An incentive trip budget put together using 2019 standards is almost guaranteed to miss the mark today. The market has managed to restructure noticeably: participant demands and contractor proposal structures have both shifted.
The Reward Has Ceased to Be Universal
The classic answer to the question of what is incentive travel, a trip in exchange for results, is formally correct yet practically useless. Over recent years, incentive travel has transformed from a one-size-fits-all trip into a programme assembled for a specific group of winners, and contractors now describe their work in terms of a scenario rather than an itinerary.
The numbers confirm this turnaround. According to the Incentive Travel Index 2025, prepared by IRF and SITE, almost 70% of buyers are looking for destinations they have not used before, and 63% have already booked new locations for 2026-2027. The habit of taking everyone to the exact same place has, therefore, exhausted itself.
Who Exactly You Are Rewarding
Group travel demographics have become the key input parameter. The same study notes that 67% of professionals expect format adjustments to meet the demands of younger generations, and more than half believe that younger participants will decline a trip that does not align with their values.
This explains the fragmentation of formats within a single employee recognition programme:
- Early career: Activities, social media content, short action-packed days;
- Mid-level: Gastronomy, free time, the option to bring a partner along;
- Top performers: Privacy and access to locations that cannot be booked through regular means.
Employee reward travel delivered in a single format for all three groups yields a predictably weak result. This is precisely why corporate incentive trips today are built from modules rather than a single itinerary.
How a DMC Calculates and Assembles a Proposal
A destination management company is a local operator with contracts for venues, transport, and vendors in a specific region. The value here lies not in a discount but in exclusive venue access: a private villa, dinner in a museum closed for the evening, or a venue outside the public calendar. Such things cannot be booked online; they depend on relationships with local owners. A strong vendor brings this access along with a ready contingency plan in case of weather or logistical cancellations.
The estimate looks like a set of blocks, transfers, accommodation, meals, activities, and on-site coordination, and incentive travel companies usually fix the per-person price for a given group size. The incentive trip budget itself is tightening: according to the IRF Trends Report 2026, the average expenditure per participant grew by just 4%, reaching $5,100, while 42% of buyers are cutting costs by choosing less expensive destinations.
Where European Demand Has Shifted
Costa del Sol as a default option has taken a backseat. SITE notes that cost has become a go/no-go factor for buyers for the first time, and demand has shifted toward Portugal and the Balkans. Incentive travel Europe today means Lisbon, the Dalmatian coast, and the Italian lakes more often than the usual resort hubs.
| Destination | Programme fit | Practical constraint |
| Portugal | City and coastal mix, mild season most of the year | Lisbon venues book far ahead |
| Croatia | Sailing and island-hopping activity | Season concentrated between May and September |
| Iceland | Nature-led adventure and wellness formats | Few large-capacity venues outside Reykjavik |
| Italian lakes | Villa dinners and small executive groups | Water transfers add cost and time |
Choice of destination dictates the format as well: Team building abroad on the water in Croatia and a corporate retreat Europe at a lakeside villa solve completely different tasks. Corporate event planning Europe and MICE tourism in these locations rely on local DMCs simply because venue access cannot be obtained otherwise.
Where to Start the Programme
First, you should determine who you are rewarding and for what, and only then select the country. An incentive travel programme put together in this order costs roughly the same amount of money, but pays off noticeably better because it hits the actual expectations of the participants.