Incentive Travel Evolution

inVOYAGE was delighted to partner with SITE South America to present a seminar on incentive travel trends post-pandemic last week (11 March).

Hosted by SITE SA President and Founder & President of Avant Garde, Sidney Alonso and facilitated by our CEO and co-founder Richard Joslin, the seminar featured a panel of industry experts: CWT M&E Global VP Commercial Ian Cummings; Elliott Grant, SITE GB President and Co-founder Black Book; and Belmond Senior Account Director Perrine Chapelain.

The seminar covered a range of topics including destination and sustainability trends, the importance of information and communication, and how suppliers can prepare for when the world reopens. Here, we share some of the key highlights…

Destination choice – safe havens versus secluded locations

Black Book’s Grant predicts there will be a move towards safe havens in the short- to medium-term. “I think we’ll see a focus on the likes of Dubai, Miami, New York, Rio de Janeiro, those places that are well-worn, well-trodden. Then I like to think clients will start to get a bit more adventurous,” he said.

“The events I have confirmed so far have been to save havens, but other companies in the industry I have spoken to have sold trips to Nepal, Columbia and Tel Aviv. After life without travel for a year, people are a bit more curious and want to see the world. Leisure travel is going to boom and that is going to drive incentive travel.”

Chapelain agreed that it will take a little bit longer for people to be as daring or as adventurous as they were, adding that airlift will have a big impact on decision making. “Airlines are going to go back to those key destinations first. I can see Rio for example getting enough flight capacity to get a group out there sooner. Unfortunately, those emerging destinations that were doing so well pre-covid like Peru are going to take longer, because BA cut the direct route from the UK to Lima. I think that is another reason why it is going to take a little bit longer for those more emerging or adventurous destinations to get incentive groups back in the short-term.

Alonso had a different take on the type of destinations that will be attractive to clients when travel starts up again. “I think that places that have open landscapes, and those that offer seclusion, nature and fresh air might be more welcoming after the pandemic as opposed to large known cities filled up with people.”

Grant agreed that while that makes complete sense, he feels that from a perception perspective, there is safety in numbers. “If I am taking a group to Dubai to a hotel that they know is 98% full and all the others are 98% full, the human perception is this place is safe because people are here,” he explained.

Alonso concluded that the destination choice would ultimately depend on what the individual client’s definition of safety is, be that urban or rural, while Joslin added that it will also depend on the success of the vaccination roll out. “If clients have been vaccinated, their confidence levels are going to be so much higher going into different territories. They are going to want to experiment more.”

What can suppliers do to be ready?

Cummings said that DMCs, hotels and convention bureaus need to be proactive in sharing information about what steps they are taking regarding safety and how they are preparing to welcome groups back.

“I have seen some incredible efforts by Singapore. They have got the World Economic Forum and they have attracted some big pharma conferences, which helps builds confidence with clients. I have also seen some impressive efforts by TCEB (Thailand Convention & Exhibition Bureau), who are just pumping out information about what’s going on at the airports and the hotels, and what their protocols are. They are putting out so much information aimed at driving corporate confidence to start travelling again. I think it would be worth emulating some of those practices or developing some similar practices. We need to build confidence among corporates,” he said.

Grant agreed: “We need suppliers, whether it’s at hotel level, DMCs, SITE South America, all the way up to the tourist board to let us know what is going on and when we can come back to your destination. There is a lot of countries in the world. If you put your hand up and say we’re open, we’re ready to go, we’re safe, you are going to be at the top of the list when we are talking to clients.”

The panel noted that other destinations that have done well are Dubai and Abu Dhabi in terms of the information available not just from the CVBs but also the national carriers, with Etihad in particular singled out for its approach.

“Here in the UK, where Maris (Kuklis) represents Etihad, he has been all over social media, constantly updating the industry on the protocols, cleanliness, health and safety practices that they are putting in place as an airline. That has been really quite powerful,” said Joslin.

Grant added that Etihad has taken the new protocols and safety procedures and almost turned it into a selling point. “Kempinski Hotels did that really well too. They jumped on it so quickly. They took the whole having to wear gloves and masks and turned it into a selling point. They called it the White Glove Service and it differentiated them from other competitors.”

He advised suppliers: “Differentiate yourselves by embracing the new protocols and the new things that clients are going to need. Make them your USP – deal with them creatively and in a unique manner and you will attract business.”

Chapelain gave the example of Belmond’s Exclusive Places campaign. “Our approach was to launch Exclusive Places, which is all about the possibility to privatise a carriage on a train, a river cruise in France, an entire hotel or a wing of a hotel. It is all about making the most of outdoor space and using our huge gardens that have always been a USP, and really raising awareness of all the possibilities to be outdoors, enhancing that F&B offering so you could have those beautiful locally sourced products, but they are all immune boosting,” she explained.

“We want to emphasise that you can still have that authentic experience and enjoy all those pleasures that travel is about, but in a private and exclusive way. It’s that private sunrise breakfast for your group on top of Sugarloaf overlooking Rio, having access to Iguazu Falls first thing in the morning before the National Park opens or entering Machu Picchu last thing at night when everyone else has gone home.”

The shift from consumption to contribution

On the subject of sustainability and CSR becoming a bigger focus for incentives post-Covid, Cummings said: “I generally feel that there is a wave change going on. Incentives are changing and much more geared towards education, towards doing something to help the environment, to getting involved in marine life, and leaving some sort of positive legacy behind.

“That’s also an age thing. The younger people coming through now that are going on the incentives who are 25-to-35-year-olds – they are actually saying they want to go and experience something they can learn from, that impacts the environment positively and potentially impacts a town or community positively as well. I think that just going and having a great time and leaving a really heavy carbon footprint at the end of it is not want people want anymore. That is a general trend, but I think it’s probably been accelerated by Covid.”

Chapelain agreed that Covid has led to a greater conscience around travel and travelling responsibly. “It’s driven by the trends we are seeing in the consumer world. The luxury consumer wants more sustainability from their luxury goods and that is translating into the way they travel. We are moving from consumption to contribution. Over the last couple of years before Covid, we have had incentive groups work with local charities and that is something we are happy to facilitate and expect more demand for in future.”

Joslin commented: “The more we can make that move from consumption to contribution, it’s going to make incentives so much more exciting and meaningful. There is a natural win here for everyone involved. The more we can get CSR and sustainability into programmes, the more we can make clients look good in front of their stakeholders. Agencies and hoteliers absolutely hold the key to developing that.”

The panel agreed that it’s the responsibility of agencies, hotels, DMCs and destinations to drive the momentum around sustainability and encourage clients to adopt it by putting those options into proposals and cultivating and sharing connections with local charities and schools etc.