Incentive Travel Industry Index Powered by the SITE Index, IRF Outlook and FICP
August 07, 2018
Jennifer Corwin Associate Practice Lead © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
Alessandro Campagnolo Research Manager 1
Agenda • Methodology • Budget • Business Impact • Inclusions and Corporate Responsibility • Logistics • Destination Selection • Key Takeaways
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Methodology • Global Online Survey • Survey has been partially redesigned in 2018 and the invites sent to new sample sources leading to nearly doubling the number of completed surveys (1,016 in 2018 vs. 574 in 2017) • Survey available in English (American and British versions), Spanish and Mandarin • Survey conducted on-line from May 29, 2018 through July 17, 2018 • Invites sent to thousands of SITE, FICP, IRF, IMEX, Biz Events Asia, Northstar, Iceberg/Business, Egroup, and Smart Meetings members • Invites were sent through unique and generic links • “Buyers” and “Sellers” were differentiated and asked different questions relevant to their roles • Five primary areas of inquiry: Budget, Business Impact, Inclusions/Corporate Responsibility, Logistics and Destination Selection • This is the fourth year the study is being conducted. The table below shows the completed surveys by role for all the four study waves 2015
2016
2017
2018
Buyer of Incentive Travel Services
154
178
201
398
Seller of Incentive Travel Services
248
400
351
553
Someone Interested in the Incentive Travel Industry
18
21
22
65
Total Completed Surveys
420
599
574
1,016
S1. Do you most consider yourself to be…?
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Company Role - Buyers/Sellers • In 2018, in line with the previous years, 70% of Buyers report that they are Incentive/Meeting Companies • Similarly to 2017, about one in two Sellers are Destination Management Companies
Best describes your role - Sellers
Best describes your role - Buyers Incentive/Meeting Companies Corporate user of incentive travel services
Destination Management Company
Hotelier
Other
Convention and Visitor Bureau
Destination marketer
Cruise line
Technology company
100%
100%
80%
31%
29%
33%
30%
80%
1% 3% 4% 7% 13%
60%
60%
36% 40%
69%
71%
67%
70%
20%
1% 1% 8% 5% 13%
31%
21%
1% 2% 5% 6% 9% 21%
40%
20%
0%
1% 1% 5% 6% 12%
36%
45%
52%
56%
2017
2018
0% 2015
2016
2017
2018
2015
2016
BR1. Which of the following best describes your role? SR1. Which of the following best describes your role?
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Survey Demographics - Buyers/Sellers • The survey demographics are consistent across the years • The incidence of females presents a moderate uptrend among Buyers, moving from 59% in 2015 to 63% in 2018
Buyers
100 90 80 70 60 50 40 30 20 10 0
59% 44% 48
Sellers
Years associated with the Incentive Travel
Years associated with the Incentive Travel
Average Age
Average Age
Female
Female
Member
Member
60% 56% 48
62%
63%
70% 60%
43% 49
50%
50%
49
40% 30% 20%
18.6
18.1
18.4
18.4
2015
2016
2017
2018
10% 0%
100 90 80 70 60 50 40 30 20 10 0
66% 53%
73% 58%
80%
69%
54%
65% 58%
70% 60% 50%
46
46
48
46
40% 30% 20%
17.2
17.8
18.7
17.3
2015
2016
2017
2018
10% 0%
D1. In what year were you born? D2. Are you…? [A: Gender] D3. How many years have you been associated with the Incentive Travel Business industry? D5. Are you a SITE member? (2015 to 2017) D5R0/R3. Are you a member of any of the following organizations FICP, SITE, The IRF? (2018)
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Survey Demographics - Buyers • Incentive/Meeting Companies have a higher industry seniority than Corporate Users across the four study years
Corporate Users
Incentive/Meeting Companies
Years associated with the Incentive Travel Average Age
Average Age
Female
Female
Member
Member
76%
100
69%
90
60%
80 70 50
46
40
36%
40% 46
48% 49
47 30%
100
70%
90
16.0
14.0
15.1
15.3
2015*
2016*
2017*
2018
0
62%
80 70
62% 59%
48%
70%
59%
57% 51%
60% 50%
49%
50%
60
40%
50
30%
40
30%
30
20%
20%
20 10
80%
60%
52%
60
30
Years associated with the Incentive Travel
49
49
49
49
20
10%
10
0%
0
19.6
19.7
19.8
19.5
2015
2016
2017
2018
40%
10% 0%
D1. In what year were you born? D2. Are you…? [A: Gender] D3. How many years have you been associated with the Incentive Travel Business industry? D5. Are you a SITE member? (2015 to 2017) D5R0/R3. Are you a member of any of the following organizations FICP, SITE, The IRF? (2018) * Small Sample 30
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Industry - Buyers • Financial & Insurance and Science & Technology are the top industries Corporate Users work in
Industry – Corporate Users (2018) Corporate Users
Finance & Insurance
40%
Science & Technology
14%
Professional Services
5%
Pharmaceutical & Healthcare
5%
Travel & Tourism
5%
Direct Selling
5%
Automotive
3%
Real Estate Transportation
1%
0%
Other
21% 0%
10%
20%
30%
40%
50%
60%
BR2. What industry do you work in?
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Regions - Buyers/Sellers • The 2018 study represents a move toward a more global nature in respondent mix, with a slight decline in North America representation and a slight increase in representation for Southeast Asia and Central Asia/India
Respondents by Regions
19%
5%
50%
1% 7% 9%
North America Australia/Pacific Eastern Europe Middle East/Africa Southeast Asia Central Asia/India Caribbean South America Western Europe
6% 2%
1%
D4. In what country are you based for work? © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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How is the Research Used - Buyers/Sellers • The majority (59%) of Buyers and Sellers used the research produced by SITE, the IRF and FICP • More Buyers (64%) used the research than Sellers (55%) • Discussing the research with other incentive travel professionals and educating others about incentive travel are the research two top uses Use of research produced by SITE, the IRF and FICP (2018) I discussed the research with other incentive travel professionals
44%
29%
I used the research to educate others about incentive travel
42%
34%
I quoted the research in internal or external presentations
26%
I used the research to determine the strategic direction of my business
35%
29% 27%
I quoted the research in business development and marketing pieces
19%
26%
1% 1%
Other
36%
I have not used the research
0%
10% Buyers
20%
30%
40%
45% 50%
Sellers
D5_A. How have you used the research produced by SITE, the IRF and FICP in the past? Marl all that apply. © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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Budget © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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Incentive Travel Eligibility - Buyers/Sellers • There is a four year trend showing that 50% or more who buy Incentive Travel services plan to increase the number of people who are eligible for awards • There is a significant increase among Incentive/Meeting Companies (71% vs. 54% in 2017) Incentive travel eligibility (Top two box – Greatly or slightly increased) Corporate Users
Incentive/Meeting Companies
Buyers
Sellers
80%
64% 60%
56%
65% 60% 50%
54%
49% 49%
40%
20%
47%*
61%
60%*
59%
55%*
54%
48%
71%
0% 2015
2016
2017
2018
BB1. Do you or your client(s) plan to increase or decrease the number of people earning incentive travel awards in the next 12 months? SB1. Did you see your clients increasing or decreasing their incentive travel budgets this past year? * Small Sample 30
