Half of Australian diners slam cancellation fees as excessive
More than half of Australian diners believe restaurant cancellation fees and card holds for missed bookings have gone too far, a new survey reveals, even as operators argue the charges are becoming critical to surviving rising cost pressures.
The nationally representative poll of over 1,000 people, commissioned by Money.com.au and conducted by Pureprofile in May, found 51 per cent of respondents consider cancellation fees excessive, compared with just 22 per cent who view them as reasonable. 48% of those surveyed believe there should be no fee at all for a missed booking.
Diners who do accept the principle of a fee put the fair average at $15 per person, well below the $50-plus charges some venues now impose.
Millennials proved the most vocal critics, with 61 per cent labelling cancellation fees excessive. Baby Boomers, by contrast, were the most likely to act on their frustration, with 33 per cent saying they would avoid venues altogether if booking policies were too strict.
"Most people understand why restaurants want to protect themselves against no-shows, particularly when they're holding tables for large groups or operating during busy periods like weekends," Sean Callery, Money.com.au's head of insights said.
"But many Australians believe that some venues have pushed too far by charging excessive cancellation fees or imposing strict card hold requirements.
"The risk for venues is that strict booking conditions could end up driving customers away altogether.
"People will simply take their money elsewhere if they feel the penalties outweigh the convenience of making a reservation."
Callery says operators are entitled to guard against lost revenue, but customers expect some give when plans change. "The challenge for venues is finding that balance without alienating potential customers."
The findings land as the restaurant and café sector grapples with a stack of cost pressures that industry figures say are making no-show protections harder to avoid. The Fair Work Commission has confirmed a 4.75 per cent rise to the national minimum award wage from July 1, adding further strain to labour budgets across the sector. Operators are also bracing for the incoming Payday Super obligation and a flagged ban on card surcharges, both of which threaten to squeeze margins already stretched thin.
The Australian Restaurants and Cafés Association has previously defended cancellation fees as a necessary safeguard for venues navigating these conditions.
The financial stakes are real: research from hospitality platform SevenRooms found Australian restaurants lost an average of $5,971 a year to no-shows and ghost diners in 2023.
But operators looking to tighten booking policies face legal limits. Legal services firm LegalVision points out that cancellation fees must reflect a business's genuine loss from a missed booking rather than operate as a punitive penalty.
Fees judged disproportionate to actual loss can be ruled void and unenforceable, with the Australian Competition and Consumer Commission empowered to fine businesses that breach the rules.
The tension leaves venues walking a tightrope: protect revenue against costly no-shows, without alienating the diners footing the bill.
Jonathan Jackson, 29th June 2026
