Incentive travel programmes are not what they used to be. A beach holiday in the Caribbean or an expensive dinner in Paris once did the trick. However, Gen Z and Millennials are introducing a new wave of preferences that shape how employers should incentivise them. Rather than escaping work just to switch off, these professionals now seek unique, meaningful, and authentic adventures.
What is an incentive travel programme?
Incentive travel is a reward offered by businesses to recognise achievements and motivate future performance. In the UK, industries such as finance, insurance, automotive, FMCS, and sales frequently use these programmes.Â
According to a 2019 Society for Incentive Travel Excellence (SITE) study, 80% of UK businesses use incentive travel to boost retention, sales, and productivity. These programmes not only act as an incentive but also help with team bonding and nurturing a positive work culture.
Moving away from relaxation
For Gen Z and Millennials, travel isn’t just a break from life—it’s a part of it. They crave opportunities that challenge them, teach them something new, and create a genuine connection to the places they visit. This desire has sparked the rise of experiences like forage tourism and immersive cultural activities. It’s not about the destination, but the personal growth that comes with the journey.
One of the biggest shifts in incentive travel is that younger generations aren’t just looking to relax on a sun lounger anymore. Cloud Nine Incentives’ The joy of travel 2024 report found that 43% of British travellers, including Millenials and Gen Z, prioritise adventure and exploration. Additionally, 47% want to explore off-the-beaten-path destinations.
Perhaps it’s the rise of social media that drives this change. Popular ‘must-visit’ destinations often become overpopulated and overrated. Now, travellers seek to explore new cultures, try something thrilling, and return with stories that inspire others.
The importance of authenticity
Growing up in a world dominated by social media and digital connections, Gen Z and Millennials crave authenticity in travel. They can spot inauthenticity easily, and seek travel that feels genuine and tailored to their values.Â
Authenticity in travel appears through personalised itineraries that align with the traveller’s interests. Whether it’s truffle hunting in Tuscany or exploring lesser-known gems in Tbilisi, these generations want to immerse themselves in local cultures. Experiential travel – such as cooking classes, cultural festivals, or bespoke hiking trips – adds an element of surprise and creates memories that last a lifetime.
Personalisation in incentive travel programmes
Younger generations don’t want rigid schedules or pre-packaged experiences. Personalisation and flexibility are key, and this extends beyond just the travel industry. Incentive travel must offer flexibility.Â
While group trips still appeal, a good programme strikes the right balance between structured activities and personal exploration. Participants should have opportunities to enjoy traditional group events but also choose how to spend their free time.
The importance of social media
Though social media has helped younger generations to identify what is inauthentic, it still plays a major role in travel experiences. The fear of missing out (FOMO) is real – and no generation knows this better than Gen Z and Millennials.Â
Their lives are often shared online, whether snapping a quick photo of an aesthetically pleasing Bondi bowl or filming TikToks of adrenaline-pumping adventures. Incentive travel itineraries that tap into this desire to share with others create a buzz before, during and after the trip.
For employers, this matters because when younger workers see colleagues enjoying exciting, once-in-a-lifetime experiences, it motivates them to work harder for a spot on the next trip. This fosters healthy competition and drives motivation.
Is luxury travel still a priority?
Although Gen Z and Millennials crave unique, cultural experiences, they haven’t abandoned luxury entirely. The key is to balance luxury with authenticity. They still appreciate fine dining and upscale accommodations but prefer them with a twist. For example, boutique hotels with quirky décor and a unique story will impress them more than a generic luxury hotel.
Sustainability also ranks highly among all generations. Cloud Nine Incentives’ report found that 96% of respondents believe sustainable travel is important. Eco-conscious resorts that embrace this will win over young travellers.Â
The goal of an incentive travel programme is to offer a memorable experience that feels exclusive yet connected to local culture. Luxury doesn’t need to mean high prices. Thoughtful personalisation and authenticity can have just as much, if not more, impact.
The future of incentive travel
Incentive travel has evolved, with Gen Z and Millennials driving the demand for more meaningful and authentic experiences. Employers, and those working in the travel industry, need to focus on creating personalised, unique trips that inspire and engage. For these younger generations, travel is more than just a reward – it’s a journey that excites and connects them to the world in a way a phone screen never could.
