What the 2025 Incentive Travel Index Tells Us About Incentive Travel’s Future

Every October at IMEX America, the global incentive travel community pauses to take stock. The Incentive Travel Index (ITI), produced annually by the Incentive Research Foundation (IRF) and SITE Foundation, in partnership with Oxford Economics, has become the industry’s barometer: a data-rich snapshot of where we stand and where we’re headed.

This seventh edition, with responses from 2,700+ professionals across 85 countries, reveals a resilient and inventive industry that’s also facing growing complexity. 

1. Growth Continues, But the Mood Is Tempered

The Index shows that incentive travel remains a strong and stable segment within the wider business events ecosystem. However, optimism has moderated compared with last year.

While three-quarters of respondents agree that the value of incentive travel is “as strong as ever,” fewer now expect significant growth. In 2024, nearly half of buyers predicted that 2025 would see an increase in activity; in the latest survey, only 27 percent expect 2026 to outperform 2025. In other words, the industry is not shrinking but it’s no longer sprinting.

Regional differences are striking. APAC is the most optimistic, with 46 percent of buyers forecasting increased activity through 2027, compared with 32 percent in Europe. 

2. Budgets Rising — But So Are Costs

Average per-person spend has climbed to $5,100, up 4 percent year-on-year. North America leads with $6,000 per head, while Europe trails at $3,200 after a 20 percent drop. 

The global rise in hotel, air, and F&B costs, now accounting for nearly half of total program budgets, explains much of that increase. Yet there’s more nuance. Many respondents (especially DMCs) expect future spending growth to come less from inflation and more from program improvements: better experiences, venues, and accommodations. 

Western European planners are the most ready to raise budgets to upgrade quality, while North Americans are more conservative.
Still, the squeeze is real. A quarter of buyers plan to “trim” 2026 programs, most often by cutting gifting, shortening trip duration, or opting for less expensive destinations. Another quarter intend to “improve” their programs instead, investing in higher-end lodging and richer activities. 

The duality captures the current moment perfectly: cautious optimism paired with creative restraint.

3. Destination Dynamics: New, Near, and Safe

If there’s one clear directional trend, it’s this: incentive travel is venturing into new places, while staying closer to home. Nearly 70 percent of buyers say they are actively seeking destinations they’ve never used before, and 63 percent already have one booked for 2026 or 2027. At the same time, 44 percent are deliberately choosing shorter-haul destinations.

Safety has re-emerged as a paramount concern. Seventy-three percent cite personal safety as their top destination consideration, followed by cost and geopolitical stability. Direct air access and top-tier accommodations remain the most desired “must-haves,” with the presence of a capable DMC now ranking third, proof of how vital local expertise remains.

And what of long-haul travel? Despite growing sustainability discourse, most companies have no policy limiting it. Only 13 percent see distance as a disqualifier, and just 18 percent believe long-haul incentives will soon be unjustifiable. The skies, it seems, remain open.

4. Challenges Ahead

The Index paints a picture of an industry navigating turbulence. Rising costs and international instability top the list of short-term challenges, cited by nearly 40 percent of respondents. Over the long run, attracting and retaining talent emerges as the most pressing issue, followed by sustainability.

Political considerations are also reshaping destination selection. Almost half of respondents admit that geopolitics, that is, how a destination is perceived internally and externally, now outweighs other factors. Nowhere is this more apparent than in the United States:

• 70 percent believe recent political events will cause a decline in inbound incentive travel to the U.S.
• 65 percent cite visa and travel restrictions as deterrents.
• 46 percent say shifts in DEI and LGBTQ policies make the U.S. less attractive for both sponsoring companies and participants.

5. Generational Shifts: The Taylor Swift Question

Perhaps the most talked-about finding from ITI 2025 is the now-famous question: Would Gen Z rather see Taylor Swift than Hawai‘i?
Thirty-nine percent of respondents agreed, 32 percent disagreed, and 30 percent were unsure, numbers that reveal both curiosity and caution. More telling, though, is what lies beneath the quip. Two-thirds of respondents (67 percent) believe younger generations of qualifiers will drive a powerful “retool” of incentive travel.

More than half say younger participants will decline trips that don’t align with their values. Forty-one percent believe this cohort views incentive travel as an entitlement rather than a privilege. And yet, nearly half (47 percent) disagree that group incentive travel is becoming obsolete. 

The future, it seems, belongs to programs that blend purpose with pleasure, reward with relevance.

6. Redefining Purpose and Value

Behind all the data runs a quiet but decisive theme: the evolution of purpose. Fifty-five percent of senior leaders now view incentive travel as essential to their company’s success, not merely a perk. Forty-three percent want programs that deliver both ROI and culture-building.

This dual demand, hard-power metrics and soft-power meaning, marks a major turning point. Incentive travel is no longer just about “earning the trip.” It’s about belonging, recognition, and shared identity. Companies are using it to reinforce values, nurture loyalty, and humanize the workplace.

The Road Ahead

The Incentive Travel Index 2025 reveals that the industry’s fundamentals—recognition, connection, transformation—remain unshaken. 
But its context is shifting fast. Costs are up, travel patterns are shorter, politics are louder, and generations are rewriting the rules of motivation.

The next chapter of incentive travel will belong to those who can hold both truths at once: the enduring magic of shared experience and the emerging mandate for accountability, inclusion, and meaning.

Or, to put it another way: the trip still matters. But why we take it, and what we bring back, matters even more.

Download the full Incentive Travel Index 2025 report at incentiveindex.com