6 Key Takeaways from the Latest Incentive Travel Index

Released in mid-October, the seventh annual edition of the Incentive Travel Index—a collaboration between Incentive Research Foundation, the Society for Incentive Travel Excellence, and research firm Oxford Economics—delivers many revealing insights from more than 2,850 corporate planners, agency planners, and hospitality suppliers from around the world.

Here are six takeaways that can help incentive planners benchmark their organizations’ reward-travel programs:

• The average per-person expenditure for an incentive-travel program is $4,900, with 27 percent of respondents saying they spend between $3,000 and $5,000 per person. However, 22 percent of respondents spend between $1,500 and $3,000 per person, while another 20 percent spend between $5,000 and $7,000 per person.

The industries that consistently spend more than the average: technology, finance and insurance, and automotive.

• 54 percent of respondents will spend more on incentive travel in 2025 than in 2024, while 55 percent will spend more in 2026. The additional spending might be explained in part by the fact that 37 percent of firms expect an increase in incentive activities in 2025, while 45 percent expect an increase in incentive activities in 2026. Direct sellers are the firms most likely to have more incentive activity in the next two years.

• Of an incentive program’s total budget, an average of 27 percent is spent on hotel accommodations; 21 percent goes towards air travel; 18 percent is spent on food and beverage; 13 percent goes towards activities; and 4 percent is devoted to gifting.

• When it comes to using generative artificial intelligence in incentive planning, 65 percent of respondents believe it is already happening or will happen soon. As for the areas where A.I. could benefit planners significantly, 62 percent cite the preparation of program materials; 54 percent say planning, forecasting, and budgeting duties; and 46 percent cite communications with participants.

• Senior leadership wants incentive travel to do more. The proof: 58 percent of senior managers want to see incentive travel playing a stronger role in motivation and culture building, and 40 percent are more focused on financial ROI.

• On the other hand, one factor that could stunt the benefits of incentives that executives seek: 41 percent of respondents say that their programs are not sufficiently adapting their elements in an era of generational change.

To learn about destination preferences for present programs, new-destination considerations for future programs—and whether planners and executives feel that incentive-travel programs will remain justifiable in the context of climate change—check out the full report.

Source: Meetingsnet.com