Incentive Travel Highlights Index
INCENTIVE TRAVEL INDEX
2023 Survey Highlights
In association with
October 2023
2
Incentive Travel Index
TABLE OF CONTENTS
1
2
3
4
5
6
7
8
Executive Summary
Introduction
Evolving Purpose of Incentive Travel
Growth, Budgets, and Spending
Challenges and Channel Dynamics
Destination Selection
Shifts in Program Design
Appendix
3
Incentive Travel Index
This is the fifth year of the collaboration between IRF and the SITE
Foundation on the Incentive Travel Index, formerly the Incentive Travel
Industry Index. With research partner Oxford Economics, the organizations
have again created an indispensable annual report on the state of incentive
travel, providing data on current and future evolution.
The 2023 online survey, fielded globally from May to July 2023, was
customized for five distinct incentive travel professional roles:
• Corporate end user
• Destination management company (DMC)
• Destination marketing organization (DMO)
• Destination supplier
• Third-party agency (incentive travel agency)
Nearly 2,500 incentive travel industry professionals, representing 19 industry
verticals, and 83 countries, participated in the survey.
For the latest on the Incentive Travel Index, see incentiveindex.com.
Foreword Sponsors
http://incentiveindex.com
Executive Summary1
5
Incentive travel is becoming a necessary part of company
culture due to its numerous benefits. Its purpose is
growing in importance and evolving over time.
The most important benefits of incentive travel are changing. Western Europe, North America, and Rest of
World are shifting to soft power benefits, while Asia-Pacific (APAC) respondents are seeing hard power as
becoming more important.
79%
83%
90%
Bring together a dispersed workforce
Valued as a reward
Retaining talent
Primary reasons behind incentive travel’s strategic importance
(Share of respondents who agree)
67%
60%
50%
30%
55%
64% 63%
74%
APAC Rest of World North America Western Europe
Hard power benefits Soft power benefits
Primary future benefits reported by region
(Share of buyers selecting more important)
Many end-user companies have senior leadership that view incentive travel
as ‘need to have’ (53%) and are ‘highly engaged’ in planning (37%).
Trim, 13%
Nice but not essential,
19%
Necessary evil, 21%
Strategic differentiator,
48%
Need to have, 53%
0%
10%
20%
30%
40%
50%
60%
70%
Less necessary More necessary
(Share of end-users, multiple answers allowed) (Share of end-users, multiple answers allowed)
6
Average share of program budget allocation in 2024 (Share of buyers reporting levels above or significantly above 2022 levels)
Many expect incentive travel activity
and spend per person to rise above
2022 levels in coming years. Rising
costs will help boost spend per
person.
(Share of buyers reporting levels above or significantly above 2022 levels)
By region:
22%
21%
27%
27%
26%
25%
19%
20%
16%
15%
19%
20%
12%
14%
13%
12%
8%
9%
8%
8%
11%
10%
9%
7%
4%
7%
5%
5%
Rest of World
APAC
Western Europe
North America
46%
57% 59%
43%
59% 64%
This year Next year Two years out
Activity Spend per person
25%
22%
18%
13%
9%
8% 5%
Hotel
Airfare
Food and beverage
Activities
Third party agency fees
Ground transportation
Other (e.g., AV)
7
The recent operating environment has tested even the strongest relationships, with planning uncertainty and
limitations such as airlift and resort availability. Survey results confirmed this situation, as among buyers and
sellers, many indicated relationships are challenging, difficult, uncertain or weakened, even as some of their
colleagues referred to relationships as strong, stable or efficient.
(Share of aggregated responses)
(Share of respondents)
Costs are becoming increasingly important as inflation is
a major future challenge across all industries and regions.
41%
33%
25%
Challenging Difficult
Uncertain Weakened
Strong Stable
Efficient
Complex
Agree that current DMC pricing models
are outdated and should be fee-based
Say that that the presence of a good
DMC is increasing in importance
Say that assistance with venues and DMCs
is the most useful support from DMOs
Say that destination expertise is the
most useful support from DMOs
8
Across regions, buyers expect to increase incentive
travel to destinations that are within closer proximity,
while considering destinations not used before.
While decreasing distance of travel and increasing resort
use, buyers are still looking for new destinations they
haven’t used before
7%
9%
2%
1%
7%
3%
8%
2%
3%
5%
12%
5%
27%
16%
27%
34%
21%
22%
13%
17%
33%
31%
36%
34%
53%
53%
55%
52%
55%
59%
33%
45%
58%
37%
37%
44%
Gulf States
Mexico
Emerging Europe
Oceania
Northeast Asia
Southeast Asia
South America
Emerging Europe
Western Europe
Western Europe
Mexico
Caribbean
R e
s t
o f
W o
rl d
A P
A C
W e
s te
rn E
u ro
p e
N o
rt h
A m
e ri
c a
Less than in 2022 Same amount as in 2022 More than in 2022
Percentage of respondents planning to use each destination
(Share of buyers for top three increase usage areas)
9
The future of incentive travel sees program
characteristics and considerations changing and
differing by region.
44%
40%
25%
27%
25%
22%
34%
21%
31%
37%
41%
52%
Entire company trips based on performance
Shorter programs
Periodic events to convene dispersed workforce
Programs with more on-site meals and activities
Disagree Unsure Agree
(Share of buyers)
Buyers are seeing an increase in the importance of safety
from crime/threat as well as cost across regions.
