Why Event Contracts Are Changing – And What It Means for You

If the past few years have taught event planners anything, it’s that contracts can make or break an event. The fine print that planners once skimmed over—force majeure, cancellation policies, attrition clauses—has now become the difference between financial security and massive losses.

I’ve spent over 40 years negotiating hotel and venue contracts, and I can tell you firsthand: event contracts are evolving fast. Planners who don’t adapt to these changes risk signing agreements that put them at a financial disadvantage.

Let’s look at the biggest legal trends shaping event contracts and what you need to start negotiating differently.

1. Force Majeure Clauses Are No Longer an Afterthought

Before 2020, force majeure clauses were just another section in the contract that most planners never questioned. Then the pandemic hit. Events were canceled worldwide, and many planners were shocked to discover that their force majeure clause didn’t actually protect them.

What’s Changing?

✔ Hotels and venues are tightening their force majeure clauses, making it harder to cancel without financial penalties.

✔ Some contracts now require proof that an event is “impossible” (not just “inadvisable”) to invoke force majeure.

✔ Planners are negotiating more specific force majeure terms, including pandemics, travel bans, and government restrictions.

What You Should Do:

• Negotiate clear force majeure language that protects your event against not just disasters, but government orders and health risks.

• Push for flexibility—make sure your clause allows for rescheduling without penalty instead of outright cancellation.

• Define what “impossible” means—if a travel ban affects 30% of your attendees, does that trigger force majeure? Spell it out.

2. Hotels Are Increasing Non-Refundable Deposits & Cancellation Fees

Many venues suffered major financial losses from widespread cancellations over the past few years. To protect themselves, they’re now demanding larger non-refundable deposits and stricter cancellation policies.

What’s Changing?

✔ Higher deposit requirements upfront—some venues now ask for 50% or more at signing.

✔ Cancellation penalties apply sooner—planners have less time to cancel without financial loss.

✔ Rebooking credits are harder to negotiate—venues are limiting how far in advance credits can be applied.

What You Should Do:

• Negotiate lower upfront deposits or structure them in phases (e.g., 25% at signing, 25% closer to the event).

• Secure a rebooking clause so if you need to cancel, you can apply fees toward a future event.

• Push for a flexible cancellation window—especially if attendee numbers are unpredictable.

3. Attrition Clauses Are Getting Stricter

Hotels have always used attrition clauses to protect their revenue, but now they’re making it even harder for planners to adjust room blocks.

What’s Changing?

✔ Higher attrition thresholds—many contracts now require 85-90% fulfillment instead of the previous 70-80%.

✔ Fewer cumulative attrition options—some hotels insist on per-night attrition, making it harder to balance room usage.

✔ Resell clauses are disappearing—meaning hotels can charge planners for unused rooms even if they resell them.

What You Should Do:

• Negotiate a lower attrition percentage (closer to 75% or lower).

• Insist on cumulative attrition instead of per-night tracking.

• Ensure a resell clause is included so you’re only paying for truly empty rooms.

4. Hybrid & Virtual Event Considerations Are Now in Contracts

The rise of hybrid and virtual events has changed how contracts define meeting space usage, A/V requirements, and attendee minimums.

What’s Changing?

✔ Some venues are charging extra for streaming capabilities and virtual event support.

✔ Contracts now include clauses about “digital attendance” counts and how it impacts space requirements.

✔ Hotels may restrict discounts or perks if a large portion of attendees are virtual instead of in-person.

What You Should Do:

• Clarify how virtual attendees affect your contract terms. If fewer in-person attendees are expected, can you adjust room blocks without penalty?

• Negotiate A/V pricing upfront. Get detailed costs for streaming, bandwidth, and tech support.

• Ensure flexible space requirements so you don’t overpay for meeting rooms you don’t fully use.

5. Hotels Are Testing “Dynamic Pricing” for Group Rates

Traditionally, planners negotiate a fixed room rate for their event. But some hotels are experimenting with dynamic pricing models that adjust based on market demand.

What’s Changing?

✔ Some contracts now allow room rates to fluctuate, meaning attendees may pay different prices based on when they book.

✔ Hotels are pushing “best available rate” clauses, which may eliminate your ability to secure a guaranteed rate.

✔ Some planners are getting rate protection clauses to cap increases if demand spikes.

What You Should Do:

• Secure a fixed rate guarantee—avoid contracts that tie pricing to market conditions.

• Add a “rate audit” clause so if public rates drop, your group rate gets adjusted accordingly.

• Negotiate room block flexibility so you’re not stuck if prices change unexpectedly.

Final Thoughts: Contracts Are Changing – Are You Ready?

The contracts I’m seeing today look very different from those I saw five years ago. Hotels and venues are adding new restrictions, increasing financial commitments, and tightening their terms.

Here’s my best advice:

✔ Read the fine print—every clause matters now more than ever.

✔ Push for flexibility in cancellation, attrition, and deposit terms.

✔ Stay ahead of industry trends so you’re not caught off guard.

If you don’t negotiate smarter, you risk signing away thousands of dollars in hidden costs.

Join The Negotiation Hub today and stay ahead of the latest contract trends.