A survey of by the Incentive Research Foundation (theIRF.org) shows that incentive travel budgets are stabilizing, with more planners expecting to increase rather than decrease their budgets in the next 12 months. On average, 36 percent of planners are increasing their budgets year over year, while only 14 percent plan to decrease incentive travel spending.
The trend of increased budget growth and easing budget reductions is expected to continue, leading to emerging growth in the sector. However, the IRF’s last four pulse surveys have shown that only an average of 7 percent of planners are increasing the duration of their programs and 9 percent (on average) are increasing their program’s size (measured in room nights).
If budgets are increasing more rapidly than the number of nights and size of programs, where are planners investing? IRF research indicates that many planners are continuing their investments in the additional non-meal components of their programs, such as including all airline fees, offsite excursions, transfers, gifts, etc. The non-meal components portion was the only program area to have seen both an increasing number of planners investing and fewer planners cutting in the last two years.
Put all the feedback together and it seems quality over quantity will be the key for incentive travel planners in 2014. Barring any extreme government action or economic event, IRF officials say they expect:
• Program contraction will dissipate
• Slight program expansion will continue
• Planners will continue investing in more robust programs
Beyond budgets, the IRF survey identified several trends regarding the destinations, as well as the look and feel of incentive travel excursions. Authentic experiences, social media, corporate social responsibility (CSR), wellness and food tourism top the 2014 incentive travel trends list.
North America, the Caribbean and Europe remain top destinations for incentive travel (more than one-third of planners reported using these destinations). The second tier of locations includes Central America, South America and Asia.
And although only between 10 to 20 percent of U.S. planners reported using these destinations currently, the IRF sees the most emerging destinations
within this tier. Top targets for planners looking beyond more commonly chosen locales include China, Bali, Vietnam and Peru.
The insertion of social media into the total experience (onsite as well as within pre and post event communications) is one of the biggest developments. In fact, over 60 percent of planners use social media in this fashion. About one-third of planners reported integrating gaming techniques and/or virtual elements into their programs as well.
Nearly half (47 percent) of incentive travel planners are integrating CSR components into their programs, an element rivaled only by the emergence of wellness.
