Study: Despite Economy, Incentive Travel Remains Important
May 28, 2009
While companies may alter incentive travel programs because of the economy, they aren't likely to eliminate or replace them, according to a first-quarter survey of incentive travel providers, buyers and suppliers conducted by the Incentive Research Foundation (IRF).
The survey, IRF's Incentive Industry Trends Outlook 2009 Pulse Survey, suggests that incentive travel programs are adapting to new economic circumstances such as budget constraints, but that they remain a valuable business tool for the companies that use them.
"Amid the economic downturn and intense public scrutiny of motivation and award programs, savvy business professionals continue to realize the power of incentives to help achieve business goals, even when they may need to alter programs due to cutbacks," IRF Chief Research Officer Rodger Stotz said in a statement. "This supports the beliefs of those who work within the incentive industry that incentive programs are results-oriented, cost effective, useful for multiple applications and highly measurable."
IRF asked survey respondents what actions could help communicate the value of incentive travel programs and found that 37 percent supported educating the public on the ROI of incentive programs, 35 percent lobbying the government on behalf of incentive travel and 30 percent educating the press about the benefits of incentive programs.
Other key findings:
• Use of experience-related awards and gift cards is increasing, as 24 percent of survey respondents said in the first quarter of 2009 that they'd include experience-related awards in their incentive programs, versus 13 percent in the fourth quarter of 2008. Meanwhile, 16 percent said they'd include gift cards, versus 5 percent in the previous quarter.
• A majority of survey respondents (65 percent) said the incoming political climate is "unfavorable" to the incentive industry.
• With the exception of "per diem cash allowances," all incentive program elements are expected to face deeper budget cuts than expected at the end of 2008. The deepest cuts, anticipated by 64 percent of survey respondents, are expected in incentive company management fees.
• Compared with the fourth quarter of 2008, fewer companies agreed in the first quarter of 2009 that their company is sensitive to perceptions of program extravagance to the extent of changing the types of awards and programs they offer.
For more information on IRF's Incentive Industry Trends Outlook 2009 Pulse Survey, or to download the full report, visit www.TheIRF.org.
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