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Survey Finds Incentive Travel Budgets Stable
A 2006 incentive travel user survey by Incentive, an industry trade publication, provides a snapshot of current practices and trends.
By John Buchanan
 2006 incentive travel user survey by Incentive, an industry trade publication,
provides a snapshot of current practices and trends. The publication last
surveyed its readers on these elements three years ago. Its most noteworthy
finding, in light of the new scrutiny of incentive travel expenditures, is that
63.2 percent of the 171 respondents expect that procurement or purchasing
departments will have an impact on incentive travel decisions and budgets
beginning in 2007. Here are other results:
|
Travel
Profile |
|
Number of employees |
|
Average |
1,128 |
| Less than
100 |
49% |
| 100-499 |
20.9% |
| 500-999 |
6.5% |
|
1,000-4,999 |
10.6% |
| >5,000 |
13% |
| |
|
Annual incentive travel expenditures |
| Average |
$392,825 |
| <%50,000
|
28.9% |
|
$50,000-$99,999 |
13.3% |
|
$100,000-$249,999 |
15.8% |
|
$250,000-$499,999 |
9% |
|
$500,000-$999,999 |
9.2% |
| $1
million-plus |
23.8% |
| |
|
Budget change since last year |
| No change |
45.2% |
| Up 5%-15% |
31% |
| Up
16%-25% |
7.6% |
| Up 26-50% |
2.8% |
| Up >50%
|
0.7% |
| Down
5%-15% |
8.1% |
| Down
16%-25% |
2.6% |
| Down
26%-50% |
1.1% |
| Down >50% |
0.9% |
| |
|
Budget projections for 2007 |
|
Anticipate budget increase |
48.4% |
|
Anticipate no change |
43.1% |
|
Anticipate budget decrease |
8.6% |
| |
|
Types of incentive travel used |
| Both
group and individual |
56.6% |
| Group
only |
28.1% |
|
Individual only |
15.3% |
| |
|
Typical group size |
| Average |
88 |
| <25 |
27.2% |
| 25-49 |
19.3% |
| 50-99 |
18.6% |
| 100-199 |
19.3% |
| >200 |
15.6% |
| |
|
Trip winners |
| Internal
salespeople |
65.9% |
| Non-sales
employees |
39.5% |
|
Dealers/distributors |
39.5% |
|
Note: Some respondents indicated more
than one group is included in their programs. |
| |
|
Program objectives |
| Increase
sales |
69.6% |
| Build
morale |
55.1% |
| Improve
employee loyalty |
44.9% |
| Build
customer loyalty |
42.6% |
| Foster
teamwork |
41.9% |
| Increase
market share |
41.3% |
| Improve
customer service |
37.3% |
| Sell new
accounts |
32.9% |
| |
|
International destinations |
|
Caribbean, not including Bermuda |
41.3% |
| Mexico
|
40.4% |
| Western
Europe |
29.1% |
| Bermuda |
19.5% |
| Eastern
Europe |
15.9% |
|
Australia/New Zealand/Pacific Islands |
14.7% |
| Asia |
10.6% |
| Africa
|
8.2% |
|
Note: Many respondents indicated
multiple destinations are used each year during the course of their
programs. |
|
Source: Incentive, Travel
Buyer’s Handbook Survey 2006 |
Workforce Management Online, September 2006 -- Register
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