Incentive Travel Buyers Handbook

2005 SUPPLEMENT TO
VNU TRAVEL NETWORK
THE
incentive
travelbuyer’s
HANDBOOK
THE INCENTIVE TRAVEL BUYERS HANDBOOK
publisher’s letter
CLIMBING THE LADDER
presidents and ceos are getting
involved in incentives
It stands to reason that improving employee and company performance should be the
purview of an organization’s leadership. But so many times incentive travel program
planners view their logistical tasks as falling somewhat further down on the ladder than
those of the top brass. Well, according to the results of this year’s “Incentive Travel
Buyers Handbook Survey,” things are looking up.
While 31 percent of our respondents indicated direct responsibility for organizing meet-
ings and incentives as planners or event managers, a full 25 percent told us that their
2005 SUPPLEMENT TO interest in incentive programs lies squarely in motivating their employees to grow the
VNU TRAVEL NETWORK company. This nod to the strategic effectiveness of incentive travel to achieving overall
corporate goals is good news for the industry.
It could be this increasingly strategic view of incentives that is contributing to another

exciting find in our 2005 survey: Budgets for incentive travel are up again this year. A
full 36 percent of respondents reported increased budgets for 2005, with the average
increase clocking in at 21 percent—up three points from 2004. In addition, 49 percent
of respondents anticipate further increases for incentive travel in 2006.
As you use this year’s edition of the Incentive Travel Buyers Handbook to dive into the
specifics of planning your upcoming incentive programs, remember the big picture as
well: that you are involved in a growing industry that is increasingly valued throughout
corporate America—not only for it’s ability to inspire individuals but also as a key mech-
anism to create a stronger marketplace.We hope you enjoy this new edition and welcome
your feedback.
Jackie Augustine
Group Publisher
Incentive, Potentials and Sales & Marketing Management
(646) 654-7284
[email protected]
METHODOLOGY In May 2005, the “Incentive Travel Buyers Handbook Survey” was e-mailed directly to
15,000 readers of Incentive magazine across a variety of industries. A total of 462 individuals responded by
June 10, 2005, for a return rate of 3.08%. All charts and graphs included in the 2005 Incentive Travel Buyers
Handbook have been derived from these returns.
THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005 1

THE INCENTIVE TRAVEL BUYERS HANDBOOK
table of contents
CHAPTER 1
setting goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
CHAPTER 2
map a strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
CHAPTER 3
crunch the numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
CHAPTER 4
VNU TRAVEL NETWORK
SUPPLEMENT TO
choose the award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
CHAPTER 5
motivate, monitor and measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
CHAPTER 6
group vs. individual travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
CHAPTER 7
2005 THIRD EDITION
The Incentive Travel Buyers Handbook outsourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Produced by the Travel and
Performance Group
Special Projects Department CHAPTER 8
770 Broadway
New York, NY 10003
choosing the destination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Editorial: (646) 654-7360
Advertising: (646) 654-7333
Elizabeth West, Director Custom CHAPTER 9
Publishing/Project Director
Amy Bothwell, Creative Director
working with cruise lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Carol Wells, Art Director
Phyllis Jefferson, Production Director
CHAPTER 10
Writers: Jeanie Casison-Tansiri,
Ben Chapman, Chris Davis, Libby Estell, negotiating the incentive experience . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Christopher Hosford, David Jonas, Rayna
Katz, Marshall Krantz, Jennifer Saba,
Dana Young
CHAPTER 11
safety and security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

CHAPTER 1 THE INCENTIVE TRAVEL BUYERS HANDBOOK
setting goals
irst and foremost, an incentive program is a
what’s the problem?
F means to an end—a strategy for achieving
business goals. As such, the first step is to care-
fully consider what you want this incentive pro-
COURTESY OF RITZ-CARLTON, ORLANDO GRANDE LAKES

