PUBLISHER: The Business Research Company | PRODUCT CODE: 1619672
PUBLISHER: The Business Research Company | PRODUCT CODE: 1619672
Incentive tourism is a form of business travel designed to motivate and reward employees or clients. It generally involves organizing travel experiences, such as vacations or luxury trips, as a reward for achieving specific business goals or milestones. Incentive tourism is an effective tool for businesses to enhance performance and loyalty by providing tangible rewards and memorable experiences.
The main types of incentive tourism include eco-tourism, adventure tourism, beach tourism, cultural tourism, and wildlife tourism. Eco-tourism focuses on traveling to natural areas with the aim of conserving the environment and promoting sustainability. It caters to independent travelers, tour groups, and package travelers, and can be booked through phone, online, or in-person methods. This type of tourism is popular among various age groups, including those between 26 to 35 years, 36 to 45 years, and 46 to 55 years. It is utilized across several industries, such as finance, technology, and healthcare, among others.
The incentive tourism market research report is one of a series of new reports from The Business Research Company that provides incentive tourism market statistics, including incentive tourism industry global market size, regional shares, competitors with a incentive tourism market share, detailed incentive tourism market segments, market trends and opportunities, and any further data you may need to thrive in the incentive tourism industry. This incentive tourism market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The incentive tourism market size has grown strongly in recent years. It will grow from $7.18 billion in 2023 to $7.64 billion in 2024 at a compound annual growth rate (CAGR) of 6.4%. The growth during the historic period can be attributed to economic expansion, the globalization of businesses, rising demand for unique experiences, increasing disposable income, and growth in developing economies.
The incentive tourism market size is expected to see strong growth in the next few years. It will grow to $9.82 billion in 2028 at a compound annual growth rate (CAGR) of .5%. The growth during the forecast period can be attributed to the rising importance of health and wellness, increased awareness and appreciation of different cultures, growing interest in sustainable travel options, favorable government policies and incentives, and the expansion of international and domestic flight routes. Major trends for this period include greater investment by companies in incentive programs, innovations in travel and event management technology, partnerships between companies and travel agencies, increased demand for luxury travel experiences, and technology-enabled personalization.
The growing trend of experiential travel is expected to drive the expansion of the incentive tourism market in the future. Experiential travel focuses on deep, immersive engagement with local cultures and environments, offering experiences that go beyond traditional sightseeing. This growth is fueled by factors such as authentic local interactions and immersive activities. Incentive tourism plays a crucial role in experiential travel by offering personalized rewards and unique experiences that motivate and engage participants, thereby enhancing their overall journey and fostering stronger connections with destinations. For example, a May 2023 report from the United Nations World Tourism Organization revealed that international tourist arrivals reached 80% of pre-pandemic levels in the first quarter of 2023, with around 235 million travelers-more than double the number from the same period in 2022. The tourism sector demonstrated notable resilience, with revised 2022 data showing over 960 million international tourists traveling abroad, recovering to 66% of pre-pandemic levels and reflecting the industry's strong rebound. This growth in experiential travel is thus propelling the incentive tourism market.
Key players in the incentive tourism market are developing various incentive programs to streamline the planning and execution of incentive travel. These programs are designed to motivate and reward individuals or groups for achieving specific goals or performance targets. For instance, in July 2023, Ottawa Tourism, a Canada-based destination development and marketing organization, introduced the Ottawa VIP (Visitor Inspiration Program). This program offers tour operators a box of local gifts to enhance the in-destination experience and showcase Ottawa's culture. It also includes a $35 credit per room night, usable on a qualified tour operator's subsequent visit to Ottawa, encouraging repeat business. This multi-year incentive program, running until December 1, 2023, aims to increase travel trade engagement with the city.
In January 2023, ITA Group, a US-based engagement agency, acquired HTK Limited for an undisclosed amount. This acquisition significantly enhances ITA Group's capability to develop unique, data-driven loyalty and engagement solutions. HTK Limited, based in the UK, specializes in customer loyalty and engagement solutions, including aspects of incentive tourism.
Major companies operating in the incentive tourism market are Carlson Wagonlit Travel BV, BCD Group, ATPI Ltd., ITA Group, Maritz Global Events Inc., BI WORLDWIDE, Aimia Inc., One10 LLC, Opus Agency, Creative Group Inc., Impact XM, Access Destination Services, Next Level Performance, Conference Care Ltd., Ovation Global DMC, Imprint Events Group, 360 Destination Group, Gavel International, Red Letter Days, Event Travel Management, Landry & Kling Global Cruise Services Inc., Creative Destination Events, Corporate Rewards, Global Incentive Management DMC, Harith Productions Ltd
North America was the largest region in the incentive tourism market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the incentive tourism market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the incentive tourism market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The incentive tourism market includes revenues earned by entities by destination selection, travel arrangements, accommodation booking and event planning. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Incentive Tourism Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on incentive tourism market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for incentive tourism ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The incentive tourism market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.