SITE's Padraic Gilligan Talks Key Findings from the 2025 Incentive Travel Index
Following the release of the 2025 Incentive Travel Index (ITI) on Smart Monday and an insightful panel discussion in which industry leaders broke down this year's survey results, Meetings Today's Taylor Smith tapped Padraic Gilligan, SITE's head of research and consultancy, to get his quick, 15-minute snapshot of the 2025 ITI and the key takeaways today's incentive travel professionals need to know.
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Transcript
Taylor Smith
Hello, and welcome to this Meetings Today podcast. I'm Taylor Smith, content manager of destinations for Meetings Today, and I am here at Smart Monday with Padraic Gilligan, head of research and consultancy with SITE, who just wrapped up an hour-long session diving into the results of this year's incentive travel index, which had a couple new lines of inquiry this year. So, excited to dive into those with you, Padraic.
But in the 10-15 minutes we have today, I don't know how we'll sum up everything we talked about this quickly, but starting with finance and budgets, which is, I think, top of everyone's mind right now, I heard a lot about growth in luxury and high-end markets. I thought that was really interesting. And then another thing was 48.1% of budget is all allocated via hotel and airfare for programs that we're looking ahead to in this year as well.
So what should planners know about these numbers and the budgets that the research that came out around budgets that maybe shocked you or the audience today?
Padraic Gilligan
Yeah, so budgets, obviously, it's at the core of what we do because, you know, in order to actually design an incentive travel program, you have to have an overall budget from a corporate perspective. You know, so the budget that we're talking about is actually only the bit that pertains to what you spend in the destination. There's another part of the budget that's nothing to do with that.
But in terms of destination spend, what we're seeing is we're seeing a kind of a concentration of that spend going towards the hotel. If you add food and beverage into that as well, what you end up with is quite a skewed kind of percentage of the overall spend remaining in the hotel as opposed to other elements of the destination experience.
So, we're anxious to kind of interrogate what that means in relation to the quality of the program. So, if everything is going to the hotel, which means you're kind of within the hotel structure all the time, are you really getting an experience in the destination?
And we had some great panelists here with us today. We had Anisha Martin from Hilton, who was very, very strongly defending how the hotel actually reflects the greater destination experience. And it's not just a kind of a gated community that's separate from the surrounds and so on, that it's very, very much integrated into all aspects of the destination.
But these are the things that we actually kind of like to look at from a year-to-year basis. What we are seeing is with that increase in the use of resorts in particular and then even more so all-inclusive resorts, obviously the budget is going to kind of skew in favor of the hotel spent.
Taylor Smith
Another thing that I thought was interesting budget wise is we're seeing the budget per person increase for programs. Justin with Bishop McCann said he's seen significant growth at the $7,500 and above rate for per person spend. And then there were a couple with over $10,000 per person. I thought that was just mind boggling, remember, because the inflation and tariffs and everything we were talking about, budget is, it's such a big question mark for so many people right now. So what do you think that is pointing to or showing a significance?
Padraic Gilligan
Well, I think when you look at the demographics of a workforce, many of the companies using incentive travel programs for reward and recognition, may have tens of thousands of employees and the number that actually qualify for the incentive travel program is a very, very small percentage of the overall size of the company. But it's like it's the Pareto Principle or a version of the Pareto Principle which is the 80/20 rule except it might be the 95/5 rule.
In other words, 5% of your salespeople are generating 95% of your sales. And companies therefore are looking for absolutely out-of-the-box experiences to continue to motivate, inspire and reward these ultra top performers. So that's why I think we're seeing a kind of a big increase in the, in that kind of, it's not even a trip of a lifetime because I could never imagine doing it in my own lifetime, but it just reflects, I think, that kind of hyper-performer that really is at the core of the corporate world that really does an extraordinary amount of the heavy lifting when it comes to revenue generating. And then that kind of, that has an impact on design.
So, what we're seeing as well is we're seeing kind of the use of multi-tier awards. So, where you have this top tier that experience something that you could never even imagine, like it's going to cost 10, 20, even more thousand per head. And then you have kind of the lower spending mid-tier programs that are maybe costing kind of three grand. And, you know, they're still wonderful programs and so on. But there is that kind of, I suppose it's something to do with human psychology, there is that super performer. So how do you actually keep that super performer engaged? And it's by coming up with the most amazing incentive travel programs that you do.
Taylor Smith
And a unique twist to it too, right? Because I was, and during your presentation today, you were mentioning a little bit moving away from traditional experiences. And one of the stats that I really thought was interesting was 63% of respondents have booked a brand new destination, never used before for 2026 or 2027. But then we also saw that note where shorter distances, destinations closer to home for the participant are also increasing in terms of destination selection. So it's almost contradicting itself there.
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Padraic Gilligan
Yeah, it does. And there's lots of that. And I think that's where the analysis comes in. And we're very fortunate to have had the opportunity today to get access to really, really bright people who are doing this on a daily basis, and therefore are able to help us kind of understand those deeper trends that are emerging. But yes, there is quite a lot of counterintuitive data.
You know, if I could explain it, it would be probably in the following terms. I might say that instead of going to Paris, that incentive travel programs are now looking at Bordeaux, they're now looking at Biarritz, they're now looking at locations outside of the main place that they always went to. And they're finding great value there. They're also looking at destinations that are up and coming. And there are just so many of them, Taylor. Like there's, you know, if you consider Europe, which is obviously the part of the world that I know best, you've got emerging kind of destinations in Europe, like Slovenia, for example, Albania.
Taylor Smith
I mean, I just had a group that, I heard about a group that went to Albania, and I was like, whoa, I didn't even think of that destination before.