gram to accomplish. You
must ask yourself what
When you sit down to think about goals, don’t try to go it
alone. Include other representatives from your department
as well as those from complementary departments. Their
fresh perspectives might provide you with insights on your
your business goals are market or your target audience that you would not have
and how they fit with cur- thought of on your own. Be sure to keep in mind how your
rent market conditions. objectives are affected by the overall business environment,
Only when you have world events, economic factors, your company’s strengths
answered this can you and weaknesses, and those of your competition.
design and implement an Next, carefully consider your company’s specific needs and
incentive that gets you goals. Do you want to:
where you want to go. • Increase sales
• Win new customers
case study • Increase market share
• Promote a specific product
building blocks of success • Pump up productivity
• Improve safety
Absolute Coatings, a floor-covering specialist in New Rochelle,
• Maintain sales during a down period
NY had very specific goals in mind when they approached The
• Build dealer traffic
Light Group, and incentive company in White Plains, NY about
• Boost morale
a travel incentive program. They not only wanted to increase
• Smooth out factory operations
overall sales, they wanted to increase sales of particular
• Build customer loyalty
products as well.
• Maintain business-to-business relationships
The Light Group worked with them to outline a goal struc-
Keep in mind that one incentive program is unlikely to
ture based on a complex purchasing schedule. The distributors
solve all your difficulties. Instead, narrow your list to your
would receive points toward airline tickets or hotel nights at
most urgent needs. Prioritize this list and focus on the exact
The Ritz-Carlton for reaching the previous years goals. Once
characteristics of the one or two most pressing needs. If, for
they surpassed that point, they would receive 30 percent more
instance, your main problem is poor morale, examine what
points for sales. Each distributor’s goals were individualized
has everyone down in the dumps. Are salaries on par with
based on last year’s sales numbers, and each received a sheet
the industry average? Are employees given the resources
informing them of their unique goal structure.
they need to perform their jobs? Does management com-
The second aspect of the program worked on the other
municate openly and share information? By filling in the
end of the sales equations: incenting contractors to purchase
details, you can better target an incentive program to solve
specific products, by rewarding them with points that they
the problem.
could redeem toward merchandise. “The goals have been
designed to achieve a certain profitability level for Absolute, create realistic objectives
and based upon the model I think the return on investment will Turn problems into goals. Whether they are related to sales,
be significant,” says Arnold Light, president of The Light service, safety, or teamwork, realistic objectives share five
Group, who’s a stickler for solid program design-and for good common characteristics. As you evaluate and transform
reason: “Without the structure of well-planned goals it doesn’t problems into goals, let these five points guide the way.
make sense to have an incentive program,” he says. 1.STAY FOCUSED. Keep your objectives simple and specific.
4 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

CHAPTER 1 setting goals
Focus on one or two goals so employees can direct their here is: Which measurements are too costly or time con-
efforts accordingly. If several goals are necessary, make suming to be worthwhile?
sure that they are directly related and that participants 4. TAKE CARE OF TIMING. Every business has its seasonal ups
understand the relationship. Narrow your goal down from and downs; be sure to take these cycles into consideration
a big idea like “sell more,” “save more,” or “produce and incorporate them into your goal structure. Snowblowers
more” to precise terms. For instance, rather than “sell just don’t sell in July, so it would be suicidal to run a June to
more service plans,” decide to “increase sales of extended August incentive campaign that anticipated a big jump in
service plans by 15 percent over the previous year in the incremental sales. Even if the program were to generate a 10
second and third quarters of 2006.” This specific goal has percent boost, the profits would pale in comparison to a 10
four components: the result (increased sales), the product percent rise during a December “Let it Snow” incentive.
(extended service plans), the desired increase (15 percent), 5. SEE THE SYNERGY. Once your goals are focused, achieve-
and the time frame (the middle quarters of 2006). ment-oriented, measurable, and well timed, do a final check
2. THINK ACHIEVEMENT. Ambitious goals can be a rush, to ensure that they are also in line with corporate goals and
but unless those goals are achievable, they will only lead company policies. Gathering observations and feedback
to disappointment. Bearing in mind current market from colleagues in the trenches might help protect you
conditions and your company culture, ask yourself the from goals rendered unattainable by the realities of the
difficult questions that will help strike a balance between workplace. Particularly for non-sales-based incentive pro-
easy and unattainable goals: grams, this might require that you conduct surveys or focus
• Can the goals be met? By whom? groups with interested parties before homing in on the most
• How hard will participants have to work to attain critical objectives. For example, what seems like a revolu-
the goals? tionary idea for reducing the number of traffic accidents in
• What will happen if many participants can’t meet a fleet of delivery trucks could quickly break down if poor
their goals? vehicle maintenance, rather than a lackluster training pro-
• Has such a goal been met before, either by your gram, is the true cause of the problem.
company or a competitor?
• Could factors in the industry hinder the desired result?
survey says...
3. MAKE IT MEASURABLE. Successful programs are quantifi-
able, whether you measure progress by a reduction in the whats your
number of accidents at a factory or track sales force
progress by an increase in sales volume. No matter what
objective?
your goals, the activities related to their achievement must Defining goals is one of the most important
be measurable. Nearly everything is, so the real question aspects of planning an incentive program.
Organizations from all industries, found the follow-
program pointers ing to be their most pressing issues in 2005:
short term vs. long term

Determining how long an incentive travel program will run depends
on the needs of your organization. For example, if sales are sluggish,
maybe a quick, quarterly incentive might prove valuable. Or if
a particular new product needs dealer buy-in, then a year-long
program that includes education, product promotion, and contests
might be the most strategic approach. Seasonal, short-term
programs are common in the world of consumer promotions.
Establishing the optimal time frame requires analysis of an

incentive’s objectives, bearing in mind that external market
conditions will also impact a program’s duration.

map a strategy
ow that you have set your goals, this is the time to to the desired behavior—for example, automobile sales-
N determine exactly who you will motivate and how.

