change take
A new industry survey reveals the current priorities and pain points of senior incentive travel planners as they navigate rising costs, changing expectations and a rapidly changing geopolitical landscape.
Miguel Neves
The Society for Incentive Travel Excellence (SITE) has released its latest snapshot report on incentive travel and incentive events. It surveyed 79 senior incentive planners who work directly in companies and businesses. Several findings highlight current pressure points and challenges faced by incentive travel.
Sources of stress: rising costs and geopolitics
Nearly all respondents (95%) expressed concerns about rising costs and inflation. Global DMC Partners reported a 30% increase in prices for flights, accommodations, staff and other necessities at their DMCs through 2024, supporting this finding.
Incentive planners work almost exclusively with five-star and luxury hotels, so vendors will be paying close attention to this. In the long term, if incentive travel budgets cannot match price increases, this could spell trouble for high-end hotels that rely on the group’s business.
Although budget is a major concern, value for money is only the fifth most popular criterion when considering destination selection. “Destination attractiveness” and “infrastructure” were the two most popular choices, followed by “safety, health and security” and “connectivity.”
Nearly half (49%) of respondents are worried about geopolitical instability, which is their second biggest concern after rising costs and inflation. They also point out that participant safety and destination socio-political stability are “red line” items that can negatively impact destination selection or the success of incentive campaigns.
The findings highlight the ongoing issue of ensuring attractive destinations with quality properties that are safe, accessible but still good value for money and are not affected by geopolitical situations.
Must-haves: Inclusivity, local partnerships and personal interaction
The report highlights the importance of creating an inclusive environment for inspiring groups. When respondents were asked to choose an absolute requirement for an incentive event destination, providing respectful and equal treatment to all participants was the top choice.
Inclusivity also applies to different generations. Incentive travel and destination experiences may involve strenuous physical activity, but this may exclude many potential participants. So it’s no surprise that survey respondents chose “catering for all generations” as their goal. third Absolute destination requirements for most choices.
Absolute requirements for bonus event destination (top 3 only)
- All are treated with equal respect
- Luxurious, five-star
- Meet the needs of all generations
(Source: SITE IT&ME Corporate Event Organizer Survey, July 2024)
Looking at what partner incentives planners value most, it’s clear that local partners are a must. Planners attach the greatest importance to relationships with owners and hoteliers. A close second is the value of the local expertise provided by their chosen destination management company (DMC).
Topping the list of preferred industry resources are industry exhibitions and events (83%) and personal recommendations (67%). Familiar travel (family travel) is third 62% of respondents chose the most popular choice. All three top choices reinforce the idea that the events industry thrives on personal interaction. Nearly half (41%) of respondents said DMOs were the preferred industry resource, but this was lower than online research (54%).
Preferred Industry Source (Top 6 Only)
- Event industry trade shows (83%)
- Personal recommendation (67%)
- Family travel (62%)
- Online research (54%)
- Association activities (51%)
- DMO (41%)
(Source: SITE IT&ME Corporate Event Organizer Survey, July 2024)
Lifelong leader in mixed roles
While the sample of 79 people does not define the industry as a whole, it is surprising that the vast majority of respondents (primarily from North America) were lifelong professionals. More than three-quarters (78%) have more than 10 years of experience, and 48% have been working in the incentive travel sector for more than 20 years.
Despite this wealth of experience, the companies have taken very different approaches to integrating their roles. Overall, they are spread across different departments and report to different leaders. The most common reporting structure is the marketing area, but this applies to only 27% of respondents. Nearly as many (24%) report directly to the CEO. Significant numbers also report to the activities director (19%) and sales director (13%), but only 4% report to the human resources director.