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Reasons to Increase/Decrease Travel EligibilityBuyers • Company growth or decline in company growth or profit is the top reason to increase or decrease travel eligibility Reasons to increase travel eligibility (2018)
Reasons to decrease travel eligibility (2018)
Buyers
Buyers
Company growth (as through mergers and acquisitions)
67%
44%
Decline in company growth or profits
Change in management strategy
Increase in dollars available
41%
33%
Regulatory changes Change in program rules structure
19%
28%
We are cancelling programs
Other
11%
0%
20%
6%
Other
40%
60%
80%
16%
0%
20%
40%
60%
BB1A. If there will be an increase, what are the reasons for your answer? Mark all that apply. BB1B. If there will be a decrease, what are the reasons for your answer? Mark all that apply. * Small Sample 30
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Incentive Travel Budget - Buyers • About one in two Buyers say the overall incentive travel budget has increased • There is a significant increase among Incentive/Meeting Companies (58% vs. 46% in 2017)
Overall incentive travel budget (Top two box – Greatly or slightly increased) Corporate Users
Incentive/Meeting Companies
Buyers
80%
60%
54% 48%
47%
46% 40%
20%
36%*
50%
42%*
51%
50%*
46%
46%
58%
0% 2015
2016
2017
2018
BB4. Compared to last year, has your or your client(s)' overall incentive travel budget...? * Small Sample 30
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Median Spending on Travel Programs - Buyers/Sellers • • • • •
The median spending per person reported by Buyers remains unchanged in 2018 ($4,000) Corporate Users median spend decrease, however Incentive/Meeting Companies median spend increase Sellers also see a higher spending per person year over year ($1,700 vs. $1,600 in 2017) Destination Management Companies see a spending decrease down to $1,500 from $1,600 in 2017 Buyers say 25% of the spending is allocated to air transportation (23% Corporate Users and 25% Incentive/Meeting Companies) Median spending per person for the incentive travel programs Corporate Users
Incentive/Meeting Companies
Buyers
Sellers
$6,000 $5,000 $4,000
$4,000 Seller Role
$4,000 $3,400
$3,000
$3,000 $2,000 $1,000 $-
$1,500 $3,000 * $3,500 2015
$1,500 $3,100 * $3,000 2016
$1,600 $5,000 * $4,000 2017
$1,700
2015
2016
2017
2018
Cruise line # $3,800 Destination marketer/Convention $1,500 Bureau Destination Management Company $1,500
$6,000
$2,500
$2,750
$1,000
$1,550
$1,900
$1,800
$1,600
$1,500
Hotelier *
$1,500
$1,500
$1,500
$2,000
Technology company #
$1,200
$400
$3,000
$3,000
$4,550 $3,500 2018
BB3. Approximately, what is the average spend (including air transportation) in US dollars per person for the incentive travel programs you or your client(s) manage? BB3A. What percentage of this average spending per person is allocated to air transportation? SB3. Approximately, what is the average spending in U.S. dollars per person for the incentive travel programs with which you are involved? * Small Sample 30
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Managing Cost of Travel Programs - Buyers/Sellers • The number of Buyers taking steps to reduce costs has been increasing every year, moving from 73% in 2015 to 78% in 2016, 80% in 2017 and 82% in 2018 • “All inclusive” and less expensive destinations top the Buyers’ actions taken to manage costs • On the Sellers side, “Working on greater creativity/innovative event design” is the most frequent action taken also in 2018. However, fewer Seller Include more for the same price or are cutting price Actions taken to increase value for those seeking an incentive travel destination - Sellers
Actions taken to manage cost of incentive travel programs - Buyers 2018
2017
2016
2015 41%
Using "all inclusive” destinations Less expensive destinations
39%41%
29% 33%
Shorter programs
34%
Less expensive hotels
21%
29% 26%29% 27% 27% 31% 25% 28% 30% 29%
Less expensive amenities Fewer inclusions Fewer qualifiers/attendees
14%17% 13%
Fewer room upgrades
12%
Less food and beverage budget 6% 9% 6% 9%
Other
Partnering to provide more services from a single source Including more for the same price
20%
Offering 'loyalty' incentives for providing additional business
30% 31% 28% 27%
Cutting price
40%
“Creativity” “Digitalization of experience” “Improving communications” “Free optional tours”
14% 15% 15% 11%
Other
60%
79% 81% 76%
34% 38% 40% 35%
37%
23% 23%
2015
43%
5% 9% 9% 8%
Not taking any steps to do anything different
0%
2016
69%
3% 3% 5% 7%
18% 20%22% 27%
Not taking any steps to reduce costs
2017
Working on greater creativity/innovative event design
“Negotiations” “More suppliers” “Cutting extra gifts”
9%
Shifting to more individual travel
37%40% 41%
2018
0%
20%
40%
60%
80%
100%
BB2. What action(s) are you or your client(s) taking to manage the cost of incentive travel programs? Mark all that apply. SB2. What action(s) are you taking to increase value for those seeking an incentive travel destination? Mark all that apply.
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Managing Cost of Travel Programs - Buyers • In 2018, Incentive/Meetings Companies use shorter programs, fewer inclusions, less expensive destinations and less expensive hotels to mange costs significantly more than Corporate Users • In 2018, fewer Corporate Users are taking actions to reduce costs. However, more Incentive/Meeting Companies are attentive to costs with only 14% not taking any steps to reduce costs Actions taken to manage cost of incentive travel programs – Corporate Users 2018
2017*
Less expensive destinations
2016*
2015*
30% 35% 27%
18%
Actions taken to manage cost of incentive travel programs – Incentive/Meeting Companies 2018
Shorter program
24% 23% 25%
18%
21%
Fewer qualifiers/attendees
10%
Fewer inclusions Fewer room upgrades
Fewer inclusions Fewer qualifiers
8%
Other
9%
13%
0%
20%
5% 5% 3%
Other 33% 27%
36%
40%
30% 35% 32% 31% 29% 32% 32% 32% 26%
9%
14%
Not taking any steps to reduce costs
60%
45% 44%
7%
Shifting to more individual travel 20%
20% 20%
35% 33% 35% 31%
46% 47% 47%
11%
Less food and beverage budget
17%
Not taking any steps to reduce costs
13% 12%
Fewer room upgrades
11%
Shifting to more individual travel
26% 23%
Less expensive amenities
30%
14%
Less food and beverage budget
40%
Less expensive hotels
18% 20% 27% 23% 18% 18% 20% 25% 20% 15%
Less expensive hotels
48%
Less expensive destinations
40%
29%
18%
2015
Shorter program
25%
Less expensive amenities
2016
Using "all inclusive” destinations
26%
Using "all inclusive” destinations
2017
0%
21% 21% 24%
20%
40%
60%
BB2. What action(s) are you or your client(s) taking to manage the cost of incentive travel programs? Mark all that apply. * Small Sample 30
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What “Loyalty” Incentives are Provided - Sellers “Better credit conditions, free places, commission ” “Value added concessions, multi-year additional concessions ” “Rebates for awarding multiple programs ”
“Discounted pricing, flexibility in refunds / credits ”
“Multi year offers with another hotels from the same company ”
“Offer multi year deal ”
“Redemption of gift vouchers at our partners stores ” “Sweepstakes ”
SB2_1. What things are you including for the same price?
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How Are You Exercising Creativity or Innovation - Sellers “By creating new programs and also using of technology ” “We are using Social Media - primarily Instagram to fuel thought ” “Offering spaces that are usually not designed for events” “Working with better international suppliers” “Utilizing technology ” “We have hired creative designers to develop new and exciting decor and theme options for our clients. ”
SB2_1. What things are you including for the same price?
