Despite rising costs and geopolitical uncertainty, the incentives industry outlook is optimistic, says IRF study.
The incentives industry is entering 2026 amid persistent cost pressures, geopolitical uncertainty and evolving attendee expectations. However, according to the IRF 2026 Trends Report, organizations are finding renewed optimism as they embrace innovative and resilient ways to motivate and recognize their people.
“Incentives professionals are navigating significant complexity while simultaneously uncovering new opportunities for innovation, strengthened partnerships, and more meaningful ways to motivate people in 2026,” notes Stephanie Harris, President, IRF, in a media release. “We are seeing optimism in both North America and Europe as organizations embrace the power of incentives to engage and motivate their workforce.”
The report’s top trends for incentive travel in 2026 include:
• Strategic budgeting. While for the past several years, incentive planners have resourcefully stretched budgets, there’s no longer much ability to do more with less via creativity. Instead, given flat budgets and rising expectations, there’s a focus on strategic budgeting and the removal of program features that no longer deliver significant value. Planners are considering such strategies as booking hyper-local hotels or offering on site drop-in ateliers to enhance perceived value for attendees without additional costs. Choosing closer destinations and shortening trip durations are also in the forecast.
• Navigating geopolitical instability. Balancing the need for new and creative destinations with increased geopolitical unrest has made destination selection increasingly difficult as incentive travel planners navigate both real and perceived threats. They are relying heavily on destination marketing organizations (DMOs) and destination management companies (DMCs) for destination research, resources and assistance in gaining a realistic and practical understanding of destinations under consideration. As well, with security as a top decision-making point in destination selection, protective services are being involved earlier in the planning process.
• Managing air concerns. Direct air access and capacity are key drivers of destination selection. As 2026 travel planning is underway, incentive planners report concerns around flight delays, cancellations and fluctuating prices. While these concerns may be out of their control, planners are finding creative ways to enhance the travel experience. Arranging access to premium airport lounges not only elevates the experience for attendees, but also gives them a comfortable option should delays occur. One planner noted they managed challenging access to a remote destination by designing a journey from the airport that included scenic road travel to a restaurant followed by a boat to the resort.
An upcoming IRF Webinar on February 6 will discuss what lies ahead for all aspects of the incentives industry as revealed in the 2026 Trends Report. Panelists are Chris Johnson, Director Global Travel, Enterprise Events, and Sports Partnerships, Land O’Lakes, Chair, 2026 IRF Board of Trustees; Kelsey Nicol, Vice President, Strategic Accounts, One10, Chair-Elect, 2026 IRF Board of Trustees; and Andy Schwarz, Vice President, Content & Communications, IRF.
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