The golden age of incentive travel is just beginning

2025 marks a pivotal change in the incentives industry.  

Not only do key studies, such as the SITE Incentive Travel Index (ITI), show confidence in the sector, they propose strong growth. And within the industry itself, the role of the incentive trip has evolved into a key strategic business tool – it has become the fastest growing segment in corporate travel, and is projected to double in size in the next five years*.

What’s driving this growth? 

There are some fundamental shifts in the way organisations work and this has seen a rise in the use of incentive travel. 

  • Globalisation and remote work: In a post-covid world, businesses aren’t confined to an office, with digital platforms allowing collaboration, communication and business growth. But it is still vital to reinforce culture and engagement in-person, so travel incentives play an important role. 
  • Shift from monetary to experiential rewards: Companies see higher ROI from travel-based incentives, so it’s no surprise that they are favouring this medium. 
  • Increased corporate investment in employee retention and performance: Incentive travel is now an essential tool in engagement strategies, especially when incorporating travel, education and team-building. 

A significant 58% of senior managers recognise the pivotal role of incentive travel in enhancing motivation and fostering company culture. This underscores the growing appreciation of travel incentives as tools for employee engagement and cultural development.* 

Why is incentive travel so important for destinations and suppliers? 

Incentive growth is important for the MICE sector, seeing a higher spend per person than other MICE travellers. This is seen in the exclusive activities, high-end accommodations and DMCs which are booked. It’s also seen in the type of destinations which are picked.  

Furthermore, incentive travel offers a higher likelihood of repeat visits, and these incentive trips often fill gaps and off-seasons, aiding destinations and suppliers out of typical busy times of the year. 

Incentive travel’s meteoric rise: the corporate world’s hottest investment 

Incentive travel is surging, transforming from a niche segment into a corporate powerhouse. Companies are no longer asking whether to invest but how much more they can allocate. 

The latest Incentive Travel Index (ITI) reveals that over half of respondents plan to increase spending, with 54% upping budgets in 2025 and 55% in 2026*. This shift underscores that incentive travel is now a strategic necessity. Alongside that, it’s important to note that the average spend per participant has risen to $4,900*, making it an integral income for destinations and accommodation suppliers. 

In 2023, the market was valued at $53 billion, 5% of total MICE travel. By 2030, it’s expected to double, reaching 7–8% of the MICE market. With a compound annual growth rate (CAGR) of 12.1% to 15.9%*, it’s the fastest-growing segment in corporate travel.*

How can you take advantage of this boom?  

Companies see experiential rewards as more effective than cash, boosting motivation and loyalty. In a competitive job market, businesses are leveraging travel to attract and retain top talent. 

With investment soaring, incentive travel is no longer a luxury—it’s a necessity.  

The golden age of incentive travel is just beginning. 

If you’re a supplier, there’s never been a better time to join us at one of our M&I events.  

In a premium, high-spending space that brings massive economic and brand value to destinations, hotels and experience providers, our events offer invaluable ROI by connecting you directly with buyers actively looking for your services.  

Get in touch for more information today. 
 

Sources:

The Business Research Company 

Incentive Travel Index

 

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