Introduction2
11
Incentive Travel Index
Buyers
Sellers
• Incentive travel end-users
• Incentive travel agencies
• Destination management companies (DMCs)
• Suppliers (hotels, cruise lines, venues)
• Destination marketing organizations (DMOs)
2,464 total survey respondents
1,648 complete survey responses
933 buyers across 19 industries
83 countries represented by survey respondents
• Incentive travel corporate program owner (e.g., end-user) • Incentive travel agency (e.g., incentive house, third party planner, independent
planner or other intermediary) • Destination management company (e.g., DMC coordinating local on-site
implementation) • Supplier to the incentive market (e.g., hotels, cruise lines, venues,
transportation companies, AV companies, décor companies) • Destination marketing organizations (e.g., DMO or convention & visitors
bureau)
Terms
May to July 2023 online survey period
A global survey to understand incentive travel
12
Incentive Travel Index
The survey reflects incentive travel buyers and sellers
Incentive travel comes to life through an extensive,
collaborative network. The ITI is based on a balanced
view of seller (62%) and buyers (38%).
Buyers include:
• Incentive travel house organizing events on behalf of
client organizations
• Incentive travel program owner sponsoring events on
behalf of their organization
Sellers include:
• Suppliers to the incentive travel market (e.g., hotels,
cruise lines, venues, transportation companies)
• Destination management companies (e.g., DMC
coordinating local on-site implementation)
• Destination marketing organization (e.g., DMO,
convention and visitors bureau, national tourism
office)
A balanced, 360-degree view of incentive travel Respondent roles
(Share of respondents by role)
I1. Please select the role that best describes your involvement in incentive travel Response base: n = 2,464 respondents
Incentive Travel House,
27%
Suppliers to the Incentive Market, 22%
Destination Management
Companies, 25%
Incentive Travel Program Owner, 14%
DMOs, 11%
Other, 5%
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Incentive Travel Index
Balanced respondent base provides global perspective
In total, 52% of respondents are based in North
America. The share of respondents from Western
Europe is 16%, with 15% from APAC. The Rest of the
World made up the reminder of respondents (18%).
Global response base with strong
representation of North America
Location
(Share of respondents)
M1. Where is the organization for which you work based? Response base: n = 1,646 respondents
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Incentive Travel Index
Finance, insurance and tech top the industries served
Finance and insurance is the most important industry
(rank 1) for 26% of buyers and 48% of buyers rank the
industry in their top three client sectors.
Finance and insurance is a primary industry
for incentive travel programs
Customer industries
(Share of buyers indicating a top three rank)
M5. For which of the following industry(ies) does your team primarily organize incentive travel programs? Rank 1 is most important; label is % of all buyers choosing sector in top three Response base (Buyers): n = 504 respondents
2%
3%
3%
3%
4%
4%
4%
4%
5%
6%
8%
8%
9%
18%
22%
24%
29%
38%
48%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Media and entertainment
Automotive parts and service
Energy, engineering, and electrical services
Luxury goods
Education
Logistics, including transportation
Retail
Other
Fast-moving consumer goods
Agriculture
Construction
Professional services
Hospitality
Direct selling to consumers
Automotive sales and distribution
Manufacturing
Pharmaceuticals and health care
Technology
Finance and insurance
Rank 1
Rank 2
Rank 3
Evolving Purpose of Incentive Travel3
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Incentive Travel Index
Hard power benefits are the main reason for incentive travel
Hard power benefits, such as increased sales and
market share, are the most cited reason for using
incentive travel (36%).
Many buyers cite that all benefits are important (30%),
while 24% cite that primarily soft power benefits are
the reason for using incentive travel.
Many buyers currently use incentive travel
for its hard power benefits
Reasons for using incentive travel
(Share of buyers)
G7. Why does your organization/clients use an incentive travel program? Response base (buyers): n = 600 respondents
4%
7%
24%
30%
36%
For our organization/clients, there are other reasons
Primarily for 'knowledge transfer benefits', such as training and brand
compliance
Primarily for 'soft power benefits', such as focus on company culture, engagement and relationships
'Hard power', 'soft power' and 'knowledge transfer' are all important
Primarily for 'hard power benefits', such as financial ROI, increased sales
and market share
17
Incentive Travel Index
North American buyers more focused on hard power benefits
Hard power benefits are the most important reason
for using incentive travel in North America (42%) and
Western Europe (35%). In Asia Pacific, 31% of buyers
report hard power benefit are the primary reason for
using incentive travel.
For the rest of the world, hard power and soft power
benefits share importance.
Buyers in North America and Western Europe
are particularly focused on hard power benefits
Primary reason for using incentive travel by region
(Share of buyers)
G7. Why does your organization/clients use an incentive travel program? Response base (buyers): n = 600 respondents
42%
35%
31%
26%
22%
26%
13%
26%
North America Western Europe Asia Pacific Rest of World
Primarily hard power benefits
Primarily soft power benefits
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Incentive Travel Index
The importance of soft power benefits is growing
While hard power benefits, such as increased sales,
remain key, nearly three-in-five of buyers report they
are shifting future programs toward a greater focus
on soft power benefits, such as company culture and
engagement.
