Facts and Figures
Before embarking on the adventure that is Hi-Jinks, it was important that we understood how our proposition would fair in a world quite used to incentives and, in particular, incentive travel.
If you're considering an investment in incentive travel then it is important to consider the implications, the pit falls and above all else the suitability of your ideas vs the goal.
Industry Demands Credible Adventure Travel
In order to justify the use of adventure travel in the corporate incentive market it is important to first understand the buying patterns of the travelling consumer. Employees are, after all, consumers outside of work. The findings that follow are in the most part specific to the US however are clearly representative of UK trends today.
People are not only seeking unique experiences when they travel, they are becoming more conscientious about the effect their travel has on a destination and its inhabitants. Even without canvassing exhaustive research, it's obvious that the industry is responding with a wide array of new tourism opportunities.
Early Research Supports Growing Traveler Preferences for Adventure Travel Experiences
The Travel Industry Association of America (TIA) and National Geographic Traveler released a report in 2002, "The Geotourism Study: Phase 1." The report attempts to understand traveler attitudes that lead to potential sustainable tourism behavior and provide the travel industry with insight into future consumer expectations. It states that 55.1 million Americans can be classified as "sustainable tourists" or "Geotourists," and then segments this group into categories, identifying one segment as "geo savvy" travelers. It only takes a minute to examine the "geo savvy" travelers' preferences and see that the adventure travel industry is in a prime position to deliver the kind of experiences a growing segment of the traveling population desires. For example,
- They are three times above average in enjoying primitive travel to wilderness areas.
- They are two times more likely than average to like outdoor adventure travel, offering challenge, risk and excitement or to travel to remote locales.
- 81% travel to experience people, lifestyles and cultures different from their own
- 80% visit small towns and rural areas
Adventure travel is inherently global in nature, presenting an opportunity for economies around the world to benefit from its responsible development and growth. The adventure travel industry should be at the forefront in shaping the evolution and growth of this travel market. But first it must establish itself within the expanding array of tourism niches. Until we can effectively describe and quantify the shift in travel preferences toward adventure travel, we won't be able to take advantage of the opportunities it presents.
Existing Research
In 1997 Heidi Sung sought to define adventure travel in a study that resulted in the following definition: "A trip or travel with the specific purpose of activity participation to explore a new experience, often involving perceived risk or controlled danger associated with personal challenges, in a natural environment or exotic outdoor setting."1
Building on the work of Sung, and similar work completed in 2000 by the Travel Industry Association of America, Doctoral Student Paige P. Schneider and Dr. Christin A. Vogt, Associate Professor, both of Michigan State University, in cooperation with the ATTA are finalizing trade and consumer survey results. Ms. Schneider's studies aims to "assess and compare adventure travel industry supplier and consumer perspectives of how 'adventure travel' is defined."
By Christina Heyniger, ATTA Associate
Why use incentives?
Here are some compelling reasons why you should consider using incentives:
- Knowledgeable and attentive employees account for 80% of the reasons consumers feel satisfied, according to a PNC Bank Corp. survey.
- Fewer than one in four workers is working at full potential; half of all workers do no more than directly asked, and 75% of employees say they could be more effective in their jobs, according to the Public Agenda forum.
- 70% of unhappy customers abandon vendors because of poor service, according to the Forum Corp.
- A 5% increase in customer retention can increase lifetime profits from a customer by 75%, according to the Loyalty Effect by Frederick Reichheld.
- 'Reward and retention efforts can produce big dollar returns.' That's what the Incentive Federation found in a 2003 survey asking hundreds of businesses using incentive travel promotions 'Does Incentive Travel Improve Sales Productivity and By How Much?'
What then can we conclude from these survey results?
The bottom line is loyal customers and productive employees are the foundation of a successful business. But to continuously retain and motivate people can be a difficult challenge. Travel incentives, a proven motivator, will achieve this purpose.
Do your incentives measure up?
Today's business environment demands a new breed of incentive program. Many companies have already discovered that standard incentives of just a few years ago just don't cut it with the customers as well as the workers in our continuously changing economy. Your choice of incentives have to widely appeal to your clients' and employees' wants or desires in order to measure up and get results you are looking for.
Hundreds of promotional companies offer incentive programs that are designed to evoke an emotional response and motivate people to take a positive action. It's obvious from industry surveys of companies using incentives that travel is the most widely appealing incentive where everyone wins. Your sales people will close more sales, your clients will enjoy an exciting vacation experience and your business will increase its profits.
Travel is considered to be the most effective reward.
According to the result of an email survey conducted by CMI, 58% say travel is more effective than cash or merchandise. Survey respondents consider travel to be the most effective reward. (Incentive Travel Fact Book)
"Cash bonuses are necessary but travel is a higher perceived reward," says Verizon's Porterfield.
Additionally, in a recent survey of American workers, 85% said they were motivated by travel incentives.
-Nothing beats travel for long-term results.
In a 2003 Incentive Survey of Buying Practices conducted by the Incentive Federation, survey respondents believe that travel and merchandise awards are remembered longer than cash payments. Specifically, 69% strongly agree with this statement. (Copyright IPC)
Porterfield added, "When people spend their money, it's gone. But the recognition that comes from our travel incentives lives on.
Travel has a universal appeal and high-perceived value.
USA Today, on their recent survey, stated that "93% preferred travel over other incentives. This is because travel is something that some or most people would not be able to get for themselves."
Travel has a promotion value.
A more exciting and memorable program can be built with travel than you can with cash.
Do travel incentives work?
According to the 2003 Incentive Travel Facts survey, travel incentives increase sales by an average of 15%. In addition, half of the respondents reported that travel incentives meet 75% - 99% of their objectives. (Incentive Magazine)
What can I use travel incentives for?
Sales Incentives - To increase sales Employee Incentives - To motivate, retain and reward loyal and efficient employees Customer Loyalty Incentives - To build customer loyalty and trust Referral Incentives - To develop contacts or promote referrals. Improve attendance Create new markets Foster teamwork Build traffic Set appointments Business gifts Consumer/User promotions
Written by: © 2004 Chad Deckard, Rafael Carmona and Rudy Chimo