Research Suggests More Organizations Should Consider Travel for Their Reward and Recognition Programs

Overall, 34 percent of US companies used either incentive travel or merchandise incentives last year. Incentive travel was utilized by 10 percent of companies, but 23 percent of companies with revenues greater than $100 million. An estimated $13.4 billion was spent on incentive travel programs in 2006. 31 percent of companies used merchandise incentives, while incidence of use was 48 percent among companies with revenues greater than $100 million.

If you are considering implementing a reward or recognition program, what are the advantages of incentive travel as an option versus merchandise or cash awards to acknowledge the achievements of your top performers or best customers?

Travel, when done right, should provide program participants with unique and memorable experiences. Incentive travel can motivate, inspire, reward and engage participants in ways that merchandise or cash simply cannot. The best group incentive travel programs can provide special experiences that often cannot be replicated by individuals on their own. Group travel can create camaraderie through shared experiences, foster communication and provide teambuilding opportunities that lead to higher morale and loyalty among those who participate in them.

The desire for experiential activities can be seen in the trend towards incentive programs with a community service element. These activities provide an opportunity for companies to give back to the community, do something good and do some teambuilding all at the same time. This desire to search for satisfaction beyond material accumulation was identified in the 2007 YBP&R/Yankelovich National Leisure Travel Monitor as one of three changing social constructs. The search for real experiences is becoming more of a priority, even if it takes more to achieve.

In recent months, economists have been writing about the growth of the “experience economy”. Consumers are seeking more meaning out of life by expressing a desire to collect experiences rather than things. In a world of abundance, experience is more important than ever.

Successful companies can leverage these needs and desires by offering travel incentives for sales or channel partner programs. Incentive travel programs can also be highly impactful for team-building, learning, motivational, or performance rewards programs. The National Leisure Travel Monitor found that nearly seven in ten leisure travelers are seeking something new and different – some place they have never visited before. There is a high degree of interest in experimentation with food and the opportunity to eat different and unusual cuisines. Having enough time to simply relax and unwind was desirable to more than eight out of ten travelers.

Organizations that sponsor incentive travel programs have the unique opportunity to provide memorable experiences, and the necessary time, that are relevant in the changing social climate. Incentive programs create lasting memories that improve morale, organizational commitment, and loyalty. They also provide an opportunity for top management to interact with top performers or key customers in a relaxed way that can be very conducive to relationship building and understanding.

Cruise programs can be particularly attractive as an incentive reward. Cruises will visit multiple destinations on global itineraries ranging from three to 15 nights. Each day, incentive participants have a new and exciting destination to experience or a relaxing day at sea to unwind and de-stress. Cruises can be turn-key for program managers as food and entertainment is included in the cruise price. Cruise ships have theatres and lounges that can be used for special events, receptions and awards ceremonies, usually at no cost. And Royal Caribbean International has dedicated conference and meeting facilities, along with state-of-the-art AV equipment, provided at no cost.

Compared to many land-based options, a cruise program can save the sponsoring organization 30 percent or more and valuable planning time as well. And cruising continues to enjoy the one of highest satisfaction ratings among travel alternatives. Cruise incentive programs can provide an attractive value proposition and unique experiences that are aligned with the social needs of the participants and the business objectives of the sponsoring organization.

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