Incentive Tourism Market Outlook (2023 to 2033)

The incentive tourism market is anticipated to flourish at an average CAGR of 5.8% between 2023 and 2033. The market is expected to hold a market share of USD 13.69 billion by 2033 while the market is likely to reach a value of USD 7.79 billion in 2023.

A conscious effort by companies to keep deserving employees motivated by providing them with different incentives and many other factors is expected to drive the demand for global incentive tourism.

Moreover, Incentive tourism programs have been used by companies as a noncash reward to their employees and external partners for achieving key business objectives. It is one of the key contributors to the MICE (Meetings, Incentives, Conferences, and Events) sector.

Incentive tourism emphasizes fun, food, and other entertainment activities. The leading companies are offering incentive tourism programs as noncash compensation. Such investments are being made by the companies for their employees, which are expected to surge the demand for global incentive tourism.

Running a successful business involves a lot of variables, and keeping the team spirit high is one of them. Also, setting enterprise goals, individual goals, and target anniversaries go hand-in-hand with keeping the team motivated and consistent for success. Global incentive travel offers a great way to thank the employees for what they do and celebrate their success together.

Incentive tourism is perfect for corporate groups, distributor meetings, board-level events, or individual prizes. It can be used for any reason and can be scaled to fit both large and small groups when needed.

Moreover, several cruise line companies offer a wide range of exciting itineraries all over the world that are ideal options for companies who want to offer a high-value, luxurious award to deserving employees. This is anticipated to increase the demand for global incentive tourism.

The stats are of the view that the global incentive tourism market forms a considerable chunk of the global tourism market. Total sales of the global incentive tourism market are around 5.5% of the global tourism market.

Attribute Details
Incentive Tourism Market CAGR (2023 to 2033) 5.8%
Incentive Tourism Market Size (2023) USD 7.79 billion
Incentive Tourism Market Size (2033) USD 13.69 billion

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What are the Key Drivers of the Global Incentive Tourism Market?

  • Motivation for the Employees: Incentive tourism is a healthy and positive concept that motivates employees to perform even better. Corporations are spending more on the welfare of their employees.
  • Rejuvenation for the Employees: Wellness travel implies that the traveler might experience physical and mental rejuvenation by the end of the tour. This has increased the popularity of the incentive tourism sector.

Some of the physical and mental activities like exercises, yoga, rock climbing, swimming, and so on, give the employees a growing sense of respect toward the organization that is striving for its employees’ good health. All these are expected to increase the demand for global incentive tourism.

Fine Ways for the Companies to Achieve the Target: Companies are looking for ways to expand their businesses within legal boundaries so that they can serve the welfare of society at large. To achieve profits, employee performance is the effective cog in the wheel. There can hardly be a better way than to organize company-sponsored trips for deserving employees.

Travels are Social, and Hassle-free: Incentive travels are one of the best ways to socialize and know people belonging to different communities. For socially active employees, this is a great way to explore the place and culture, and in the future. They might return as potential tourists. This might increase the demand for global incentive tourism.

Power of Word of Mouth: If an employee has an excellent experience during incentive tourism, he might be spreading the news across his circle. In that circle, there are chances that someone might be interested in hosting something of a similar kind for any employee working in his organization. Because of word of mouth, he might well book the tickets for the employee.

What are the Challenges faced by the Global Incentive Tourism Market?

  • High Cost to be Borne by the Companies: In many cases, the companies might have to bear undesirable additional charges because of certain services adopted by the employees. This might hamper the budgets of the company.
  • Experience not up to the Mark: An unsatisfied experience during the travel can spoil the mood of the employee, because of which the intention of hosting the trip itself is not fulfilled. This is expected to hamper the adoption of global incentive tourism.
  • Can’t be Afforded by all Organizations: It is important to note that not all organizations can afford to sponsor such trips for their employees. Big organizations can sponsor such incentive travels. However, small-sized or mid-sized organizations cannot spend much on their employees and sometimes they might find it difficult to conduct such programs as well.
Sudip Saha
Sudip Saha

Principal Consultant

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What are the Recent Trends in the Global Incentive Tourism Market?

In the current times, the global incentive tourism market is implementing sophisticated technologies to run their business. Technology has empowered tourists as well as travel agencies.

The tourists make use of apps like Compass app, currency convertor apps, world time apps, etc. Moreover, travel agencies are investing in creating quality apps for their business. They are also investing in external apps which can connect them with tourists who are on the go.

Country-wise Insights

North America

Surrounded by oceans on all sides, North America is the leading market in the global incentive tourism market. The continent is meant for offering everything that travels lovers seek.

From majestic forests to heaving fields, and bright metropolises, the region has got everything to offer for the best-performing employees. This coupled with the beaches, the cuisine, and the high plain deserts ensures the fact that tourists get to experience this amazing location to their fullest.

