Travel incentives are a reward subset of an
incentive program
An incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees ...
,
recognition program or a
loyalty program
A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. Today, such programs cover most types of commerce, each having varying features and ...
, which is a business tool designed to change
consumer behavior to improve profit,
cash flow,
employee engagement
Employee engagement is a fundamental concept in the effort to understand and describe, both qualitatively and quantitatively, the nature of the relationship between an organization and its employees. An "engaged employee" is defined as one who is ...
and
customer engagement. It has been described as business travel that is designed to motivate or trigger action, as a reward for these actions from employees or business partners. This fosters loyalty and encourages the best talent for an organisation.
When an organization properly designs an incentive program, which includes looking at all departments which will be affected, rather than just the impact to the department that is sponsoring the incentive, the return on investment can be proven. Oxford Economics USA wrote in a 2009 study that incentive travel investments yielded a return of investment of more than $4:$1.
and stated that in order to achieve the same effect of incentive travel, an employee’s total base compensation would need to be increased by 8.5%.
The Incentive Research Foundation released a study in 2010 following the steps that an organization took to ensure that they received a return on their investment; they successfully merged acquired organizations into their company, and successfully merged their incentive programs.
Economic impact
Incentive trips, meetings and events account for 15% of all travel spending, which creates 2.4 million jobs, $240 billion in spending and $39 billion in tax revenue, according to the U.S. Travel Association. Incentive travel generates about $13 billion a year, according to the Incentive Research Foundation.
The economic impact and the
AIG effect had negatively affected incentive travel programs in 2010, with spending on incentive travel being reduced.
See also
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Environmental impact of aviation
Like other emissions resulting from fossil fuel combustion, aircraft engines produce gases, noise, and particulates, raising environmental concerns over their global effects and their effects on local air quality.
Jet airliners contribute to ...
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Hypermobility (travel) Hypermobile travelers are "highly mobile individuals" who take "frequent trips, often over great distances." They "account for a large share of the overall kilometres travelled, especially by air." These people contribute significantly to the overal ...
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Incentive program
An incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees ...
*
Loyalty marketing
Loyalty marketing is an approach to marketing, based on strategic management, in which a company focuses on growing and retaining existing customers through incentives. Branding, product marketing, and loyalty marketing all form part of the c ...
*
Loyalty program
A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. Today, such programs cover most types of commerce, each having varying features and ...
References
{{Customer loyalty programs
Customer loyalty programs
Types of travel