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Business Impact © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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Events with the Most Positive Impact - Buyers/Sellers
• Sustainability and being “green” is the top condition with a positive impact on incentive travel programs for Sellers, however it ranks lower for Buyers • In 2018, optimism about the world and national economy keeps on growing. Optimism about the national economy is more pronounced among U.S. Buyers • Gas or fuel prices positive impact keeps on trending down Events with the most positive impact – Sellers (Top two box - Strong or slight positive impact)
Events with the most positive impact – Buyers (Top two box - Strong or slight positive impact) 2018
2017
2016
38%
Internal stakeholders perception of the program
35%
My/my client's financial forecast 24% 20% 22% 26%
National economy Public perception of incentive travel
23% 28% 28% 18% 20%
Theimportance of sustainability and being 'green' Competitors programs The world economy Airline costs
10% 15% 10% 11%
3% 6%
2018
2015
United States 35% Rest of the world 28%
19%
Competitors programs 14%
National political situations
Airline costs
5% 7%
10% 12% 14% 8% 7% 10% 5% 10% 6% 14% 14% 15%
Tightening of border security between nations Gas or fuel prices
4%6% 9% 10%
20%
40%
60%
13% 13% 12%
The threat of terrorism
7% 7% 6%
United States 45% Rest of the world 30%
13%
Other outside costs
6%8% 6% 6% 7%
0%
23% 17% 20% 21%
The world economy
9%
Gas or fuel prices
34% 28% 33% 35% 33%
My/my client's financial forecast
20% 19%
53%
34%
National economy
Regulations
1%
43% 40% 42% 39%
Public perception of incentive travel
Regulations
The threat of terrorism
2015
Internal stakeholders perception of the program
32%
9%
National political situations
2016
The importance of sustainability and being 'green'
Other outside costs
Tightening of border security between nations
2017
0%
20%
40%
60%
BBI1. With regard to each of the following events, how has each impacted your current ability to plan and implement incentive travel programs? SBI1. With regard to each of the following events, how has each impacted the travel programs with which you are familiar?
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Events with the Most Negative Impact - Buyer/Sellers • The threat of terror groups, national political situations and airline costs are the top reasons of concern in the industry • In 2018, reasons for concern in the industry tend to diminish with the exception of gas or fuel prices Events with the most negative impact – Buyers (Bottom two box - Strong or slight negative impact) 2018
2017
2016
Events with the most negative impact – Sellers (Bottom two box - Strong or slight negative impact)
2015
2018 66% 68%
The threat of terrorism
78%
49% 62% 65% 66%
Airline costs
Tightening of border security between nations
31%
51%
32% 32% 37% 33% 30%
My/my client's financial forecast
35%
0%
34%
22%
Public perception of incentive travel
40%
60%
80%
40% 42% 44%
25%
Internal stakeholders perception of the program
8% 10% 6% 6%
The importance of sustainability and being 'green'
20%
44%50% 44%
36% 35%
National economy
6% 5% 4% 6%
The importance of sustainability and being 'green'
39% 31% 32%
Gas or fuel prices
17%
Public perception of incentive travel
46%
42%
19%
Competitors programs
47%
Tightening of border security between nations
20%
Internal stakeholders perception of the program
63%67%
47%
Competitors programs
48%
71% 70%
50%
My/my client's financial forecast
29%
National economy
58% 58%
Regulations 56% 62%
Gas or fuel prices
61% 58%
Other outside costs
47%
35%
62% 59% 61%
42%
Airline costs
38%
The world economy
62%
The world economy
40% 39%
Regulations
2015
The threat of terrorism
73%
41%
Other outside costs
2016
National political situations
48%
National political situations
2017
0%
20%
40%
60%
80%
BBI1. With regard to each of the following events, how has each impacted your current ability to plan and implement incentive travel programs?
SBI1. With regard to each of the following events, how has each impacted the travel programs with which you are familiar?
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Most Important Objectives - Buyers • In 2018, Attention to sales and/or profitability for incentive travel programs remains the most important objective • Better relationship building between employees and management moved from ranking fifth in 2017 to being the second most important objective in 2018 Order of importance associated with incentive travel programs – Buyers (1 being most important and 10 being least important) 2018 Increased sales and/or profitability for the overall company
2.82
Better relationship building between employees and management
4.69
Increased individual productivity
4.76
Improved employee engagement/morale
4.97
Better relationship building between employees with each other
5.02
Improved employee retention
5.70
Enhanced customer satisfaction
5.71
Enhanced brand compliance or mind share
6.93
Enhanced training or knowledge
7.14
Enhancing the ability to recruit new employees
0.00
7.26
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
BBI2. Please rank the following objectives in order of importance with ‘1’ being the most important objective associated with your incentive travel program and ‘10’ being least important objective, what are the objectives you most and least want to drive as a result of your incentive travel award program?
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Other Objectives Buyers Want to Achieve through Incentive Travel Programs - Buyers “Alignment around company culture ” “Use the time to learn best practices from the top of the leader ladder ” “Reward for hard work ” “General recognition and appreciation for good work ” “Recognition and generate a sense of purpose” “Bonding between vendors and employers and executives and employees .” “Give Partners a reward, a break to re-energize ”
BBI3. Are there any other objectives you or your client(s) want to achieve through incentive travel programs other than those specifically named above?
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Objectives People Trying to Reach through Incentive Travel Programs - Sellers “Bring a unique experience back home ” “Doing something new, making it a true experience, memories which can only be generated by an incentive travel trip ” “Bucket list experiences. Local Cultural experience. WOW affect ” “Reward for achievement of goals ”
“A memorable experience”
“Motivation reward employee retention ” “Drive sales performance ” “Education. Networking. Impressions”
SBI2. What are the objectives you see people primarily trying to reach through incentive travel programs?
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How is Your Offering Different From That of Competitors - Sellers “Constant support and care of my partner agents ” “We are about building experience. Our hotel offers two celebrity chef restaurants as well as a two story cabaret theater ” “Consistent service across a large national footprint of offices which we largely own and control ” “My product lets an individual achieve a vacation where they can literally leave the wallet and credit cards at home and have a wonderful get away” “Our ideas and suggestion are customized base on the client requirement” “We provide in house theme, décor, design and choreography. We never outsource our creativity. ”
SBI5. In a couple of sentences, how is your offering different from that of competitors? In other words what is your unique selling proposition to your incentive travel customers?
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Effectiveness of Incentive Programs - Buyers • In 2018, similarly to 2017, the greatest majority of Buyers (98%) say their incentive travel programs have been “Very effective” or “Somewhat effective” in achieving their most important objectives • In 2018, fewer Corporate Users say incentive travel programs have been “Very effective” (61% vs. 77% in 2017). How effective incentive programs have been in achieving most important objectives (Top box – Very effective) Corporate Users
Incentive/Meetings Companies
Buyers
80%
72% 60%
60%
68%
51%
40%
20%
53%* 63%
58%* 48%
77%* 70%
2015
2016
2017
61%
71%
0% 2018
BBI4. How effective have your incentive programs been in achieving your most important objectives? * Small Sample 30
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Frequency of Tracking ROI and ROO - Buyers • In 2018, fewer Buyers are tracking “Almost always or always” incentive travel programs Return on Investment (ROI) and Return on Objective (ROO) (25% vs. 28% in 2017) • Both Corporate Users and Incentive/Meeting Companies post a directional decline Frequency you or your clients most commonly track the ROI/ROO of a program (Top two box – Almost always or always) Corporate Users
40%
Incentive/Meetings Companies
29%
Buyers
28% 25%
24% 20%
31%* 28%
23%* 24%
35%* 26%
32% 23%
2015
2016
2017
2018
0%
BBI5. With what frequency do you or your clients most commonly track the Return on Investment (ROI) or Return on Objective (ROO) of a program? * Small Sample 30
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Reasons for Not Tracking ROI and ROO - Buyers • Among Buyers who “Never or almost never” track ROI and ROO, the majority (55%) says that the clients or management does not require it Why companies don’t track the ROI/ROO of a program more frequently – Buyers 2018
2017
2016*
2015*
55% 64%
Client/Management does not require it
48% 41% 43% 41% 46%
Program is so widely accepted/embedded it does not require ROI/ROO measurement
51% 32% 36% 39%
Company can assess success based on an assessment of increased progress toward the program's objectives
28%
“Client manages internally” “Plan on tracking in the future” “Too hard to measure”
11%
Other
17% 20%
13% 0%
20%
40%
60%
80%
BBI5_1. Why don’t you or your clients track the ROI/ROO of a program more frequently? Mark all that apply. (Asked among Buyers who track ROI/ROO “Never or almost never”) * Small Sample 30
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Greatest Challenge in Business Over the Past Year - Sellers “Lack of big facilities - high end lodges with big capacities ” “Competing against cheaper international destinations” “Perception of luxury hotels ” “Strong local economy leading to challenges around pricing and availability” “National political situations” “The terrorist threat in Europe has caused important damaged to our destination's perception. However this situation is improving year on year”
SBI3. Over the past year, what has been the greatest challenge in your business?