Europe

Offering a perfect combination of sunshine, scenery, architecture, and beaches, Europe offers everything that a tourist looks out for. Europe is believed to be one of the popular tourist destinations.

Well-developed infrastructure and compact geography make traveling easy as well as memorable in Europe. The region is especially meant for its history, heritage, and distinct culture. Moreover, the presence of some of the famous landmarks across the region makes Europe a hot favorite.

Asia Pacific

Being home to some of the old cultures, Asia Pacific is believed to be one of the most preferred tourist destinations. Moreover, the region is meant for its glorious architecture. Apart from that, the region is also meant for its spicy and diverse cuisine.

The diverse culture spread across the region, coupled with a wide range of climatic conditions across the region makes it a perfect destination for travel lovers. Also, the warm attitude that people possess in this region is something that makes it one of the most preferred tourist destinations

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Category Analysis

Category By Consumer Orientation
Leading Segment Men
Market Share% (2022) 55%
Category By Tourist Type
Leading Segment Package Traveler
Market Share% (2022) 30%

Which Age Group has the High Market Share in the Global Incentive Tourism Market?

The Age Group of 26 to 35 has the High Chunk of the Market Share

People in the age group of 26 to 35 are more likely to travel as they generally get attracted to new locations and are ready to travel and explore places. Additionally, they are willing to explore adventure-based activities like scuba diving, water rafting, kayaking, surfing, etc.

Moreover, people of this age group are the ones who have sufficient knowledge of what is happening around them and know how to make the right use of the existing technology.

Based on the Tourist Type, which Segment has the Highest Market Share in the Global Incentive Tourism Market?

Package Travel is mostly Preferred by Consumers.

Package travel is mostly chosen by tourists because it is cheap than traveling individually. Package travel includes expenses of accommodation, transportation, and sight entrance fee, along with heavy discounts and offers. Moreover, the agencies which provide package travel are aware of the places which are tourist attractions.

The segment held a market share of 30% in 2022. Therefore, booking a ticket through package travel-based agencies might ensure that a lot of time is saved. Because of so many benefits offered by the package traveler, a stress-free journey is ensured for the traveler. This is something that might as well drive the global incentive tourism market future trends.

Which Tour Type is Preferred the Most in the Global Incentive Tourism Market?

Most Companies are sending their Best-performing Employees on International Tours.

The companies usually send the best-performing employees to international locations. The reason being there are several beautiful places in overseas locations, and these are very unique. There is a high chance that places like these couldn’t have been explored by the employees.

The culture associated with these places is quite intriguing, which makes the international destinations worth visiting. Apart from the culture and ambiance, even the cuisine served is something which the tourists look forward to. Owing to the growing popularity of international destinations for deserving employees, there might be a positive impact on the global incentive tourism market trends.

Which is the Most Popular Type of Global Incentive Tourism?

Eco-tourism is the Popular type of Tourism in the Global Incentive Tourism Market.

Dealing with laptops, phones and other kinds of electronic devices is almost a way of life for all employees. When the best-performing employees are sent for eco-tourism, they get to experience the much-needed detox from electronic devices. In eco-tourism, the tourist remains connected with nature, which is believed to be the ultimate form of rejuvenation.

Being continuously exposed to the modern lifestyle is something which is further surging the demand for eco-tourism. Therefore, the growing popularity of eco-tourism is expected to surge the global incentive tourism market share in the coming times.

Based on the Consumer Orientation, which is the Popular Segment of the Global Incentive Tourism Market?

Currently, Men have the Maximum Market Share in this Segment.

There has been increasing participation of women in the workplace. Since the last two to three years, there have been increasing instances of women getting the award for best-performing employees. This is mainly because of the increase in awareness among women regarding many things.

In the current times, women are bold enough to face any kind of situation. If the trend continues, there might be changes in the statistics after a few years, wherein we might see women dominating this segment.

Start-up Ecosystem of Global Incentive Tourism Market

The start-ups in the global incentive tourism market are working in tandem with various organizations to offer their employees an experience like never before. For this, they are on a mission to prepare the best possible packages to offer huge benefits.

  • Ithaka: Ithaka was started in 2015. It was launched as an in-destination experience booking website. Currently, it is a chat-based travel planning app that covers extensive destinations. The Ithaka app is available as well.
  • Guiddoo: Guiddoo was founded in 2014. The start-up guides its users in all aspects of traveling. From telling the opening time of a particular destination to mentioning the precautions related to a place, it covers all the essential aspects. Features such as an audio-visual guide and free concierge are provided by Guiddoo.

Some of the other start-ups in this market are Pickyourtail, Travel Triangle, goMowgli, and Nearify.

