Gen Z and Millennials are driving wellness, personalization, and innovation in incentive programmes. Photo Credit: Adobe Stock/akarawit (AI generated)
The desire for new destinations to create memory-making moments and designing programmes with more novelty will shape incentive travel in 2025.
This is according to findings from the Incentive Research Foundation’s (IRF) 2025 Trends Report, released this month. It found that incentive professionals are reconsidering all elements of incentive travel, from programme design, to destination selection, registration, food and beverage, session length, gifting and more, to create lasting memories and generate the most motivation to qualify for the incentive.
Budgets, cost reductions and finding efficiencies are also in the mix, reflecting trends from previous years as planners continue to work with constrained budgets.
The report also outlined how many companies are making incentive travel more inclusive by adding tiered programmes, broadening their definition of “top performer” and inviting employees who indirectly contribute to achieving sales goals.
Buyers are looking for something new and considering destinations they have not used before, reflecting a renewed sense of adventure, the desire for bucket-list destinations and experiences, and access to travel experiences attendees would not be able to get on their own. Cruises have a growing appeal, as it meets the priority of aligning with attendee preferences, experiencing new destinations or managing budgets.
On the ‘novelty’ side, the report referenced edgier music, shorter keynotes, and visually stunning Instagrammable moments. It also found that there is more emphasis on wellness, well-being, and inclusiveness, driven in particular by Gen Z and Millennials’ desire for choice. Artisanal mocktails meet the growing demand for alcohol-free drink options, and planners are working with chefs to ensure that attendees with dietary restrictions are being served cuisine that is as delicious and special as the rest of the menu.
A greater value is also being placed on artificial intelligence, with the report outlining how AI can help increase efficiency, identify opportunities and spark ideas; at present, AI is most often being used to help prepare programme materials. Incentive professionals also acknowledge the increasing importance of sustainability measures but are somewhat stalled in taking significant measures for change, suggesting that while organisations certainly want to talk about sustainability, cost is typically the driver in the end. Europe continues to put more emphasis on sustainability concerns than North America does.
The motivational appeal of group travel continues to be extremely high, especially among Gen Z and Millennials, and signals the continued relevance of incentive travel programmes when it comes to retention and engaging emerging talent.
Stephanie Harris, IRF president said: “In 2025, incentive programmes and rewards will see significant shifts in response to evolving corporate priorities, changing audience preferences, and budget demands. As competition for talent and employee retention continue, a strong portfolio of incentive, reward, and recognition programmes is a strategic driver of company culture and employee loyalty.”