Motivating power of incentive travel greater than ever before

The recovery of the incentive travel sector is gaining momentum, with the sector growing at an annual rate of 12.1%, according to IBTM World’s 2023 Incentive Travel Report.

The report predicts that the number of people participating in incentive travel programmes worldwide will grow by 61% in 2024, compared to 2019. It adds that the industry’s global market value expected to reach £174 billion (US$212 billion) by 2031.

These figures reflect the power of incentive travel schemes as a valuable resource to attract, retain and motivate talent, and as an essential driver of culture and reputation, particularly as the modern workforce becomes ever more disparate with working-from-home and hybrid working.

Benefits such as inclusivity, peer-to-peer relationships, and being able to take a partner on a trip have become more relevant to employees, according to 66% of incentive travel agencies.

Despite its revival, the sector still faces significant challenges including talent shortages, inflation, rising travel and supply chain costs. Also, tighter corporate budgets have resulted in a fall in the frequency of business trips and fewer employees attending face-to-face events. The report highlights the need for companies to adapt their incentive travel schemes to ensure they remain competitive.

The importance of authenticity, wellness and sustainability are highlighted, driving a new breed of incentive travel programmes which reflect the changing expectations of the workforce. Employees now place more emphasis on incentives which provide valued experiences, support corporate social responsibility (CSR), and demonstrate concern for employees, with 35% of respondents placing greater value on wellness activities and 44% underlining the importance of CSR-focused team building. Incentives could include opportunities which enable employees to connect with local culture, and excursions which counteract loneliness, stress and burnout.