5 Ways Planners Are Rethinking Incentives

The incentive industry sits at a critical juncture — a period of significant geopolitical and economic turbulence — and its effects are just beginning to make their mark on programs.

A new report by Skift Meetings, 'Rethinking Rewards,' reveals the many ways incentive travel is evolving as a result of U.S. government policies, rising costs, tech developments, and shifting demographics.

Following are five areas of change:

1. Traditional Incentives are Evolving

The incentive travel model that prizes inaccessibility — a level of luxury and exclusivity that you can’t create on your own — is changing with the ability of individuals to create one-of-a-kind experiences on their own. Instagram feeds are lined with individual travelers having the same exact experiences that were once the purview of incentive groups.  

Traditional incentives used to be the norm, but not any more, said Padraic Gilligan, co-founder of SoolNua and an industry thought leader with more than 30 years of global experience.

A good indicator of the direction of the incentive market is the leisure market, said Gilligan. “Today’s leisure traveler becomes tomorrow’s incentive qualifier. The same mid-level executive who chooses Rabat over Raleigh for her personal break will soon be weighing up a company reward trip. The same European Millennial who skips Vegas for Valencia on ethical grounds will bring that sensibility to the group travel decision-making table. In other words, the patterns are predictable. But more than that, they’re actionable.”

2. Layered, Local Experiences Are In

There’s a growing movement in incentive travel design toward meaningful, personalized experiences tailored toward the individual winners. Incentive travel is also no longer defined by extravagance — it’s defined by intentionality.

The incentive industry’s answer is ‘layered experiences,’ those which extend beyond a single wow moment to create ‘layers of surprise + delight.’

No longer does a tour of a popular museum or other local attraction suffice when it comes to cultural immersion. Now they want to meet the maker, and perhaps even try their hand at creating.

“Incentive travel is absolutely still rooted in the idea of providing something irreplicable, but the currency of exclusivity has changed,” said Michelle Orlando, founder and chief event officer, Elevoque.

3. The Next Gen is Making Its Mark

According to the U.S. Department of Labor, Millennials make up the largest share of the labor force (36%), with Gen Z workers making up almost a fifth (18%). This is causing planners to rethink every aspect of program planning.

While former generations of winners viewed the annual incentive trip as a chance to get away from home, families are part of an increasing number of trips today.  But whether they bring their children or not, younger incentive winners want more choice as to how they spend their time.   

“The younger generation is behaving based on their personal values,” said Greg Bogue, chief experience architect at Maritz. “It’s not just about designing the reward, it’s about designing the whole program. I think that in announcing the program, capturing the attention, and during the qualification period, there’s a lot of opportunity to activate individual values and individual purpose.”

4. Budgets are Stretched to the Max

Cost increases as a result of tariffs are hitting event budgets hard at a time when planners have already been navigating rising costs due to inflation.

Skift Meetings’ 2025 survey of 103 meeting professionals found that rising costs are plaguing the vast majority of planners: When asked about the main concerns impacting their jobs right now, 90% said potential cost increases and 66% said potential recession. A full 82% said they expect event costs to increase in 2025–2026 because of the tariffs.

Planners are finding ways to increase the perceived value of the incentive experience without increasing hard costs, by focusing on things like access and status. Offering attendees priority seating at an event, first access to redeem their reward, or a meet-and-greet with a musician or entertainer can add value to the experience at little or no cost.

5. AI is Making an Impact

In recent Incentive Research Foundation (IRF) research, 63% of respondents said they either use AI or that they plan to use it to support incentive travel planning. Two IRF studies explore the topic: AI, Uses and Possibilities for Incentives Professionals and The AI Revolution: A Technical Review of AI Capabilities for Corporate Events, Rewards & Incentives.

For many incentive planners, the reports say, AI offers the opportunity to tap into efficiency, allowing their teams to focus on more strategic tasks. For others, it is seen as a shortcut for tasks that are not their core competency. 

Most incentive professionals are using ChatGPT or a similar generative AI tool for program communications, brainstorming themes, and writing session descriptions. More sophisticated users are turning to AI to analyze employee engagement and performance data, which can be used to create personalized incentive programs tailored to specific demographics, behaviors, and preferences.

Incentive industry leaders are cautiously optimistic about the possibilities created by AI. “AI is designed to enhance, never to replace,” said Stephanie Harris, IRF president.