Along with other professionals in the incentive business, I recently received a note from the director of sales at a Hawaiian resort and hotel chain catering to business and incentive travel. “As you know,” she wrote, “Hawaii has been especially hard-hit with cancellations of meetings, conferences, and incentives. Our leadership has asked that we ‘test the waters’ to see if the winds may be changing. Do you think travel to Hawaii for meetings is in the foreseeable future?”
Now, there’s a sign of the times.
Thanks to the demonization of financial institution incentive trips by the media and some members of Congress, a growing number of organizations have slashed sales incentive and corporate meetings budgets and have cut back or cancelled trips for 2009. This isn’t just for the sake of cost-cutting, but also out of plain fear of appearing insensitive during a time of perceived economic “crisis.”
According to a recent study from the Incentive Research Foundation (IRF, of which I am a member but not in any way a group travel provider), the motivational meetings budgets across six major targeted industries are expected to decrease by an average of 32 percent in 2009. Sadly, while our own government is helping to crush a $77 billion dollar industry—and the many large, small, and mom-and-pop businesses that support it—this bizarre scenario is also hurting companies’ ability to bounce back and grow during these strange economic times.
In essence, just when we most need to gather together to encourage each other, provide leadership to sales reps and channel partners, and pump our teams up, we are “bailing out” on one of the most powerful tools we have to motivate our sales channels and build the bonds of loyalty that lead to future sales increases.
There has been a great deal of research into the return on investment and value of investment of group travel, and the results have repeatedly shown there is solid return—both with regard to financial return and the intangible benefits delivered by networking during a trip.
According to the IRF study participants, “softer” relationship goals were listed among the most important when designing an incentive program. The ones noted were:
1. Build customer loyalty and trust.
2. Starting new relationships.
3. Maintaining existing relationships.
4. Create new markets.
5. Increase or maintain sales.
6. Recognize performance.
Has there been a year in recent memory when these objectives are more important?
As Roger Stotz, chief research officer of the IRF notes: “Over 20 years of evidence-based research data from the IRF provide clear proof that incentive travel, motivational meetings, and business events improve business performance…these business tools offer significant benefits that make them more important to implement than ever.
“The IRF’s 2002 study, ‘Incentives, Motivation, and Workplace Performance: Research and Best Practices,’ found that individual incentives resulted in a 27 percent improvement in performance and that team incentives improved by 45 percent.”
As leaders and participants in sales group travel meetings, we know these numbers reflect the importance and value of these events.
Strong leaders know a properly planned and executed reward trip can pay great dividends in future performance. As G.J. Harl, CEO of Texas Roadhouse recently noted in a CNN interview about the company’s annual recognition meeting in San Francisco: “We’re going to have a good time, but we’re also going to be serous about what we’re about. We’re all about our people and our culture, and our people are the biggest asset that we’ve got.
“This investment in our people will yield great returns. We have a philosophy in our company that if we take care of our people, they will take care of our guests. And that is exactly why this event is important in times like this.”
Now is the time to reexamine your motivation meeting strategy and analysis to maximize the impact of your planned travel, both this year and next. Here are several suggestions to help you with that process:
•Visit the IRF’s Website at www.TheIRF.org. The organization has committed over 20 years to communicating a better understanding of incentive program best practices, as well as the value and effectiveness of motivational travel. If you need to make a case for the importance of your sales travel programs, or want to better understand how to structure and place a value on them, they’re your go-to resource.
•Revisit working with an outside incentive company. One of the interesting findings in the IRF’s study was that many companies are choosing not to partner with dedicated incentive companies to plan and execute group travel. Possibly there is a perception using incentive professionals will increase program costs. In reality, incentive travel pros can bring overall budget savings due to buying power and relationships with resorts and airlines. Just as importantly, incentive companies’ research capabilities can help your team take a more professional approach to the measurements and analytics that provide a solid business case for motivational travel.
•Trust your instincts. Don’t let the emotions of the moment deter you from using motivational travel to help you reach your sales channel goals. You know the relationship building, bonding, motivational power, and excitement group travel provides is crucial to sales success.
The fact is, this is still the one great country that—above all others—values hard work, creativity, persistence, perseverance, and performance results. During the next 18 months, don’t miss the opportunity to keep the passion of your sales channel professionals burning brightly. Excite, motivate, and reward them with great travel plans that will provide your company with solid business results.
SMM columnist David Chittock is president of Incentra, Inc.
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