It is as if you had a reservation and failed to keep the reservation. There would be a fee for failure to show. They were holding your whatever vacant for you instead of being able to sell or rent it to another. They wish to be paid for time when product was not in use due to being promised to you for x time.
It means if the person(s) who requested some type of reservation but then does not show up for said reservation is liable for a special fee to cover the cost of the reservation and recover lost monies that could have been made if the reservation had been given to a person(s) who did arrive and conclude the reservation transaction. It’s a penalty fee, in other words.
It’s a fancy legal way of a business saying “I’m going to charge you for me not providing services to you, despite the fact you didn’t show up.”