INCENTIVE TRAVEL: Visions & Developments 2025 & 2026

Here is a precise summary of the Oxford Economics Study to understand Incentive Travel with 2,850 international respondents, on a projection of the Mice (Meeting Incentive Convention Event) market in the next 2 years.

Among them:

• Buyers (agencies and companies) for 45%

• Sellers (DMC and various suppliers) for 55%

The 5 major sectors consuming incentive travel:

1. Finance & Insurance

2. Technology

3. Pharmacy & Health

4. Automobile

5. Manufacture

GROWTH, BUDGETS AND EXPENDITURES

I – Allocated forecast budget - Top 5 in general

1. 27% hotel

2. 21% theft

3. 18% F&B

4. 13% Activities

5. 6% Third-party agency remuneration

Same ranking with slightly different percentages for respondents in Western Europe

1. 30% hotel

2. 20% off flights

3. 19% F&B

4. 12% Activities

5. 7% Third-party agency remuneration

II- Forecasts on incentive travel activity & expenses

• Overall, 77% of shoppers expect per capita spending to increase in 2025 and 88% expect it to increase in 2026.

  
  

• By 2026, 55% of buyers expect per capita spending to increase to match inflation and/or improve programs.

  
  

• Of these 55%, 30% expect to increase spending per person to improve programs and concepts.

  
  

• 45% of buyers predict increased activity in the incentive travel industry by 2026

  
  

• DMCs, such as our agency Menorca Island Dmc , are more optimistic, with 57% predicting an increase in activity in the incentive travel industry for 2026.

III – Average budget per person during an incentive trip

• In 2024, very large average budget per person from €1,400 to €9,500

  
  

• 27% of buyers report a budget per person between €2,500 and €4,500

  
  

• 11% of buyers announce a budget per person below €1,500

  
  

• In Western Europe, average expenditure per person reported = Between €2,000 and €3,000 according to various established criteria

CREATION AND CONTENT OF PROGRAMS

I - Most Popular Group Experiences - Top 5

1. Dinner experiences

2. Cultural visits

3. Link building experiences

4. Free time

5. Awards & Luxury Experiences

• We note that CSR experiences are in 8th place (out of 14)

  
  

• We note that the Meetings are in 12th place (out of 14)

  
  

• We note that in 2023 the Dinner experience was in 3rd place and free time in 8th place.

II – Safety during travel

• 73% of buyers highlight an increase in the importance of traveling to safe destinations (personally and geopolitically safe)

  
  

• 44% of buyers mention the growing importance of finding a good DMC locally, creative and trustworthy and truly locally based with an integrated team

THE EVOLVING PURPOSE OF INCENTIVE TRAVEL

Reversal between the importance of hard and soft power

• 53% of buyers report that they are orienting their future programs towards a greater concentration of the advantages & benefits of soft power = focus on corporate culture, engagement and human relations.

  
  

• In Western Europe, 60% of buyers cite the benefits of soft power as increasingly important.

Management's 3 priorities with incentive trips:

• 43% is for ROI optimization

  
  

• 43% is for increasing corporate culture and engagement

• 30% development of positivism

STRATEGIC IMPORTANCE OF INCENTIVE TRAVEL REINFORCED BY KEY FACTORS/TRENDS

1. 81% cite the strategic importance of incentive travel for retaining talented employees

2. 68% report that incentive travel is increasingly appreciated as a reward

3. 54% report the importance of incentive travel in the face of a more dispersed workforce (e.g., remote employees)

THE FUTURE OF INCENTIVE TRAVEL

• 67% believe that new generations will cause a major reorganization of incentive travel

  
  

• In Western Europe, 68% of buyers believe that in the future (by 2026) , participants will be unlikely to make their own travel arrangements.

  
  

• 63% of respondents believe that AI will soon be used (or is already being used) effectively in organizing incentive trips. 30% are not at all sure.

CHANGE IN DESTINATION SELECTION

• 70% of buyers are looking for new and never-before-seen destinations

  
  

• 42% of buyers are looking for destinations with All Inclusive Resort offers

  
  

• 40% of buyers are looking for destinations close to the countries/cities of departure of participants

• 58% of buyers in Western Europe say they focus their travels on Western/Southern/Northern Europe

  
  

• 37% of buyers in North America announce their intention to choose destinations in Western/Southern/Northern Europe

CHALLENGES & CHANNEL DYNAMICS

• 41% of buyers agree that incentive travel design is slowing in an era of generational change

  
  

• Relations between buyers and sellers are strained:

  
  

  • 48% consider that relationships between buyers and suppliers are complex

    
    

  • 24% consider these relationships to be strong relationships

    
    

  • 24% like stable relationships

    
    

  • 14% like effective relationships

CONCLUSION

Incentive travel remains a safe bet for buyers, in general, with a strong focus on impact , experience and emotional return .

The evolution of generations clearly shows the acceleration in well-being and relationships with this desire to discover ever more new destinations , never tried before.

Budgets will increase slightly with a focus on accommodation which remains a major entry point.

The use of destination professionals such as incoming travel agencies (DMC) is popular for ever greater security and peace of mind , which are key factors for success.

Have a good trip and enjoy life :)

And see you for your next trip to Menorca .