Taking a Look at the ROI of Incentive Travel

One reason for businesses to invest in employee travel incentives is to increase employee motivation. When there's an individual incentive to ride on a cruise or visit a beach, employees will work harder to earn the reward. Seen from this perspective, travel incentives increase business productivity and employee loyalty. Another reason why businesses should be keen to invest in travel incentives is the impact it has on their bottom line. Travel incentives have a favorable ROI and are a good long-term investment for businesses looking to increase employee loyalty. According to a report titled “The Return on Investment of U.S. Business Travel prepared by Oxford Economics USA, incentive travel yields an ROI of more than $4:$1. This figure shows that the investment is worthwhile and profitable for businesses. The report continued to describe the benefits of travel incentives. According to the report, businesses should be cautious before cutting back on travel expenses because it may have a negative impact on their bottom line:

“This has critical implications for business leaders facing decisions about their investment in business travel. As with any cost, there are likely savings to be realized through more careful allocations of business travel. However, the evidence points to substantial risks associated with cutbacks in this particular area. And companies that continue to invest in travel, experience returns that more than warrant the investment.”

Because the ROI of travel incentives is positive, cutting down on the investment could actually cost business money. It's a short-term savings exchanged for long-term cuts in profit. There are multiple ways to look at employee travel incentives. Some businesses invest in them to keep their employees happy and show that the company values them. Other businesses have already discovered the positive ROI and want to take advantage of a good investment. If you would like more information about incentive travel, contact us.

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  • Evan Polin
    Sandler Training

    "I've been working with Bruce and his team on two projects and they've been great to work with. Bruce has helped us set up a referral/incentive program for us to roll out with our clients and strategic partners. Bruce was great to work with. He's set up a 7 tier program that allows for flexibility and he's also helped us to market the program."

  • Kevin O'Keefe
    Vice President World Wide Sales, Maginatics, Inc.

    "Beverly arranged and managed the early Envivio Sales incentive trips for us. Each of our events was an outstanding and motivating experience Our Sales team appreciated the attention to detail and to fun. Qualifying for the "trip" was a motivating factor behind many end of year sales pushes. I will use Beverly again in the future."

  • Mickey Poorman
    Laird Technologies

    "Peak Performance’s attention to detail and personal service made me feel like I had a true corporate meeting planning partner that I could rely on throughout the planning process right up until I was on site. I look forward to doing more meetings with them."

  • Marco Lopez
    C& J Energy Services, Inc

    "I have used your services two years in a row and you all have made my vacation a great one. You have the most helpful and considerate employees. Always very friendly, respectful and willing to make my travel experience a good one. Thank you and keep up the great job."

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