More European companies are eyeing incentive travel as a talent retention tactic. Photo Credit: Adobe Stock/Jacob Lund
The European outlook for incentive travel is on a positive trajectory for 2025, with incentive groups keen on activities such as group dining and cultural visits. Destinations-wise, the top three regions for incentive groups from Europe are Western Europe, emerging Europe, and Southeast Asia.
This is according to findings from the Incentive Research Foundation, which held a recent webinar discussing the expectations for incentive travel, merchandise, gift cards and event gifting in Europe in 2025. It also revealed European-specific results from its latest incentive travel index comprising a total of 2,800 respondents, of which 325 were from Western Europe, with the top five industries represented being finance and insurance, pharma, automotive, manufacturing and professional services.
Call of novel destinations
When it comes to destination types, people want new destinations that have not been used previously and are also keen on those destinations that are a shorter distance from participants’ origin. Top destinations were seen as those in Western Europe first, followed by emerging Europe second and Southeast Asia third.
“The business tool of incentives is so important, especially for attracting a younger generation of workers. Rewarding your employees, the recognition behind it [incentive travel] — it’s essential.”
Rutger Hoorn, VP of global sales and strategic partnerships at Ovation Global DMC
Hoorn said: “The desire for new locations is always strong; this is not necessarily a new trend but the desire for destinations closer to home ties in with sustainability, [it could be about] finding something new within a familiar location.”
David Gould, managing director, Europe at 360insights, which delivers channel incentive software and services, suggested that this desire to travel shorter distances could also tie in with the popularity of group dining, which topped the list of activities that European employees expect and want in their incentives.
“If you are only travelling a short distance, you don’t need personal time to recuperate, so you can be more actively involved in group dining experiences and cultural activities,” he said.
“If you are only travelling a short distance, you don’t need personal time to recuperate…”
David Gould, managing director, Europe, 360insights
Cost and sustainability concerns
Budget challenges are still in evidence — as Hoorn observed, some corporate entities have increased [budgets] but not to the level they need to align with inflation. And for those companies that have increased their incentive travel budgets, this has been in line with reduced group sizes.
Regarding event gifting, Hoorn noted that organisers are increasingly conscious about giving attendees something they will want to take home. He said this also ties into sustainability and avoiding waste. Local gift spend has increased, but it’s also about the type of gift, offering guests something authentic you cannot get at home and which is more personalised and meaningful.
Data shows the increasing importance of incentive travel across several areas. Companies in Europe are focusing on this to help retain talented employees, to entice new generations of qualifiers and leaders and to motivate a dispersed workforce.