The problem with this cancellation fee is that it is 100% no matter when one cancels or why one cancels. I don't have a problem with a reasonable penalty for no-shows, however, I do resent a cancellation fee when I act responsibly. The policy discussed in this topic is particularly egregious from any number of angles. Two things: The policy: I remember when I first started at a large, busy, very well-known restaurant in Chicago. My first New Year's Eve there, my first table of the evening informed me that they were very unhappy with our reservation policy, and would not be having the "great evening" that I had so -stupidly- wished them. The policy: On "big days" Valentine's, Mother's Day, New Year's Eve ect., we would take a credit card number and inform the guest that in the event of a no-show/no-call we would bill them a set amount of money as a "cancellation fee". Note please that a) it was made clear that if they called and cancelled, the fee would not be charged and b) the entire three years that I worked there nobody was ever actually charged this cancellation fee even if they did pull a no-show/no-call. Why bother stating the policy then? Because one New Year's fully 50% of the reservations did not show up. The cost? Tremendous. Food was purchased that was never used, staff both kitchen and front of the house was paid when they weren't needed, and real live guests who -did- want to eat were turned away because we were fully booked. The story: At that same restaurant, a very wise chef revealed this personal favorite of mine....A very small restaurant in...we'll leave the city blank so that nobody is hurt. New Year's Eve, and every table is booked for a beautiful dinner so perfectly planned that it hurts. This guy is not trying to turn tables for big numbers, in fact, so personally invested in his guest's evening is he, that he has only made 1 reservation per table this evening. The guest has been promised an entire intimate evening at one of the hottest restaurants in town...every part of the night has been planned to perfection. 1 table doesn't show up. 10pm reservation. Last table of the night. 12 person table. Ouch. The owner/chef/head dishwasher calls the home during the evening. He's worried about them. An accident? Family murdered? Wrong on all counts. The missing table has cheerfully left a message for all callers that they go to a different restaurant for their 'party'. He bites the bullet and calls the cell phone number. It's a fake. Soooooo it's 2am New Year's Day. Our man is cleaning up, counting the money, and toasting his hard working crew for a job well done...but that missing table nags him. He feels personally offended, hurt, used even. He suspects that the villians have made multiple reservations to ensure that they have all their options open. He suspects that maybe the table didn't even care about -his- food, or -his- evening that he so lovingly planned. So, at 4am, he calls the home again. A sleepy, well-fed voice answers. "How was dinner?" "What?" "I'm asking you how your dinner was." "Who is this?" "Restaurant X." "Why are you calling at this time of night? "Well, I figure it this way...I'm still here, your food is uneaten, I just wanted to make sure it was alright if I close up...Since you never cancelled your reservation, I've been waiting for you." Not that the Hyatt policy is right, I'm just offering a slightly different take on the issue.