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Beliefs on Travel Programs - Sellers • The majority of Sellers (84%) believe that incentive travel programs are a strong motivator of performance
Believe about incentive travel programs - Sellers I really do not believe they are that effective for motivating performance. I think they are effective with some employees but other people would probably prefer to stay home and get the cash equivalent I am a strong advocate and believer in incentive travel programs as a motivator of performance.
2018
2%
13%
84%
2017
2%
12%
85%
2016
3%
2015
5% 0%
16%
81%
16% 10%
79% 20%
30%
40%
50%
60%
70%
80%
90%
100%
SBI4. Which of the following best reflects your beliefs about incentive travel programs? ^ None of the above excluded
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Importance of Outcomes - Buyers/Sellers • The majority (58%) of both Buyers and Sellers say their perception of incentive travel is more positive than ten years ago, while only around one in ten has a less positive perception • Impact on the personal and professional development of the qualifier is the most important outcome of incentive travel programs both for Buyers and Sellers with Corporate Users finding it more important than Incentive/Meeting Companies Order of importance associated with outcomes of incentive travel programs – Buyers/Sellers (1 being most important and 5 being least important - 2018) Buyers
Sellers
Corporate Users
Incentive/ Meeting Companies
1.87
2.11
2.20
2.39
2.86
2.85
3.92
3.60
4.15
4.05
2.04
Impact on the personal & professional development of the qualifier
2.35 2.34
Impact in the business environment as an aligner of a workforce around a common goal
2.69
2.85
Impact on the quality of life in the qualifier
3.27
Impact on society as a whole as an action that brings people to places they haven’t been to before, overcoming prejudices and breaking down barriers
3.69 3.22 4.08
Impact on/economic contribution to the host destination
3.47
0
1
2
3
4
5
BBI8. Please rank the importance of the following outcomes of incentive travel programs from 1 to 5 with 1 being the most important SBI8. Please rank the importance of the following outcomes of incentive travel programs from 1 to 5 with 1 being the most important BBI9. Compared to 10 years ago, how do you think the incentive travel is perceived by people outside the industry? SBI9. Compared to 10 years ago, how do you think incentive travel is perceived by people outside the industry?
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Impact of Government Regulations - Buyers • In 2018, more Buyers say Government Regulations have no impact on the RFP’s scope of service
Impact of government regulations on buyers RFP’s scope of service - Buyers Environmental restrictions/regulations 2018
4%
86%
10%
2017
5%
86%
9%
2016
12%
The fiduciary regulatory environment 2018
12%
2017*
82% 73%
4%
16%
91%
5%
Not Available
2016 Pharma industry compliance laws 2018
23%
2017
26%
2016
31%
Other government regulations 2018
15%
2017 #
33%
2016 #
22%
0% Reduced RFP's scope of service
6%
61%
16%
60%
14%
54%
15%
69%
16% 60%
7%
33%
20%
40%
No Impact on the RFP's scope of service
44%
60%
80%
100%
Increased RFP's scope of service
BBI1A. Have the following Government Regulations impacted the typical travel incentive program with regards to the Request for Proposal (RFP)’s scope of service, e.g. leading to reduced or increased costs, work involved, etc.? * Small Sample 30
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Inclusions and Corporate Responsibility © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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Items Incorporated in Incentive Travel Programs - Buyers/Sellers • The top two items incorporated in incentive travel programs are the inclusion of spouses/partners in the programs and wellness • Sellers incorporate items more often than Buyers • Incentive/Meeting Companies incorporate items more often than Corporate Users Items incorporated in incentives travel programs Buyers/Sellers (Always and Sometimes - 2018) Buyers
Sellers 96% 97%
Inclusion of spouses/partners in program 86%
Wellness (yoga, healthy meals) 79%
A Mobile app for the trip Social media campaigns
74%
CSR (Initiatives with a larger benefit to society)
74% 67%
Your own security 37%
Your own medical personnel Augmented Reality
31%
Virtual Reality
31% 22%
Chat bots
0%
20%
94%
89%
88% 92%
75%
53% 49% 54% 43%
40%
60%
80%
Corporate Users
Incentive/ Meeting Companies
97%
96%
79%
89%
64%
86%
61%
80%
61%
80%
52%
74%
28%
41%
20%
35%
18%
36%
13%
26%
100%
BCRP1. Do you or your client(s) incorporate one or more of the following into your incentive travel programs? SCRP1. Do you see your clients incorporating one or more of the following into their incentive travel programs?
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Emphasis on Social Responsibility - Buyers • In 2018, fewer Corporate Users put emphasis on corporate and social responsibility in their programs • 30% of Incentive/Meeting Companies target their efforts primarily toward millennials but only 19% of Corporate Users do so Best describes level of corporate social responsibility incorporated into programs (Top Two Box – Heavy or Some emphasis on social responsibility) Corporate Users
Incentive/Meetings Companies
Buyers
100%
80%
76%
80%
73%
71% 60%
40%
20%
57%# 76%*
85%# 73%*
94%* 75%
73%* 73%
2015
2016
2017
2018
0%
BCRP2. Which of the following best describes the level of corporate social responsibility you or your client(s) incorporate into your programs? BCRP3. Do you or your client(s) target your social responsibility efforts primarily toward younger employees (e.g., Millennials)? * Small Sample 30
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Logistics © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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Length of Stay - Buyers/Sellers • Buyers say the average length of stay for travel that require less than four hours is around four days and the average length of stay for a trip that require more than four hours is around five days • The usual length of stay for any trips according to Sellers is four and a half days Usual length of stay for an incentive program (days) (Less than four hours travel time 2018) (Less than three hours travel time 2015 to 2017) Corporate Users
Incentive/Meetings Companies
Usual length of stay for an incentive program (days) (Requiring more than four hours travel time 2018) (Requiring more than three hours travel time 2015 to 2017) Corporate Users
Buyers
6.00
6.00
5.50
5.50
Incentive/Meetings Companies
5.16 5.00
5.00
4.50
4.50
4.91
Buyers
5.30
4.91
4.03 4.00
3.77 3.84*3.74
3.66 3.63*3.68
4.00
3.83 3.83*3.83
4.11 4.00
3.50
5.00* 4.87
4.85* 4.93
5.18* 5.16
5.08 5.39
2015
2016
2017
2018
3.50 2015
2016
2017
2018
BL2. In days, what is the usual length of stay for an incentive program that requires 4 hours or less in travel time? (Note: in 2015 to 2017 it was asked for 3 hours or less travel time) BL3. Also, in days, what is the usual length of stay for an incentive program that requires more than 4 hours in travel time? (Note: in 2015 to 2017 it was asked for 3 hours or less travel time) SL1.In days, what is the usual length of stay for an incentive program? * Small Sample 30
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Travel Programs Including Meeting Component - Buyers/Sellers • In 2018, about the same number of Buyers say incentive travel programs always include a meeting component (40% vs. 38% in 2017). However, Corporate Users (64% vs. 47% in 2017) and Incentive/Meeting Companies’ (30% vs. 34% in 2017) opinions shift in different directions • About one in four Sellers (23%) think incentive travel programs always include a meeting component • Business driven reasons are the top reasons to include a meeting component both among Buyers followed by strategic reasons and Financially driven reasons increasing to 59% form 55% in 2017 How often incentive travel programs include a meeting component (Top Box - Always) Corporate Users
Incentive/Meetings Companies
Buyers
Sellers
70% 60%
Business driven reasons (opportunity to communicate, etc.)
