The incentive travel industry is projecting further growth according to new research, with buyers forecasting activity and per person spending to rise over the next two years.

The 2024 Incentive Travel Index (ITI) revealed that by 2026, 45% of buyers expect incentive travel activity to be above or significantly above 2024 levels, with 55% expecting spending increases to match inflation or improve programs. However, they also report concerns around rising costs, attracting talent to the industry, and safety considerations.

“Incentive travel buyers are increasingly looking for something new, with over 70% of our respondents indicating they are seeking destinations they haven’t used before,” said SITE CEO, Annette Gregg. “Resorts – both all-inclusive and regular – have gained in popularity, while destinations within shorter distances from participant origin are also expected to see increased use.”

Half of all buyers expect spending on hotels to increase by 2025; followed by increases to air, food and beverages, and then activities. An increase in the number of attendees in 2025 is expected to drive budget changes among 32% of buyers.

The largest expense expected in 2025 for incentive travel programs is on hotels, which should represent 27% of total budget allocation (up from 25% in 2024). Airfare will comprise 22%, followed by food and beverage spending (18%), and activities (13%). Meanwhile, third party agency fees should see its share decline by three percentage points to 6% (from 9% in 2024) – the largest percentage point decline by category from the prior survey.

Traditional forms of program qualification will continue to be the most frequently used, although company-wide programs and events that bring together dispersed colleagues show that the incentive travel ecosystem is also broadening beyond its traditional base.

Around two-thirds (67%) of respondents agreed that younger generations of qualifiers will cause a powerful “retool” of incentive travel

Incentive travel professionals face short- and long-run challenges, with inflation and workforce issues cited the most. Some challenges that are less prevalent in the short run are expected to grow in the future, such as climate change and an increased focus on sustainability.

In North America, free time has risen to the feature most frequently cited as important to a successful incentive travel program, while group activities are relatively more important elsewhere.

Nearly two-thirds of respondents believe generative AI will soon be used (or already is being used) effectively within incentive travel. Most expect uses such as for preparing program materials and planning, forecasting, and budgeting.

The Incentive Travel Index is a joint initiative of the Incentive Research Foundation (IRF) and the Society for Incentive Travel Excellence (SITE) and is undertaken in partnership with Oxford Economics. This annual study reports on destination preferences, program inclusions, budgeting, and perceptions of the strategic importance of incentive travel. This year’s report also provides a pulse-check on hot topics such as technology, artificial intelligence, climate issues, and sustainability.