Last week I wrote about incentive programs three months out, with most of the Middle East under a Level 4 advisory and Europe at Level 2 with many worried guests in the mix.

As I write this, we have not cancelled.

We are in the space I care about most: before the crisis point, when you still have options  but only if you built them into your contracts months ago.

This week I want to step out of the headlines and into the paperwork. Because the real question is not ‘will we cancel?’ It is ‘if we have to, what happens next and what have our contracts already decided for us?’

How We Look at Hotel Contracts

When a hotel sends through a contract, we are not just checking dates and rates. We are asking one basic question:

If this does not go exactly to plan, how much room do we have to move?

To answer that, we focus on five areas:

     1. Cancellation

     2. Attrition (reduced room nights)

     3. Payment schedule

     4. Force majeure

Cancellation: Resell Before Penalty

Hotels like to treat cancellation fees as automatic. You cancel, you pay.

We do not accept that as the default. If a client releases space early enough for the hotel to resell it, the client should not be punished as if those rooms sat empty.

So for full cancellation we ask for:

• A stepped schedule based on days out from guest arrival A clear obligation for the hotel to try to re‑sell A commitment to refund us if they do
• A clear obligation for the hotel to try to re‑sell
• A commitment to refund us if they do

The wording is simple:

Cancellation terms apply as stated above, unless the hotel can resell accommodation rooms or event space, in which case the client will be reimbursed the amount equivalent to the space resold.

We also push for a more generous timeline than the standard ’60 days and you are done,’ such as:

•  Up to 120 days: full refund
• 120–61 days: 10% of total charges unless the space is resold
• 60–31 days: 60% unless resold
•  30–14 days: 90% unless resold 
• Less than 14 days: 100% unless resold

The point is not to ‘win’ against the hotel, it’s to share risk more fairly, based on how their inventory actually works.

Attrition: Gentle Slopes, Not Cliffs

Room blocks rarely land exactly on the number you predicted a year earlier. People drop out. Others extend. Some never book.

Standard contracts often give you one hard line: fall below 80% of your block and the penalties bite.

We aim to replace cliffs with slopes. For example:

• 120–90 days: release up to 20% of rooms without penalty 
• 89–60 days: a further 10% 
• 59–30 days: 5% 
• 29–14 days: 5%
• 13–7 days: 2%
• Inside 7 days: 1%

We also want:

• Minimum room nights calculated over the whole event, not per night 
• Extensions and pre/post nights to count towards that minimum 
• A relet clause on unused rooms, as with full cancellation

It is a more honest reflection of how real events behave.

Payment Schedule: Keeping 10% Back

Our rule is simple: we do not want to pay more than 90% of any service until it has been delivered.

A payment profile we like looks like this:

• 10% on signing
• 20% 60 days before arrival
• 50% 30 days before arrival
• Balance within seven days of receiving accurate final documents 

If the hotel wants extra comfort, we will provide a credit card as guarantee with one condition clearly stated in the contract:

The card cannot be charged without the written permission of Synergy.

This approach:

• Keeps most of the client’s cash with them until close to the event
• Still gives the hotel confidence on payment
• Leaves a small but important buffer if something changes late

Force Majeure: Mutual and Useful

Force majeure clauses are often written to look impressive but help very little when you need them.  We look for three things:

• The clause is mutual
• It applies where guests are travelling from as well as where they are going
• It recognises travel advisories and safety, not just natural disasters

We prefer language along these lines:

Performance is subject to acts of God, war, civil unrest, terrorism, travel advisories issued by government authorities restricting or curtailing travel for either party or their staff, clients, speakers or invitees or any other emergency beyond a party’s reasonable control, making it illegal, impossible or unsafe for either party to perform.

We also push for charges to be based on actual attendees, not minimum guarantees if only part of the group can travel.

Force majeure will never solve every problem but written well it is more than decoration.

Group Airfares: Part of the Same Conversation

The same thinking applies in the air.

We prefer group airfares over instant purchase tickets for programs like this because they allow:

• Name changes close to departure
• Later commitment on final numbers
• Partial refunds or credits if the group cancels

They cost more on day one. They can save far more if you find yourself in the kind of situation we are in now.

Where This Leaves Us

As of 18 March, we have not cancelled this incentive. What we have done is:

• Mapped exactly what happens at each cancellation step
• Confirmed the credits we can apply if we postpone
• Checked that our payment schedule and group air terms give us room to move

The situation in the region will decide some things. Our contracts have already decided others.

Next time a hotel or airline contract lands in your inbox, pause before you look at the room layouts. Ask first: If this cannot go ahead as planned, what options do we have and what will they cost? If you cannot answer that clearly, the contract is not ready to sign.

Next week: why force majeure almost never means what people think and what actually protects you when things go wrong.