What are the benefits of incentive travel?
Incentive travel is one of the most powerful tools in the Meetings, Incentives, Conferences, and Exhibitions (MICE) industry. But it’s about much more than just a vacation or an all expenses paid trip. It’s the “I” in MICE, mixing work and play to reward employees while driving company success. Making it a win-win for both businesses and employees, and we’re going to break down the reasons why.
What is incentive travel?
Globally, the incentive travel industry was valued at AUD69 billion in 2024 and is cruising toward a 10.4% annual growth rate until 2031, with the Asia Pacific (APAC) region experiencing the fastest growth. This increase is thought to be fuelled by two factors:
The need to balance employee’s fast-paced lives with some well-deserved downtime.
The focus on building a strong company culture through reward, recognition, and retention strategies.
By definition, incentive travel is an all expenses paid trip where businesses offer travel experiences to employees as a thank you, reward, and/or employee motivation tool. It’s often used to boost performance, engage teams, and reinforce culture by rewarding top performers for meeting specific company goals. It can be used by any company of any size and offered to all teams and departments, not just the sales team.
And the demand is growing, according to the 2024 Incentive Travel Index, 45% of businesses expect to pump up their incentive travel budgets by 2026, and 43% of senior managers see it as a key strategy for boosting return on investment.
Benefits of incentive travel programs
Boost productivity and outcomes
What’s more motivating than a getaway or an incentive trip abroad? In Australia, 68% of companies have seen a noticeable uptick in motivation and performance thanks to incentive programs, and globally, 91% of employees feel more engaged after participating in incentive travel programs.
A clear, tangible reward makes hitting KPI’s and objectives feel far more interesting and less like a chore when there is a tangible, once-in-a-lifetime reward at the end.
Talented employees stick around when they know an incentive trip might be on the horizon and they are recognised for their contributions.
Employees often return from company incentive trips re-energised, leading to sustained productivity and creativity.
Align goals and purpose
Ever notice how employees can sometimes drift from business goals or company values? It's not just new hires who might need a nudge, long-time team members can also feel disconnected.
Incentive travel bridges gaps between employees' roles and organisational goals, helping individuals connect their efforts with the company's mission.
Rewarding employees for hitting specific targets fosters a culture of achievement and encourages long-term goal setting, and a sense of pride in the workplace.
Offering travel incentives gives employees something exciting to look forward to, making them feel valued, driven, and connected to the business.
Increase culture and connection
Shared travel experiences can turn colleagues into close-knit teams. For geographically scattered teams, incentive trips provide a rare chance to connect face-to-face, enhancing collaboration and fostering a cohesive work environment.
Incentive travel can boost morale, breakdown silos, and nurture good culture.
Good culture, genuine benefits, and personal growth opportunities can often lead to talent attraction.
Incentive trips that include senior leaders offer an opportunity for informal bonding, removing hierarchies, and building stronger working relationships.
Incorporating sustainability and community building activities during the incentive trip can reflect the company's commitment to responsible business and align with some employees' personal motivators.
For senior leaders looking to increase company culture, boost performance, retain talent, and create strong teams, including an incentive travel program into their overall strategy is a good place to start. More often than not, the benefits are qualitative, not quantitative.
- Simone Seiler, Global General Manager