Three weeks into this situation and we still have not cancelled the Middle East and European incentive trips.

Clients keeps asking: ‘Can we invoke force majeure?

The answer is the same each time: probably not.

Not because the situation is not serious. It is. The Middle East under a Level 4 advisory, it’s unsettled and our guests are nervous.

One part of the problem is simpler: force majeure clauses in most event contracts are written to sound protective while doing almost nothing useful when you actually need them.

What Force Majeure Actually Says

Most hotel and venue contracts include a force majeure clause. It usually reads something like this:

Either party may terminate this agreement without liability if performance becomes impossible due to acts of God, war, terrorism, natural disaster, or government action.

On the surface, that looks reassuring. War is listed. Government advisories exist. Surely we are covered?

Not quite.

The Timing Problem No One Talks About

Here is the issue we face as event professionals that force majeure clauses completely miss.

Our event is three months away. If we wait until force majeure conditions are obvious enough to trigger, borders closed, flights cancelled, hotels shut, it will be far too late to do anything useful for the planned event.

By the time a situation is bad enough to meet the ‘impossible’ threshold in most contracts, we have lost any chance to pivot to an alternative destination, rebook flights, secure new venues or redesign the program.

Force majeure might excuse us from penalties. But it does nothing to help us actually deliver an event.

If we are going to pull the pin on the Middle East and Europe, we need to do it now, while we still have time to find alternatives, negotiate with new suppliers and keep the program alive in a different form.

That is why we rely on postponement terms and deposit credits, not just force majeure. Those give us room to move early, when it still matters.

Four Problems with Standard Clauses

1. ‘Impossible’ Is a High Bar

Most clauses require performance to be impossible, not just inadvisable or risky.

Europe is at Level 2. Hotels are open. Flights are operating. Airlines have not yet cancelled our group booking. Suppliers are ready to deliver.

Is it wise to proceed? Probably not. Is it impossible? No.

That gap between ‘unwise’ and ‘impossible’ is where most force majeure clauses fail.

2. It Has to Affect the Destination, Not You

Most clauses only trigger if the force majeure event directly affects the venue or destination.

Suppliers in Europe have been clear: they are not directly affected by the conflict. Hotels are operating normally. They will not accept force majeure.

The fact that our guests are uncomfortable travelling does not matter under standard contract language. The hotel is fine. That is all the clause cares about.

3. Government Action Usually Means ‘Ban,’ Not ‘Advice’

A DFAT advisory, even at Level 4, is not a ban. It is advice. Strong advice, but still advice.

During the pandemic the situation was clear, no one could leave the country. Borders closed. Travel was legally prohibited. Airlines were not flying. That is the kind of government action most force majeure clauses recognise (but it was still a battle in some cases!).

A Level 4 advisory is different. It warns against travel. Travel insurers will not cover new travel to Level 4 destinations. But the government has not made it illegal to go.  Australians can still choose to travel, they just do so uninsured and against official advice.

For our guests, who booked before the Level 4 advisory was issued, their existing travel insurance still covers them. That is insurance protecting them, not force majeure.

But the force majeure clause in the hotel contract? It does not trigger on an advisory. It needs a prohibition, borders closed, flights grounded, travel banned by law.

Most force majeure clauses will not activate on an advisory alone, no matter how strongly worded.

4. It Is Often One-Sided

Many clauses protect the supplier but do little for you.

If the hotel cannot operate due to disaster, they are excused. But if you cannot travel because of conditions at your end, pandemic restrictions, civil unrest in your city, airline failures, those same clauses often do not apply.

The mutuality is missing.

What We Negotiated Instead

For this program, our protection does not come from force majeure. It comes from postponement and credit terms we negotiated six months ago.

Hotels are holding our deposit as a credit through to 2027.  Cancelling has become an effective postponement without the need to specify a date range through December 2027.

That flexibility is what allows us to make an early decision while we still have options.

The lesson: Do not wait for force majeure conditions. Build commercial terms that let you move early.

What We Push For Now

When we review force majeure clauses we aim for language that reflects reality:

Performance is subject to acts of God, war, civil unrest, terrorism, travel advisories issued by government authorities (including advisories affecting the destination or point of origin), travel insurance becoming unavailable or prohibitively expensive, commercial flights being suspended or materially reduced or any other emergency beyond a party’s reasonable control, making it illegal, impossible or unsafe for either party to perform.

Key changes:

• Travel advisories explicitly included, not just bans
• Applies to origin and destination if guests cannot leave safely, that counts
• Insurance availability matters if cover becomes unavailable, that is recognised
• ‘Unsafe’ added alongside ‘impossible’ acknowledges risk, not just absolute barriers
• Mutual application protects both parties equally

We also add:

Where only part of the group is affected, charges will be based on actual attendees, not the original minimum guarantee.

Not every supplier will agree to all or parts and you’ll need to polish up your negotiation skills, but we ask every time and document what we achieved.

What Actually Protects You

If force majeure is unreliable, what works?

1. Postponement and credit terms

The ability to move dates without losing deposits. This is what lets you act early.

2. Event cancellation insurance

Book early, before advisories change. Understand exactly what is covered.

3. Stepped cancellation penalties with time buffers

Use the gaps between penalty steps to make informed decisions.

4. Group airfares, not instant purchase

Flexibility costs more but protects you when things change.

5. Payment schedules that keep cash longer

Do not pay 100% upfront, stage payment and keep at least 10% back until after delivery.

Force majeure sits at the bottom of that list, not the top.

Where This Leaves Us

We are around two weeks from the next penalty step on this program.

Force majeure will not save us. It was never going to.