Buyers are shifting future program focus
towards soft power benefits
Changing benefits reported by buyers
(Share of buyers)
P1. In your future programs, how are the most important benefits changing? Response base (buyers): n = 593 respondents
12%
4%
7%
44%
44%
32%
38%
49%
58%
Knowledge transfer benefits, such as training and brand compliance
Hard power benefits, such as financial ROI, increased sales and market share
Soft power benefits, such as focus on company culture, engagement and
relationships
Less important About the same More important
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Incentive Travel Index
Shift in primary benefit of incentive travel differs by region
For Western Europe (74%), North America (63%), and
Rest of World (64%), soft power benefits is cited the
most by buyers as a benefit that is becoming more
important.
Hard power is the most cited benefit that is becoming
more important in APAC (67%).
Western Europe, North America, and Rest of
World are shifting to soft power benefits, while
APAC respondents are seeing hard power as
becoming more important
Primary future benefits reported by region
(Share of buyers indicating each type of benefit is becoming more important)
P1. In your future programs, how are the most important benefits changing? Response base (buyers): n = 593 respondents
67%
60%
50%
30%
55%
64% 63%
74%
APAC Rest of World North America Western Europe
Hard power benefits Soft power benefits
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Incentive Travel Index
Perceptions on incentive travel are shifting
Many company executives (68%) agree that incentive
travel is a key part of future workforce strategy.
The social prestige of incentive travel has become
more important according to 66% of respondents.
Two-thirds agree that incentive travel is now
mostly about soft power
Future of incentive travel
(Share of respondents that agree)
S7. What is the future of incentive travel?
Response base: n = 1,747 respondents
68% Agree that incentive travel was previously used primarily to motivate
individual performance (“hard dollars”), but now it’s mostly about
company culture, relationships, and overall performance (“soft power”).
68% Agree that company executives increasingly recognize that incentive travel
is a key part of future workforce strategy.
66% Agree that the social prestige of incentive travel has
become even more important.
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Incentive Travel Index
Incentive travel for performance motivation remains key
While soft power benefits have increased in
importance, 76% agree that incentive travel will
always come back to its roots motivating individual
performance.
Incentive travel has many other roles. Most agree that
with a dispersed workforce, incentive travel has an
even more important role building engagement and
company culture (81%).
.
Many agree that soft power benefits can be
great, but incentive travel will always come back
to its roots motivating individual performance
Soft power benefits of incentive travel
(Share of respondents)
S4. Do you agree with the following statements? Response base: n = 1,784 respondents
5%
6%
19%
13%
76%
81%
Soft power' benefits can be great, but incentive travel will always come back to
its roots motivating individual performance
With a dispersed workforce, incentive travel has an even more important role
building engagement and company culture
Disagree Unsure Agree
22
Incentive Travel Index
Helps retain talent and engage dispersed workforce
Retention of employees (90%) is the most commonly-
cited reason why incentive travel is gaining strategic
importance, followed by “travel is becoming more
valued as a reward” (83%). Also, incentive travel is
strategically important as it fulfills the need to bring
together a more dispersed workforce (79%).
Organizations are striving to retain talent
and rebuild relationships with the help of
incentive travel
Drivers of incentive travel strategic importance
(Share of respondents who agree)
S6. Why is incentive travel gaining strategic importance? Respondents who answered that incentive travel is gaining strategic importance in question S4. Each respondent asked to select the most important factors (up to two). Response base: n = 1,256 respondents
Yellow highlight represents category that involves retaining and engaging talent
72%
76%
79%
83%
90%
Competitive advantage in the hiring process
It is essential to achieving desired business results
Need to bring together a more dispersed workforce (e.g., work from home)
Travel is becoming more valued as a reward
Greater importance of retaining talented employees
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Incentive Travel Index
Incentive travel is gaining strategic importance
Incentive travel is also agreed to be helping meeting
professionals have a more important ‘seat at the
table’ (66%).
.
Three-quarters agree that incentive travel is
gaining strategic importance
Strategic future of incentive travel
(Share of respondents)
S4. Do you agree with the following statements? Response base: n = 1,784 respondents
7%
6%
27%
20%
66%
74%
Meeting professionals today have a more important 'seat at the table'
Incentive travel is gaining strategic importance
Disagree Unsure Agree
24
Incentive Travel Index
Senior leadership view incentive travel as a must have
Among end users, 53% report senior leadership view
incentive travel as a ‘need to have’ – such as essential
in driving profits. Incentive travel is also viewed as an
essential strategic differentiator among 48% of
respondents.
The majority of senior leadership in end-user
companies view incentive travel as ‘need to
have’ from the perspective of driving profits
Senior management view on incentive travel
(Share of end-users)
S1. How does senior leadership view incentive travel? (excluding ‘not sure’) Response base (end-users): n = 186 respondents (multiple responses allowed)
Area to trim and cut, 13%
Nice to have but not essential, 19%
Necessary evil (too scared to cut), 21%
Essential, strategic differentiator/source of competitive advantage,
48%
Need to have (e.g., essential to drive
profits), 53%
0%
10%
20%
30%
40%
50%
60%
70%
Less necessary More necessary
25
Incentive Travel Index
Senior leadership remain keen on hard and soft power benefits
In terms of approach to incentive travel, senior
managers are highly engaged (37%). While 36% of
respondents say senior leadership is primarily
focused on maximizing ROI (hard power), 35% seek
more cultural and engagement benefits (soft power).
