Budgets for incentive trips designed to reward employees, sales teams, or business partners are growing, but higher spending is not making destination selection any easier. Safety, political developments, and air connectivity are playing a greater role in organizer decisions. Prepared by the Incentive Research Foundation and SITE in collaboration with Oxford Economics, the 2026 Incentive Travel Index reflects the views of around 2,100 industry professionals worldwide. More than 60 percent of respondents say geopolitical instability is already affecting the destinations they use, while average per-person spending has increased by around 8 percent compared with last year.
This points to a different phase for incentive travel. Companies are not abandoning these programs and are allocating more budget per participant, but destination decisions are no longer based only on hotel quality, gastronomy, activities, or distinctive experiences. Whether participants feel safe, how easily they can reach the destination, and how vulnerable the program may be to political or operational disruption are also becoming part of the decision-making process.
According to the research, incentive travel activity is expected to remain largely stable in 2027. Sixty-two percent of respondents expect activity next year to remain at roughly the same level as in 2026, while around 26 percent anticipate growth. Rather than a shrinking market, the emerging picture is one of trips taking place in more carefully selected destinations and under more detailed risk assessment.
Geopolitical Risk Is Reshaping Destination Shortlists
At the heart of incentive travel is the idea of offering participants an experience that feels different from an ordinary business trip and genuinely rewarding. But no matter how strong a destination’s offering may be, perceptions of safety or political uncertainty can outweigh its appeal. More than 60 percent of industry professionals surveyed say geopolitical developments have already led to changes in the destinations they use, showing that risk is no longer a theoretical concern.
Among U.S. buyers in particular, personal safety is one of the main reasons a destination may be removed from consideration. Fifty-three percent cite personal safety, 42 percent difficult air access, and 31 percent geopolitical conditions as reasons for eliminating a destination. This is also changing competition in the incentive travel market. A strong resort, an appealing program, or competitive pricing may no longer be enough. Organizers are also assessing the safety and operational risks involved in moving hundreds of participants to the same destination.
Air Access Is Becoming a Bigger Challenge
The second issue gaining importance in destination selection is air connectivity. Forty percent of U.S. incentive travel buyers identify access to sufficient flight and airline capacity as a short-term concern. In the previous study, that figure stood at just 12 percent. The sharp increase shows that accessibility is becoming increasingly critical in incentive travel. Connecting flights, limited seat capacity, or high airfares can complicate a program regardless of how attractive the destination itself may be.
The challenge becomes even greater for large groups. Securing seats for hundreds of people on the same dates, coordinating participants traveling from different cities, and managing potential schedule changes all become significant parts of the operation. As a result, destinations are now competing not only through new hotels or event venues, but also through the diversity and capacity of their air connections.
Per-Person Spending Continues to Rise
The fact that companies are not pulling back from incentive travel despite higher risks is also visible in spending data. The roughly 8 percent increase in average per-person spending suggests that companies are maintaining their commitment to these programs. However, higher budgets do not mean programs are expanding without limits.
Rising accommodation, airfare, food and beverage, and experience costs can absorb a significant share of the additional budget. As a result, organizers are becoming more selective about which elements of a program create real value for participants. Luxury no longer means simply choosing a more expensive hotel or restaurant. Exclusive access, small-group experiences, deeper connections with local culture, and activities that are difficult to purchase independently are gaining greater importance in incentive programs.
Artificial Intelligence Enters Destination Research
The way destinations are researched is also changing. Around 80 percent of U.S. buyers say they are already using artificial intelligence for destination research or plan to do so. This means destinations now need to be visible not only in direct organizer searches, but also in recommendation lists generated by AI systems.
This shift is creating a new area of digital competition for tourism organizations and hotels. Providing current and easily accessible information on transportation, safety, accommodation capacity, event options, and group facilities is becoming more important. A destination may have a strong incentive travel product, but that alone may not be enough if the relevant information does not appear accurately during the research process.
