THE 2024 INCENTIVE TRAVEL INDEX (ITI) report was unveiled to a packed room at IMEX in Las Vegas in October. The seventh iteration of the collaboration be- tween the Incentive Research Foundation (IRF) and the Society for Incentive Travel Excellence (SITE) Founda- tion, the report projects growth of the incentive travel industry through 2026. Buyers anticipate increased activity and spending per person, though concerns remain about rising costs, talent attraction and safety. The report explores destination preferences, budgeting and strategic importance. It also addresses trends like technology, climate issues and the evolving workplace, with a focus on retaining talent and discovering new travel destinations. Additionally, over 70% of incentive travel buyers are seeking new destinations, with an increased preference for resorts and shorter-distance locations. SPEEDBUMPS AHEAD? Despite the optimism, there are some issues on the horizon. This year, the survey shifted how it asked about predicted future challenges, ranking them as short-run or long-run. In both cases, rising costs/inflation and at- tracting new talent led the responses. “I think I’ve heard more conversation about cost, uncertainty and talent in the last six months than I’ve heard in a really long time,” said Stephanie Harris, IRF president, who noted that leveraging AI is a top-ranked challenge. “It is starting to creep up there. I think that is inherently tied to the talent piece. How are we going to be more efficient with talent that we have? AI is not about replacing humans. AI is about creating efficiency where we are inherently heading into a talent shortage.” INCENTIVE TRAVEL REPORT DESTINATION SELECTION Incentive travel buyers are increasingly looking for some- thing new, with more than 70% of respondents reporting looking to take their participants to destinations they haven’t used previously, as well as seeking locations within shorter distances from participant origin. SITE’s Pádraic Gilligan also highlighted the challenge of rising prices in destination selection. “So what drivers might cause you to select one destination and not select a particular destination? And the interesting thing here is that we’re seeing something that we’ve never particu- larly seen before, and that is a cost is emerging within the world of incentive travel as a major key driver for North American buyers.” For example, buyers who planned to increase the use of all-inclusive products overwhelmingly cited budget as their motivation. “Incentive travel usually was impervious to cost, because, in a way, the definition of incentive travel is that it’s priceless. When it is a cost concern, it loses something that’s key to what the product actually stands for,” said Gilligan. “But it’s never been such a primary thing. It’s never been in the top spot.” Despite the challenges, “the strategic importance of incentive travel is being bolstered by key workplace trends,” said Harris. “Retaining talented employees and competitive advantages in hiring are cited as increasing in importance, as well as more recent trends such as new generations of qualifiers and leaders and a more dispersed workforce.” For additional key findings from the 2024 Incentive Travel Index study, as well as reports from previous years, visit incentiveindex.com By 2026, 45% of buyers expect incentive travel activity to be above or significantly above 2024 levels, with 55% expecting spending increases to match inflation or improve programs. $4,900 Average incentive program cost per person Future Focused Insights from the 2024 Incentive Travel Index BY LAURA BICKLE 52 | Ignitemag.ca | Sponsored Feature
