Incentive Travel
TABLE OF CONTENTS 1. INTRODUCTION 2. DEFINITION OF TRAVEL INCENTIVE 3. THE INCENTIVE TRAVEL INDUSTRY 3.1. SIZE OF THE INCENTIVE TRAVEL INDUSTRY 3.2. TARGET GROUPS OF TRAVEL INCENTIVES 3.3. COMPANY’S OBJECTIVES FOR INCENTIVE TRAVEL INITIATIVES 3.4. LIMITATIONS OF TRAVEL INCENTIVES 4. CHALLENGES AND FORECAST 5. SUMMARY BIBLIOGRAPHY 3 3 4 4 4 5 5 6 7 8
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1. INTRODUCTION Travel incentives enjoy widespread application in the organizational milieu. Huge companies as Mercedes-Benz, General Motors, Wells Fargo and Berkshire Hathaway use the motivational instrument since decades and they are still convinced about the success of implementing travel incentives.1
2. DEFINITION OF TRAVEL INCENTIVE Unlike other incentives, travel incentives have a ‘trophy value’ that implies that they provide long-lasting positive reinforcement, an element that adds to their motivational value. As the motivation industry has evolved over the last decades, a stringent line between travel incentives and other instruments cannot be drawn. The original idea behind incentive travels was to motivate sales managers within the company. Today, a broad range of activities and the integration of sales channels, customers and vendors are parts of the incentive travel planning process and its realisation.2 Nowadays, a definition of incentive travel can be found by bordering other motivational instruments as well. Two others that are mentioned in the literature as being related to travel incentives are ‘motivational meetings’ and ‘special events’. Seen as own markets in the motivational industry, the tree instruments can be defined as follows. However, travel incentives may involve parts of special events in practice.3
Incentive Travel: Exceptional travel experiences to motivate or recognize superior performance.
1 2
Cf. Shinew (2005), page 12. Ibd. 3 Beier (2012), page 4.
3
Motivational Meetings: Encompass any perceived motivational element to include recreation, motivational
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1. INTRODUCTION Travel incentives enjoy widespread application in the organizational milieu. Huge companies as Mercedes-Benz, General Motors, Wells Fargo and Berkshire Hathaway use the motivational instrument since decades and they are still convinced about the success of implementing travel incentives.1
2. DEFINITION OF TRAVEL INCENTIVE Unlike other incentives, travel incentives have a ‘trophy value’ that implies that they provide long-lasting positive reinforcement, an element that adds to their motivational value. As the motivation industry has evolved over the last decades, a stringent line between travel incentives and other instruments cannot be drawn. The original idea behind incentive travels was to motivate sales managers within the company. Today, a broad range of activities and the integration of sales channels, customers and vendors are parts of the incentive travel planning process and its realisation.2 Nowadays, a definition of incentive travel can be found by bordering other motivational instruments as well. Two others that are mentioned in the literature as being related to travel incentives are ‘motivational meetings’ and ‘special events’. Seen as own markets in the motivational industry, the tree instruments can be defined as follows. However, travel incentives may involve parts of special events in practice.3
Incentive Travel: Exceptional travel experiences to motivate or recognize superior performance.
1 2
Cf. Shinew (2005), page 12. Ibd. 3 Beier (2012), page 4.
3
Motivational Meetings: Encompass any perceived motivational element to include recreation, motivational
Bibliography: Backes-Gellner, Uschi; Kerstin Pull (2008): Tournament Incentives and Contestant Heterogeneity: Empirical Evidence from the Organizational Practice. Zürich: Institute for Strategy and Business Economics, Working Paper No. 75, January 2008. Beier, Jörg (2012): Meeting- & EventBarometer 2012. At: EVVC europäischer Verband der Veranstaltungs-Centren e.V, http://www.evvc.org/de/engagement/M eetting-und-event-barometer/ (downloaded on 01.12.2012). Katusak, Frank J. (2010): The Market For Incentive Travel, Motivational Meetings and Special Events. New York: The Incentive Research Foundation, Executive White Paper 2010. Löffler, Thomas (2009): Incentives. At: DeGeFest, http://degefest wiki.de/degefestWiki/index.php5?title=Incentives (downloaded on 03.12.2012). Shinew, Kimberly J. (2005): Incentive travel: an attractive option. UrbanaChampaign: University of Illinois. 8