The latest Incentive Travel Index report has landed and reveals some interesting insights into the world of incentive trips, including the fact that nearly two-thirds of companies use incentive trips as a competitive advantage to attract top talent.
Conference News looks at the top 7 key insights from the report:
1. Incentive travel is booming
The 2024 survey reveals strong optimism for incentive travel’s future, with 45% of buyers predicting activity will be ‘above or significantly above’ current levels by 2026.
There’s a noticeable shift from survival mode to strategic investment, as organisations increasingly view incentive programmes as vital tools for driving business success.
Notably, 55% of end-users now consider incentive travel ‘essential’ rather than a ‘nice to have,’ marking a significant evolution in corporate thinking.
2. Budgets are rising
Inflationary pressures remain a challenge, but buyers are adapting rather than pulling back.
Most respondents indicated a per-person spend of $3,000–$5,000 with 38% expecting budgets to at least match inflation to protect programme quality.
There’s a growing realisation that incentive trips need to remain aspirational, meaning organisations are prepared to invest more to enhance experiences whether through upgraded accommodation, unique activities, or elevated culinary offerings.
3. Incentive programmes are evolving
While traditional qualifiers based on individual achievement are still dominant, there is notable growth in ‘company-wide incentive travel’ initiatives.
59% of end-users see convening dispersed workforces through group travel experiences as increasingly important.
This trend reflects broader shifts in corporate culture post-pandemic, where bringing teams together physically is considered critical for building loyalty, collaboration, and a sense of belonging.
4. Retaining and motivating talent is the number-one reason for incentives
In today’s highly competitive labour market, companies are leaning on incentive travel to retain and inspire top performers.
81% of end-users cited ‘retaining talented employees’ as a primary strategic goal, while 70% are focused on tailoring incentive experiences to attract and engage newer generations of workers.
These findings underline the pressure employers face to differentiate themselves through meaningful, personalised rewards.
5. AI is emerging
Artificial Intelligence is expected to have a growing role in the incentive travel ecosystem, especially in areas like forecasting, budgeting, participant communications, and data management.
However, the report notes that many planners remain cautious: ‘Planners expect AI to support, not replace, the personalisation that is crucial to successful programmes.’
Balancing technology with human touch will be key to maintaining the bespoke quality participants expect.
6. Sustainability is rising
Sustainability pressures are reshaping the way incentive travel is planned.
The report states that ‘climate concerns will increasingly pressure incentive travel,’ with long-haul incentives in particular under scrutiny.
While cost and experience remain primary drivers, companies are beginning to expect destinations and suppliers to offer credible sustainability credentials from carbon offset options to waste reduction initiatives. This marks a deeper shift from ‘greenwashing’ to integrating sustainable practices into the core of programme design.
And the UK market?
The Incentive Travel Index 2024 highlights a growing trend of buyers choosing destinations closer to home, a shift that could significantly shape the UK incentive travel market.
With cost pressures and sustainability concerns top of mind, more British companies may opt for domestic or nearby European destinations rather than long-haul incentives.
Globally, 45% of buyers expect incentive activity to rise by 2026, but many are ‘staying closer to home’ to manage budgets and align with environmental expectations.
In Europe, where climate sensitivity is particularly strong, this suggests that cities like Edinburgh, London, and Dublin or short-haul options like Paris and Amsterdam could see increased demand for incentive programmes aiming to deliver impactful experiences with a lighter carbon footprint.
