How a Tech-Savvy Generation Is Transforming Incentive Programs

 

Destination Concepts Inc. incentive at Empower Field at Mile High, Denver. Credit: Destination Concepts Inc.

Incentives have taken on another perspective lately, and thanks to social media apps like Instagram and LinkedIn from our industry connections, we’ve all had the chance to see it for ourselves. (Let’s be honest, social media hasn’t left us with anything else. )

As the call suggests, incentive trips are meant to motivate, and to effectively motivate someone, you have to make them need something. The purpose of incentive travel schemes remains the same; What it has replaced are the other people for whom those systems are designed, as well as what other people need.

According to the Incentive Research Foundation’s (IRF) 2024 Trends Report, 60% of those other people will be Millennials and Gen Z (roughly 16-44 years old) through 2025, as the workforce transitions to be ruled by younger generations. As more Gen Z workers become eligible for incentive programs, it becomes clearer what they’re looking for in terms of motivation.

“It’s a great opportunity for us that we’re seeing this shift in him and he’s moving toward younger people, and that’s his qualification, his involvement, his experience as a designer, his program designer; “If we take a look at some statistics, Gen Z is just a generation that has traveled a lot and is very experimental. They need to move to places, it doesn’t have to be a position that anybody’s ever been in, but if you need to take them to one of those glorious places that we all know – London, Paris, New York – they need to see it in a different way.

And they need their social media followers to know when they’re doing it.

“We’ve noticed that Gen Z loves to travel, but they love ‘Instagram-worthy’ moments,” said Richelle Suver, chief earnings officer at One10, a business consulting and event marketing firm. “Now it’s all social. If you can offer a photo-worthy moment to share on social media, that’s the ultimate marketing and “bragging rights” for incentive winners.

Destination Concepts Inc (DCi), a San Diego-based DMC, recently hosted one of the “Instagram-worthy” moments at Empower Field at Mile High in Denver for a motivational occasion for 900 people.

“Attendees had access to the box to take pictures as they were escorted through the Denver Broncos’ mascot, the Thunder,” said Regina Key, DCi’s senior director of marketing and artistic. “The NFL season had just ended and there was new snow. in the box. “

What do other “Instagram-worthy” incentive moments look like?According to Gen Z (and incentive industry experts), lies in off-the-beaten-path destinations, original local experiences, freedom of choice, and enough free time to make a show of your own.

[Related: Explore Changing Trends in Incentive Travel Destination Selection]

One of the trends that younger generations are establishing in today’s incentive systems is a growing preference for stopovers in new and exclusive destinations, and the effects of the IRF’s 2024 Trends Report verify this. More than 70% of respondents in the 2023 Incentive Travel Index (ITI) Report cited a strong willingness within organizations to use destinations that are new to their organization as a more sensible priority for the incentive program.

“Up-and-coming destinations and those beyond bustling urban centers are gaining traction. For example, in addition to Rome, there is a growing interest in places like Puglia, [Italy],” said Catherine Chaulet, president and CEO of Global DMC Partners. Similarly, smaller or lesser-known Greek islands are drawing attention to Athens. “

Shortly after the pandemic, when incentives began to slowly and steadily recede, incentive participants showed increased interest in visiting classic destinations they were somewhat familiar with, likely due to the sense of security those destinations offered.

“One thing we’re seeing now is a shift in the courage of some possible [destination] options,” Gregg said. “So in the first few years after the pandemic, some of the potential location options were a little bit safer, and others would come back after a few years. The planners wanted to be a little safer and maybe just stay closer to home or settle on a slightly more predictable position for the qualifiers, perhaps the one they had done in the past, because they wanted their qualifiers to feel comfortable.

“But now you see how much is changing. They’re looking for new destinations,” Gregg continued. “Most of our [ITI] respondents say, ‘Let’s go somewhere. ‘

While the most sensible destinations planners intend to use this year are the Caribbean, Mexico, and Western Europe, according to the IRF’s 2024 Trends Report, more remote destinations, such as destinations in the eastern U. S. , are more likely to be used by the Caribbean. U. S. countries such as Maine and Vermont are the most sensible on the list.

Social media and pop culture also influence Gen Z when it comes to choosing destinations.

“We’re seeing more and more anonymous destinations coming in, as Gen Z shifts to more off-the-beaten-path [destinations] thanks to the sheer number of exhibits and influencers,” Key said.

“In addition, destinations featured in popular streaming (i. e. , the white lotus effect) are generating a lot of interest from Gen Z travelers,” Chaulet said.

No matter where an incentive takes them, whether it’s in a gathering city like Las Vegas or San Diego, or an up-and-coming city (check out our new Takeoff column for Danielle LeBreck’s latest recommendation!), Gen Z loves to see what’s beneath the surface of a destination.

How can we take into account the local, genuine, original assets of a destination?Because it’s the new immersive, original experience that Gen Z wants,” Gregg said.

