Studies confirm that business performance can be positively impacted through the use of travel incentive reward programs. Research also shows that non-cash rewards are stronger motivators than cash and are an essential element of best-in-class incentive strategies.
The effectiveness of travel is driven by its higher perceived value over cash. Travelling is an energising experience that creates life-long memories. The majority of people would never prioritise spending money on a remarkable trip over paying off the mortgage. Most would also balk at disclosing the details of a cash bonus they used to pay off their bills. Yet everyone would feel proud to flaunt their photos of a once-in-a-lifetime travel experience, especially on social media.
The intangible value of travel experiences simply can’t be matched by other types of incentives. They are incredibly effective at boosting your brand’s feel-good factor, and the recipients’ sense of loyalty and appreciation connects them to your business in a way cash never could.
Here’s a taste of what other industry leaders are saying about the effectiveness of travel as an incentive:
- A recent study showed that 77% of channel and sales reps were more likely to sell a manufacturer’s product if offered an incentive to do so. However, the study also found that a staggering 94% of those sales members preferred non-cash incentives be included in their compensation (Source: Maritz Motivation Solutions)
- In another study, 86.3% of survey respondents stated that earning motivational travel makes them feel recognised by their company and peers. (Source: ITC)
Jay Cassano sums it up nicely in his article The Science Of Why You Should Spend Your Money On Experiences, Not Things. “It’s counterintuitive that something like a physical object that you can keep for a long time doesn’t keep you as happy as long as a once-and-done experience does. Ironically, the fact that a material thing is ever present works against it, making it easier to adapt to. It fades into the background and becomes part of the new normal. But while the happiness from material purchases diminishes over time, experiences become an ingrained part of our identity”.