Incentive travel is no longer just a perk—it’s a powerful tool for boosting employee engagement, motivation and retention.
With spending on incentive travel expected to increase by 54% in 2025, according to the IRF Incentive Travel Index, businesses are creating meaningful and memorable experiences for their employees. Furthermore, 81% of companies now view these trips as a key strategy for retaining employees, while 62% see them as a competitive advantage in recruitment.
So, what’s driving the evolution of incentive travel? Here are five emerging trends shaping the landscape:
1. Unique Experiences in Emerging Destinations
Incentive travel is shifting from traditional luxury getaways to immersive, experience-driven trips in exciting, lesser-known destinations. Employees today want more than just 5-star accommodations—they seek authentic cultural experiences, adventure and exclusivity. The demand for fresh destinations is evident—70% of incentive travel buyers are actively seeking new locations to keep their programs exciting.
Destinations like Croatia, Portugal and Greece are gaining popularity, while the Caribbean and Mexico remain top choices for their accessibility and value. Hawaii is making a strong comeback, and Japan is emerging as a hot spot, attracting groups willing to make the long-haul journey.
2. Bleisure Travel: Blending Business with Personal Time
The bleisure travel trend—combining business with leisure—continues to gain traction, with more employees opting to extend their incentive trips for personal enjoyment. Companies are responding by offering flexible travel dates and family-friendly options, making incentive programs even more attractive.
According to the Incentive Travel Index, while group dining remains the most appreciated activity, participants also value cultural sightseeing, relationship-building experiences and opportunities for personal downtime. These leisure experiences also foster stronger connections, allowing smaller groups to engage in more meaningful interactions.
3. Personalization: Tailoring Incentive Travel to Individual Preferences
Incentive travel is shifting away from the traditional one-size-fits-all approach, embracing customized experiences that cater to the diverse preferences of employees. Whether it’s a high-energy adventure, a wellness retreat or a gourmet dining experience, employees now have the freedom to select activities that align with their interests.
Dining experiences are also personalized. Instead of traditional set menus or buffets, companies are incorporating action stations, where guests can build their own meals. By offering customized itineraries and personalized touches, incentive trips are becoming more inclusive and engaging, ensuring each participant enjoys a meaningful and unique experience.
4. Exploring Beyond the Resort: Embracing Adventure and Local Culture
While all-inclusive resorts continue to be a popular choice for incentive trips—42% of incentive travel buyers anticipate utilizing them even more in the future, according to the Incentive Travel Index—many companies are now seeking to break the mold. Rather than spending entire days lounging by the pool or staying within the resort’s walls, there’s a growing desire for immersive experiences that go beyond the traditional all-inclusive package.
Employees today crave the opportunity to explore new destinations and connect with local cultures. Many incentive programs are now incorporating off-resort activities that offer participants a chance to discover the local environment, engage with local communities and take part in adventurous excursions that they wouldn’t experience as a typical tourist.
5. Respecting the Locals and Sustainability: The Holistic Approach
As companies place greater emphasis on corporate social responsibility (CSR), sustainability and respecting local cultures have become central to incentive travel planning. Experts stress the importance of working closely with local destination management companies (DMCs) to ensure that trips not only support the local economy but also respect the community and environment.
Equally important is the need to respect local customs and traditions. Immersing participants in a destination means blending cultures in a way that is both respectful and enlightening. Educating attendees on local etiquette is a key part of this process. Some companies have started offering pre-trip webinars, where attendees learn about cultural nuances, expectations and customs—ensuring they are respectful when entering another community.
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