The nation's economic downturn has had a greater negative impact on travel incentive programs than it has on merchandise non-cash programs, says a new study by the Incentive Research Foundation (IRF). The study, "Effects of a Down Economy on the Incentive Industry," was announced last month and is based on a four-week survey of incentive travel providers, corporate incentive travel buyers and suppliers.
"Incentive programs, like other sales and marketing strategies, are feeling the pressure of the down economy," said IRF Research Chair Bob Dawson. "However, based on the historic quick rebound of incentives after other recessions and near-recessions, we predict a bounce back within 12 months. Given these realities, this survey showcases the ingenuity that managers display to ensure incentive travel participants still enjoy a memorable and rewarding experience."
According to IRF, 81 percent of survey respondents say that the down economy is having a negative impact on their ability to plan incentive travel programs. Meanwhile, less than 48 percent say the same thing about their ability to plan merchandise non-cash programs.
As a result, the survey suggests, travel program administrators say they are modifying their incentive travel programs in the following ways:
• 56 percent are including round trip air transfers
• 53 percent are covering all costs of air transportation
• 44 percent have shifted their focus from international to domestic destinations
• 35 percent have reduced the number of days/nights they include, and the number of rooms
• 33 percent have decreased on-site inclusions, such as paid meals, spa treatments and other "extras"
Although fewer non-cash programs are feeling an economic punch, administrators charged with planning them are nonetheless making similar changes. Among them:
• 21 percent are using debit/gift cards more often
• 19 percent are including individual travel as an option
• 16 percent are decreasing merchandise award values
• 9 percent are including experience-related options, such as cooking classes and wine tastings
For more information on "Effects of a Down Economy on the Incentive Industry," and to download a PDF of the report, visit
www.TheIRF.org.