A global incentive travel survey is pointing to an increase in programs and spend in 2025.
The joint Incentive Research Foundation and Society for Incentive Travel Excellence Incentive Travel Index 2024 study asked 2800 practitioners from 85 countries their current status and future outlook for the sector, with data captured over a three month period.
Eighteen per cent of respondents were from the Asia Pacific and included corporate end-users, destination management companies, destination marketing organisations, suppliers and incentive travel agencies.
One key finding is that the incentive travel industry will grow in the coming two years. By 2026, 45 per cent of buyers expect incentive travel activity to be above or significantly above 2024 levels, with 55 per cent expecting spending increases to match inflation or grow further.
Survey respondents in the Asia-Pacific are the most expectant of a rise in incentive travel activity over the next two years.
One of the challenges, however, will be the anticipated increase in travel and accommodation expenses, with hotels in 2025 representing 27 per cent of a program’s total budget (up from 25 per cent in 2024) and airfares also increasing. Airfares currently are 22 per cent of a program budget followed by food and beverage (18 per cent) and activities (13 per cent).
In the Asia Pacific, survey respondents believe airfare increases will outstrip accommodation in 2025 and 2026.
The most commonly cited program consideration that is increasing in importance is that the destination is perceived as safe from a crime/threat perspective (73 per cent). The presence of a good DMC is increasing in importance among 44 per cent of all buyers surveyed.
The average spend per person for incentive travel programs is $4900. North American buyers reported the highest spend per person, at $5400. Spending on incentive travel as reported by the `Rest of the World’ averages $4300, followed by Western Europe at $4000, and APAC at $3900.
The share of buyers expecting spend per person to increase is greater for 2026 in most industries, led by pharmaceuticals and health care.
The most popular activities on incentive travel programs are group dining (51 per cent), which is an increase by two places in comparison to the 2023 survey, group cultural experiences (50 per cent), relationship building (45 per cent), team-building (37 per cent), CSR (31 per cent), and activities promoting wellness (26 per cent). The least popular is shopping experiences (eight per cent).
The biggest improvement in perceived importance is in free time (41 per cent), jumping four places from the 2023 survey.
Following the release of the report last week, Incentive Research Foundation president, Stephanie Harris, said the strategic importance of incentive travel is being bolstered by key workplace trends.
“Retaining talented employees and competitive advantages in hiring are cited as increasing in importance, as well as more recent trends such as new generations of qualifiers and leaders and a more dispersed workforce,” she said.
SITE CEO Annette Greg said incentive travel buyers are increasingly looking for something new, with the study finding that over 70 per cent of respondents indicating they were seeking destinations they haven’t used before.
“Resorts – both all-inclusive and others – have increased in popularity, and destinations within shorter distances from participant origin are also expected to see increased use.”