Begin by pinpointing the partners throughout
your distribution channel. Who is involved with
getting your product or service to market and what do
they do? How much enthusiasm for the incentive can you
people who move vehicles off the lot or call center reps
who deliver customer service. Then you can move up a
level and include their managers and supervisors. The
greater the reach, the more effective the incentive—but,
often, the greater the budget.
expect from them? Eval-uate Again, balance is key: You’ll need to crunch the numbers
any legal restrictions or to find an award large enough to motivate and still fit with-
geographic boundaries that in your budget. Productivity ratios can help, but don’t rely
might come into play.
Now, home in on who needs Balance is key. Crunch the
to be motivated and consid-
er exactly how you’ll go
numbers to find an award
about it. Often it is easiest large enough to motivate and
to work backwards, begin- still fit within your budget.
ning with the people closest
case study solely on the 80/20 rule, which states that 80 percent of your
profit comes from 20 percent of your work force.Instead,do the
open or closed? math to find the ratio for your company.This information helps
structure an effective program, whether it’s one that offers a
When it comes to program type, there are advantages and large reward only to the top few performers or features small-
disadvantages of both open and closed programs. Of companies er rewards for a few tiered qualification levels.
that offer travel incentives, (40 percent) plan programs with Before there can be rewards, there must first be results.
open-ended budgets. Translate the results you want from the program into a simple
OPEN-ENDED PROGRAMS award all participants who achieve a formula of behaviors—new accounts opened, referrals made,
predetermined level of performance. The benefit of this type training courses completed,accidents averted—and decide how
of strategy is that it produces better results as it targets the often your results will be reported. A good rule of thumb is that
60 percent of people who generally function at the average level. the shorter the program, the more frequent the reporting needs
But beware, because budgeting may be more difficult since there to be:weekly for a six-week program or monthly for a year-long
is no way to pinpoint the final outcome. program, for instance. In any case, don’t wait too long.
Participant enthusiasm feeds off the knowledge of how they’re
CLOSED-ENDED PROGRAMS limit the number of qualifiers to only top
doing in comparison to their previous performance and their
qualifiers.While easier to budget, this strategy can alienate sales exec-
competition’s performance.
utives who make quota but still aren’t at the top of the heap.
Also, repeat winners may dominate the program, leaving the low
performers unmotivated to participate.
writing the rules
When communicating the rules of your incentive program,
Programs don’t have to be strictly locked into an “open” or “closed” make the wording as clear and straightforward as possible,and
format. MULTI-LEVEL PROGRAMS give participants the opportunity to avoid cute or clever phrasing that supports a theme but might
win increasing levels of rewards based on their performance, with confuse your audience. For added assurance, run your rules by
higher tiers tying into higher performance. Often in such programs, a panel of potential participants to make sure they are fair and
there might be a predetermined number of winners at the top tier, easily understood.And no matter how simple your rules,expect
while the lower tiers are open to anyone who meets their goals. the unexpected—such as a tie between the top two partici-

CHAPTER 2 map a strategy
two participants—and put a contingency plan into the rules. STANDARD: Participants earn a predetermined number of points
Incentive program rules are guided by the kind of program for every sale they make.
you’re running, either closed-ended or open-ended. Closed- QUALIFIED: Participants earn points only after reaching a
ended programs have a pre-set budget and a guaranteed minimum goal.
number of winners.The advantage is that it helps sponsor- RETROACTIVE: Similar to a qualified program, but the payoff
ing companies know their exact costs from the start and includes credit for sales leading up to the minimum goal.
helps to save on expenses. They are often presented in the ESCALATING: The more you sell, the more you earn.
form of a contest or sweepstakes, and they work best for a BID-AND-MAKE: Participants set their own goals (subject to
group of seasoned workers with a proven track record. management approval) and are rewarded for achieving them.
TEAM BONUS: Participants receive bonus awards if every-
closed-ended rules one on their team makes goal.
Here are some popular closed-ended programs and the basic
rules that govern them: spurts of activity
LUCKY SQUARES: Make a sale and write your name in a In addition to the basic program strategies outlined above,
square. Winning squares are picked at the end of the week. there are options for when your program needs an extra
PICK 10: Every tenth sale earns an entry in a sweepstakes push or when you want to promote a secondary goal, such
drawing for the trip. as training or service. Spurts are designed to urge your par-
MAKE YOUR OWN ODDS: Earn a chance to win for every sale. ticipants into increased productivity, and work especially
ONLY THE TOP WIN: The top 50 performers qualify for the well at the beginning and middle of a year-long program.
travel award. Early on, they create excitement. At the midway point, they
HIT-AND-WIN OR BUY-IN: The top 50 achievers get the award; revive it. Any specific behavior or product can be the objec-
those who reach at least 50 percent of their goal can pay a tive of these spurts, with extra awards for achieving these
premium and buy their way into the trip. goals. Here are some common jump-start strategies:
UNEQUAL THIRDS: Participants are divided into three FAST START: Every sale made in the first two weeks earns
groups and the top 20 performers in each group qualify double points.
for the award. SPRINT: Earn bonus points for sales of featured models
during a short period.
survey says... FAST FINISH: Double rewards for every sale made in the last
open-ended few weeks of a program.
who goes rules
With an open-ended pro- secondary goals
there? gram, on the other hand,
there is no limit to the num-
Most incentive programs contain more than one objective.
A campaign primarily targeted at cutting costs 10 percent
The “Incentive Travel Buyer’s Handbook
Survey” indicates the lion’s share of incen-
ber of winners or the num- this year based on suggestions from assembly line workers
tive programs are targeted to the following ber of points or awards could “have building a sense of ownership among work-
audiences—often in the same program: they can accrue. Program ers” as its secondary objective. If the primary goals are
expenses, then, are tied to attainable and a significant number of participants quali-
the performance of the par- fy for awards, it is more likely the secondary goals will be
ticipants, although general- satisfied.You can include secondary goals in your program
ly increased sales pay for rules structure in the following ways:
rewards. Open-ended pro- BEYOND THE SALE: In addition to points earned for making
grams are more motivating a sale, participants earn bonus points for prospecting,
because anyone who demos, calls, and expense-control efforts.
achieves the pre-set goal WIN TWO WAYS: Participants earn points for each sale, and
will win something.The fol- the top 50 earn additional rewards, such as a trip.
lowing are some open- ON-TARGET BONUSES: Bonus points are awarded for every
ended program structures: quarter that participants meet their goal.

