No-shows: deposits, reminders and rules that work (with EU consumer-law cautions)

This guide is general information, not legal advice. Consumer law differs between countries, even inside the EU, and it also depends on your trade. Treat the cautions below as questions to put to your local trade body, chamber of commerce or a lawyer.

Step 1: reminders (cheapest, usually most effective)

1. Collect a mobile number or email at booking, and tell the customer you will use it for reminders.
2. Send one reminder a day or two before and, for longer appointments, another a few hours before.
3. Put a one-tap way to cancel or reschedule in the reminder. A customer who can cancel in ten seconds frees the slot for someone else; a customer who has to phone you simply does not show.
4. Check the rules on marketing messages: a reminder about an appointment is not a promotion, and you should not mix them.

Step 2: a written policy people see before they book

• How much notice is needed to cancel free of charge.
• What happens if someone is late (how long you wait).
• What happens on a no-show: a fee, a deposit kept, or nothing but a note on their record.
• Where it is shown: on the booking page, in the confirmation, and in the reminder. Hidden terms are the ones that cause arguments.

Step 3: deposits, used carefully

1. Choose where it applies. Long appointments, Friday-night tables for large groups, expensive treatments. Not every slot needs one.
2. Keep it proportionate. A deposit should look like a reasonable part of the price, not a penalty. Whether a charge counts as a fair cancellation fee or an unfair penalty is a legal question that varies by country.
3. Show it before the customer commits. The amount, when it is refunded, and when it is kept.
4. Take it through a payment provider rather than collecting card numbers yourself, so the card data is not yours to protect.
5. Refund when you cancel. If you cancel or close, the customer should not lose a deposit.
6. Record what was agreed: the terms shown, the time, the amount.

EU consumer-law cautions

• Right of withdrawal. The EU's Consumer Rights Directive (2011/83/EU) gives consumers a right to withdraw from many distance contracts, but Article 16 lists exceptions, including leisure services (such as accommodation, transport, catering or leisure) booked for a specific date or period. Whether your service counts, and how your country applies the rule, needs checking. The directive is published on EUR-Lex. Read Article 16 itself rather than relying on a summary, including this one.
• Fair terms. EU rules on unfair terms in consumer contracts, and national versions of them, can invalidate a fee that is disproportionate or hidden. Plain, prominent, proportionate terms are your best protection.
• Information before the booking. Consumer rules require clear information on price and key conditions before a consumer is bound. Show the deposit and cancellation terms at that step.
• Personal data. Reminders and records involve personal data. Tell people what you keep and why, and keep it only as long as you need it.
• Agents booking for customers. When software books for a person, confirm with the person, so the person, not only the software, has seen and accepted your terms.

What to measure

Count no-shows per month before you change anything, then again after reminders, then after any deposit. Change one thing at a time. If a deposit reduces no-shows but also reduces bookings, you want to know that too.