The advantages and disadvantages of online booking systems

Here at Access Hospitality, we have years of experience in guiding hospitality business owners through the process so they can feel confident in making the right decision - so we're breaking down the advantages and disadvantages of having a hospitality booking system in place.

What are the uses of online booking systems for hospitality companies?

The main function of an online booking system is to manage reservations made via your website, over the phone or through social media channels, which are then held in one central place.

The details held on the system can then be used to plan your restaurant space, and staffing and stock levels according to the number of customers expected to turn up for each service. Operators may also use the software to communicate with customers both before and after bookings to encourage upsells or build customer loyalty.

Remember, not all online booking systems are the same and the functionality they offer will differ depending on the supplier.

What are the advantages of an online booking system?

The main benefit of an online booking system is that your customers are able to manage their booking online at a time that suits them. This means that you can still take bookings for your venue even when it’s closed.

The benefits of an online booking system also include; providing a better guest experience to build customer loyalty, freeing up your staff’s time, maximising your venue space, and being able to manage bookings from multiple channels in one place.

In addition, think about the following advantages online booking systems offer:    

1. Relieve pressure on your phone lines and other booking channels

If your venue only receives bookings over the phone or waits until a customer visits your site to book a table in person, you can expect your phone lines to be busy and queues to form. This can be a terrible experience for your staff who are already trying to manage a busy service. Not only this, it can also lead to impatient and annoyed customers.

Most people are not prepared to wait for long periods, whether that be on the phone or in a physical queue, in order to secure a reservation. Plus, customers with other queries will be frustrated if they can’t get through to your team because the line is occupied with those making reservations.  

An online booking system allows your customers to make their reservations quickly and easily from anywhere they have internet access, relieving pressure on your phone lines and leading to less frustration from potential diners.  

2. Gives restaurant staff the freedom to do their job

Manual handling of bookings requires manpower. This means your staff is required to always be on hand to answer the phone for bookings whilst seating walk-ins.  

With staffing continuing to be a challenge for the industry, you may find it hard and uneconomical to employ a dedicated reservations manager. This will then put pressure on the front-of-house staff, who will be required to incorporate reservation management into their roles.   

One of the biggest advantages of using an online booking system is that it relieves staff pressure, allowing them to continue front-of-house duties without the need to focus on bookings on top of that. Some hospitality businesses find it effective to pair an online booking system with hospitality scheduling software, as it allows staff to plan ahead by knowing when and how they’ll be working.  

3. Aid planning and maximises space

An online booking system usually gives you access to more information than the time of booking and the number of covers. This helps with optimal preparation prior to each service, allowing you to maximise the use of available space. Some systems can integrate with hospitality procurement software, collecting pre-visit information like pre-orders and allergen information, enabling your chefs to plan their purchasing orders.  

If your chosen software includes table management functionality, you can review a visual floor plan so you can see where to place bookings and understand which tables can be turned quicker than others.  

The software can also help break down the different types of bookings, allowing you to make a more informed decision about where to seat each party, improving the experience for all. For example, you know to seat a large (and potentially loud) birthday booking away from smaller tables, who are more likely to want a quieter experience.   

4. Help reduce no-shows

No-shows are a continual problem for restaurants costing the sector as much as £18 billion a year. While an online reservation system won’t stop them completely, it can help reduce them substantially.    

This is because the system captures contact details from the customer at the time of booking, and it also sends them automated reminders by email and/or text prompting them to turn up.  

Online reservation systems can also include the functionality to collect deposits at the point of booking which can help ensure your customers show up. 

What are the disadvantages of online booking systems?

The main disadvantage of using an online booking system is that it is dependent on reliable internet connectivity to check bookings, which can be an issue if your venue has internet problems. It could be worth investing in Guest Wi-Fi software not only for your guests, but also for your booking software. The last thing you want is no visibility about who is visiting your restaurant, how big their party is, and where they are sitting. 

 
In addition, some disadvantages to consider include the fees, the impact on foot traffic, and the ability to be reactive and flexible on the day.

1. There’s typically an upfront or monthly fee

Investing in inline booking software means paying out before you see the benefits. Some providers charge a monthly fee, so there is no upfront cost, but you will need to find the funds to pay the flat monthly rate.

If you already have a paper diary or Excel system set up and it’s working efficiently for your business, the added expense of an online restaurant booking system fee each month might not be worthwhile.

2. Reduced queues and sense of ‘buzz’ at the entrance to the restaurant

Online reservations may help manage your bookings better and mean that long queues of walk-ins are no longer seen, but is this what you really want?

Perhaps the buzz created by no-bookings makes your restaurant more appealing to your customers. Maybe they enjoy being spontaneous and don’t mind waiting in line for a coveted table instead of having to plan ahead.

Sometimes queues can be a good thing for a business because they show that your food and service are in demand. If you take all bookings online you lose the queues and the intrigue they create.

3. They make it harder to be flexible

As online booking systems encourage forward bookings, you could inadvertently miss out on unforeseen opportunities to boost your profits.

Say a supplier has a certain ingredient, like steak, on offer. A good restaurant promotion idea such as a dedicated steak night could be a great way to fill your restaurant with loyal customers on your database, but if you already have tables booked out it will be impossible to run the promotion.

It’s not impossible to capitalise on opportunities like these, but it is certainly harder with an online booking system.

Is an online booking system worth it?

As we’ve seen, an online booking system offers many benefits to your business, including the ability to track booking data over time to identify the most and least popular days and times for your venue which can help inform your menu, staff schedule, and promotional offers. So, for many hospitality businesses, it is well worth investing in.

Before making a final decision about whether to adopt an online booking system, it could be helpful to look at each point outlined above and assess the impact each one would have on your particular business.

While there are clear benefits for many restaurants, these systems may might not be the right option for everyone. For example, if you run a large restaurant that thrives on walk-in trade, you may not see the benefits. Instead, you might want to focus on your customers’ dining experience and could choose to invest in a hospitality EPoS. Additionally, smaller hospitality businesses might not receive enough bookings to justify the monthly fee, so focusing on growth or using traditional word-of-mouth marketing strategies might be the best route for them.

In many cases, an online booking system is a great tool and will improve the efficiency of the reservation process. It can provide support to staff because it removes the pressure of them handling booking enquiries; helping make the business run more smoothly and maximise opportunities to boost trade.

Ready to take the next step?

In this article, we’ve looked at the advantages and disadvantages of implementing an online booking system in your venue. Ultimately, no two businesses are the same, and that’s why we advocate matching operators with the right software for them.

Access Collins hospitality booking software is a great fit for businesses who are looking for a more efficient way to manage their bookings. We often help customers implement more efficient software after trying another system that hasn’t worked out, so if you’re looking to try a new solution – make sure you talk to us about your needs.