2025 Incentive Trends
Welcome to February! As we all now have made it through what felt like a *very* long January, 2025 has already brought some new incentive movements to this rapidly changing industry. The Incentive Research Foundation, IRF, has found key trends that are a must to know to create the most relevant and effective incentive program for your associates and clients alike:
Integration of Artificial Intelligence (AI): This is the buzzword you have been hearing EVERYWHERE and will continue to hear as we rapidly incorporate AI into our daily lives (no, this blog was not written by ChatGPT). With this new intelligence at our fingertips, incentive professionals are exploring applications of AI ranging from the practical like cost analysis to the creative like idea generation.
Budget Optimization: Following 2024’s inflation and rising costs, consumers feel an increase in economic uncertainty. Because of this, incentive professionals and their clients are prioritizing a deeper look into budget management with cost reductions typically seen in gifting. Although budgeting has seen a shift from event gifting, there have been two gifting strategies we’re seeing more of: gift cards for fluctuating budgets and branded gifts – i.e. a polo shirt with the company’s emblem or a high-end bag with the lining showcasing the company’s logo in a drop and repeat pattern. This trend is seen as maximizing the gifting budget to also subtly advertise the gift receiver’s company.
Redefining the Top Performer: Typically, you will see almost all incentive travel winners come from the sales department. Incentive winners have now been expanded to those who have indirectly contributed to sales goals as well. With this trend, there has been in increase in the use of points platforms, which can help boost morale and engagement beyond the sales department.
Cruises and New Locations are Setting Sail in 2025: Incentive Travel winners want to be wowed with 70% of travel buyers wanting to explore new locations. With this upward trend in desire for new locations, demand for incentive cruises have also increased. While budget continues to be a significant factor going into 2025, cruises can provide both the wants of traveling to new places and the need to stay within a certain budget.
Increase in Gen Z and Millennial Winners: While job hopping remains higher in these two generations than previous ones, incentive programs that use authentic recognition and high-quality rewards are great motivators for retention for these younger workforce generations. With more Gen Z and Millennials qualifying for their company’s incentive trips, these programs now need to be designed with their preferences in mind. Key areas of desire in their trips include a centering around wellness, flexibility in their choices around food, drinks, and activities, and more “Instagrammable moments.”
As we continue into 2025, we’re excited to see what additional trends will arise. The trends around a deeper focus on budget, appealing to younger generations, and the use of AI will not be departing any time soon. 2025 will continue to bring fun changes and surprises that will increasingly keep meeting planners and incentive professionals on their toes.