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More and more hairdressers or restaurants are asking for an advance when customers make a reservation

More and more hairdressers and restaurants are asking customers to pay a deposit when they make a reservation or appointment. At upmarket restaurants this can be as much 300 euros per person. Those that don’t show up or cancel at the last minute lose their money.

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For some time now those of us that make appointments with a physiotherapist or dentist have had to pay if we fail to show up for our appointment. However, recently other service providers such as hairdressers and restaurants have also started requesting cancellation fees, payable in the form of a deposit when customers book. But why is this being done more and more often and what are your rights as a consumer?

120 euros for a canceled dinner

Anneleen from Ghent in East Flanders made an appointment with a beautician and was asked to pay a 50-euro deposit. She asked VRT Radio 2’s consumer team is she would lose her 50 euro if she failed to keep her appointment.

There is a pretty good chance that this will be the case because Lieselot, also from Ghent lost the deposit she had paid to dine at a fancy restaurant on her wedding anniversary. She and her husband were forced to cancel at the last minute because Lieselot became ill became ill just before the dinner. The couple canceled the dinner and 120 euro “deposit” was taken from their account.

Deposit to encourage “mutual respect"

It is customary to pay for products before they are delivered to your home. However, this is not usually the case with regards to services. Usually restaurants, hairdressers and vets, for example, first provide you with a service after which you pay them. However, a growing number of service providers are noticing that people are making reservation and cancelling at the drop of a hat. In some cases customers simply don’t show up without even having bothered to cancel.

Katrien is a beautician in Drongen, near Ghent. She told the VRT that "Since I offer online reservations, I am seeing people booking 4 or 5 treatment sessions at once, only to cancel them afterwards. In this way they block my diary and I have no room for other customers. That's why I started asking for a deposit. It's actually a question of mutual respect. If a customer cancels, I always take the reason for cancellation into account."

Just like many other catering establishments, the Souvenir restaurant in Ghent asks now asks credit card details when a customer makes a reservation. Souvenir’s Joke Michiels told the VRT that "We charge 60 euro per person if you cancel, but that is only 20% of the total amount that people would spend if they came to eat. We introduced this system about four years ago as we had noticed that people were booking on different dates to be sure of a table and then canceling."

The Federal Economy Department confirms that service industry businesses say that the number of no shows is on the increase.

No refund even if you are ill

The Federal Economy Department says that it is it is perfectly legal to request an advance or cancellation fee. The Department’s Etienne Mignolet told the VRT that "Restaurants and other service providers are free to decide on the amount they charge, as long as the consumer is aware of this in advance and agrees to it." With every order made online a consumer is asked to check that they agree with the vendor’s terms and conditions. These must include an explanation concerning any advance payment that might be required.

But what if you become ill of have an accident on the way to the hairdresser or restaurant? "In principle, illness or other impediment is a risk that the person making the reservation must take into account", Mr Mignolet explains. "It is not the fault of the hairdresser or the restaurant if you become ill prior to your appointment. Of course, it is normal to expect a company to be a accommodating when it comes to really unforeseen circumstances. But on the other hand, the hairdresser has freed up space in their salon or the restaurant has reserved a table that could have been used by other diners. The advance serves not only as a way of encouraging customers to actually show up, but also as a form of compensation for the vendor if they don’t.

Reciprocal

But what if your hairdresser or the chef of the restaurant falls ill? "Well, then the arrangement is reciprocal. This means that the company that cancels must also compensate the consumer."

But who would ask their hairdresser for money? And how much do you ask? In practice, few customers ever actually do this.

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