Millennial leaders are changing incentive travel

It’s return on engagement over return on investment for a new generation of incentive travellers and suppliers.

Industry values and priorities are shifting in a big way thanks to the new generation.
Industry values and priorities are shifting in a big way thanks to the new generation. Photo Credit: Adobe Stock/Bangkok Click Studio

With an increasing number of millennials taking on leadership roles within the incentive sector, the very nature of the industry is undergoing a profound shift from both a buyer’s and seller’s perspective. Now, the spotlight is on return on engagement (ROE) instead of return on investment (ROI), with a greater emphasis on sustainability and customisation.

These findings were discussed in a recent webinar hosted by SITE, looking at the impacts of shifting leader demographics, with an increasing number of millennials filling board, C-suite, and other leadership roles.

Across the board, millennials were found to be more collaborative and mentorship-based, and less keen on micro-management.

“Everybody has a seat at the table,” said Hayley Bishop, client experience director at event management provider Wynford. “Everybody has a voice, and that stands in contrast to some of the other people management roles I had coming into the industry. Now there's not so much of a hierarchical approach and certainly not within an agency environment, where it's very collaborative.”

However, Bishop added that some people coming into the industry struggle to prioritise their workload, and suggests that it is important to have an element of initial hand-holding to help them keep track of how different work elements come together.

Different motivations

The panel also noted that the younger generation are more motivated by money, and therefore prepared to work more hours if they can earn more.

“It’s about giving [this generation] the choice, along the lines of ‘I'm going to do this because I'm going to make more money’ or ‘I'm going to win this programme,” said Caitlin Karr, director of programme design at Hello! Arizona Destination Management.

Let them try their own path and then it’s about helping them achieve it through our knowledge and expertise.
Joerge Zepeda, regional director of sales, AIC Hotel Group

Panellists also noted that the younger generation are keen to do things their way, which can lead to a fair amount of trial and error, but failing or making mistakes is an important learning curve for the industry.

“Let them lead the way, see if their way is going to succeed, and then they'll learn maybe that their ways are not always the right way,” said Joerge Zepeda, regional director of sales for AIC Hotel Group. “Let them try their own path and then it’s about helping them achieve it through our knowledge and expertise.”

Zepeda added that this gives the younger generation a sense of leadership as well as teamwork and encourages them to share great ideas that might otherwise go unheard.

Generation shift on buyers' side

There is a generation shift on the buyer side too, with a call for more meaningful moments in events. The panel suggested that this could increasingly lead to incentive programmes offering participants the ability to customise elements to their needs – for example, in sustainable, culinary, or wellness offerings. Shifting leader demographics are also changing the way incentives are being marketed.

There has to be a compelling reason for people to want to attend. Gone are the days when it is a command performance and you have to be there.
Hayley Bishop, client experience director, Wynford

“There has to be a compelling reason for people to want to attend,” said Bishop. “Gone are the days when it is a command performance and you have to be there. Are we rewarding and recognising people in the way they want to be rewarded and recognised?”

Understanding the incentive audience is now crucial to the success of a programme. Planners need to consider whether the audience is multi-generational or from one generation, and panellists also highlighted how Generation Z and Generation Alpha – the former of which are beginning to step into the workforce – are increasingly interested in sustainability.