The Incentive Research Foundation (IRF) and the Society for Incentive Travel Excellence (SITE) have unveiled the 2025 Incentive Travel Index (ITI) at IMEX America, presenting a global analysis of incentive travel trends and challenges.
Produced with Oxford Economics, the eighth edition compiles insights from 2,700 professionals across 85 countries and forecasts modest industry growth through 2027 amid rising costs, geopolitical uncertainty, and slower optimism.
The 2025 report highlights that while the value of incentive travel remains recognized, industry sentiment is weakening due to global instability, trade tensions, and rapid technological change. The findings show that participant volumes in incentive travel programs are expected to remain flat through 2026, with emerging trends shaped by AI integration, regional consolidation, and shifting generational preferences.
AI, Risk, and Economic Pressures Define the 2025 Landscape
The ITI identifies several powerful forces reshaping incentive travel in 2025, including artificial intelligence, demographic change, and risk management. Companies are increasingly using AI to design and manage programs, while geopolitical and economic uncertainty has prompted many organizations to focus on regional rather than long-haul destinations. Demand for U.S. destinations, once dominant in incentive programs, is in sharp decline as companies diversify their travel portfolios and seek greater cost efficiency.
Despite economic challenges, 75% of respondents agree that the business impact of incentive travel remains strong. However, many industry professionals say maintaining quality experiences is increasingly difficult under tighter budgets and higher expectations. “While 75% of respondents agree that the value of incentive travel remains strong, they also say the business gets tougher every year,” said Stephanie Harris, IRF President. “Incentive professionals are under pressure to deliver more with less – without compromising quality or impact.”
The ITI’s findings indicate that incentive travel remains a vital business tool for motivation and recognition, but program structures are evolving. Companies are seeking shorter, more flexible itineraries, improved ROI measurement, and greater alignment with corporate sustainability goals. AI-driven personalization and predictive analytics are emerging as strategic tools to enhance participant engagement and optimize budgets.
New Destinations, Local Focus, and Changing Priorities
According to SITE, buyer behavior is also shifting toward novelty and accessibility. “Buyers continue to seek out something new,” said Annette Gregg, SITE CEO. “Nearly 70% are seeking destinations they haven’t used before – and 63% already have new ones booked for 2026 or 2027. What hasn’t changed is what matters: direct air access, top-tier accommodations, and a trusted DMC remain top priorities.”
The ITI notes that Asia, the Middle East, and Latin America are seeing increased incentive activity, as regional travel becomes more attractive and budget-conscious companies look for emerging markets that offer value and innovation. Europe continues to perform steadily, supported by well-developed infrastructure and accessibility between major cities.
Generational dynamics are also influencing incentive travel planning. Younger workforces prioritize experiences that align with personal values, social impact, and wellness. This is prompting program designers to move beyond luxury toward authentic, purpose-driven travel experiences that reflect the interests of a new generation of earners and achievers.
Regionalization trends are particularly strong in response to global disruptions, with many organizations limiting long-haul incentives due to cost, carbon impact, and travel complexity. The report finds that companies increasingly balance recognition objectives with sustainability and risk management considerations, resulting in localized, experience-led programs.
Industry Response and Forward Outlook
The report’s launch at IMEX America drew a standing-room-only audience, signaling high interest from global industry leaders. The session was moderated by Andy Schwarz of the IRF and Pádraic Gilligan of SITE, with live commentary from Genny Castleberry of Brightspot, Anesa Martin of Hilton, and Justin Myers of Bishop-McCann. Panelists discussed how economic headwinds, evolving workforce dynamics, and technological innovation are forcing incentive travel professionals to adapt in real time.
Oxford Economics’ data-driven analysis reinforces the ITI’s role as a benchmark for business travel and motivation strategies worldwide. The study underscores how organizations continue to view incentive travel as a proven driver of employee performance and loyalty, even as the industry contends with new operational realities.
The ITI projects moderate growth through 2027, tempered by inflation, security concerns, and cautious corporate spending. Yet, experts suggest that innovation in program design and destination diversity may help offset these pressures. As artificial intelligence becomes more integrated into travel planning, data-driven customization and predictive modeling could reshape how incentive experiences are curated and delivered.
Since its inception, the Incentive Travel Index has tracked global business travel sentiment, serving as a strategic guide for planners, buyers, and suppliers. The 2025 edition continues that mission, providing an evidence-based perspective on how incentive travel is evolving amid technological disruption, demographic transformation, and persistent global uncertainty.
