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The incentive industry just might be one of the most misunderstood industries in the world. In the 60+ years since companies in the insurance and automotive industries started recognizing the ability of non-cash rewards as a motivator, the industry has moved through many different phases and overcome many challenges — both real and perceived.
Just days after receiving an $85 billion government bailout in 2008, American International Group (AIG) faced intense outrage for holding a reward trip for top-producing employees at the St. Regis Resort Monarch Beach Resort. That was followed by a leak about Wells Fargo, another recipient of government funds, planning a program for its top-producing home loan officers and their guests at the Wynn Resort and Casino in Las Vegas. A comment in the press by then-President Obama criticizing this spending created repercussions across the entire meetings industry that lasted for years and cemented the public’s perception of incentive trips as ‘boondoggles.’
A decade later, the industry faced an even harsher setback with Covid, as programs were paused, replaced by individual trips, and companies scrambled to create virtual experiences for winners.
The incentive industry again sits at another critical juncture — a period of significant geopolitical and economic turbulence — and its effects are just beginning to be felt. The merchandise side of the business is retooling to meet the potential impact of tariffs, while the travel side is in a wait-and-see mode, since so many programs are booked far in advance.
One thing is certain: Despite the turbulence and setbacks, incentives have grown into a $75 billion industry in 2024, according to the Society for Incentive Travel Excellence (SITE). Ongoing research by SITE and the Incentive Research Foundation (IRF) continues to make the case that incentive travel has become a strategic business tool for driving sales, building corporate culture, and retaining top performers.
This report reveals an industry that remains resilient and innovative, as it is forced to continuously change and evolve.
The incentive industry just might be one of the most misunderstood industries in the world. In the 60+ years since companies in the insurance and automotive industries started recognizing the ability of non-cash rewards as a motivator, the industry has moved through many different phases and overcome many challenges — both real and perceived.
Just days after receiving an $85 billion government bailout in 2008, American International Group (AIG) faced intense outrage for holding a reward trip for top-producing employees at the St. Regis Resort Monarch Beach Resort. That was followed by a leak about Wells Fargo, another recipient of government funds, planning a program for its top-producing home loan officers and their guests at the Wynn Resort and Casino in Las Vegas. A comment in the press by then-President Obama criticizing this spending created repercussions across the entire meetings industry that lasted for years and cemented the public’s perception of incentive trips as ‘boondoggles.’
A decade later, the industry faced an even harsher setback with Covid, as programs were paused, replaced by individual trips, and companies scrambled to create virtual experiences for winners.
The incentive industry again sits at another critical juncture — a period of significant geopolitical and economic turbulence — and its effects are just beginning to be felt. The merchandise side of the business is retooling to meet the potential impact of tariffs, while the travel side is in a wait-and-see mode, since so many programs are booked far in advance.
One thing is certain: Despite the turbulence and setbacks, incentives have grown into a $75 billion industry in 2024, according to the Society for Incentive Travel Excellence (SITE). Ongoing research by SITE and the Incentive Research Foundation (IRF) continues to make the case that incentive travel has become a strategic business tool for driving sales, building corporate culture, and retaining top performers.
This report reveals an industry that remains resilient and innovative, as it is forced to continuously change and evolve.
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