Young employees are increasingly viewing travel as a valued reward.

A 2024 report from the Incentive Research Foundation (IRF) shows that 91% of participants find group incentive travel to motivating destinations “extremely motivating.” The preference is notably high among Gen Z and Millennial professionals for whom travel is the most sought-after recognition, surpassing traditional bonuses or material gifts.

The IRF study points to the appeal of non-cash rewards like travel, which stand apart from regular compensation by offering unique and memorable experiences. Beyond individual recognition, incentive travel fosters stronger connections among colleagues and strengthens loyalty to the company.

This benefit is particularly impactful in today’s competitive job market where companies prioritise retention strategies.

According to the IRF report, incentive travel often drives performance with employees working towards clear, aspirational targets. Teams strive to meet sales or project goals for the reward of an engaging group travel experience.

Shared travel experiences help employees form bonds outside of traditional work structures. The opportunity to interact and collaborate in non-work settings can break down departmental barriers, facilitating stronger cooperation and camaraderie back at the office, the report points out.

Furthermore, incentive travel can be adapted to meet diverse company cultures, budgets and employee interests. From tropical retreats to team-building expeditions, trips can be structured to reflect company values and goals while blending leisure with productivity-focused activities like strategy sessions and workshops.

While incentive travel carries an initial cost, the IRF states there are measurable returns companies gain in terms of productivity, retention and performance.