75% 78%
64% 64%
Strategic reasons (team building, etc.)
50%
42%
40%
40% 35%
38%
30% 20%
Reasons to include a meeting component (Buyers)
19%
20%
23%
Financially driven reasons (tax laws, regulatory/anticipated regulatory, etc.)?
59% 55%
26%
3% 4%
Other
10% 51%*39%
58%*27%
47%*34%
64% 30%
2015
2016
2017
2018
0%
0%
BL4. How often do the incentive travel programs in which you are involved include a meeting component? SL2. How often do the incentive travel programs in which you are involved include a meeting component? BL4_A Why do you or your client(s) include a meeting component? Mark all that apply
2018
20%
40%
60%
80% 100%
2017
* Small Sample 30
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Meeting Components Trends - Buyers/Sellers • In 2018, 18% of Buyers and 27% of Sellers say programs that included a meeting component increased • Most of Buyers (63%) and Sellers (62%) of travel incentive program dedicate a little (less than 25%) time to business meetings • However among Buyers, Corporate Users’ travel incentive programs are more likely to dedicate no time to business meetings (16%) than Incentive/Meeting Companies’ programs (6%) Has the extent to which your incentive travel programs included a meeting decreased, increased, or stayed the same over the past year (Top Box - Increased) Corporate Users
Incentive/Meetings Companies
Sellers
33%
35% 30%
Buyers
29%
30% 27% 24%
25% 20%
20%
18%
18%
15% 10% 5% 9%*
21%
21%*
25%
15%*
23%
14%*
20%
0% 2015
2016
2017
2018
BL5. Has the extent to which your incentive travel programs included a meeting decreased, increased, or stayed the same over the past year? SL3. From what you can tell, has the meeting component of incentive travel trips been increasing, decreasing or staying about the same? BL4_B For you/your clients’ incentive travel program, what is the average percent of time spent on site in business meetings? SL2_B For your incentive travel program, what is the average percent of time your clients spent on site in business meetings? * Small Sample 30
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Consideration of Age - Buyers/Sellers • In 2018, considering age of qualifiers in program design continues declining among Buyers (31% vs. 36% in 2017) and remains substantially flat among Sellers (29% vs. 30% in 2017) • The decline among Buyers is driven by Corporate Users (21% vs. 33% in 2017) • The most common mode of contracting remains through direct negotiations with end-suppliers Considering age of qualifiers in program design (Top Box – Great deal of consideration) Corporate Users
Incentive/Meetings Companies
Buyers
60%
Mode of Contracting (Buyers) Sellers 52% 54%
Through direct negotiations with end-suppliers Through outsourced site selection and meeting planning services
42% 36%
40%
35%
31%
26%
30%
31% 29%
39% 41%
34% 35%
Through destination management companies
20% 2% 0%
Don't know
27%*39%
31%*46%
33%*37%
21%*36%
2015
2016
2017
2018
0%
0% 10% 20% 30% 40% 50% 60% 2018
2017
BL7. To what extent do you or your client(s) consider age of your qualifiers as a component in program design? BL9. What is your or your client(s) current mode of contracting? SL4. To what extent do your customers consider age of their qualifiers as a component in incentive travel program design? * Small Sample 30
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Regions Most Often Used - Buyers • North America, Caribbean, and Western Europe are the most used regions in 2018
What regions have you used most often as incentive travel destinations (Top Three Box - Used - Buyers) 2018
2017
2016
2015 85% 87% 85%
North America Caribbean
71% 73% 72% 78% 74% 69%
Western Europe
Hawaii was added in 2018
90%
74% 74%
61%
31% 32% 34%
Australia/Pacific
47%
Eastern Europe
53% 51% 53%
45% 50% 46% 44%
South America Southeast Asia Middle East/Africa 21%
Central Asia/India
26%
36% 41% 34% 38% 39% 31% 33% 36% 33% 29%
0%
20%
40%
60%
80%
100%
BL6. In the past year, what regions have you or your client(s) used most often as incentive travel destinations and did you or your client(s) use them more or less than in prior years? Note: Australia Pacific response in 2018 was rephrased from “Australia/Pacific” to “Australia Pacific including Hawaii”. The data point is not directly comparable to 2017. Note: Shifts in sample composition in 2018 from the U.S. to the rest of the world impact trends as most Buyers use destinations within their region
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Regional Travel - Buyers • Australia/Pacific (100%), South America (94%) and North America (93%) have the highest incidence of Buyers who say they used destinations within their Region What regions have you used most often as incentive travel destinations (Top Three Box - Used – 2015, 2016, 2017 and 2018 combined)
Eastern Europe# Western Europe 78% 92%
North America 93%
Central Asia/India* Middle East/Africa* 73%
83%
Southeast Asia# 91%
South America* 94% Australia/Pacific# 100%
D4. In what country are you based for work? BL6. In the past year, what regions have you or your client(s) used most often as incentive travel destinations and did you or your client(s) use them more or less than in prior years? * Small Sample 30
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Regional Travel–North America - Buyers • Among North American Buyers, the most used destinations outside their Region are the Caribbean (85%) and Western Europe (65%) What regions have you used most often as incentive travel destinations (Top Three Box - Used – 2015, 2016, 2017 and 2018 combined)
North America 93%
Eastern Europe 39%
65% Western Europe
Central Asia/India 17% Southeast Asia 25%
85% Caribbean
23% Middle East/Africa
41% South America 47% Australia/Pacific (Includes Hawaii)
D4. In what country are you based for work? BL6. In the past year, what regions have you or your client(s) used most often as incentive travel destinations and did you or your client(s) use them more or less than in prior years?
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Regional Travel–North America - Buyers • Among North American Buyers, the Caribbean is the most used region • In 2018, Western Europe decreases What regions have you used most often as incentive travel destinations? (Top Two Box - Used – North America Buyers) 2018
2017
2016
2015* 82% 85% 87% 89%
Caribbean 31% 34%
Australia/Pacific (Includes Hawaii)
63% 38% 62%
Western Europe
62%
South America
40% 42% 41% 41%
Eastern Europe
36% 39% 40% 42% 25% 26% 23%
Southeast Asia
72% 69%
30%
21% 24% 19% 28%
Middle East/Africa 12%
Central Asia/India 0%
17% 17%
20%
23%
40%
60%
80%
100%
D4. In what country are you based for work? BL6. In the past year, what regions have you or your client(s) used most often as incentive travel destinations and did you or your client(s) use them more or less than in prior years? Note: Australia Pacific response in 2018 was rephrased from “Australia/Pacific” to “Australia Pacific including Hawaii”. The data point is not directly comparable to 2017 * Small Sample 30
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Regional Travel–Western Europe - Buyers • Among Western European Buyers, the most used destinations outside their Region are Eastern Europe (76%) and North America (68%) What regions have you used most often as incentive travel destinations (Top Three Box - Used – 2015, 2016, 2017 and 2018 combined)
North America
Western Europe 92% Eastern Europe 76% Central Asia/India 50%
68% Southeast Asia 59% 44% Caribbean
58% Middle East/Africa
48% South America 25% Australia/Pacific
D4. In what country are you based for work? BL6. In the past year, what regions have you or your client(s) used most often as incentive travel destinations and did you or your client(s) use them more or less than in prior years? * Small Sample 30
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Destination Selection © 2018 J.D. Power. All Rights Reserved. CONFIDENTIAL & PROPRIETARY—For Internal Use.
