Recently, someone in my community reached out with a situation that could happen to any of us. Let’s call her Nancy.
She had been leading retreats and tours for 20 years.
Loyal clients. Repeat travelers. Solid vendors.
Forty-eight hours before departure for Asia, the airline canceled their flights due to escalating war in the region.
Her group met on Zoom and collectively decided not to attempt a reroute since flights were uncertain. The trip was canceled.
Currently, she’s waiting to hear whether her vendors will give her back her entire payment or keep her funds and allow her to rebook in the future.
Her words? “So much work down the drain. I’m so upset.”
And here’s the truth: This is not just her story.
This is a wake-up notice for our entire industry.
So let’s break this down.
First: What Is “Force Majeure” (And Why It Matters)?
You’ve probably seen the phrase force majeure in contracts and skimmed right past it.
Force majeure is a term lawyers use that basically means:
“An unforeseeable event outside of anyone’s control that makes it impossible to fulfill the contract.”
Typical examples include:
- War
- Acts of terrorism
- Government shutdowns
- Airspace closures
- Natural disasters
- Pandemics
- Political unrest
Force majeure protects you if it’s specifically written into your contracts.
And it protects you solely to the extent the contract defines it.
If Nancy’s contract with participants does not clearly define:
- What happens in case of any of the typical examples named above…
- What happens if airlines shut down…
- And what happens if vendors give back funds vs. holding the funds to be used at another time…
Then she’s operating in a gray zone. And gray zones are dangerous.
If your force majeure clause is vague – or missing – you’re exposed.
Second: Insurances are Often Misunderstood
In case you were wondering, Nancy’s travelers did have trip cancellation ins. She required it. However, war was excluded. This often surprises people – but it shouldn’t.
Most standard travel ins. excludes:
- War
- Known geopolitical events
- Government advisories
- Political instability
Even CFAR (Cancel For Any Reason) policies have strict timelines and limitations.
And here’s what retreat leaders must understand:
Traveler ins. protects the traveler.
It does not protect you.
There is no magic policy that replaces your retreat revenue if geopolitical events shut down your trip.
Which brings us to the part no one wants to talk about…
Third: The Moola Flow Trap Retreat Leaders Fall Into
This is where things become very real.
Retreat leaders normally:
- Take deposits and final payments.
- Use those funds to pay vendors.
- And sometimes…
- Use portions of those funds to cover business or personal expenses before the retreat runs.
Why? Because retreat leaders are often short on funds. So when 20k or 50k hits their account, it feels like relief.
But here’s the dangerous truth:
That is not your money yet!!!
Until your retreat runs actually runs, those funds are not yours. They should be held in a separate trust/escrow account and used exclusively to pay your vendors for the experience you have created and promised.
Period.
If a global event forces cancellation, you must be able to give back those funds quickly and cleanly. Your integrity and reputation depend on it.
Fourth: “It’s Never Happened Before” Is Not Risk Management
Nancy said: “I’ve been leading trips for 20 years and never had a problem.”
That’s exactly how most crises unfold. Not gradually. Not predictably. Suddenly.
The pandemic taught us that.
Airline bankruptcies taught us that.
Political unrest continues to teach us that.
Experience does not eliminate risk.
However, structure can help protect you.
Fifth: Retreat Leadership Is Crisis Leadership
When something like this happens, you become:
- A crisis manager
- A fiscal decision-maker
- A contract interpreter
- A leader under pressure
This is why retreats are not a hobby.
They are not “just travel with friends.”
They are professional operations that require:
- Clarity relating to any legalities
- Fiscal systems
- Clear vendor agreements
- Transparent cancellation policies
- And emotional steadiness…
Because when things collapse 48 hours before departure…
You don’t want to be figuring it out in real time!
What You Should Review Right Away
If you are a retreat leader, ask yourself:
- Do I clearly define force majeure in my participant contract?
- Does it explicitly mention war and geopolitical conflict?
- Am I very clear on my vendor’s cancellation policies during force majeure conditions?
- Are client funds kept separate from operating funds?
- Could I issue refunds tomorrow without fiscal panic?
- Do I have reserves?
If any of these questions make you uncomfortable – consider this an invitation to uplevel your business practices.
Final Thoughts
Nancy is experienced. Ethical. Well-loved. And still – she was exposed.
That’s the lesson here.
Retreat work is transformational.
But it’s also operational.
And if you want to build retreats that are profitable, sustainable, and resilient in an unpredictable world…
You must treat the back end with as much reverence as the front end.
Because leadership isn’t tested when things go right.
It’s tested when everything falls apart. 💯
Now, if you want to dive into legalities more deeply (along with everything else retreat related) – here’s your personal invitation to our Rock Your Profitable, Sold-Out Retreat event.
These are the quick and dirty deets:
It’s our 6th annual Live & Online Retreat Training Event!
April 21–23
By donation (pay-what-you-want!)
10 days of replays included
She’s also the CEO of Journeys of the Spirit®, a boutique agency that has planned and managed over 1000 retreats worldwide since 2003.
With over two decades of experience in the retreat industry, She’s had the honor of working with top names, including don Miguel Ruiz, author of The Four Agreements, and guiding coaches and healers to run retreats that change lives.
