Sometimes bad PR does take its toll. Just ask all of those employees who used to get rewarded for their performance on the job with incentive travel. The AIG publicity that resulted from the company taking a multi-billion dollar government bailout one week and then a week or so later sending many of its employees to a luxury resort in California nearly single-handedly took down luxurious trips as bonus offerings. The event, meant as incentive for good performance, cost hundreds of thousands of dollars and set off a domino effect putting the brakes on incentive travel around the U.S.
According to a recent article in USA Today, companies are beginning to put the practice of giving incentive trips to employees back into play. Research from the Travel Market Report also indicates an uptick in corporate incentive travel.
Incentive Travel Trends
While incentive travel is making a strong comeback, there are several emerging trends related to the kinds of trips, the length and destinations. As reported, many companies are rewarding employees with family vacation trips but most have implemented a few modifications including:
- Awarding trips with no frills with scaled back extras
- Many companies are giving trips with a socially responsible component with the idea of giving back.
- Room gifts have fewer lavish items and more items that reflect the area
- Many trips include a meeting or other business aspect
- Trips are shorter and more U.S. destinations are selected
- Fewer people are being selected to attend when giving trips to groups of employees
The average expenditure per employee, as reported by Meetingsnet.com, in 2007 was $3,400 compared to 2010 at $2,617. Companies cut travel gift costs by 48 percent and shortened the length of stay over 45 percent.
Employees Expectation for Incentive Travel
While the 2011 budgets for travel will remain lower, employees still expect a no-expense spared trip. Companies on the other hand do not plan to spend on five-star hotels or resorts, while the all-inclusive packages have become more attractive.
Recent surveys of employees have shown that while they are grateful for the incentive, recipients have become accustomed to lower level of service and amenities for their trips. All in all, while incentive trips may not be all that these days, many companies are at least returning to rewarding top performers with travel incentives which motivates and employees appreciate.
Resources:
USA Today, September 6, 2011, Incentive travel bounces back, by Charisse Jones and Roger Yu.
Travel Market Report, April 25, 2011, The Great Comeback: Incentive Travel Rebounds, by Robin Amster.
Meetingsnet.com, September 13, 2011, 2011 Incentive Trends Survey by Barbara Scofidio
