• January 23, 2026

IRF 2026 Trends Report: budget pressure bites as AI and geopolitics reshape incentives

IRF 2026 Trends Report: budget pressure bites as AI and geopolitics reshape incentives

IRF 2026 Trends Report: budget pressure bites as AI and geopolitics reshape incentives 900 598 micebook.

The Incentive Research Foundation (IRF) has released its 2026 Trends Report, warning the incentives sector is heading into 2026 amid rising costs, geopolitical uncertainty, and shifting participant expectations.

Despite the headwinds, the research reveals that organisations in both North America and Europe are finding renewed optimism as they embrace innovative, resilient ways to motivate and recognise their people.

Stephanie Harris, IRF president, said professionals are “navigating significant complexity” but also uncovering opportunities for innovation, stronger partnerships and more meaningful motivation strategies.

The report reveals that rising costs and flat budgets are forcing incentive travel planners to reduce or remove program elements rather than rely on creativity to stretch resources.

Average spend per person rose 4% to $5,100, but a quarter of buyers still expect to trim per-person spending in 2026, with common cost-saving tactics including reducing gifting, choosing less expensive destinations and shortening trip durations.

In recent years, building in “free time” has been an easy way for planners to manage costs without damaging the overall incentive travel experience. But with expectations rising and budgets staying flat, unstructured downtime is no longer delivering the same perceived value, the IRF says.

Instead, experience design is shifting towards lower-cost “micro-moments” that create connection and add value — from hyper-local hosts and drop-in ateliers to sensory “reset” stations.

Geopolitics is also increasingly shaping destination decisions, with international instability slowing approvals and increasing the need for deeper risk assessment. More than half (51%) of programme owners said their programmes were affected by last-minute geopolitical or security restrictions, prompting greater use of scenario planning.

The report also points to the growing importance of external partners, from DMCs and DMOs to technology providers, as programmes become more complex, and expectations rise.

It adds that gift cards continue to grow in popularity because they offer flexible, practical value during economic uncertainty. Participants increasingly use them for everyday needs or small indulgences, with dining gift cards now surpassing online‑only retailers.

On technology, the IRF says AI adoption is high across the incentives industry, but professionals are increasingly focused on protecting authenticity and trust by balancing automation with human interaction at key moments.

The report cites strong usage of tools including ChatGPT, Microsoft Copilot and Canva Magic Studio among incentive travel professionals.

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