crunch the numbers

he profits or cost savings generated by a well- spark outstanding performance.For a sales or dealer incentive,
T structured incentive program will cover its costs,

but you probably won’t know the exact results
until the program has concluded. So what does
this mean for your budget, which needs to be firmly in place
before the incentive campaign can begin?
the value of the award should equal 2 to 5 percent of the par-
ticipant’s annual income. In a non-sales program, that number
can fall to 1 percent, depending on the work required. In a
short program, the prize should be of higher relative value to
produce quick results.The more experienced the participant is
A good rule of thumb is that companies should earmark with incentives, the more attractive the reward needs to be.
5 to 10 percent of the profits the program generates (incre- If your organization is new to incentives or if you’ve taken
mental sales), or 1 percent of overall sales, for the cost of the your motivation strategy in a new direction, you might also
program itself.The administration budget should account for have to put aside a portion of the budget for research or train-
5 to 15 percent of the total ing. Employees need to know how to perform the desired func-
survey says... program cost. Spending will
fluctuate, depending on the
tion in order to improve their performance the next time
around. If neither of these is necessary, adjust the budget
on the up and up intricacies of the program,
how much analysis will be
accordingly.
Just as with rules structures, there are two types of budgets,
For the second year in a row, incentive travel done on the results, how open and closed.Administrative costs tend to be higher and the
spending is on the rise. Incentive planners
detailed it will be, and how promotion strategy and rules more complex with an open
expect this trend to continue through 2006.
many hours are required budget. However, it also provides a chance to sell more prod-
BUDGET CHANGE to handle administrative uct, because there’s no limit to the number of points or dollars
FROM 2004 tasks.The promotion budget that can be earned by the participants.
TO 2005 should stand at a firm 20 With a closed budget (also called a fixed budget), there’s a
percent because communi- cap on the total value of awards and the number of winners.
cating with participants is The advantage here is that you will know the exact costs of the
integral to the incentive’s award beforehand.The downside, however, is that many partic-
overall success. ipants may feel shut out from the chance of winning and feel
By far the largest chunk unmotivated to try, thus limiting the incremental profit gener-
of the budget—70 to 75 ated by the program.
percent—should be spent
on the awards themselves. additional funding
For a travel award, this Should the need for additional funding arise, with a
money covers transporta- little creative thinking, you can find several sources for the
ANTICIPATED
tion, accommodations, extra dollars:
BUDGET CHANGE
FROM 2005 TO 2006 food and beverages, activi- MEETING AND TRAINING FUNDS: If incentives require early
ties, events, meetings, room training sessions or kick-off meetings, request that some
gifts and amenities, as well dollars be funneled from these areas to cover incentive pro-
as miscellaneous fees, gra- gram costs.
tuities, and taxes. VENDOR SUPPORT: If your product or service incorporates
With that in mind, there those of other companies, an increase in sales will benefit
are a few factors to consid- them as well. Approach them about picking up part of the
er: The higher the partici- tab for your program.
pant’s income, the higher BARTER: Your products or services can be useful to a reward
the award required to supplier and could help you cut costs.

CHAPTER 3 crunch the numbers
The federal government views
PARTIAL BUY-INS: It can be risky, but if your program results
incentive travel as income,
can’t fully cover the cost of rewards or if an insufficient
number of people qualify, participants can be given the
and it is taxed as additional
option of paying part of the award price, based on their level compensation. It is common
of performance. for companies to reimburse
talking taxes winners for this amount.
Generally, the federal government views incentive travel as
“income,” and it is taxed as additional compensation. So, same time as an annual salary adjustment, nor can it
depending on the type of program, the market value of the serve as a substitute for a cash bonus. Only merchandise
travel award, and the cost of any accompanying merchan- or gift certificates redeemable solely for tangible goods
dise awards, you and your winners might have to report can be excluded from income under the tax code.
earnings related to the incentive program to the IRS using • A trip offered to employees in a qualifying program is
1099 or W-2 forms once the campaign has been completed. treated as income to the employee and should be reported
The same factors will affect whether your company can at its fair market value on the employee’s income state-
deduct any of the award value from its books, so it’s impor- ment. A 1099 form must be issued to employees and non-
tant to understand the tax issues upfront. Here’s the skinny on incorporated customers for travel awards with a fair mar-
the tax code as it relates to incentives and promotions: ket value of more than $600.The cost of the travel award
• Certain types of awards (but not travel) qualify for is deductible by the employer as compensation paid.This is
preferential tax treatment. The Tax Reform Act of 1986 good news for the organization, but bad news for employ-
provides, in general, that an employer may deduct the ees and the reason many employers later reimburse win-
cost of “employee achievement awards” given to the ners for the additional taxes due. Alleviating the tax bur-
same employee up to den on winners will help maintain the motivational high,
survey says... $400 per year. If the but be prepared for additional cost and administrative
to meet or award is offered under