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Considerations in Selecting Destination - Buyers/Sellers • In 2018, the top three considerations for choosing a destination remain the appeal to participant audience, the overall safety and the value for the dollar • In 2018, appeal to participant audience, MICE infrastructure and access from qualifier home cities become more important • Buyers give more importance to appeal to participant audience rather than Sellers Order of importance associated with considerations in selecting destination (1 being most important and 7 being least important - 2018) Sellers
Buyers
Corporate Users
2.68 2.35 2.09 2.46 2.95
3.23 3.25 3.22 3.09 3.36 3.26 3.4
Overall safety Value for the dollar
3.60
3.91 4.1 3.84
Access from qualifiers' home cities
3.60
MICE Infrastructure Executive Mandate
4.33 4.05 4.42
5.01
4.74 4.87 5.08
Availability of gratis assistance and/or financial support 1
Sellers (2017)
2.64
3.02
3.27
3.21
3.24
3.40
4.34
4.07
4.75
4.57
N/A
N/A
6.25
6.12
Incentive/Meetings Companies
Appeal to participant audience
0
Buyers (2017)
2
3
4
5
6.07 5.87 6.15
6
7
BDS1. Please rank the importance of the following considerations in selecting a destination for incentive travel programs. Rank them from 1 to 7 with 1 being the most important. SDS1. Please rank the importance of the following considerations in selecting a destination for incentive travel programs. Rank them from 1 to 7 with 1 being the most important. * Small Sample 30
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Influential Items in Selecting Destination - Buyers/Sellers • The top three influential items in choosing a destination are word of mouth from within the organization, recommendations from trade associations, and world of mouth from outside the organization • Word of mouth within the organization posts the largest increase (+8 ppts vs. 2017) among Buyers Influential items in selecting destination (Top Box – Very Influential - 2018) Sellers
Buyers
Corporate Users
Buyers (2017)
Sellers (2017)
42%
51%
46%
54%
17%
38%
15%
15%
10%
9%
10%
14%
7%
18%
2%
6%
Incentive/Meetings Companies 46%
Word of mouth recommendations from within your own organization
37%
50% 55%
45% 46% 45% 46%
Recommendations from other meetings and event professionals via Professional or trade associations 35%
22% 21% 23%
Word of mouth recommendations from outside your own organization 14%
Meetings Industry publications
16% 16% 16%
12% 11% 11% 11%
Dedicated travel magazine
Social Media
20%
8%
3%
11% 8% 9% 7%
On-line travel sites
5% 4% 5%
Newspapers with a travel supplement 0%
14%
10%
10%
20%
30%
40%
50%
60%
BDS2. When selecting a new destination for an incentive travel experience, how influential would you say are the following items? SDS2. When selecting a new destination for an incentive travel experience, how influential would you say are the following items? * Small Sample 30
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Effectiveness of Items when Learning about Destination - Buyers/Sellers • Familiarization trips to the destination remains the most effective way to learn about a destination though fewer Buyers and Sellers say it is very effective compared to 2017 • Incentive/Meeting Companies generally rate effectiveness of items higher than Corporate Users • In 2018, cultural/sightseeing experiences followed by dining and team building remain the most important activities for a good incentive programs Effectiveness of items when learning about destination (Top Box – Very Effective -2018) Sellers
Buyers
Corporate Users
Incentive/Meetings Companies 69% 78% 72% 80%
Familiarization trips to the destination
Buyers (2017)
Order of importance of activities for a good incentive program (1 being most important and 6 being least important - Sellers)
Sellers (2017)
Cultural/Sightseeing experience
89%
77%
N/A
N/A
51%
36%
Teambuilding activities
52% 38% 29% 42%
48%
54%
CSR activities
48% 37% 28% 40%
46%
52% 7%
70% 61% 74%
Hosted Buyer Programs
Dining experience
33%
Trade show meetings with the destination players
45% 41% 47%
A face to face sales call from a destination with DMO, DMC, hotels, venues all together A face to face sales call from an individual hotel or DMC or venue from a destination Marketing and promotions from the destination (e.g., direct mail, etc.)
10% 11% 11% 12%
11%
Media/Publications
10% 5% 12%
N/A
Business tours & field visits
Shopping experience
2.20 1.97 2.74 2.49 3.19 3.37 4.15 4.35 4.16 4.16 4.56 4.67
N/A
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
0.00 1.00 2.00 3.00 4.00 5.00 2018 2017
BDS3. When learning about new destinations for incentive travel experiences, how effective would you say are the following items? SDS3. When learning about new destinations for incentive travel experiences, how effective would you say are the following items? SDS4. Rank the activities you would consider important for a good incentive program from 1 to 6, with 1 being the most important * Small Sample 30
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When most likely to connect with a CVB - Sellers • About one in four Sellers doesn’t connect with a CVB for consultative advice • In 2018 more Sellers connect before RFP (32%), fewer after RFP and before destination is confirmed (22%) and more after destination is confirmed (18%) When most likely to connect with a CVB for consultative advice (Sellers) 2018
2017
32%
Before RFP
28% 28%
Will not connect with a CVB
34% 22%
After RFP, before destination is confirmed
28% 18%
After destination is confirmed
11% 0%
20%
40%
60%
SDS6. When are you most likely to connect with a CVB for consultative advice?
