The latest INSINES report just released on the website found that in the mid-2024 to the same, the highest issues affecting the destination choice of incentive buyers are cost, geopolitical risks, security and local policies.
The list of already massive attention has sparked attention since the Trump administration took office in January. New policies on tariffs, labor and immigration, as well as alienation from U.S. allies and growing economic instability have left industry leaders uncertain not only about destination decisions, but also about whether plans involving certain clients will happen.
“If companies don’t think they can operate plans easily, affordably, and safely, then all of these factors could impact buyers’ destination choices,” said Annette Gregg, CEO of the field. “The current uncertainty may also delay some plans – on the meeting side of the business, rather than the incentive side – because the companies see these changes come into play.”
Maritz president and CEO David Peckinpaugh said his company is closely following the geopolitical environment to understand the tariffs and potential impacts on inbound international travel. “At present, it’s too early to know how this will affect the choice and planning of destinations, but we are staying in touch with our clients, especially with organizations that rely on government funds and those that serve government sector members and have international players.”
CEO Tina Madden said at a global conference and incentives that her team is exploring potential causes/impact options for tariffs and trade agreements and immigration policies.
“Based on this development, we may look for higher prices in many key areas, including food and beverages for events, as well as potential increase in airline operating costs,” she said. “Strengthier immigration policies could lead to labor shortages in all aspects of key service areas, affecting lead times and appropriate staffing.”
As a result, clients may be reluctant to travel to certain locations or have a strong feeling about the overall trip, she said. But she hasn’t seen anything yet.
“It’s hard to predict how everything will go, but we’re optimistic,” Madden said. “I think the initial response could be reactionary and people want to discover and implement solutions to these challenges. But things should be stable in the long run.”
Craig Dooley, CEO of SDI Conference & Incentives, reported that in the near term, his clients’ incentive plans are on track. “Our focus is on reducing noise, evaluating facts and helping our customers make the best choices.
“We are paying close attention to policy shifts because everyone in the industry has to now. However, the actual impact on customers’ travel and plans varies greatly by destination and timing.”
He said it was important to avoid speculation. “Changes in tariffs, labor and immigration may affect costs and services, but not always when you think they will or in the way you expect them to.”