one or more established,
hassle.
• If the primary purpose of the travel event is a meeting,
not to meet written plans or programs

from the employer, the
then it may be deducted as a business expense by the com-
pany and is nontaxable to the employee. However, tax regu-
Holding meetings as part of an incentive limit increases to $1,600 lations are increasingly strict in their definition of a meeting,
program is often a tough choice for per employee. Such an and such advantages do not hold for meetings outside North
businesses. Sacrificing too much of the
reward can put a damper on future “employee achievement America, except in some Caribbean destinations or on
incentive programs. On the flip side, at award” is not only foreign-flag cruise ships. Laws regarding the deductibility of
what other time are you going to have your deductible to the employ- guest travel to such meetings have also been tightened.
best performers gathered together in one
er, but it does not have to • When individual travel is offered as an incentive, it is
place? See p. 30 to find out some smart
techniques. be included in the taxable likewise taxable to the recipient at its fair market value.
income of the employee. If individual travel is offered as a gift, the corporate
The IRS defines “employee deduction is limited to $75.
achievement award” as an • There are also tax implications if merchandise is
item of “tangible personal part of your travel program. Tangible items with a fair
property” given to an market value of more than $75 are taxable as income to
employee by an employer the employee and tagged as compensation by the com-
for safety achievement or pany. Items under $75 are deductible to the sponsoring
length of service. It must be company and nontaxable to the recipient. A 1099 must
awarded with a meaningful be issued to the employee for merchandise awards with a
presentation. It cannot be fair market value of more than $600. Again, it is com-
disguised compensation, mon for companies to reimburse winners for the taxes
nor distributed at the due on an incentive award.

choose the award

PLAYA DEL CARMEN
p to this point, all of your program planning has
U been in abstract terms of goals, measurements,

and budgets, but now it’s time to choose your
awards.This is the most conspicuous part of your
campaign and could be the most complex aspect of the plan-
ning process. After all, it is the tangibility of the incentive
travel award that your audience will strive for, and the mem-
ory of the trip that will last long after they’ve returned.
So put aside your own preferences and instead focus on
the hopes, dreams, and aspirations of your winners-to-be.
Put yourself in their shoes. What destination, activities,
level of luxury will push them to excel? Remember, too, that
the level of the award will be predicated to some extent on
how long your program is running, with less expensive
rewards for shorter programs and the once-in-a-lifetime
case study experiences for longer programs.
Your award decision should take into account several
shake it up factors about your target audience:

DEMOGRAPHICS: Ask yourself these questions as you begin
CBSA, an insurance group out of Minneapolis has been rewarding its the planning process:
sales people with the same type of land-based trips to Florida year • Who are you motivating?
after year.This year they decided it was time to shake things up. • Where do they live?
That is where Passport Incentives and Meetings, headquartered in • What is the age range of the group?
Overland Park, Kansas, stepped in.They found that part of the • What is their average income?
problem with the Florida trip was that it was heavily focused on golf. • Do they have families?
No one had considered that some of the diverse sales force hailing All of these characteristics affect the level of expense and
from around the world, ages 25 to 75, might not be interested in golf. sophistication necessary to motivate your audience. Six-
“Clients don’t always think about a group’s diversity, and it is figure earners who live in a big city will have different
something that desperately needs to be addressed when choosing an expectations than will small-town factory workers.
incentive award,” says Chris Barnard, senior business consultant at LIFESTYLE: Without resorting to stereotypes, be aware that
Passport Incentives and Meetings.“We have completely transformed men and women frequently have different needs and wants.
CBSA’s trip based on the fact that people in different demographics Men may clamor for a golf course while women might pre-
are motivated by different experiences.” fer a resort with a spa. A family-oriented audience may
Overcoming the challenge of a varied crowd and inspiring the appreciate educational attractions or theme parks.
entire group, Passport Incentives and Meetings planned an all-inclu- RELATIONSHIPS: Internal and outside salespeople, dealers/
sive, culturally rich trip to Playa del Carmen, Mexico.To appease the distributors, service representatives, and consumers are all
adrenaline junkies, golfaholics, and those looking to explore local lore, potential incentive targets—and all of them have different
they have scheduled ATV jungle adventures, a day trip touring the levels of interest in the success of your program.
ruins in Chichen Itza, a golf tournament, and even a pub-crawl. For EXPERIENCE: The more they win, the more they want. Repeat
participants looking for a relaxing trip with no details to worry winners naturally expect the sponsoring company to top last
about—the all-inclusive option does the trick. year’s award while maintaining a consistent rules structure.
On the other hand, neophytes may deliver a performance

