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Incentive Industry Trends 2010

Several markers in the recent IRF Incentive Industry Trends 2010 survey indicate (slightly) rosier times ahead for the incentive industry.  While the industry is not quite yet ready to breathe a sigh of relief, these results indicate a brightening outlook as practitioners plan programs for 2010.  "Cautiously optimistic is the term I would use to describe the overall message in the data from the survey," says Mark Peterman, chairman of the IRF Research Committee.  "Our sense is that companies may have been sitting on budgets for the past 10 months or so waiting to see how things were going to play out and whether there was going to be more pushback from the media and community regarding incentives."

Key Findings: Incentive Travel

• Respondents appear to be more optimistic and consider the economy as having a "more" positive impact on their ability to plan and implement incentive travel programs when compared with pulse survey results from July and March 2009: 33% "slightly" to "significantly" positive in November 2009 as compared to 24% in July and 11% in March.
  
  
• Forty-four percent of respondents anticipate "no change" with regards to incentive travel program destinations in 2010 while 47% of respondents anticipate a switch from international to domestic destinations.
  
  
• A majority (41%) of respondents anticipate "no change" with regards to sponsored non-meal related components for Incentive Travel Programs in 2010 while 7% indicate that that sponsored non-meal related components will "moderately Increase" in 2010.  
  
  
• A combined 16% of respondents indicate that they expect budgets for Incentive Travel Programs in 2010 to increase while 30% indicate that they expect budgets to "remain unchanged."
  
  
• While 36% of respondents anticipate "no change" with regards to involvement of procurement and purchasing for Incentive Travel Programs in 2010, 56% agree that their involvement will increase by some degree in 2010.

Key findings: Merchandise Non-Cash Programs

• Thirty-two percent of respondents indicate that budgets for merchandise non-cash Incentive Programs in 2010 will increase (either "moderately" or "slightly") and 34% of respondents anticipate these budgets to "remain unchanged."
  
  
• Planners still point to the economic downturn as having a negative impact on their ability to plan and implement merchandise non-cash incentive programs.  However, while 34% report a negative impact, this is an improvement over the almost 50% reporting a negative impact a year ago (October 2008).  Further, respondents reporting a positive impact was 26% in November vs. 20% in July 2009.
  
  
• When asked "what changes, if any, will be made in 2010 with award selections,"  27% of respondents indicate they will include individual travel as an option in 2010, 22% indicate that the use of debit/gift cards will be increased and 18% will add merchandise.  It should be noted that 30% indicate there will be a decrease in merchandise award value for 2010 programs.

Survey Background

In this recent survey, the IRF asked incentive travel providers, corporate incentive travel buyers, suppliers and other industry professionals, questions on trends with regard to incentive travel programs, merchandise non-cash programs, and budget changes forecast for 2010.  Data collection was conducted October 19 through November 17, 2009. In addition to the current topic on industry trends, the IRF tracks core issues of continuing interest to the industry including but not limited to:  1) The extent to which company financial forecasts influence incentive programs; 2) The effect of competitor reactions on company incentive programs; and 3) Sensitivity to others' perceptions of company incentive programs.

Preparation Underway the IRF Invitational: May 19-22, 2010, Colorado Springs, CO

Click here for an overview of the 17th Annual IRF Invitational.  Home base for the Invitational will be The Broadmoor, the spectacular five-star, five-diamond historic resort. Outstanding co-hosts also include Cheyenne Mountain Resort, Destination Colorado and partners, Vail Valley and partners, Destination Services of Colorado, Rocky Mountain Connections, Colorado Springs Convention & Visitors Bureau and many other organizations in the Colorado incentive communities.  Now more than ever, the research produced by The IRF supports the Why's, How's and What's of tangible non-cash incentives. The preeminent incentive industry fundraising event that pays for this research is this annual Incentive Invitational where select buyers and sellers of incentive travel mix to learn about trends, products and experience destinations.   To learn how to participate as a sponsor or buyer invitee please contact Lisa Cherry-Perks • The Opus Group • 305-234-1077 • lisa.cherry-perks@theopusgrp.com

In the Spotlight: IRF News Round-Up

From time to time, we take a look at the IRF's presence in the media.  Here are just a few recent highlights.   For the full slate of press coverage, click here.

The headline of a recent article in Talent Management Perspectives says it all: Appreciating Employees Can Do Wonders for Engagement, ROI.  The article reports on the study "The Value and ROI in Employee Recognition: Linking Recognition to Improved Job Performance and Increased Business Value -The Current State and Future Needs" which was conducted by the IRF in conjunction with the Human Capital Institute and the Forum for People Performance Management and Measurement. http://www.talentmgt.com/talent.php?pt=a&aid=1099

The same study received double exposure in Premium Incentives Products, first in its e-newsletter and then in the print edition.  http://www.pipmag.com/

IRF chief research officer Rodger D. Stotz was quoted in a recent article published in the online magazine of the Advertising Specialty Institute (ASI): "Without question, this new research points to the critical importance and measurable impact of employee recognition, especially when it comes to improving the bottom line." http://www.asicentral.com/asp/open/apps/news/industryNews.asp?id=3413

The IRF is routinely in contact with various industry press outlets as part of our media relations program. All corporate motivational meetings and/or incentive program planners should let us know if they would like to discuss incentive trends and issues with the media, which can help create press coverage for your organization. For more information, please contact Jon Lieb, IRF's media liaison at 917-690-2948.

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