Senior managers are highly engaged on
incentive travel programs with many primarily
focused on maximizing ROI
Senior management approach to incentive travel
(Share of end-users)
S2. How is senior leadership approaching incentive travel planning? Response base (end-users): n = 184 respondents (multiple responses allowed)
16%
17%
18%
22%
35%
36%
37%
Disinterested, leave it on autopilot
An area where they are willing to take risks
Discussing ways to consolidate or reduce incentive travel
Play it safe, don't change it
Seeking to have incentive travel do more for organization culture and engagement
Primarily focused on maximizing the ROI of incentive programs
Highly engaged
Growth, Budgets, and Spending4
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Incentive Travel Index
Incentive travel activity anticipated to display strong growth
In the 2022 survey, many respondents reported
incentive travel activity was above pre-pandemic
levels. The industry is expected to expand further,
with many respondents expecting incentive travel
activity above 2022 levels in 2023, with the share
growing in 2024 and 2025.
Optimism is strongest among suppliers, followed by
DMCs.
Solid growth anticipated in incentive travel
activity
Expectations of incentive travel activity by role
(Share of respondents reporting number of people above or significantly above 2022 or 2019 levels)
G1. Level of incentive travel activity compared to 2022, in terms of the number of people (qualifiers, guests and other participants)? Response base: n = 1,953 respondents
Note: 2023 survey is relative to 2022 activity , while 2022 survey is relative to 2019 activity
DMC Supplier
DMO End user / incentive house
32%
49%
63%
38%
55% 54%
This year Next year Two years out
38%
56%
68%
49%
66%
73%
This year Next year Two years out
31%
48%
61%
46%
57% 59%
This year Next year Two years out
27%
44%
56%56%
65% 70%
This year Next year Two years out
2022 Survey 2023 Survey
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Incentive Travel Index
Pharma/health care expects greatest increase in activity
By 2024 (next year) the majority of buyers (more than
50%) expect an increase in incentive travel activity
compared to 2022. The increase is led by the
pharmaceuticals and health care sector.
The pharmaceuticals and health care sector
expects the largest increase by 2024
Expectations of incentive travel activity for buyers by industry
(Share of buyers reporting activity above or significantly above 2022 levels)
G1a. Level of incentive travel activity compared to 2022, in terms of the number of people (qualifiers, guests and other participants)? Response base (buyers): n = 708 respondents
47%
46%
48%
42%
52%
48%
51%
54%
41%
59%
55%
61%
61%
71%
51%
53%
56%
58%
62%
65%
72%
Manufacturing
Direct selling to consumers
Finance and insurance
All other sectors
Automotive
Technology
Pharmaceuticals and health care
Two years out
Next year
This year
29
Incentive Travel Index
APAC expects greatest increase in activity
The largest expectation of Incentive travel activity
increasing above 2022 levels is displayed in the APAC
region with 77% of respondents reporting activity
above or significantly above 2022 levels by 2025.
APAC expects the largest increase by 2024 Expectations of incentive travel activity for buyers by region
(Share of buyers reporting activity above or significantly above 2022 levels)
G1a. Level of incentive travel activity compared to 2022, in terms of the number of people (qualifiers, guests and other participants)? Response base (buyers): n = 708 respondents
37%
48%
46%
61%
45%
58%
61%
74%
50%
58%
59%
77%
Western Europe
North America
Rest of World
APAC
Two years out
Next year
This year
30
Incentive Travel Index
Spend per person is also expected to increase
Most respondents (76%) believe rising costs is the
most important future challenge facing incentive
travel professionals. Higher costs add to expectations
of higher spending per person. Higher spend per
person as well as activity will result in greater
spending within the industry.
Rising costs will help boost spend per person Expectations of spend per person by role
(Share of respondents reporting spend per person and number of people expectations above or significantly above 2022 levels)
G2. Level of spending per person compared to 2022? Response base: n = 1,912 respondents
DMC Supplier
DMO End user / incentive house
56%
65% 70%
43%
58% 61%
This year Next year Two years out
Activity
Spend per person
38%
55% 54%
46% 51%
58%
This year Next year Two years out
49%
66%
73%
49%
66%
73%
This year Next year Two years out
46%
57% 59%
43%
59% 64%
This year Next year Two years out
31
Incentive Travel Index
Manufacturing spend per person growth strong
Despite relatively weaker activity growth over the next
two years, manufacturing spend per person is
expected to grow quickly.
Spending per person is anticipated to grow
strongly over the next two years for each
industry
Expectations of incentive spend per person for buyers by industry
(Share of buyers reporting spend per person are above or significantly above 2022 levels)
G2. Level of spending per person compared to 2022? Response base (buyers): n = 704 respondents
42%
46%
41%
40%
48%
37%
47%
56%
59%
68%
73%
62%
46%
60%
64%
61%
74%
73%
69%
50%
58%
All other sectors
Technology
Pharmaceuticals and health care
Manufacturing
Finance and insurance
Direct selling to consumers
Automotive Two years out
Next year
This year
32
Incentive Travel Index
Hotel and airfare account for the majority of program budget
The largest expense expected in 2024 for incentive
travel programs is on hotels, which should represent
25% of total budget allocation. Airfare will comprise
22%, followed by food and beverage spending (18%),
and activities (13%).