CHAPTER 4 choose the award
comparable to a repeat winner—for relatively less Likewise, individual travel awards can allow for a range of
reward. destinations, accommodations, or lengths of stay.
TIMELY: The sooner the award is delivered, the more likely it
points to consider is your winners will remember they are being rewarded for
After you’ve thought long and hard about the nature of a particular behavior or achievement performed on behalf
your audience, turn your attention to the award itself. Here of your company. Travel awards for a year-long incentive
are a few things to keep in mind as you dream up an should take place as soon as the results have been verified,
award that truly motivates your participants: preferably in the first quarter of the following year.
ATTAINABLE: Participants must feel that the award is Individual travel certificates should be delivered within 72
within their reach, that it is something they can actually hours of when they are won.
earn. One way to ensure this is by introducing tiered BARGAINS: Trying to save a few bucks can be self-defeating.
awards that offer a mix of good, better, and best, so that Scheduling a trip during the less-expensive off season may
participants of all levels have something to strive for. save your company some money, but it could cost you in
According to the results of the “2005 Incentive Travel effectiveness if the group is unable to enjoy the destination
Buyers Handbook Survey,” 43 percent of respondents due to predictably inclement weather.
plan tiered incentive travel programs. YOUR WINNERS: Once again, what you would want if the
VARIETY: Everyone has different wants and needs, so when tables were turned should never be the criteria for
possible, consider offering a range of choices within your choosing an incentive travel award.That’s why you spent
award mix. Group travel can offer a choice of comparable all that time getting to know your audience, their demo-
destinations, say New York, the Napa Valley, or Cancun. graphics, lifestyle, and habits.
For more information circle #210 on Rapid Info card

motivate, monitor
& measure t every stage of an incentive travel program, plan-
case study
little things
A ners have an opportunity to optimize results by
taking a proactive approach. No matter how
ambitious an incentive, a program won’t get off
the ground if no one knows about it.That’s where promotion
comes in handy. Not only does a compelling communications
plan maximize the motivational impact of a campaign, it
make a big difference drives participation, builds momentum, and establishes a
U.S. FOODSERVICE believes in the creative use of products to benchmark for future initiatives. While business objectives
promote an incentive, and they should.Their recent cruise to Cozumel may vary from organization to organization, the goal of com-
and “Fun In The Sun” incentive program was a success because of it. munication remains constant—keep the incentive top of mind
Their objective was to motivate restaurant owners to purchase spe- with its target audience.
cific products by offering chances to win a trip, but the trip wasn’t Start with a central theme. Since the theme will appear
the only perk. on all collateral materials, it should be fun, engaging, and
To pique their interest and motivate participants to register, U.S. universal. Common tie-ins center on the cultural aspects of
FOODSERVICE sent out messages in a clear bottle filled with sand. the selected award destination or the motivational merits of
“The message really propelled the incentive forward and people were a popular movie or person. Whatever the theme, all graph-
registering like crazy.That is why products are so important,” says Liz ics and written content should reinforce a positive message
Sutton, president of Sutton and Associates, a full-service incentive as well as promote the incentive travel award to get the
company in Montgomery, AL.“People want to touch and feel,” she most impact. Expect to budget between 10 and 20 percent
adds.“We are all kids at heart and all want to receive something on incentive communication pieces. Start your communica-
unexpected; we love the surprise element—that’s what creates the tions blitz by understanding five key areas: the program
‘wow’ factor.” launch, qualification period, mid-program motivation, award
The surprises didn’t stop there.Weeks before the trip, delivery, and post-program assessment. Remember, promot-
travelers received leather document holders with the company ing an incentive is about generating excitement throughout
logo. And onboard, the recipients were pampered with nightly the program, so be creative!
pillow gifts like sandals with the U.S. FOODSERVICE logo
die-cut on the bottom, mesh beach totes, personalized bottles the launch
of wine, and private island excursions.The pillow gifts were The way you launch an incentive program can make a
one of the highest rated items on the huge difference in the long run. First impressions
satisfaction survey. strongly impact program participation. Teasers, official
“To create an impression announcements, and kickoff materials are all essential
and set the expectations for the tools designed to elicit a “wow” response and get peo-
program, following up with the ple jazzed about the program. Here are few points to
marketing and promotion of the jump-start your incentive initiative:
program is essential,” says • Create an eye-catching teaser and enrollment kit
Sutton.“I think it is that outlines the program’s goals, qualification
important to set aside requirements, and rewards. One way to create excite-
10 to 20 percent of the ment is to include a theme-related premium with the
program budget for what mailing, like a jigsaw puzzle of the destination, or sun-
I call marketing and glasses if headed to a sunny resort. Give your audience
promotion premiums.” a hint of what is to come. Follow up with an official pro-

