Incentive travel is trending. Is it paying off?
Yes, you heard that right. Consider the two driving themes of late: sharper budget scrutiny and employee retention.
With leadership scrutinizing spend more closely than ever as inflation squeezes every line item, incentive travel budgets are still growing in a big way.
Incentive trips can check both boxes simultaneously with incredible trips that reward your teams for their work and engender loyalty.
But what does incentive travel actually return for a company investing $500,000 or more? Will it move the needle on rep retention and quota attainment?
We argue: yes, and the data shows exactly how.
From rep retention to quota attainment, here's a quick rundown of the top seven benefits of incentive travel, backed by the data.
Quick refresher: what is an incentive trip?
An incentive trip motivates and rewards employees for hitting significant goals or milestones. It can be an individual or group trip with multiple employees and leadership, and is usually completely paid for by the company.
Sometimes called The President's Club, Diamond Club, or The Winner's Circle, incentive travel is a great opportunity to boost employee morale, employee loyalty, and employee productivity.
These trips can take place in any location, from more exotic locales like Fiji to ones closer to home like Hawaii. Usually, the trips are a mix of group activities, high-end dinners, and personal time to relax and recharge.
| Benefits: | What it does: |
| Rewards hard work | Recognizes top performers; 65% recall travel and merchandise rewards longer than cash |
| Encourages competition | Gives teams a tangible goal to work toward before the trip |
| Reinforces your brand | Weaves brand messaging into a relaxed, memorable setting |
| Creates memorable experiences | Lets employees recharge without the hassle of planning their own trip |
| Improves retention | Cuts turnover; replacing an employee can cost up to 40% of their salary |
| Attracts new talent | Signals a strong culture and becomes a recruiting draw |
| Brings teams together | Builds relationships; 70% of employees say coworker bonds matter as much as the job itself |
What are the top incentive travel benefits to my company?
From improving company culture through team building and bonding, to encouraging teams to hit their sales targets, incentive travel offers many benefits to companies and employees alike.
These experiential rewards often provide more benefits than traditional cash rewards and can be a better way to increase motivation. Plus, even with a large price tag, these non cash rewards can be more cost effective than cash rewards since they garner even higher ROI.
There are many ways an incentive travel program can benefit your company. Let's take a look at some of those benefits of incentive travel now.
1. Reward employees for their hard work.
Many companies struggle to motivate their teams in today's remote and hybrid work environment. When high-performing employees feel they're truly appreciated and have the opportunity for growth, they stay and work harder.
In an IRF-funded study that tracked incentive travel earners against a non-earner control group, 88.5% of earners were rated top performers, compared to just 31.2% of the control group. A direct link between feeling appreciated and performing at a high level.The incentive program itself can be a reward, but there are also employee recognition rewards you can tie into the program as well, including award ceremonies, gifts, and excursions for top talent. Think through what would make your team feel most appreciated.
“Incentive trips provide that rest and recovery time that employees need, but they also don't put a financial burden on employees [who seek] a big vacation,” said Katie Moser, marketing director at GoGather, in an article published by SHRM.
2. Encourage employee competition.
Incentive travel programs are a fantastic way to create an environment of healthy competition among your workers. They help motivate teams to work hard and achieve their goals so they can attend the trip.
Whether it's hitting targets or gaining more sales, travel incentives boost employee productivity prior to the trip. It's a tangible goal that they can work toward, and it feels more rewarding than a cash bonus, which often can feel like a given part of total compensation.
Motivated employees equal business success.
3. Reinforce your brand.
Travel incentive travel programs give you the ability to infuse your brand into every aspect of the fun trip, from branded pillows to brand-mission conversations. It's a unique time when employees feel more relaxed and open to conversations about successes and strategies.
Use that time to also reinforce your brand message and engender a greater feeling of loyalty.
We encourage our clients to use custom logos to make the trip feel exclusive. These can be used in social media posts before and after the event, throughout the event on branded cocktail napkins, flags and more, and also on gifts. Try to balance using the brand throughout while still making the experience feel high-end.
4. Create memorable experiences.
After years of high stress and burnout, employees are ready to relax. Incentive trips allow for travel without the hassle of planning a vacation themselves.
This takes the pressure off the employees and allows them to relax and enjoy the trip. Those few extra days away from the computer might be exactly what they need to boost creativity and come back refreshed and ready to seize the world again.
For this reason, most companies that provide incentive travel programs put the utmost importance into providing chances for relaxation, connection, and fun for their employees.
5. Improve retention among top employees.
An incentive trip for your top performers may improve your retention and reduce employee turnover. When hiring a new employee can cost up to 40% of salary, it's wise to keep your best employees feeling appreciated and well rewarded. The data backs this up: in the same IRF-funded study, 55% of incentive travel earners had both top-performance ratings and four or more years of tenure. This shows a direct answer to the retention-and-quota-attainment question this post is built around.
Those who feel appreciated and connected to the company culture will feel greater job satisfaction and more company loyalty, and thus will have more incentive to stay.
6. Attract new talent.
Some companies are known for their travel incentive programs and this can in turn attract high-performing talent. Incentive travel is a major perk for new talent and can be used as a recruitment tactic as part of your new employees' total package.
Make sure these travel rewards are well-communicated in job listings and even offer a sneak peek into these trips on your website.
7. Bring your teams together.
Group incentive travel programs give your team and your leadership time to interact and bond. Whether in-office or working from home, your teams need time to connect.
One study stated that 70% of respondents said maintaining relationships with their co-workers was just as important as their job.
During a group incentive trip, leaders can spend time with top talent to build relationships and loyalty and nurture the next generation of leaders in their organization.
Your top sales teams can also spend time swapping stories of success, which they can then use in the future to perform even higher. These casual conversations during sailing trips or zipling tours also help promote stronger company culture and bonds, which benefits everyone.
Want to know who’s raising the bar for incentive travel experiences? Start with the top-rated incentive travel companies of the year.
Building a program that actually delivers:
Benefits alone don't guarantee results, how the program is designed matters. The same IRF-funded study behind the retention and performance data above also identified five structural elements that separated a high-performing, multi-year incentive travel program from an average one:
1. Earning criteria tied to business objectives.
The clearest link between the program and outcomes like quota attainment comes from measurable performance thresholds.
2. Consistent communication throughout the year.
Programs that kept participants updated on their progress toward the trip built anticipation and sustained motivation for months.
3. A well-designed travel experience.
The strongest programs balanced desirable destinations, interactive sessions, and genuine leisure time. The itinerary shows that the trip was thoughtfully planned to create a business trip into a relaxing vacation.
4. Executive hosting.
Leadership attending, engaging, and playing an active role, reinforces that the program is a real business priority for the attendees that earned their spot.
5. Detailed record-keeping.
Programs that tracked earners' productivity and financial contribution over multiple years could demonstrate the program's return. This helps in reinforcing the importance of an incentive trip for your company.
Recap: will incentive travel benefit my company?
Incentive programs are an excellent way to improve employee motivation, reduce turnover, connect with executives, and provide a relaxing escape for your top performers. Companies that have implemented experiential rewards see all these benefits and more, and it could be a great way to boost your company's performance.
Unsure yet if incentive trips will work for your company? Discover what's needed to make a successful incentive travel program here. And if you want a more in depth data set behind the numbers in this post, see all 15 statistics that define the ROI of incentive travel.
Work with GoGather on your incentive program.
Want to brainstorm an upcoming incentive program with us? GoGather can help you figure out the right plan, from selecting the right location to building an agenda that's enticing and fun. Let's chat.