Program budgets for 2024 comprise of
spending on numerous categories
Average program budget allocation in 2024
(Spending category share of total budget allocation)
G4. What is the average program budget allocation of programs next year (2024)? Response base (buyers): n = 645 respondents
25% Share of budget spent on hotel accommodation
25%
22%
18%
13%
9%
8%
5%
Hotel
Airfare
Food and beverage
Activities
Third party agency fees
Ground transportation
Other (e.g., AV)
33
Incentive Travel Index
Hotel plus airfare share highest for Rest of World buyers
While buyers in North America and Western Europe
see highest budget allocation in hotels, APAC and
Rest of World witness greatest allocation in airfare
costs.
Spending share on hotels is highest in North America
and Western Europe at 27% of total 2024 budget,
while spending share on airfare is highest for Rest of
World at 26%, followed by APAC at 25%.
For these top two spending categories, Rest of World
respondents see the largest contribution among
regions (48%).
Budget allocation slightly differs by region Average program budget allocation in 2024 by region
(Spending category share of total budget allocation)
G4. What is the average program budget allocation of programs next year (2024)? Response base (buyers): n = 645 respondents
22%
21%
27%
27%
26%
25%
19%
20%
16%
15%
19%
20%
12%
14%
13%
12%
8%
9%
8%
8%
11%
10%
9%
7%
4%
7%
5%
5%
Rest of World
APAC
Western Europe
North America
Hotel Airfare Food and beverage Activities Third party agency fees Ground transportation Other (e.g., AV)
34
Incentive Travel Index
Food and beverage spending to see biggest increase by 2025
Among key budget drivers, most buyers (65%) expect
spending on food and beverage to increase by 2025.
Following F&B in the share of buyers who see either
an increase or large increase are the traditional key
spending areas of air and hotel, and then activities.
Increases expected in key budget drivers Changes in key budget drivers
(Share of buyers who see an increase or large increase)
G5.How will key budget drivers change in future years? Response base (buyers): n = 627 respondents
14%
24%
27%
30%
37%
35%
47%
43%
55%
63%
64%
60%
20%
29%
34%
35%
38%
39%
47%
50%
55%
64%
64%
65%
Program length
Program marketing and communications
Program admin
Gifting
Production
Talent, decor and entertainment
Ground transportation
Number of attendees
Destination experiences and activities
Hotel
Air
F&B
Two years out (2025)
Next year (2024)
Challenges and Channel Dynamics5
36
Incentive Travel Index
Inflation and talent attraction/retention challenges loom
Inflation is a widespread future challenge, cited by
76% of respondents – down from 80% in 2022.
Other widespread future challenges include attracting
and retaining talent (55%), uncertainty regarding
short-term planning (49%), and loss of industry
knowledge due to staff departures (47%).
The shares citing challenges have fallen but
these challenges remain
Future challenges facing incentive travel professionals
(Share of respondents)
S3. What important future challenges face incentive travel professionals? Response base: n = 1,801 respondents (multiple responses allowed)
2%
11%
39%
18%
35%
22%
53%
47%
62%
63%
66%
80%
2%
23%
26%
28%
29%
32%
34%
35%
37%
38%
38%
47%
49%
55%
76%
None of these choices
Climate change
Public health
Increased focus on diversity, inclusion, etc.
Need for program justification
Evolving preferences among qualifiers
Securing resort availability
Increased focus on sustainability
Securing airlift availability
International instability
Legal aspects with increased focus on contracts
Loss of industry knowledge due to staff departures
Uncertainty, short-term planning
Attracting and retaining talent
Rising costs / inflation
2023 Survey
2022 Survey
37
Incentive Travel Index
Inflation is the top challenge for all regions
The primary future challenge facing incentive travel
professionals in each region is rising costs/inflation.
The largest share of respondents citing inflation
challenges are in Rest of World (85%).
After inflation, the challenge of attracting and
retaining talent is also important. APAC and Western
Europe have 62% of their respondents stating that
talent retention is an important future challenge.
All regions face challenges pertaining to
inflation and talent retention
Future challenges facing incentive travel professionals by region
(Share of respondents)
S3. What important future challenges face incentive travel professionals? Response base: n = 1,646 respondents (multiple responses allowed)
85% 79% 77%
72%
52%
62% 57%
62%
Rest of World Western Europe North America APAC
Rising costs / inflation Attracting and retaining talent
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Incentive Travel Index
Inflation is also the top challenge across industries
The primary future challenge facing incentive travel
professionals in each industry is rising costs/inflation.
Multiple future challenges face each industry Future challenges facing incentive travel professionals by industry
(Share of respondents greater than 70%)
S3. What important future challenges face incentive travel professionals? Response base: n = 505 respondents
Pharmaceuticals & health care (96%)
Technology (94%)
Automotive (89%)
Finance & insurance (82%)
Manufacturing (81%)
Rising costs / inflation
Attracting and retaining talent
Automotive (78%)
Pharmaceuticals & health care (71%)
Securing airlift availability
Pharmaceuticals & health care (71%)
39
Incentive Travel Index
Delivering incentive travel is now more challenging
Planning and delivering incentive travel
experiences has become more challenging
Status of the incentive travel business
(Share of buyers that agree)
S8. How is the ‘business of incentive travel’? Response base (buyers): n = 531 respondents
Challenges also exist on the business side of
incentive travel. Planning and delivering incentive
travel experiences has become more challenging for
75% of buyers.