CHAPTER 5 motivate, monitor & measure
announcement that details the “fine print” issues, such as office common areas to provide employees a visual
objectives, rules, measurement systems, timing, and tax reminder of their potential reward.
implications. • After sending out the teasers and enrollment kit, it’s
• Give your target audience a reason to respond. All time to sign up interested individuals. Make sure that
mailings should include a trip itinerary and related infor- information is accurate to ensure that all incentive-relat-
mation on the destination, such as travel and customs ed materials are delivered in a timely fashion.
requirements, currency, weather, and appropriate attire.
• Use other promotion the qualification period
platforms such as a com- Midway through the program, it is important to make
pany Intranet to support sure that participants are on track. This can be achieved
your efforts. Kickoff col- by keeping accurate records through your own database
lateral, such as eye-catch- system or Enterprise Incentive Management technology, an
ing banners, posters, and industry-specific platform designed for this purpose.
videos, should be placed in Determine whether administration of the program will be
handled in-house or by an outside firm (also see Chapter 7,
case study “Outsourcing,” starting on page 32). At this phase of the
incentive process you’ll need to:
speedy and effective • Create periodic summaries of the incentive program’s
progress. The information provides an overview of collective
Online incentive programs are a powerful tool to motivate employees,
progress, helping you as the planner ensure that the program
communicate using unique methods, and track results. But they can
is on track. Also be sure to send individual participants their
also be helpful in improving corporate branding and customer service
own performance updates. Frequency of updates depends on
standards.
the length of the program. While participants want to know
When Shell merged with Texaco, there were thousands of gas
where they stand, they don’t need information overload.
stations across the country that needed to be unified. Martiz
• Determine whether additional resources are needed to bol-
Performance Improvement devised an online program that would
ster performance. Is there a great variance in performance? If
help them accomplish that goal.With the help of the Maritz research
some individuals seem to be missing the mark, it may be time
division, they created the mystery shopper.This brigade of impartial
to provide additional support. For example, does the target
researchers visit 11,000 Shell stations twice a year and evaluated
audience need additional product training to help them meet
stations on what Shell calls its 10-point customer value proposition,
their sales quota? Or maybe your target audience needs to be
which includes things like service, clean bathrooms, equipment,
reminded of why they are working harder in the first place.
and nice landscaping.
• Take note of external factors impacting the incentive
1,500 virtual shoppers enter their findings online allowing station
program. Sometimes there are conditions or events that
owners and sales executives to view the ratings immediately.“One of
affect an individual’s ability to achieve their goals. For
the biggest benefits is that wholesalers can quickly make changes
example, the competition introducing a new product, a
based on the online ratings. If they see someone on their staff didn’t
war, or channel partners slashing budgets can all nega-
get a good quarterly review they can make sure performance is
tively impact your participants’ ability to meet their goals.
improved,” says Paula Godar of Martiz.
Document all information that will help better structure
Stations that score 70 percent or higher on their evaluations are
future incentive strategies.
eligible for a yearly trip.The top 75 travel to exotic destinations like
Sydney,Venice, and Alaska. In 2003, the number of stations that quali-
fied jumped 5 percent between the second and fourth quarters. Even
mid-program motivation
Communication works several ways during this mid-
more impressive is that Shell has found, on average, people who quali-
program phase.The critical point is to make sure participants
fied and won the award increased their gas sales volume by 5 percent
receive frequent updates on their progress, whether through
between 2002 and 2003.
mailings, e-mails, a company intranet, or other method.
“The online mystery shopper program has proved to not only save
According to the “2005 Incentive Travel Buyers Handbook
Shell printing and mailing costs,” says Gorda.“Shell has found that
Survey,” planners use the following methods to communicate
maintaining high brand standards at the stations increases customer
the details and progress of incentive travel programs:
loyalty and gas sales.”

E-mail ........................................................... 85.0% congratulating winners on their achievement. Get par-
Mail .............................................................. 48.0% ticipants excited with a care package that highlights
Newsletters .................................................... 42.5% the upcoming program’s activities and events. Pre-trip
Company Intranet .......................................... 45.0% products are also a nice touch at this point—upscale
Internet ..........................................................24.0% wallets that hold agendas and airline tickets, pouches
For those participants who are successfully meeting to carry passports, and luggage are popular items. In
their goals, promotions at this time can be reminders of addition, when you send the notification that a partic-
what they’ve accomplished so far. For their peers who ipant is a winner, it is a good time to send an “heirloom”
might not be hitting their numbers, fun mailings and gift as well, usually a product that serves as a reflection of
friendly reminders might be the little push needed to moti- the achievement and the program, directly to recipients’
vate them to move ahead full force. At this point, promo- homes. Products in this category can range from a fine
tional items should include pointers to success, as well as watch or camera to a golf bag or a piece of crystal.
enticing pictures of their ultimate incentive destination.
Simple post cards or e-mail blasts such as “Phoenix, here
we come!” can have significant influence on performance. program pointers
Make a plan for impressions. At this time, clever teasers
will set top-of-mind awareness. For example, for a trip to
Hong Kong, you might send a series of monthly e-mail blasts
product procedure
Using products is a relatively inexpensive way to build initial
and then once a quarter send something more tangible, such
excitement for an incentive program, sustain participants in the
as a fortune cookie and an Eastern scroll detailing the trip.
middle of the program, and add to the travel reward experience.
Also consider sending at least some materials directly to a
Here are some general guidelines:
participant’s home, rather than to the office, especially if
spouses and children are included in the trip. Receiving pack- Merchandise should be clever, creative, and thematic—it doesn’t have
to be expensive, but it should tie into the theme of the incentive.
ages at home can build excitement among the participant’s
family, further spurring the participant to achieve the goals. Make sure to consider the demographics and lifestyles of the
audience so the merchandise teaser or award is perceived as
award delivery either motivating or rewarding.
Now that the shining moment has arrived, make sure If significant others or spouses are included in the trip, demon-
strate an appreciation for them as well when giving merchandise.
your incentive winners revel in their glory. Send letters
When leaving a pillow gift of apparel, for example, don’t forget
to include the same type of product, in an appropriate size, for
the guest.This shows that the company is aware of the sacrifices
survey says... a spouse or significant other makes in order for participants to

