering a memorable experience that keeps guests returning.
Key findings: Personalisation and experience
The report emphasises that venues offering personalised upgrades, such as tasting menus, promotions, and special events like bottomless brunches, generate more than 35 percent additional revenue compared to standard reservations.
On average, these upgrades contribute over $34,000 in revenue per venue, indicating that consumers are not just looking for good food but memorable experiences.
Younger Australians, particularly Gen Z, are leading this trend, with 26 percent dining out more than five times a month.
This demographic values ambience, personalised service, and the ‘vibe’ of a venue, making them loyal patrons of establishments that deliver on these fronts.
“Australia is home to tens of thousands of venues that add so much to the country economically, socially and culturally. Even as economic pressures persist, restaurants, bars and cafes are cementing themselves as a ‘third place’ – somewhere a person spends time besides home or work – that people crave,” commented Paul Hadida, Managing Director, APAC GTM at SevenRooms.
The frequency with which Australians visit venues differs across demographics, however they all share in the desire for more convenience, personalisation and value. They reward the venues that offer that with their dollars and their loyalty.
Robert Squillacioti, Chief Marketing Officer, Solotel said: “We found that when restaurants really get to know their customers while offering great experiences and value, people will prioritise them over their competitors.
“Venues who recognise and address what their customers want are establishing themselves as these third places in their communities, improving revenue and guest retention as a result.”
We know that our customers are contending with economic pressures and are being more intentional with their spending. To secure their patronage and earn their loyalty, we must continue to evolve and offer improved guest experiences.
AI: A game changer in hospitality
AI is increasingly becoming a vital tool in the hospitality industry, with 85 percent of Australian venues incorporating it into their operations. The most common uses include data analytics, inventory management, and menu development.
By automating these tasks, venues can streamline their operations, reduce costs, and focus more on enhancing the customer experience.
“We’re building an AI-assisted data and insights solution that allows our teams to digest information easily,” said Kylie Moncur, Chief Marketing Officer, Australia Venue Co.
“In the future, team members will be able to ask questions in natural language, the tool will pinpoint the relevant data source, identify the specific problem and offer actionable solutions.”
Rising spontaneity in dining
Another notable trend from the report is the increase in spontaneous dining. More than half of all reservations are now made on the same day, reflecting a shift towards more flexible and last-minute dining habits. However, a significant portion of bookings is still made well in advance, particularly for special occasions, underscoring the importance of offering a range of options to cater to different customer needs.
As the Australian hospitality industry continues to adapt to changing economic conditions, the integration of AI and a focus on exceptional, personalised experiences are proving to be key drivers of success. With diners placing a premium on unique and memorable experiences, venues that embrace these trends are set to thrive.
For more insights from the report, visit SevenRooms’ website.
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