Competitive Landscape

Leading players operating globally in the market are focusing on expansion and new tour launches to expand their business globally. Moreover, these players are also involved in tie-ups with some of the leading firms, which provide incentives to their employees in the form of arranging tourism programs for them.

Recent Developments:

  • On 14th August 2020, 360 Destination Group launched the Just the facts hotel and Attraction re-opening tracker. The re-opening tracker includes current information on each destination’s re-opening phase and risk level. In addition, detailed information regarding hotel and attraction re-opening dates.
  • On 12th July 2022, Carlson Wagonlit Travel launched car rental and train booking capabilities on myCWT mobile and web channels.
  • On 26th July 2022, BCD Group named Michele Lawley as the president of the Europe region and Mike Walley joined the Boron board.

Key Players Profiled in the Global Market

  • 360 DESTINATION GROUP
  • ACCESS DESTINATION SERVICES
  • BCD GROUP
  • CARLSON WAGONLIT TRAVEL
  • CONFERENCE CARE LTD.
  • MEETINGS & INCENTIVES WORLDWIDE INC.
  • ITA GROUP
  • ATPI LTD

Key Segments Covered

By Type:

  • Eco-Tourism
  • Adventure Tourism
  • Beach Tourism
  • Cultural Tourism
  • Wildlife Tourism

By Tour Type:

  • Domestic
  • International

By Tourist Type:

  • Independent Traveler
  • Tour Group
  • Package Traveler

By Booking Channel:

  • Phone Booking
  • Online Booking
  • In-Person Booking

By Consumer Orientation:

  • Men
  • Women

By Age Group:

  • 26 to 35 Years
  • 36 to 45 Years
  • 46 to 55 Years

Key Regions Covered:

  • North America
    • The United States
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • The United Kingdom
    • France
    • Spain
    • Russia
    • Rest of Europe
  • Japan
  • Asia Pacific Excluding Japan
    • China
    • India
    • Malaysia
    • Singapore
    • Australia
    • Rest of Asia Pacific Excluding Japan (APEJ)
  • Middle East and Africa
    • GCC Countries
    • Israel
    • South Africa
    • The Middle East and Africa (MEA)

Frequently Asked Questions

What was the Global Market Size Reported by FMI for 2022?

The market held a value of USD 7.27 billion in 2022.

What is the Incentive Tourism Market Estimated to Reach in 2023?

The market holds a value of USD 7.79 billion in 2023.

What is the Market Valuation Expected for 2033?

The market is anticipated to hold a share of USD 13.69 billion by 2033.

What is the Projected CAGR for the Market from 2023 to 2033?

The market is expected to have a CAGR of 5.8% by 2033.

What Segment Leads the Market by Consumer Orientation Type?

The men segment leads the market as it held a market share of 55% in 2022.

What Segment Leads the Market by Tourist Type?

The package traveler segment leads the market as it held a market share of 30% in 2022.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
    • 5.1. Eco-Tourism
    • 5.2. Adventure Tourism
    • 5.3. Beach Tourism
    • 5.4. Cultural Tourism
    • 5.5. Wildlife Tourism
  • 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tour Type
    • 6.1. Domestic
    • 6.2. International
  • 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tourist Type
    • 7.1. Independent Traveler
    • 7.2. Tour Group
    • 7.3. Package Traveler
  • 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Booking Channel
    • 8.1. Phone Booking
    • 8.2. Online Booking
    • 8.3. In-Person Booking
  • 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Consumer Orientation
    • 9.1. Men
    • 9.2. Women
  • 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Age Group
    • 10.1. 26 to 35 Years
    • 10.2. 36 to 45 Years
    • 10.3. 46 to 55 Years
  • 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 11.1. North America
    • 11.2. Latin America
    • 11.3. Western Europe
    • 11.4. Eastern Europe
    • 11.5. South Asia and Pacific
    • 11.6. East Asia
    • 11.7. Middle East and Africa
  • 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 16. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 17. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 18. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 19. Key Countries Market Analysis
  • 20. Market Structure Analysis
  • 21. Competition Analysis
    • 21.1. 360 DESTINATION GROUP
    • 21.2. ACCESS DESTINATION SERVICES
    • 21.3. BCD GROUP
    • 21.4. CARLSON WAGONLIT TRAVEL
    • 21.5. CONFERENCE CARE LTD.
    • 21.6. MEETINGS & INCENTIVES WORLDWIDE INC.
    • 21.7. ITA GROUP
    • 21.8. ATPI LTD
    • 21.9. Adelman Travel
    • 21.10. Fareportal
    • 21.11. MARITZ
  • 22. Assumptions & Acronyms Used
  • 23. Research Methodology
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