Every year, incentive travel proves the same point: the format isn’t dying. The tolerance for mediocre execution is.

Indeed, the latest Incentive Travel Index — built by SITE on input from 2,700+ professionals across 85 countries — confirms an industry that’s still resilient, still valued, and still expanding. But – as we often anticipated - it also exposes a new reality: incentive travel is becoming a high-stakes balancing act: between aspiration and accountability, premium and pressure, “classic” traditions and next-gen expectations.

And that’s where the market is splitting in two:

• The teams that keep running incentives like it’s 2019 — and wonder why the impact feels weaker every year.
• The teams that redesign incentives as a strategic platform — measurable, culturally aligned, and operationally intelligent.

Can you guess which group is winning the competition?  

Growth continues. Confidence Doesn’t.

Incentive travel remains a core pillar of business events: 41% of buyers and DMCs say that more than half of their business events are classic incentive programs.

But the mood has cooled.

• Three-quarters still say incentive travel’s value is “as strong as ever.”
• Yet only 27% expect 2026 to outperform 2025 (down from nearly half last year).

Budgets are rising — and the math is brutal.

The average per-person spend is now $5,100 (+4% YoY). North America hits $6,000 per head. Europe drops to $3,200 after a 20% decline.

Air, hotels, and F&B now represent nearly half of total program budgets.

The strategic signal: some planners expect increases not only from inflation, but from program improvements—better accommodations, venues, and experiences.

At the same time, the industry is clearly bifurcating:

• About 25% plan to trim: cutting gifting, shortening duration, choosing cheaper destinations.
• About 25% plan to improve: upgrading lodging and investing in richer activities.

The “classic incentive” isn’t dead. It’s dominating.

Despite years of “the old model is over” predictions, qualification-based incentive trips are holding their ground.

• Two in five buyers expect more use of classic qualification programs.
• 44% reject the idea that inclusive, non-performance travel will increase.

Translation: performance-based recognition still works. What’s changing is the experience logic inside the program.

Destinations 3Ns: New, Near, and Non-Negotiably Safe.

Destination strategy is evolving fast.

• Nearly 70% are actively seeking destinations they’ve never used before.
• 63% already have a new destination booked for 2026/2027.
• 44% are deliberately choosing shorter-haul options.
• 73% cite personal safety as the top destination consideration, followed by cost and geopolitical stability.
• A capable DMC is now a must-have: local expertise is becoming a risk-management function, not a procurement line item.

Geopolitics is now part of the brief.

Short-term challenges are dominated by rising costs and international instability. Long term, it’s talent attraction and retention, then sustainability.

But the biggest structural shift is simple: almost half say geopolitics now outweighs other destination factors.

The U.S. is the sharpest example:

• 70% believe recent political events will reduce inbound incentive travel to the U.S.
• 65% cite visa and travel restrictions as deterrents.
• 46% say shifts in DEI and LGBTQ+ policies make the U.S. less attractive.

AI is already operational. If you’re still debating it, you’re late.

The report’s tech signal is unambiguous.

• 93% use ChatGPT
• 74% use Microsoft Copilot
• 66% use Canva Magic Studio

Gen Z isn’t killing incentives, but they are looking for unique, shared experiences.

The now-famous “Taylor Swift vs Hawaii” (LINK) question is more than a headline.

• 39% said Gen Z might prefer the concert.
• 32% said no.
• 30% were unsure.
• 67% believe younger qualifiers will drive a powerful retool of incentive travel.

Bottom line: the trip still matters – But the framework matters more.

Incentive travel’s fundamentals—recognition, connection, transformation—remain intact.

But the context is changing faster than most organizations are adapting:

• Costs are up.
• Destinations are judged through safety and geopolitics.
• Participants expect autonomy and meaning.
• AI is accelerating the teams that are ready.
• Leadership now wants ROI and culture impact.