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Key Takeaways • In 2018, the money spent per person on incentive travel and the average length of stay remain substantially unchanged • Attention to reduce costs/add value remains crucial. However there are positive signs at industry level and emerging differences between Incentive/Meeting Companies and Corporate Users • Eight in ten Buyers are seeking to decrease costs: ✓ Fewer Corporate Users are taking actions to reduce costs ✓ Incentive/Meeting Companies see an increase of eligibility and budget ✓ Perceived effectiveness is still high but declines slightly among Corporate Users • ROI is still tracked by only one in four Buyers • Incentive travel remains strong as a motivator for performance • CSR decreases among Corporate Users • Infrastructure becomes more important in selecting a destination
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Key Takeaway In 2018, the travel incentive industry presents an overall positive picture, however attention to efficiency continues to grow and tensions for terrorism and unrest remains high
INDUSTRY STRENGTHS • Median spending per person is similar to 2017: ✓ Buyers report $4,000 compared to $4,000 in 2017
✓ Sellers report $1,700 compared to $1,600 in 2017 • Incentive/Meeting Companies see a rosier picture this year: ✓ Eligibility increases ✓ Budget increases • Fewer Corporate Users are taking actions to reduce costs • Optimism about the national and world economy keeps on growing
INDUSTRY WEAKNESSES • The number of Buyers taking steps to reduce costs has been increasing every year, moving from 73% in 2015 to 78% in 2016 to 80% in 2017 and to 82% in 2018 • Four in ten Buyers are choosing less expensive destinations and shorter programs to cut costs • The threat of terror groups remains the greatest reason for concern in the industry • The industry is starting to feel the impact of higher gas or fuel prices • Fewer Corporate Users think incentive travel programs have been very effective (61% vs. 71% in 2017)
✓ There is a gap between the U.S. and the rest of the world on the national economy outlook
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Beyond Measure Jennifer Corwin Associate Practice Lead
[email protected]
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Aggregate Regional Analysis
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Incentive Travel Eligibility - Buyers/Sellers • Buyers located in Asia Pacific report the highest eligibility numbers compared to the other regions Incentive travel eligibility (Top two box – Greatly or slightly increased) North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Buyers
57%
58%*
65%
75%*
60%
Sellers
63%
33%
48%
37%
52%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
15/16
17/18
15/16
17/18
15/16
17/18
15/16
17/18
15/16
17/18
Buyers
55%
58%
52%#
62%*
62%*
67%*
83%#
73%*
58%
61%
Sellers
68%
59%
33%*
32%*
47%
48%
43%*
35%
55%
49%
All Waves
Years
BB1. Do you or your client(s) plan to increase or decrease the number of people earning incentive travel awards in the next 12 months? SB1. Did you see your clients increasing or decreasing their incentive travel budgets this past year? * Small Sample 30
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Median Spending on Travel Programs - Buyers/Sellers • Median spending increases across all regions except in Asia Pacific
Median spending per person for the incentive travel programs North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Buyers
$4,000
$5,000*
$2,000
$2,322*
$3,500
Sellers
$2,000
$1,600
$1,450
$1,500
$1,500
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Years
15/16
17/18
15/16
17/18
15/16
17/18
15/16
17/18
15/16
17/18
Buyers
$3,500
$4,000
$3,000#
$6,000*
$1,500*
$2,500*
$3,000#
$2,000*
$3,000
$4,000
Sellers
$2,000
$2,000
$1,500*
$1,800*
$1,200
$1,500
$1,800*
$1,500
$1,500
$1,675
All Waves
BB3. Approximately, what is the average spend (including air transportation) in US dollars per person for the incentive travel programs you or your client(s) manage? SB3. Approximately, what is the average spending in U.S. dollars per person for the incentive travel programs with which you are involved? * Small Sample 30
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Events with the Most Positive Impact (Top two box)- Buyers • Buyers located in Asia Pacific have the highest number for national economy, while those located in Europe Middle East and Africa have the highest number for sustainability North America
South America /Caribbean*
Europe Middle East Africa
Asia Pacific*
Total
National Economy
29%
9%
22%
36%
27%
Sustainability
19%
18%
41%
33%
24%
World Economy
17%
9%
19%
26%
17%
Airline Costs
6%
6%
14%
10%
8%
Gas/Fuel Prices
7%
2%
8%
7%
7%
Border Security
4%
5%
10%
22%
7%
Threat of Terrorism
4%
5%
7%
19%
6%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Years
15/16
17/18
15/16#
17/18*
15/16*
17/18*
15/16#
17/18*
15/16
17/18
National Economy
26%
30%
9%
10%
11%
30%
17%
42%
21%
30%
Sustainability
18%
20%
26%
14%
38%
43%
17%
38%
23%
25%
World Economy
10%
20%
9%
10%
17%
21%
28%
25%
13%
20%
Airline Costs
3%
8%
4%
7%
9%
20%
0%
13%
5%
10%
Gas/Fuel Prices
11%
5%
0%
2%
9%
7%
11%
5%
10%
5%
Border Security
3%
5%
9%
2%
10%
11%
28%
20%
6%
7%
Threat of Terrorism
1%
5%
4%
5%
6%
8%
22%
18%
4%
7%
All Waves
BBI1. With regard to each of the following events, how has each impacted your current ability to plan and implement incentive travel programs? * Small Sample 30
XX Highest number among regions
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Events with the Most Negative Impact (Bottom two box) - Buyers • Airline costs and the economy are perceived to have a negative impact especially by Buyers located in South America/Caribbean All Waves
North America
South America /Caribbean*
Europe Middle East Africa
Asia Pacific*
Total
Threat of Terrorism
68%
55%
62%
66%
66%
Airline Costs
69%
72%
51%
64%
65%
World Economy
44%
65%
47%
41%
46%
Border Security
40%
34%
45%
44%
40%
National Economy
37%
68%
27%
30%
37%
Gas/Fuel Prices
30%
38%
38%
40%
33%
Sustainability
4%
3%
6%
15%
5%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Years
15/16
17/18
15/16#
17/18*
15/16*
17/18*
15/16#
17/18*
15/16
17/18
Threat of Terrorism
65%
69%
57%
55%
65%
60%
67%
65%
65%
66%
Airline Costs
75%
65%
65%
76%
58%
46%
67%
64%
70%
63%
World Economy
60%
36%
70%
62%
57%
39%
33%
44%
59%
39%
Border Security
31%
44%
30%
36%
43%
46%
44%
44%
35%
44%
National Economy
48%
31%
30%
88%
21%
32%
17%
35%
39%
36%
Gas/Fuel Prices
30%
31%
43%
36%
46%
32%
33%
42%
35%
32%
Sustainability
4%
4%
0%
5%
6%
7%
17%
15%
5%
6%
BBI1. With regard to each of the following events, how has each impacted your current ability to plan and implement incentive travel programs? * Small Sample 30
XX Highest number among regions
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Events with the Most Positive Impact (Top two box) - Sellers • Sellers located in North America have the most optimistic view on the impact of the national economy North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Sustainability
41%
46%
48%
53%
45%
National Economy
37%
24%
31%
26%
32%
World Economy
21%
13%
23%
16%
20%
Gas/Fuel Prices
15%
11%
8%
9%
11%
Threat of Terrorism
9%
9%
14%
9%
11%
Airline Costs
9%
8%
10%
16%
10%
Border Security
7%
5%
10%
10%
9%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
15/16
17/18
15/16*
17/18*
15/16
17/18
15/16*
17/18
15/16
17/18
Sustainability
36%
45%
41%
50%
44%
51%
47%
55%
40%
49%
National Economy
37%
37%
28%
21%
25%
35%
23%
27%
31%
34%
World Economy
20%
23%
11%
14%
19%
25%
11%
17%
18%
22%
Gas/Fuel Prices
20%
12%
9%
13%
11%
6%
9%
9%
14%
9%
Threat of Terrorism
10%
8%
9%
8%
14%
14%
6%
10%
11%
11%
Airline Costs
7%
10%
4%
11%
5%
14%
2%
21%
6%
13%
Border Security
9%
7%
4%
6%
9%
11%
4%
12%
8%
9%
All Waves
Years
SBI1. With regard to each of the following events, how has each impacted the travel programs with which you are familiar? * Small Sample 30
XX Highest number among regions
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Events with the Most Negative Impact (Bottom two box) - Sellers • The world economy, threat of terrorism and border security are a concern especially among South America/Caribbean Sellers North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Airline Costs
64%
79%
63%
61%
64%
World Economy
55%
73%
60%
74%
61%
Threat of Terrorism
51%
51%
63%
71%
58%
Border Security
39%
40%
43%
50%
42%
National Economy
41%
53%
37%
40%
40%
Gas/Fuel Prices
31%
50%
40%
46%
38%
Sustainability
6%
8%
7%
17%
8%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Years
15/16
17/18
15/16*
17/18*
15/16
17/18
15/16*
17/18
15/16
17/18
Airline Costs
70%
59%
83%
75%
68%
60%
77%
57%
71%
60%
World Economy
61%
51%
80%
68%
64%
57%
81%
72%
65%
58%
Threat of Terrorism
46%
55%
48%
53%
61%
65%
74%
69%
54%
61%
Border Security
28%
48%
39%
42%
42%
44%
51%
49%
36%
46%
National Economy
44%
38%
46%
58%
33%
41%
47%
38%
40%
41%
Gas/Fuel Prices
29%
32%
61%
42%
35%
45%
53%
43%
36%
39%
Sustainability
4%
7%
11%
6%
7%
8%
11%
19%
6%
9%
All Waves
SBI1. With regard to each of the following events, how has each impacted the travel programs with which you are familiar? * Small Sample 30
XX Highest number among regions
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Effectiveness of Incentive Programs - Buyers • The belief in effectiveness of the incentive programs is highest among North American Buyers and lowest among Buyers located in Europe Middle East Africa • All regions post an increase How effective incentive programs have been in achieving most important objectives (Top box – Very effective) All Waves
North America
South America /Caribbean*
Europe Middle East Africa
Asia Pacific*
Total
67%
66%
53%
63%
64%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
15/16
17/18
15/16#
17/18*
15/16*
17/18*
15/16#
17/18*
15/16
17/18
60%
71%
48%
76%
44%
61%
56%
65%
55%
69%
Buyers
Years
Buyers
BBI4. How effective have your incentive programs been in achieving your most important objectives?
