Incentive Trends and How to Incorporate Them Into Your Programs Michael J. Lyons

Introductions Name Company/Organization Role in Incentive Travel Planning Process What are you currently doing/seeing?

Background - Incentive Travel For decades, businesses have sought to optimize the performance of their people through incentive programs: Tools have changed Economy has changed Interest in engagement and performance has not Companies are focused on calibrating cash-based and non-cash motivators to maximize performance

2017 Trends Study – releases in January The Incentive Research Foundation is reviewing and analyzing trends in key areas such as: Technology – Responsive, Interactive Changing Role of Rewards & Recognition Changing Regulatory Environment Safety Perceptions and Disruptors

Incentive Travel Stats 2015 market research study by IRF: 84% of all U.S. firms use non-cash awards to motivate and engage their workforce 45% of all businesses using non-cash awards use incentive travel awards in some manner Travel has consistently maintained its place as a top motivator "Best in Class” companies use incentive travel to reward and recognize achievement of goals 

Trend: Budgets are on the rise

Trends: IRF Study Findings Rising F&B and room costs was the biggest change to program budgets in 2016 Few planners are reducing # of rooms and length of program Since 2013, trend has seen shift from domestic to international locales rather than vice versa 70% of programs include CSR component Lead time to plan a travel program averages more than a year Qualification time period to earn trip averages 12 months +

Emerging Trends Unconventional destinations Memorable activities Time to reconnect with guest/spouse Personalization (company message) and customization (individual tastes) are key Health and Wellness

Generational Influence In 2015 Millennials surpassed Generation Xers in workforce Today, one out of three is a Millennial worker Connected 24/7 to devices Demanding unique, authentic experiences with some form of altruistic give-back Active, team building, sports, exercise More variety and hands-on experiential

More Trends Impact Travel: blend of CSR “do good” and “go local” Clean up a park Paint a school Experience destination like a local (cooking classes) Luxury is back – more high end properties being used Bucket list check-off Educational opportunities in local community (e.g. Alaska) Visits to places like Panama Canal, World Heritage Sites

Program Participant Changes Traditionally, incentive programs were designed for sales people only (direct impact on bottom line) Now companies are recognizing value and impact of non-sales employees who are valuable to enterprise Team-based in addition to individuals Some programs offer “Buy-In” Option

Experience and Destination With rise of “Experience Economy”, more experienced travelers, and bigger budgets: U.S. planners looking for different & intriguing destinations in addition to “tried and true” U.S. & Caribbean still top destinations (50% of planners reported using them in 2016) Europe now rivals Canada as close second tier option Mexico is most popular with corporate end users and is still a highly rated option with over 1/3 of planners sending groups to MX in 2016 

Preferred Destinations New emerging countries/cities: Budapest, Prague, Croatia, Iceland, Panama, Australia, Switzerland, Vienna, Barcelona Oldies but goodies: Sun & Fun Paris, Rome and London

mike@michaeljlyons.com - Twitter: @_MichaelJLyons