The persistence of postpandemic hidden charges and fees in hospitality and leisure sectors

The Covid pandemic upended the hospitality and leisure sectors, leading businesses to adopt a flurry of new financial measures to stay afloat. While lockdowns and restrictions have faded, many pandemic-era practices remain firmly in place, causing consumers to shoulder expenses that extend far beyond initial prices. This evolution in pricing is visible across pubs, restaurants and holiday lets, manifested in service charges, non-refundable deposits and an array of hidden fees.

Compulsory table bookings, which became widespread during the pandemic, are now a fixture even in establishments that never previously required reservations. For many diners, the introduction of deposits for restaurant bookings or even pub tables is proving deeply unpopular. Recent figures indicate that one in four diners objects to reservation deposits, yet many venues persist. Restaurant owners argue such measures are essential to prevent financial losses caused by last-minute cancellations, with some charging as much as £150 per person for no-shows or reductions in party numbers. Operators report that this step is necessary to avoid a collapse in expected covers, especially in seasonal destinations where so-called “spread booking” is common.

Last-minute cancellations have become more frequent post-pandemic, forcing establishments to implement stricter booking policies. Some restaurants now require a deposit, alongside a credit card number, to secure a table. Hospitality managers assert these changes reflect operational realities: late cancellations or empty covers can result in irretrievable losses, making such safeguards unavoidable to protect businesses and their staff.

The prevalence of online booking platforms has facilitated the spread of reservation fees and penalties, making it routine for customers to incur costs previously unheard of in pubs and casual dining. Social media reports describe venues dominated by reserved tables and empty seats, shifting the traditional experience of spontaneous visits in favour of a more transactional model.

Holiday accommodation has not been spared. Cleaning fees for short-term lets, which existed before the pandemic, have surged since 2020, fuelled by heightened expectations around hygiene. Platforms such as Airbnb rolled out enhanced cleaning protocols, and a growing share of hosts now apply compulsory cleaning charges. In some countries, more than half of properties impose these fees. Guests frequently complain that, in addition to financial premiums, they are tasked with extensive cleaning requirements before departure, intensifying criticism of what many view as unreasonable, double-charged service expectations.

The shift towards digital payments and tipping has also intensified pricing opacity. Covid-era recommendations encouraged a move from cash to card payments for perceived safety, which in turn made it easier for venues to embed service charges by default. Digital payment providers have reported significant increases in the use of gratuity additions. This shift has normalised revenue streams that would once have been more transparent or voluntary, sparking debate among both customers and sector professionals.

The cumulative effect has been to erode patience among customers long after the pandemic’s end. Regulatory authorities have begun to address practices such as drip pricing, where the total cost only becomes apparent once add-ons are included, and concerns have also been raised regarding recent customer experience trends such as the replacement of call centre staff with AI-powered systems, which often prove less effective for service resolution or refunds. Some industry voices suggest that these ongoing measures are no longer justifiable under current conditions, arguing that sustained financial pressures on consumers are increasingly difficult to defend.