New IRF Pulse Survey Shows Optimism but Sensitivity to Extravagance Remains

In April, the IRF asked 89 top industry professionals about incentive travel programs, merchandise/non-cash programs, and ROI/budget considerations. The most promising data show that respondents appear to be more optimistic about the current economic climate than they were in either the summer or fall of 2009. However, this widely-felt optimism may not translate into larger budgets for incentive programs – at least not yet.

Key “influencers” on incentive program design, implementation and product selection that peaked in the fall of 2008 have stabilized in 2 out of 3 areas (corporate financial forecasts and competitors’ reactions to programs). But sensitivity to program extravagance remains high, having risen from 45 percent to 64 percent between fall 2008 and spring 2010, making it the second most important influencer.   

When asked what impact the economy will have on their ability to plan and implement incentive travel programs, 69 percent of respondents said it will have a “positive” impact, compared to 33 percent in the fall of 2009 and only 24 percent last summer. However, one-third of those surveyed predicted that budgets for incentive travel will decrease this year, while 37 percent say they’ll remain unchanged. 

Respondents were asked if they anticipate their award strategy to include more individual travel and fewer group trips, either temporarily or permanently. Although two-thirds predict no change in policy, 29 percent see some movement from group to individual travel. Although nearly half of respondents (47 percent) felt there would be no change in the basic make-up of incentive travel programs in 2010, another 42 percent predict a shift from international to domestic destinations, and  47 percent say the average length of travel programs will decline.

While most respondents anticipate no change with regard to the involvement of procurement/purchasing departments in incentive travel programs, 44 percent agree that their involvement will increase by some degree.


As far as the impact the economy will have on their ability to plan and implement merchandise/non-cash incentive programs, 41 percent of respondents indicated that it will have a positive impact, compared to only 26 percent last fall and a mere 20 percent in the summer of 2009. As far as budgets are concerned, only 22 percent expect a decline while 40 percent predict an increase and 37 percent say they see no change in budgets. 

24 percent of respondents see movement from merchandise awards to individual travel, and 21 percent see more use of debit/gift cards.

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