The majority of buyers (85%) agree that higher costs
and reduced airlift/hotel availability are making it
more difficult to satisfy senior leadership/decision
makers.
Many (84%) also agree that the capabilities of
experienced incentive travel organizers have never
been more valuable.
84% Agree that the capabilities of experienced incentive travel organizers have
never been more valuable.
85% Agree that higher costs and reduced airlift/hotel availability is making it
more difficult to satisfy senior leadership/decision makers.
75% Agree that planning and delivering incentive travel experiences has
become more challenging
40
Incentive Travel Index
DMO support is valuable
Buyers rely on DMOs for numerous aspects of
incentive travel
Support from DMOs
(Share of buyers)
D4. What has been the most useful support you receive from DMOs? (excluding ‘other’ and ‘not applicable’) Response base (buyers): n = 554 respondents (multiple responses allowed)
Destination expertise and background is most cited
as the most useful support received from DMOs
(51%), followed by assistance with venues (48%), and
sponsored site visits (46%).
7%
12%
16%
21%
23%
46%
48%
51%
Virtual tours
Specialized collateral
In-person representation at trade shows
Assistance with hotels
Dedicated resource deployed on incentive travel
Sponsored site visits
Assistance with venues, DMCs and other providers
Destination expertise and background
41
Incentive Travel Index
Relationship between buyers and sellers are strained
Most (54%) view the relationship between buyers
and suppliers as complex
Relationship between buyers and suppliers
(Share of respondents)
S9. Relationships between incentive travel buyers and suppliers are currently? Response base: n = 1,760 respondents
The recent operating environment has tested even the
strongest relationships, with planning uncertainty and
limitations such as airlift and resort availability.
Survey results confirmed this situation, as among
buyers and sellers, many indicated relationships are
challenging, difficult, uncertain or weakened, even as
some of their colleagues referred to relationships as
strong, stable or efficient.
Difficult, 19%
Weakened, 13%
Complex, 54%
Challenging due to slow supplier
response, 38%
Uncertain, 16%
Not sure, 3%
Stable, 21%
Efficient, 17%
Strong, 32%
0%
10%
20%
30%
40%
50%
60%
Bad Good
Aggregated responses to Question S9
41%
33%
25%
Challenging Difficult
Uncertain Weakened
Strong Stable
Efficient
Complex
42
Incentive Travel Index
All industries report challenging or complex relationships
Relationships are mostly complex or challenging
for various industries
Top description of relationship between buyers and suppliers by industry
(Share of respondents)
S9. Relationships between incentive travel buyers and suppliers are currently? Response base: n = 505 respondents
All industries report either challenging or complex
relationships between buyers and suppliers.
71%
66% 65% 63%
46%
35% 32%
66%
59% 58%
63%
56%
62%
51%
Manufacturing Technology Automotive Finance and insurance
Pharmaceuticals and health care
Direct selling to consumers
All other sectors
Challenging due to slow supplier response Complex
43
Incentive Travel Index
Having a good DMC is important to buyers of incentive travel
Half of all buyers view the presence of a good
DMC as increasing in importance
DMC considerations
(Share of buyers)
D3d. Do you see program considerations changing? Response base (buyers): n = 546 respondents
The presence of a good DMC is increasing in
importance among half of all buyers, and 42% of
respondents agree that current DMC pricing models
are outdated and should be fee-based.
S5. Do you agree with the following statements about the future of incentive travel? Response base (All): n = 1,769 respondents
50% Say that that the presence of a good DMC is increasing in importance
42% Agree that current DMC pricing models are outdated and should be
fee-based
Destination Selection6
45
Incentive Travel Index
Buyers actively seek new destinations not used before
Buyers are increasingly looking for something new
and seeking destinations they haven’t used before
(71%). Resorts – both all-inclusive and regular – have
gained popularity, while high-profile destinations
should also see increased use.
Interest is increasing for shorter distance trips (41%),
while urban locations see more decreasing use than
increasing use.
More buyers are looking for new destinations
they haven’t used before
Changing destination types
(Share of buyers)
D3a. Do you see destination types changing? Response base (buyers): n = 555 respondents
24%
20%
22%
13%
9%
6%
11%
6%
55%
46%
44%
46%
48%
48%
35%
22%
21%
34%
34%
41%
43%
46%
53%
71%
Urban
Greater distance from participant origin
Cruise ship
Shorter distance from participant origin
High profile / long-established
Resort
All-inclusive resort
New destinations not used before
Decreasing Use No change Increasing use
46
Incentive Travel Index
Many buyers tend to look closer to home
Large shares of North American, Western Europe, and
APAC buyers plan to increase their use of
destinations that are within closer proximity.
