In this slow recovering economy, trends in the incentive industry are leaning towards caution and scaled back rewards programs. Safety rewards, which used to garner large incentive travel programs, or other large rewards, are now are being scaled back to much smaller incentive rewards programs. According to the latest Incentive Research Foundation survey, incentive rewards program administrators' confidence levels are down to lows not seen since 2008. The survey indicated the following specifically about travel rewards programs:
- 62% said the economy is having a negative impact on program planning –numbers that haven’t been this high since July of 2009.
- While 28% expected their budgets to decline, 45% anticipate no change and 27% actually expect an increase.
- More than half of the programs will only be providing airline tickets and covering no incidental expenses.
- 41% will be reducing the number of nights.
- 40% are shrinking 'non-meal' components.
This is pretty definitive information. The incentive rewards industry is not ready to come back full strength, since there is no real proof that the economy has totally turned around. This means employees are going to have to wait longer to see travel, and other large scale rewards programs make a comeback. In the meantime, smaller rewards such as gift cards and other forms of small bonuses, will continue to remain prominent.
For more information on the Incentive Research Foundation survey click here.
