New trends in incentive travel in 2025

incentive travel It’s no longer just a benefit—it’s a powerful tool for improving employee engagement, motivation, and retention.

Incentive travel spending is expected to grow 54% by 2025,According to this year’s Incentive travel indexbusinesses are creating meaningful and memorable experiences for their employees. Additionally, 81% of companies now view these travels as a key employee retention strategy, while 62% see them as a competitive advantage in recruiting.

So, what is driving the growth of incentive travel? Here are five emerging trends shaping this landscape:

1. Unique experiences in emerging destinations

Incentive travel is shifting from traditional luxury resorts to immersive, experience-driven travel to exciting, lesser-known destinations. Today’s employees want more than just five-star accommodations, they seek authentic cultural experiences, adventure and uniqueness. The demand for new destinations is clear – 70% of incentive travel buyers are actively seeking new destinations to keep their plans exciting.

Destination such as Croatia, Portugal and Greece becoming more and more popular, and Caribbean Sea and Mexico Still a top choice due to its accessibility and value. hawaii is making a strong comeback, and Japan is becoming a hotspot, attracting groups willing to travel long distances.

2. Bleisure Travel: the integration of business and personal time

The bleisure travel trend that combines business and leisure continues to gain traction, with more and more employees choosing to extend incentive travel for personal enjoyment. Companies have responded by offering flexible travel dates and family-friendly options to make rewards programs more attractive.

While group dining remains the most popular activity, participants also value cultural sightseeing, relationship-building experiences and opportunities for personal respite, according to the Incentive Travel Index. These casual experiences can also foster stronger connections and allow smaller groups to have more meaningful interactions.

3. Personalization: Customize incentive travel according to personal preferences

Incentive travel is moving away from the traditional one-size-fits-all approach to customized experiences that cater to employees’ different preferences. Whether it’s an active adventure, a wellness retreat or a culinary experience, employees now have the freedom to choose activities that match their interests.

The dining experience is also personalized. Instead of offering traditional set menus or buffets, the company has set up action stations where guests can create their own meals. Incentive travel becomes more inclusive and engaging by offering customized itineraries and personalized service, ensuring every participant enjoys a meaningful and unique experience.

4. Explore beyond the resort: Embrace adventure and local culture

While all-inclusive resorts remain a popular choice for incentive travel (42% of incentive travel buyers expect to use them more in the future, according to the Incentive Travel Index), many companies are now looking to break the mold. People are increasingly craving immersive experiences beyond traditional all-inclusive packages, rather than lounging poolside or staying within the walls of a resort all day.

Today’s employees crave opportunities to explore new destinations and engage with local culture. Many incentive programs now incorporate activities outside of the resort, giving participants the opportunity to explore the local environment, interact with the local community, and participate in adventures they would not experience as a typical tourist.

5. Respect for local people and sustainable development: a holistic approach

As companies increasingly focus on corporate social responsibility (CSR), sustainability and respect for local culture have become core to incentive travel programs. Experts stress the importance of working closely with local destination management companies (DMCs) to ensure travel not only supports local economies but respects communities and the environment.

Equally important is the need to respect local customs and traditions. Immersing participants in a destination means blending cultures in a way that is both respectful and inspiring. Educating attendees on local etiquette is a key part of the process. Some companies have begun offering pre-travel webinars where attendees can learn about cultural nuances, expectations and customs, ensuring they are treated with respect when entering another community.

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