NEW YORK – July 14, 2010 -- Incentive industry professionals think they may be out of the woods as far as the economy’s negative impact on program planning, but acknowledge that doesn’t necessarily mean more corporate dollars will be freed up this year for rewards and recognition.
The Incentive Research Foundation (IRF) has released its Spring 2010 Pulse Survey results, showing a growing optimism in the industry. The IRF surveyed industry professionals during the month of April, asking them about incentive travel programs, merchandise/non-cash programs and ROI/budget considerations. The most promising data from the recent Pulse Survey show that respondents appear to be more optimistic about the current economic climate than they were in either the Summer or Fall of last year.
The Impact of the Economy
When asked what impact the economy will have on their ability to plan and implement incentive travel programs, 69% of respondents said it will have a “positive” impact, compared to 33% in the Fall of 2009 and only 24% last Summer.
What impact will the economy have on their ability to plan and implement merchandise/non-cash incentive programs, 41% indicated that it will have a positive impact, compared to only 26% last Fall and a mere 20% in the Summer of 2009.
The Reality of the Situation
While clearly feeling better about the economy, one-third of those surveyed did predict that budgets for incentive travel will decrease this year, while 37% say they’ll remain unchanged. Things were a little better on the merchandise/non-cash side, where only 22% expect a decline while 40% predict an increase and 37% say they see no change in budgets. Although the survey results show an uptick in optimism about the economy in general, it may not translate into more money for programs – at least not yet.
Other key issues and trends from the Spring 2010 IRF Pulse Survey include:
- Image issues remain: 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% to 64% between Fall 2008 and Spring 2010, making it the second most important influencer.
- Growth in individual travel: 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% see some movement from group to individual travel. A similar question found that 24% see movement from merchandise awards to individual travel, and 21% see more use of debit/gift cards.
- Increased involvement by procurement: While most respondents anticipate no change with regard to the involvement of Procurement/Purchasing departments in incentive travel programs, 44% agree that their involvement will increase by some degree. Similarly, 38% say Procurement/Purchasing’s involvement in merchandise/non-cash programs will increase in 2010.
- More Domestic Travel: Although nearly half of respondents (47%) felt there would be no change in the basic make-up of incentive travel programs in 2010, another 42% predict a shift from international to domestic destinations, and 47% say the average length of travel programs will decline.
For more information on the IRF and the Spring 2010 Pulse Survey results, please visit
www.TheIRF.org
About the IRF:
The Incentive Research Foundation (www.TheIRF.org) funds and promotes research to advance the science and enhance the awareness and appropriate application of motivation and incentives in business and industry globally. The goal is to increase the understanding, effective use and resultant benefits of incentives to businesses that currently use incentives and others interested in improved performance.
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