Archive
By John Buchanan
Sep. 8, 2006
A 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 | |