Across regions, buyers expect to increase
incentive travel to destinations that are
within closer proximity
Destination use planned by buyers across regions
(Share of buyers by region for top three increase usage areas)
D1. How do you expect your planned use of the following destinations for incentive travel will change as you plan future events relative to 2022? Respondents “not using” a destination excluded from chart Response base (buyers): n = using: 538 respondents 7%
9%
2%
1%
7%
3%
8%
2%
3%
5%
12%
5%
27%
16%
27%
34%
21%
22%
13%
17%
33%
31%
36%
34%
53%
53%
55%
52%
55%
59%
33%
45%
58%
37%
37%
44%
Gulf States
Mexico
Emerging Europe
Oceania
Northeast Asia
Southeast Asia
South America
Emerging Europe
Western Europe
Western Europe
Mexico
Caribbean
R e
s t
o f
W o
rl d
A P
A C
W e
s te
rn E
u ro
p e
N o
rt h
A m
e ri
c a
Less than in 2022 Same amount as in 2022 More than in 2022 Percentage of respondents planning to use each destination
47
Incentive Travel Index
Many buyers are open to considering new destinations
For example, one-third of North American buyers say
they aren’t using Oceania for incentive programs, but
that they would be willing to consider.
Western Europe stand out as a region from which
buyers would be most willing to consider new
destinations.
Many North American buyers report they
aren’t using Oceania, Alaska and South Asia,
but that they are open to considering them
Destinations not used but under consideration by buyers
(Share of buyers by region for top three areas under consideration)
D1. How do you expect your planned use of the following destinations for incentive travel will change as you plan future events relative to 2022? Respondents “using” a destination excluded from chart Response base (Buyers): n = 538 respondents
26%
28%
32%
31%
32%
33%
44%
45%
50%
33%
34%
34%
26%
9%
20%
14%
13%
24%
31%
20%
15%
31%
20%
19%
Alaska
Hawaii
Other Africa
Central America
South America
Other Africa
Alaska
South Asia
Oceania
South Asia
Alaska
Oceania
R e
s t
o f
W o
rl d
A P
A C
W e
s te
rn E
u ro
p e
N o
rt h
A m
e ri
c a
Have not been using but willing to consider Have not been using and will not consider
Percentage of respondents not using but will consider each destination
48
Incentive Travel Index
Program success is based on sightseeing and connections
Relationship building (58%), group dining (57%) and
luxury/bucket list travel (53%) were also considered
important by most respondents. Relationship building,
however, was down from 72% of respondents in 2022.
Activities that promote relationship building is most
important to the manufacturing (78%), finance and
insurance (73%), and pharmaceuticals and health care
(73%) industries. Group cultural sightseeing activities
are relatively more important in Rest of World (69%),
while group dining experiences take greater
significance in Western Europe (66%).
Group cultural sightseeing experiences is the
most appreciated activity in an incentive
travel program
Activities key to a successful program
(Share of respondents)
P2. Which of the following program activities do you consider most important for a successful incentive travel program? Response base: n = 1,713 respondents
12%
25%
35%
35%
46%
48%
46%
42%
58%
57%
72%
66%
14%
25%
32%
35%
39%
41%
43%
43%
53%
57%
58%
60%
0% 20% 40% 60% 80%
Shopping experiences
Meetings
Activities promoting wellness
Corporate Social Responsibility (CSR)
Free time
Award celebrations
Multiple options aimed at smaller groups
Team-building activities
Luxury travel experiences/'bucket list'
Group dining experiences
Activities that promote relationship-building
Group cultural sightseeing experiences
2023 Survey
2022 Survey
Shifts in Program Design7
50
Incentive Travel Index
Many buyers see shift to on-site meals and activities
Buyers are witnessing changing program
characteristics. Many agree there is a shift toward
programs with more on-site meals and activities (52%
in 2023 compared to 37% in 2022), followed by a sift
towards events to convene a dispersed workforce
(41%).
More buyers disagree that they are seeing a shift
toward entire company trips based on performance
(44%), as well as shorter programs (40%), than those
who agree.
Buyers are seeing programs changing toward
more on-site meals and activities, as well as
events to convene a dispersed workforce
Changing program characteristics
(Share of buyers)
D3b. Do you see program characteristic changing? Response base (buyers): n = 549 respondents
44%
40%
25%
27%
25%
22%
34%
21%
31%
37%
41%
52%
Entire company tripsbased on company
performance/achievements
Shorter programs
Periodic/recurring company events to convene a dispersed workforce
Programs with more on-site meals and activities.
Disagree Unsure Agree
51
Incentive Travel Index
Increasing use of qualification-based incentives
Buyers see greater use of qualification-based
incentives. Motivational events that cross functions is
most popular with 47% of buyers expecting increased
use in 2023, compared to 39% in 2022.
Increasing use of sales incentives is less popular but
is up from 22% of all buyers in 2022 to 29% in 2023.
Buyers are seeing a shift in program focus
towards motivational events that cross
functions
Changing program focus
(Share of buyers)
D3c. Do you see shifts in program focus? Response base (buyers): n = 548 respondents
8%
8%
64%
45%
29%
47%
Traditional, qualification- based sales incentives
Qualification-based motivational events that
cross functions
Decreasing use No change Increasing use
52
Incentive Travel Index
Many view safety considerations are increasing in importance
The most commonly cited program consideration
that is increasing in importance is that the destination
is perceived as safe from a crime/threat perspective
(72% in 2023 compared to 76% in 2022). Cost
considerations are also prominent with 71% of buyers
expecting it to increase in importance.
The share of buyers citing health risks as increasing
in importance fell from 76% in 2022 to 58% in 2023.
The presence of a good DMC is increasing in
importance among half of all buyers surveyed.