The results of ITI 2023 showed that cultural tourism reports are the most valued activity in an incentive travel program, and according to the IRF’s 2024 Trends Report, incorporating elements of local culture into incentive travel systems leaves a lasting effect on participants who stick to them. Go home.

“The strategy for discovering a destination has evolved from an outward attitude to a more empathetic and exploratory one, embracing the uniqueness of each position through private relationships,” Chaulet said. “Now participants must fully immerse themselves in a destination, actively contributing to local economies and reasons to make a tangible difference. “

These original local reports also don’t have to be sophisticated to appeal to Gen Z. Activities and tours don’t have to make the destination look bright and perfect; they’re just real.

[Related: Dear Ashley: 7 Ways to Immerse Attendees in Local Culture Before You Arrive]

Last year, SITE hosted its third European Incentive Summit in Ljubljana, Slovenia, and worked with the Slovenian Convention Bureau to curate local experiences, showcasing the destination’s culture in an original way while also offering an educational component.

Fredi Fontanot, director of the Slovenian Convention Bureau, said the team focused on sustainable, original and unique reports of the destination, opting for activities in other spaces that offered something special to participants.

“Younger generations are interested in things, but they all want to be connected through a common thread: authenticity,” Fontanot said. “They love genuine local stories, local food and drink. They love to interact with traditions and people. This focus on authenticity drives our strategy to create meaningful and memorable reports that resonate with our youngest participants.

This is the same thing that the Slovenian Convention Bureau took when it proposed activities and tours for participants at the SITE European Incentive Summit last year.

“The usual walking tours can be boring, so we’re going in another direction,” Fontanot said. “We organized a special walking tour of Ljubljana (our capital) with the homeless: Ljubljana through the eyes of the homeless. Who knows the streets? Any more than those other people whose stories about the city are surprising and moving?The experience made a strong impression and illustrated the visits in our usual tourist offer, giving back to the network and offering attractive systems for visitors.

You also don’t need to stay in an off-the-beaten-path destination like Ljubljana to offer original local delicacies. Popular meeting destinations like New York and Los Angeles have as much original local culture to offer as any other place. Sometimes, bringing back those original moments is as easy as reinventing a classic experience to take it to the next level.

“Instead of inviting your winners to a gourmet dinner in midtown Manhattan at an award-winning restaurant, [like] Daniel’s, buy the restaurant and allow them a personal introduction and tasting with chef Daniel Boulud, who may just probably do it. I can’t do it alone,” Suver said. Make what’s shown exclusive!Cultivating exclusive reports that you can’t reflect yourself is powerful.

“An incentive for Los Angeles would possibly come with a stay at a posh Beverly Hills hotel, but Gen Z needs to revel in art and culture beyond the hotel grounds with a visit to downtown L. A. ‘s thriving culinary scene,” Key said. It’s about giving qualified applicants a real treat to make them feel less touristy and more local. “

[Related: Dear Ashley: Creating Opportunities for Local Communities to Participate in Destination Events]

Candidates for today’s incentive systems also need to know how they spend their time.

“Gone are the days of bus tours where everyone was engaged in the same activity,” Chaulet said, noting that younger generations put a higher price on committed downtime and customized reports that allow them to take ownership of an incentive program.

“As far as things that are disappearing, I would say that the occasions are structured from morning to night,” Suver said. “This trend is giving way to more free time and selection activities for participants/winners and is partly due to changing demographics. Unlike past generations, today’s winners like to have a lot of free time.

With this in mind, incentive planners have created more flexible programs. They give players more time to relax, and instead of all players engaging in the same activity, they give them features to choose from.

Allison Cooper, senior vice president of event reporting at Osaic (one of the nation’s largest wealth control providers), said personalization and freedom of choice are two things her team prioritizes when crafting incentive programs.

“One of the things we do is ‘Choose Your Trip,'” Cooper said. “Other people may need to sit on the beach and have a cocktail. Some may need to zipline or go shopping. For our incentive this year to [Hotel Xcaret Mexico], which is in the Riviera Maya, the hotel has parks on-site, and each park offers a different type of experience. A park is synonymous with thrills, ziplining, rock climbing, and everything in between, and then there’s one that’s more family-friendly. It actually aligns with what we’re looking to accomplish with our incentive program this year by offering features for our participants.

“Planners want to prioritize variety when devising systems for young professionals — keeping all participants in mind and providing a diversity of reports that show the destination to participants,” Key said. ” Personalization is the key to rewarding qualified young people!”

Read more about Meetings Today incentives.

Taylor Smith joined Stamats in May 2022 as a content, destination, and feature developer for Meetings Today. Smith has reveled in everything from breaking news, and graduated from Ball State University with a bachelor’s degree in news and magazine journalism. She wrote for St. Louis Magazine and worked as an editorial assistant and trainee to Aubree Nichols, who has published in leading publications such as The New York Times, ELLE, and The Los Angeles Times.

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