Global Incentive Travel Market Drivers 2024, Forecast To 2033

10 Oct, 2024

The incentive travel market size has shown rapid growth in recent years, projected to rise from $45.47 billion in 2023 to $52.65 billion in 2024, at a compound annual growth rate (CAGR) of 15.8%. This growth in the historic period can be attributed to the increase in international business operations, a growing emphasis on employee recognition, the expansion of the hospitality and tourism sectors, advancements in air travel and infrastructure, and a heightened awareness of sustainable and eco-friendly travel options. The market is expected to continue its upward trajectory, reaching $95.11 billion in 2028, with a CAGR of 15.9%. The anticipated growth in the forecast period can be linked to an increased focus on employee engagement, the trend of remote work, the ability to provide personalized travel experiences, a shift towards experiential rewards, and a preference among employees for experiences over material goods. Key trends to watch include the use of technology for seamless planning, emphasis on unique cultural experiences, integration of corporate social responsibility, popularity of business and leisure travel, and collaboration with local businesses and communities.

Major Driver In The Incentive Travel Market

The hectic lifestyles of employees in various industries are likely to fuel the growth of the incentive travel market in the near future. Work-related stress is on the rise due to increased workloads and the relentless demands of modern life, making it challenging for employees to balance their work and personal commitments. Companies often employ incentive travel as a reward for hard work, providing employees with much-needed relaxation and motivation. For instance, a labor force survey by Statistics Canada in June 2023 indicated that approximately 4.1 million individuals, or 21.2% of the employed population, reported experiencing high or very high levels of work-related stress, with heavy workloads impacting 23.7% of employees and work-life balance issues affecting 15.7%. Women were found to experience high stress levels more frequently at 22.7% compared to 19.7% for men. As a result, the demanding lifestyles of employees are expected to drive the incentive travel market, projected to reach $3.1 billion in 2023, $3.7 billion in 2024, and $4.8 billion by 2028.

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Incentive Travel Market Competitive Landscape

Major companies operating in the incentive travel market are Booking Holdings Inc., Expedia Group Inc., Interpublic Group (IPG), Carlson Wagonlit Travel (CWT), BCD Group, The Freeman Company, ATPI Ltd., Maritz Holdings Inc., BI Worldwide, Cvent Inc., Direct Travel Inc., Travel Leaders Group, ITA Group Inc., One10 LLC, Omega World Travel, Creative Group Inc., Adelman Travel Group, Travel Edge, Meetings And Incentives Worldwide Inc., Access Destination Services, Frosch International Travel, Conference Care Ltd., CSI DMC, ATG Travel Worldwide

Key Incentive Travel Market Trend

Major companies in the incentive travel market are concentrating on developing innovative solutions such as travel mobile applications to enhance the travel experience for both travel agents and their clients. Travel mobile applications are software programs designed for smartphones and tablets that assist users in planning, booking, and managing travel arrangements, including flights, accommodations, and local activities. For example, in March 2024, TravClan, an India-based business-to-business travel tech startup, launched the OnTrip mobile app. This app provides personalized travel concierge services, real-time updates, 24/7 support, and brand customization options for travel agencies. This technological advancement enhances customer engagement, differentiates the market, and allows for global scaling, significantly impacting incentive travel by improving service delivery and operational efficiency.

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Global Incentive Travel Market Segmentation

The incentive travel market covered in this report is segmented –
1) By Source: Domestic, International
2) By End User: Individuals, Corporate Institutions, Other End Users
3) By Industry Type: Healthcare, Banking And Finance, Manufacturing, Information Technology, Retail, Hospitality, Other Industry Types
By Geography:The regions covered in the incentive travel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain. Europe was the largest region in the incentive travel market in 2023.

The Incentive Travel Global Market Report 2024 furnishes information about the global incentive travel market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.