* Small Sample 30
XX Highest number among regions
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Travel Programs Including Meeting Component - Buyers/Sellers • Meeting components are included least often by Buyers and Sellers located in South America/Caribbean
How often incentive travel programs include a meeting component (Top Box - Always)
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
Buyers
39%
28%*
41%
41%*
39%
Sellers
26%
17%
17%
28%
22%
North America
South America /Caribbean
Europe Middle East Africa
Asia Pacific
Total
15/16
17/18
15/16
17/18
15/16
17/18
15/16
17/18
15/16
17/18
Buyers
37%
40%
30%#
26%*
42%*
40%*
50%#
38%*
39%
39%
Sellers
28%
24%
19%*
15%*
17%
17%
26%*
29%
23%
22%
All Waves
Years
BL4. How often do the incentive travel programs in which you are involved include a meeting component? SL2. How often do the incentive travel programs in which you are involved include a meeting component? * Small Sample 30
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Other Follow Ups
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Importance of Outcomes - Buyers/Sellers • The majority (58%) of both Buyers and Sellers say their perception of incentive travel is more positive than ten years ago • Corporate Users’ perception is less optimistic than Incentive/Meetings Companies
Industry perception compared to ten years ago (2018) 100% 80% 60%
7% 11% 16%
9% 14%
9% 11%
19%
22%
65%
58%
58%
Incentive/Meetings Companies
Buyers
Sellers
14% 21% 25%
40% 20%
39%
0% Corporate Users
Don’t know Their perception of incentive travel is less positive Their perception of incentive travel is about the same Their perception of incentive travel is more positive BBI9. Compared to 10 years ago, how do you think the incentive travel is perceived by people outside the industry? SBI9. Compared to 10 years ago, how do you think incentive travel is perceived by people outside the industry?
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Most Important Objectives- Trends - Buyers • Increased sales and or profitability consistently ranks number one objective • In 2018 better relationship building between employees and management ranks higher than in the previous years
Increased sales and/or profitability for the overall company Better relationship building between employees and management Increased individual productivity Improved employee engagement/morale Better relationship building between employees with each other Improved employee retention Enhanced customer satisfaction Enhanced brand compliance or mind share Enhanced training or knowledge Enhancing the ability to recruit new employees Strengthening current employees' identification and emotional commitment to the organization
2015 1 5 2 3 7 6 N/A N/A N/A 8
2016 1 5 2 3 7 6 N/A N/A N/A 8
2017 1 5 2 3 7 6 N/A N/A N/A 8
2018 1 2 3 4 5 6 7 8 9 10
4
4
4
N/A
BBI2. Please rank the following objectives in order of importance with ‘1’ being the most important objective associated with your incentive travel program and ‘10’ being least important objective, what are the objectives you most and least want to drive as a result of your incentive travel award program?
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Travel Programs Including Meeting Component - Buyers/Sellers • 64% of Corporate Users always include a meeting component compared to 30% of Incentive/Meetings Companies • However, 12% of Corporate Users never include a meeting component compared to 4% of Incentive/Meetings Companies and more Corporate Users spend no time in meetings components (16% vs. 6%)
Including Meetings Components and Time Spent in Business Meetings (2018) Inclusion
100%
Time Spent
Inclusion
Time Spent
Time Spent
2%
2%
30%
23%
26%
49%
54%
68%
43%
63%
16%
13% 4%
6%
11% 6%
9%
3% 32%
80%
Inclusion
40%
Inclusion
Time Spent
1% 23%
30%
64% 60% 40% 20% 0%
65% 62%
18% 5% 12%
Corporate Users
Never/No time
Incentive/Meetings Companies
Rarely/A little time
Buyers
Occasionally/Some good amount of time
11% 1%
4% Sellers
Always/Majority of time
BL4. How often do the incentive travel programs in which you are involved include a meeting component? SL2. How often do the incentive travel programs in which you are involved include a meeting component? BL4_B For you/your clients’ incentive travel program, what is the average percent of time spent on site in business meetings? SL2_B For your incentive travel program, what is the average percent of time your clients spent on site in business meetings? * Small Sample 30
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Analysis by Industries – Buyers • Finance & Insurance Corporate Users have a higher spend and include meetings components more often than companies belonging to other industries
Corporate Users (2018) In days, what is the usual length of stay for an incentive program that requires hours or less in travel time? Also, in days, what is the usual length of stay for an incentive program that requires more than 34 hours in travel time? Approximately, what is the average spend (including air transportation) in US dollars per person for the incentive travel programs you or your client(s) manage? How often do the incentive travel programs in which you are involved include a meeting component? (Always)
Finance & Insurance*
All other industries*
4.0
4.2
4.8
5.3
6,000
3,950
78%
54%
BR2. What industry do you work in? BL2. In days, what is the usual length of stay for an incentive program that requires 4 hours or less in travel time? (Note: in 2015 to 2017 it was asked for 3 hours or less travel time) BL3. Also, in days, what is the usual length of stay for an incentive program that requires more than 4 hours in travel time? (Note: in 2015 to 2017 it was asked for 3 hours or less travel time) BL4. How often do the incentive travel programs in which you are involved include a meeting component? BB3. Approximately, what is the average spend (including air transportation) in US dollars per person for the incentive travel programs you or your client(s) manage? * Small Sample 30
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Average Spending on Travel Programs - Buyers/Sellers • Buyers average spend significantly increased in 2017 and 2018 compared to the previous years
Average spending per person for the incentive travel programs Corporate Users
Incentive/Meeting Companies
Buyers
Sellers
$10,000 $9,000 $8,000
$6,746
$7,000 $6,000 $5,000
$6,040
$5,395 $4,056
$4,000
$3,455
$1,000 $-
$3,528
$3,672
$3,247
$3,000 $2,000
Seller Role
$4,049 *
$3,545 *
$9,422 *
2015
2016
2017
2018
Cruise line # $4,050 Destination marketer/Convention $2,191 Bureau Destination Management Company 2,857
$5,600
$2,733
$3,480
$1,519
$3,395
$4,538
$2,915
$2,950
$3,122
Hotelier *
$5,953
$4,168
$4,442
$4,764
Technology company #
$1,233
$2,233
$3,100
$8,929
$8,151
$5,951
$3,422
$5,607
$5,193
2015
2016
2017
2018
BB3. Approximately, what is the average spend (including air transportation) in US dollars per person for the incentive travel programs you or your client(s) manage? BB3A. What percentage of this average spending per person is allocated to air transportation? SB3. Approximately, what is the average spending in U.S. dollars per person for the incentive travel programs with which you are involved? Note: Minimum spend $300 and maximum $50,000
* Small Sample 30
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