Incentive travel is one of the most interesting parts of the business world, according to VIKTOR, an incentive travel agency. There are a number of conventions and conferences going on every year. There are special meetings going on in your city right now, and people often travel to these locations because they have been given an incentive to do. Plus, there are trips that people take because they won them in a contest or because of their performance.
The events industry is awash with a number of trips every year that they have put together for employers. When employees are getting a reward for their hard work, they often choose travel over a cash prize. Because of this, the trips need to be among the most amazing experiences that anyone could ever have in their lives.
When these opportunities come up, you need to decide what your best option is. There are ten things to consider when you plan travel because you do not simply throw a trip at an employee. You need to do your homework before you offer or book anything.
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Non-Monetary Rewards Are Popular
The Incentive Research Foundation helps to study incentivized travel because it is such a big part of the industry. In doing so, the foundation learned that 84% of all business around the US use some form of incentivized travel or non-cash prize. This might be shocking to most people who are used to getting a bonus at the end of the year. However, the majority of companies also use special rewards that could include travel. These trips are meant to be a motivational factor in increasing productivity, and large companies tend to use these programs because they are far more creative than cash bonuses.
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Billions Spent On Incentivized Travel
US businesses spend over $14 billion on incentivized travel every year. Considering this massive number, you would expect to see spikes in travel in popular destinations. Plus, there are parts of the travel packages that can be written off or found much more cheaply than simply offering a paltry cash prize. Remember this when managing your own business. A $250 bonus does not seem nearly as enticing as a free plane ticket that costs $250.
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Reviews Are Mixed
There are businesses out there that love using incentive travel, but there are others that are cooling on the idea. The satisfaction index that is used by the industry to track has shown that there is a bit more negative sentiment about incentivized travel than in years past. This could be due to people not enjoying the airport experience, renting cars, or taking taxis. However, this could also be due to security concerns that has arisen in the past several years.
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The Budget Is High
The incentive travel budget for most companies is between $3000 and $4000. However, there are business that will spend up to $5000 per person on incentivized travel. Again, this is an amazing number that sounds much more exciting when it is tied to travel. Giving someone a $5000 trip for a job well done helps them treat their families without feeling as though they need to divide a bonus into several smaller pieces.
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Spending Is Rising
Since the 2014 fiscal year, spending on incentivized travel has risen about 5% every year. Because spending is rising, it is fair to assume that more and more employees are able to travel. When businesses are spending more money on their employees, they are making their employees happier. This is a sure way to improve productivity.
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Extended Travel
Trends are showing that many incentivized travel excursions are going farther and farther from home than ever before. The most-desired destinations are within the US, Mexico, and Europe. However, travel to the Pacific, Africa, and Asia is becoming more popular.
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Travel Satisfaction Is Tired to The Economy
When the economy is in trouble, people do not enjoy their travel as much as they would otherwise. The satisfaction of any traveler seems to be directly tied to how they feel about the economy. The traditional traveler in the US does not like to spend money on travel when they feel they need to be saving during a recession or economic downturn.
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Disruptions Are Common
Travelers and managers who arrange travel need o be aware that disruptions are common at events or on trips. Do not be surprised if there are minor issues that could cause a delay during an event or trip.
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Planning Varies Depending On Who Manages a Trip Or Event
Hotel managers need help creating a vision for a rip or event. However, trip planners prefer that the trip or event goes off without a hitch. Because of this difference in goals, these two parties need to work together to create the perfect experience for each traveler.
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Wellness Is an Option You May Consider
You may add wellness to the trips that you plan which could include yoga classes, cooking classes, meditation, spiritual walks, and even group meetings. However, there are many travelers who are not interested in these sorts of things. Someone who is traveling for leisure because they won a prize may not want to go to a yoga class or learn how to eat healthy.
You must get to know your employees, plan their ravel according to their likes/dislikes, and use the tips above to remain in-line with industry standards.