1. 2011 Incentive Research foundation survey finds new trends
- The biggest challenge for planners is creating meaningful experiences despite recession-generated cuts.
- Planners are maintaining effective programs by carefully choosing the program aspects effected. In both 2010 and 2011, the most popular cuts included room gifts, having fewer managers attend and cutting the number of qualifiers.
- These changes worked as 48 percent of respondents said attendees were grateful to have the trip and 39 percent said attendees were as positive as in years past.
- Less than 10 percent noted dissatisfaction with the destination, service or property.
- The study also looked in depth at changes for the incentive industry, highlighting the current meeting design and how it differs from 2000.
- The most substantive differences are reductions in per-person budgets and increased ties to corporate social responsibility. Specifically:
- The average per person allocation dropped from $3,256 in 2000 to $2,617 in 2010
- Although not even on radar in 2000, 35 percent of 2010 respondents included some sort of corporate social responsibility in their programs.
2. In numbers: Incentive travel trends 2014
- 29% of employees that spent a cash incentive from their company on bills, according to a Wirthlin worldwide survey, which interviewed 1,000 participants.
- Some 18% do not remember what they spent the reward on, 11% spent it on savings and 11% on gifts.
- 82% of budgets have stabilised or seen a moderate increase, according to the Incentive Research Foundation’s fall 2013 Pulse Survey.
- 4:1 A study commissioned by the US Travel Association found that corporate companies that use incentive travel generally enjoy a ROI of 4:1 – for every $1 invested in incentive travel, it represented a $4 return on revenue.
- 48% Of travelers want trips with substance and meaningful experiences where they immerse themselves within the culture, according to an American Express Spending & Saving Tracker 2012.
- US corporate companies spend £146bn ($240bn) a year on incentive travel.
3. Why incentive travel motivates so well
- Several studies and statistics of average American workers reveal the many facets of what makes travel incentives such a great motivator.
- A recent Incentive Federation study culled a variety of key points relating to the benefits of travel and merchandise incentives versus cash. These include:
- About four of five respondents believe that travel awards and merchandise awards are remembered longer than cash awards.
- Almost two-thirds of the respondents feel that cash awards are remembered for the shortest time.
- Furthermore, about three-fourths of respondents agree that they can build a more exciting, memorable program around travel or merchandise than cash.
- Respondents feel that three out of five (60%) of employees see cash as a part of their compensation package.
- A survey of 2,100 employees found that 89 percent of employees agreed and strongly agreed that they kept the travel incentive program in mind when performing their job.
- 91 percent of employees agreed or strongly agreed that the opportunity to earn the trip encouraged them to increase their efforts in the program.
- 99 percent said they agreed or strongly agreed that incentive travel packages are appealing awards
- Based on accumulated studies and surveys, even though no more than 10-30% of your targeted audience will win the travel award, the increased incremental sales of all participants will more than pay for the incentive travel program!
- In most cases, an incentive travel program is one that just doesn’t benefit your employees, it benefits the entire company.