Padraic Gilligan
But the value in Albania is just incredible. Like you can actually, you can do a lot with a $2,000 budget per head somewhere like Albania. You could never do it in Paris or you could never do it in London or you couldn't even do it in Dublin. But so that's what's happening. We're looking for places that we never imagined could be incentive travel locations, and we're finding ways of building programs there that really surprise and delight.
Taylor Smith
There was another panelist today, and forgive me, I think I wrote down who it was, but oh, Jenny, she said, we have to get more creative and provide more ROI with the same amount of dollars. And I think that ties into the destination selection too, because like you said, we can't always be going to Paris, but how can we give that authentic French experience, which in a way, almost stepping outside of the busy one or done over and over again destinations, that's where the authentic local destination emergent really comes in sometimes.
Padraic Gilligan
Well, there you go. I mean, we know that, you know, part of the trending kind of choices are coming from the desire for authenticity. So yes, you know, there's a good reason to avoid the tried and the true and to start looking at those destinations that have an amazing kind of story to tell, but they haven't actually been forefront for choice as incentive travel locations.
Taylor Smith
So, I kind of want to tap into the new lines of inquiry that you had in the incentive travel index this year. One was about the future. And I really, as a Gen-Z kind of reporter in the industry, loved when we were looking at what is the younger generation valuing? What do they want in incentive travel programs? And there was a stat that I have to point out. 39% of respondents think younger generations of qualifiers would rather see Taylor Swift than Hawaii, and 30% are unsure. So personally, I would pick Hawaii. Maybe I'm a little biased, but what do you think this is pointing to?
Padraic Gilligan
I think it's pointing to shifts in demographic preference. And that's not unusual, as Tom Jones might say. I don't know if you get that joke. But it isn't unusual because it's always been the case. Younger generations don't want to do necessarily what their parents did. And it was Andy that actually came up with that question about Hawaii and Taylor Swift, and we were thrilled with the answer because there's a strong belief, whether it's informed directly by Gen-Z participants or whether it's a kind of a viewpoint of the non-Ge- Z, that that's what they would say.
But we, I do recall a similar conversation where we had lots of Gen-Z in the room, and they collectively agreed in the room that they didn't want to go to old buildings during incentive travel programs.
Taylor Smith
I find that crazy. I love historic buildings. That's one of my favorite things to do.
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Padraic Gilligan
Yeah, and this was a group of Gen-Z in our industry, and they said very clearly, so we put that into the index.
And in the index it was rejected, like that that wouldn't be the case, that, you know, culture in terms of built heritage has a huge part to play in creating that ultimate incentive travel experience.
Taylor Smith
And goes back to that authentic destination immersion too. Exactly. Almost contradicting stuff again there.
Padraic Gilligan
Yeah, exactly. But equally, I do get it. I mean, like Taylor Swift is, she represents the zeitgeist for younger kind of people today. And there's always been somebody, you know There's always been somebody. There's always been some kind of celebrity that in some respects became the kind of the person that everybody wanted to be or see and um I'm not surprised I I've children myself who I can imagine would prefer to see Taylor Swift in Hawaii yeah.
Taylor Smith
Taylor's great but not greater than Hawaii I'm sorry but um one. Thing you see Taylor won't always be Taylor but Hawaii will always be Hawaii so like that's the other.
Taylor Smith
Yeah and I think it does it. Justin with Bishop McCann, thank you. He wrapped it up with a quote at the end that I think kind of ties it all together really well. And he said, it's not enough to just be a destination or a beautiful hotel. It's what is the experience I'm going to get that makes me get to say I was there. And that I think is what it's all about right now too. So if you had to leave our listeners with one thing today, or a tidbit from the incentive travel index, or even just a call to action to go download it maybe, what would that be?
Padraic Gilligan
I think that the figure or the call out that I would make would be in relation to the fact that we all believe that incentive travel works, but 75% of us believe that it's a really, really hard industry. And I kind of think that's a bit exaggerated. You know, I love the industry that we're in. I don't deny that it's hard, but anything that's worthwhile is hard. To be a surgeon is hard, but there's incredible rewards that come from, you know, it's a life kind of enhancing and giving gift to be a surgeon.
And, you know, we're not curing cancer or we're not saving lives, perhaps, as incentive travel professionals, but we are, in our own way, potentially contributing to world peace by using travel in the way that Mark Twain described it, which, you know, travel is the enemy of bigotry. You know, when you sit with somebody from a totally different culture to yourself, can you actually hate them? Can you think that they're kind of, you know, not worthy of your love and your outreach? Not at all. Because you realize that, fundamentally, we're all human beings, and that's our shared humanity is huge, and that's what we realize when we take ourselves out of our comfort zone.
And we go from our, whatever it happens to be, I'm from Ireland, I'm kind of imbued with Western culture. When I go to the Middle East, it looks totally different. It sounds different. I can't understand what people are saying. They look, they're dressed in a different way to the way that I'm dressed. But when I take the time to actually interact with them, I realize there's such a wealth and a richness that comes from that. So yeah, I think incentive travel is a difficult job, but I think it's really worthwhile.
Taylor Smith
And it all goes back to that transformative experience that is the reward of it all in the end.
Padraic Gilligan
Absolutely.
Taylor Smith
Yes. Thank you for joining me today, Padraic. That was a wonderful conversation, as always, and I know our audience will learn a lot from you.
Padraic Gilligan
Thank you, Taylor Smith, not Swift.
Taylor Smith
Yes. That was Padraic Gilligan, head of research and consultancy with SITE. Once again, I'm Taylor Smith, destinations manager for Meetings Today. Thank you again for joining us for this Meetings Today podcast. If you want to listen to more, visit meetingstoday.com/podcasts. Until next time.