Buyers are seeing an increase in the
importance of safety from crime/threat as well
as cost
Changing program considerations
(Share of buyers)
D3d. Do you see program considerations changing? Response base (buyers): n = 546 respondents
7%
10%
9%
6%
7%
10%
4%
3%
62%
49%
46%
44%
43%
32%
25%
25%
31%
41%
45%
50%
50%
58%
71%
72%
Presence of a good DMO
Lower carbon footprint
Strong diversity, equity, inclusion culture in destination
Presence of a good DMC
ESG
Perceived as safe from health perspective
Cost
Perceived as safe from a crime/threat perspective
Decreasing importance No change Increasing importance
53
Incentive Travel Index
Changing program considerations differ by region
Many regions see health, personal safety, and costs
as increasingly important program considerations.
Health, personal safety, and costs are
increasingly important considerations across
many regions
Changing program considerations by region
(Share of buyers)
D3d. Do you see program considerations changing? Response base (buyers): n = 546 respondents
8%
2%
6%
10%
1%
5%
5%
9%
2%
2%
31%
35%
28%
30%
23%
34%
38%
34%
33%
22%
22%
60%
63%
66%
60%
68%
72%
61%
62%
66%
58%
75%
76%
ESG
Cost
Perceived as safe from health perspective
Perceived as safe from health perspective
Perceived as safe from a crime/threat perspective
Cost
Perceived as safe from a crime/threat perspective
Cost
Perceived as safe from health perspective
Perceived as safe from health perspective
Cost
Perceived as safe from a crime/threat perspective
R e
s t
o f
W o
rl d
A P
A C
W e
s te
rn E
u ro
p e
N o
rt h
A m
e ri
c a
Decreasing importance No change Increasing importance
Percentage of respondents planning to use each destination
54
Incentive Travel Index
Incentive travel will evolve in the future
Most respondents (51%) agree that political
considerations will override other destination
considerations.
Many buyers agree that political
considerations will override other destination
considerations
Future of incentive travel
(Share of respondents)
S5. Do you agree with the following statements about the future of incentive travel? Response base: n = 1,769 respondents
24%
21%
16%
45%
37%
33%
31%
42%
51%
ChatGPT and other artificial intelligence will significantly disrupt
incentive travel marketing and communications
Individual travel incentives may be valued by attendees, but corporations
remain unlikely to offer them
Political considerations will override other destination considerations
Disagree Unsure Agree
Appendix8
56
Incentive Travel Index
Demographic detail (1 of 4) Respondent roles
(Share of respondents by role)
I1. Please select the role that best describes your involvement in incentive travel Response base: n = 2,464 respondents
Incentive Travel
Agencies, 35%
Suppliers to the Incentive Market, 26%
Destination Management
Companies, 20%
Incentive Travel End Users, 14%
DMOs, 5%
Sellers by category
(Share of sellers)
M8. Which of the following best describes the company for which you work? Response base (sellers): n = 414 respondents
0%
1%
1%
1%
1%
1%
2%
2%
3%
4%
5%
6%
73%
0% 20% 40% 60% 80%
Convention / conference center
Non-traditional venue
Gifting
Ground transportation
AV and production
Technology company
Food and beverage
Activity, team-building
Airline
Cruise line
Other
Visitor attraction
Hotel
57
Incentive Travel Index
Demographic detail (2 of 4) Incentive agency size
(Share of incentive houses)
M4. Which of the following best describes the size of your company? Response base (incentive houses): n = 352 respondents
41%
18%
15%
7%
20%
0% 10% 20% 30% 40% 50%
Fewer than 25 employees
25 to 50 employees
51 to 100 employees
101 to 250 employees
More than 250 employees
Participant company size
(Share of buyers)
M3. Which of the following best describes the size of the company(ies) for which your team is primarily organizing incentive travel programs? Response base (buyers): n = 502 respondents
9%
9%
26%
15%
16%
11%
8%
5%
0% 5% 10% 15% 20% 25% 30%
Fewer than 50 employees
50 to 100 employees
101 to 500 employees
501 to 1,000 employees
1,001 to 5,000 employees
5,001 to 10,000 employees
10,001 to 50,000 employees
50,001 or more employees
58
Incentive Travel Index
Demographic detail (3 of 4) Customer industries
(Share of buyers indicating a top three rank)
M5. For which of the following industry(ies) does your team primarily organize incentive travel programs? Rank 1 is most important; label is % of all buyers choosing sector in top three Response base (buyers): n = 505 respondents
2%
3%
3%
3%
4%
4%
4%
4%
5%
6%
8%
8%
9%
18%
22%
24%
29%
38%
48%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Media and entertainment
Automotive parts and service
Energy, engineering, and electrical services
Luxury goods
Education
Logistics, including transportation
Retail
Other
Fast-moving consumer goods
Agriculture
Construction
Professional services
Hospitality
Direct selling to consumers
Automotive sales and distribution
Manufacturing
Pharmaceuticals and health care
Technology
Finance and insurance
Rank 1
Rank 2
Rank 3
59
Incentive Travel Index
Demographic detail (4 of 4) Experience with incentive travel
(Share of incentive house respondents or end-users)
G6. What is your experience with incentive travel? Response base (buyers): n = 616 respondents
10%
13%
16%
61%
19%
22%
31%
38%
0% 10% 20% 30% 40% 50% 60% 70%
New to incentive travel (1-2 yrs)
Moderate experience (3-5yrs)
Substantial experience (6-10yrs)
Extended experience (10+yrs)
Incentive house End-user
60
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