Corporate incentive travel budgets are on the rise, but buyers are increasingly cost-conscious, according to the 2018 Incentive Travel Industry Index, produced by the Incentive Research Foundation, Society for Incentive Travel Excellence and Financial & Insurance Conference Professionals and produced with J.D. Power. The study canvassed nearly 400 buyers worldwide.
More than half of incentive travel buyers, 54 percent, reported an increase in corporate budgets for incentive travel in 2018. Median per-person spend averaged $4,000, steady from last year and up $1,000 from 2016.
Despite rising budgets, incentive travel buyers increasingly are controlling costs. In 2015, 72 percent of buyers took steps to reduce costs, and in 2018, 82 percent did so. Additionally, all-inclusive resorts are gaining popularity as buyers seek lower-cost trips. "Although the findings show that incentive travel is growing, the reality is that there are countercurrents, such as rising costs, that may temper growth," said IRF president Melissa Van Dyke. "Planners are taking steps to contain costs, such as less expensive destinations or less expensive amenities."
Destination appeal rated as the top criterion for choosing a location, followed by overall safety and value. North America, the Caribbean and Western Europe ranked as the most popular destinations.
Nearly 70 percent of buyers said their programs achieve business objectives and positive ROI; increased sales and profitability ranked as the top objectives for incentive travel programs. However, other motivating factors are gaining ground, including building relationships between management and employees and increasing productivity and employee engagement.