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Incentive travel activity expected to increase by 2025

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Incentive travel activity expected to increase by 2025
The 2023 Incentive Travel Index (ITI) by the Incentive Research Foundation and the Society for Incentive Travel Excellence showed some interesting findings for Asia Pacific. These trends may influence future choice of destinations and programs.

Some 77 per cent of APAC buyers expect incentive travel activity to increase by 2025, compared with only 50 per cent to 59 per cent in other regions.

APAC organisers also see “hard-power benefits” of incentive travel such as increased sales and market share becoming more important. However, Western Europe, North America and the rest of the world are leaning towards “soft-power” benefits like company culture, engagement and relationships.

APAC budgets on average will allocate 25 per cent to airfares, 21 per cent to hotel accommodation and 15 per cent to F&B. Activities take up 14 per cent of the budget, with ground transportation consuming 10 per cent, third-party fees nine per cent and other costs seven per cent.

An encouraging sign is that 71 per cent of buyers are looking for new destinations they haven’t used before. Also significant is that 53 per cent are considering all-inclusive resorts.

The latter finding supports Club Med Pacific’s proposition, where event planners are offered bespoke packages tailored to their clients’ needs.

“We’ve observed how companies are now seeking to promote destinations and experiences that exhibit a serious ‘wow’ factor, while catering to wellness needs,” said Michelle Davies, general manager for Club Med Pacific. “Our Maldivian resorts have witnessed a surge, testament to their premium offering and breath-taking environment.”

The ‘Rent a Village’ concept is catching on for exclusive events, mostly from direct selling agencies, with enquiries skyrocketing by more than 50 per cent since 2019, Davies revealed. Clients get access to the full resort, which they can brand and determine the activity and entertainment program to match their needs.

“Clients secure full access to the Club Med resort team to support with entertainment, animation, team-building events and presentation set-up, elevating the experience to the next level,” said Davies.

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