The latest Incentive Travel Index report has landed and reveals interesting insights into the world of incentive travel.
Conference News looks at the top seven key insights in the report.
1. Incentive travel is booming
A 2024 survey revealed strong optimism about the future of incentive travel, with 45% of buyers predicting that activity will “better or far higher than current levels” by 2026.
There is a significant shift from survival mode to strategic investment as organizations increasingly see incentive programs as an important tool for driving business success.
In particular, 55% of end users consider incentive travel as “essential” rather than “good,” marking a critical evolution of corporate thinking.
2. The budget is rising
Inflationary pressures remain a challenge, but buyers are adapting rather than pulling back.
Most respondents show spending between 3,000 and 5,000 US dollars per capita, with 38% expecting the budget to protect the quality of the program to at least match inflation.
There is growing awareness that incentive travel needs to remain ambitious. This means that your organization is ready to invest more to enhance the experience, such as upgraded accommodation, unique activities, or culinary promotion.
3. Incentive Programs are evolving
While traditional qualifying based on individual outcomes remains dominant, there is significant growth in the “company-wide incentive travel” initiative.
59% of end users believe they are convening a distributed workforce through group travel experiences.
This trend reflects wider post-pandemic changes in corporate culture, and physically connecting teams is considered important in building loyalty, collaboration and a sense of belonging.
4. Maintaining talent and motivating is the number one reason for incentives
In today’s highly competitive labor market, businesses are leaning towards incentive travel to maintain and inspire top performers.
81% of end users cited “keeping talented employees” as their primary strategic goal, while 70% focus on adjusting the incentive experience to attract and engage new generations of workers.
These findings highlight the pressures facing employers and distinguish themselves through meaningful, personalized rewards.
5. AI is appearing
Artificial intelligence is expected to play a growing role in the incentive travel ecosystem, particularly in areas such as forecasting, budgeting, participant communication, and data management.
However, the report points out that many planners are cautious. “Planners hope that AI will support us, not as an alternative to the key personalizations that will make our programs successful.”
Balancing technology with human touch is key to maintaining what bespoke quality participants expect.
6. Sustainability is increasing
Sustainability pressures are reshaping how incentive travel is planned.
The report states that there are long-distance incentives, particularly during scrutiny, “climate concerns will increase and more incentive travel will move.”
While costs and experience remain key drivers, businesses are beginning to expect destinations and suppliers to offer reliable sustainability qualifications, from carbon offset options to waste reduction initiatives. This illustrates a deeper shift from “greenwashing” to the integration of sustainable practices.
And the British market?
Incentive Travel Index 2024 highlights the growth trends of buyers choosing destinations close to their home. This is a shift that can form a major role in the UK’s incentive travel market.
Cost pressures and sustainability concerns allow more UK businesses to choose their destinations domestically or nearby European destinations rather than long distance incentives.
Globally, 45% of buyers expect incentive activity to rise by 2026, but many are managing their budgets and “continue to get closer to home” to suit the expectations of the environment.
In Europe, where climate sensitivity is particularly strong, it suggests that cities such as Edinburgh, London and Dublin, as well as short-distance options such as Paris and Amsterdam will see an increasing demand for incentive programs aimed at providing impactful experiences with lighter carbon footprints.
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