• October 10, 2025

Incentive travel growth plateaus as costs and uncertainty weigh

Incentive travel growth plateaus as costs and uncertainty weigh

Incentive travel growth plateaus as costs and uncertainty weigh 1024 684 micebook.

Global incentive travel activity is expected to remain flat into 2026, with only modest growth forecast through 2027, according to the newly released 2025 Incentive Travel Index (ITI).

The annual study, produced by the Incentive Research Foundation (IRF) and the Society for Incentive Travel Excellence (SITE) in partnership with Oxford Economics, draws on responses from more than 2,700 industry professionals across 85 countries.

The report signals a cooling of optimism seen in previous years, as rising costs, global instability, and shifting market dynamics weigh on confidence. Most buyers expect activity to stay around current levels in 2026, before edging up slightly in 2027 — with pharmaceuticals, healthcare and finance among the most bullish sectors.

“While 75% of respondents agree that the value of incentive travel remains strong, they also say the business gets tougher every year,” said Stephanie Harris, IRF President. “Incentive professionals are under pressure to deliver more with less – without compromising quality or impact.”

The report also highlights a continued appetite for new and undiscovered destinations. “Nearly 70% are seeking destinations they haven’t used before – and 63% already have new ones booked for 2026 or 2027. What hasn’t changed is what matters: direct air access, top-tier accommodations, and a trusted DMC remain top priorities,” said Annette Gregg, SITE CEO.

The US is losing appeal due to political uncertainty, travel restrictions and evolving DEI policies — 70% of respondents predicting a decline in inbound incentive activity to the US market. Meanwhile, 65% think that the complex visa process and travel restrictions are making the US a less attractive incentive destination.

The research found that the average spend per person rose 4% to $5,100 in 2025, driven by higher hotel, airfare and F&B costs. North American buyers continue to lead with average per-person spend of around $6,000.

Despite these pressures, many buyers plan to enhance programmes rather than cut back, focusing on upgraded accommodation, activities and overall experience quality. However, gifting and entertainment budgets are among the areas likely to be trimmed.

The report was launched at IMEX America, at a session moderated by Andy Schwarz (IRF) and Pádraic Gilligan (SITE), with live expert commentary from Genny Castleberry (Brightspot), Anesa Martin (Hilton), and Justin Myers (Bishop-McCann).

Join Our Community

Join our community and receive the latest trending industry news in our weekly Departure Lounge and exclusive invites to events





    WordPress Ads