The latest findings from IBTM World‘s 2023 Incentive Travel Report emphasize a strong resurgence in the incentive travel sector. Projections particularly indicate that the global market value could soar to $215 billion by 2031.
Incentive travel is a powerful tool that companies use to reward and motivate employees. Currently, the sector is growing at a yearly growth rate of 12.1 percent. The report further anticipates a remarkable 61 percent increase in global participation in incentive travel programs by 2024. This is in comparison to pre-pandemic 2019 levels.
Opportunities and challenges
The said statistics underscore the value of incentive travel initiatives. These programs are not only helpful in attracting and retaining talent but also in shaping corporate culture and reputation. This is especially relevant in the current workforce landscape. As prompted by the pandemic, several companies around the world have rolled out — and maintained — remote work and hybrid arrangements.
According to 66 percent of incentive travel agencies, employees are becoming more interested in benefits such as being able to take a partner on a trip, inclusivity, and peer-to-peer relationships.
Despite this boom, the sector continues to grapple with diverse challenges. These range from tighter corporate budgets and rising travel and supply chain costs to talent shortages and inflation. As such, the report highlighted that companies must adapt their incentive travel programs to remain competitive.
Businesses must also take into account that given today’s age, employees are now prioritizing incentives that offer meaningful experiences, support corporate social responsibility (CSR) initiatives, and demonstrate genuine concern for their well-being. According to the report, 35 percent of respondents value wellness activities, while 44 percent underscore the importance of CSR-focused team building.
In the context of incentive travel, companies could offer employees trips that let them enjoy culturally immersive experiences. They could also reward them with travels designed to combat feelings of stress, burnout, and isolation.
Read: Global investment in tourism on the rise
Incentive travel in the UAE
As incentive travel rebounds internationally, many global tourism hotspots are gearing up for an influx of tourists. Society for Incentive Travel Excellence Chief Executive Officer Annette Gregg noted that this year, “people are getting braver” in terms of their incentive travel destination choices. She further cited Abu Dhabi as one of the most appealing destinations in the Middle East.
Locally, the capital city of the United Arab Emirates (UAE) is also boosting corporate events and incentive travel within the emirate. Earlier this year, it introduced a fund that will tap into public-private partnerships to bolster business-to-business gatherings. It will extend financial support and incentives to event organizers, agencies, and corporations seeking to host their meetings in Abu Dhabi.
According to a Mordor Intelligence report, the meeting, incentives, conventions, and exhibitions (MICE) tourism sector in the UAE is expected to have a compound annual growth rate of 6.5 percent from 2023 until 2028.
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