achieve their goals. Of course, don’t forget the kids either.Their
with confidence own gifts, if age appropriate and interesting to them, will contin-
ue to provide inspiration for the parent each time the child uses
them after the trip.
Incentive planners know that travel is a
powerful motivator. Check out these num- Consider your audience when deciding on whether or not to
bers from the 2005 Incentive Travel Buyers include a logo. For example, a logo on a T-shirt, duffel bag,
Handbook Survey: beach bag, or visor is normal and appropriate. Sometimes,
however, it’s best to go with something discreet: On a leather
wallet or expensive purse, for example, the company logo
should be stamped on the inside.
In other instances, especially when dealing with really high-end
items, you might want to leave the logo off altogether. For good
crystal, artwork, and other pieces designed to be displayed in the
home, chances are better that the participant will display the item
without the logo than with one. Forgoing the logo also gives
participants the opportunity to announce how they earned the gift.
Remember—you want the participant to use the gift even after
the trip has ended to maximize its potential and loyalty effect.

Upon arrival in the destination, greet guests with a gift those who did not qualify. Feedback is essential, so you’ll want
that ties in the incentive theme. In-rooms gifts should to poll your participants on all aspects of the program—not
become ever grander and should include a good mix of just the trip—and calculate their responses. Using a survey or
categories. On the first night, it’s nice to give participants questionnaire, whether over the phone, online, or via e-mail,
amenities that they can use while they are on the trip, ask participants about the timeliness of the program, its rules
such as a sun hat in the Caribbean, an unlimited subway structure and qualification requirements, the clarity of com-
pass in an urban area, an electronic language translator munication, the awards mix, the impact of training efforts on
for cities abroad, or a digital camera. Wearable items, their performance, and the quality of promotional materials
like good-quality polo shirts, golf shirts, and fleece jack- and activities. Ask the program’s administrators to describe
ets, are also popular. any snags or successes they encountered with the incentive. In
Reinforce the program and its theme with signage, branded any program, there’s always room for improvement.
menus and programs, as well as nightly room gifts—little While the anecdotal information from participants—along
details can make a long-term impact. An awards dinner can with their perceptions of the program—is critical, you’ll also
be the perfect time to reward those top performers, allowing need to quantify results based on the measurable characteris-
them to be recognized in front of their peers and also inspir- tics. Some of the results you may want to examine include:
ing others to aim high. Such • Units or dollars sold during the qualification period
survey says... awards are typically high- • Increase in market share
quality awards that can be • Incremental sales gains during the qualification period
gifting galore displayed on the winner’s • Percentage of audience that participated
desk or shelf. From crystal • Percentage of audience that met goal
A full 90 percent of incentive planners who
to plaques, such gifts give When you run the numbers, don’t forget to factor in the
participated in the “2005 Incentive Travel
Buyers Handbook Survey” indicated that participants ongoing effects of external influences, both positive and negative.
they use merchandise in conjunction with recognition, help them to Positive influences on a program include a strong market-
travel programs.This is up from only 75 remember the goals and place, weak competition, gains on a competitor’s share of the
percent who reported using merchandise in
the 2004 survey. Here are this year’s top achievements, and serve to market, new products or services, and enlivened advertising or
picks: inspire others in the organi- marketing tactics. Negative influences include advertising
zation. cuts, strong competition, poor morale, and distribution blun-
ders.
post-program
assessment Post-award administration also involves:
Running an incentive ACCURATE RECORDS: The planning stage for the next program
doesn’t stop after the com- is fast approaching. Make sure that all information is organ-
pletion of a trip. Before you ized and easy to understand. You never know when you will
relax, evaluate the pro- have to share the results with upper-level management or
gram’s results. More than reconnect with program participants.
merely wrapping up loose If you used an online incentive program management appli-
ends, this crucial final step cation, the price you paid in hours of data entry or cajoling
will tell you if your compa- resistant workers to get online will pay off now. The data is
ny actually met its goals there for the mining. Quantifiable results are available at the
and alert you to ways you click of a button and can be reported by region, individual, or
can improve future incen- product line, often with charts and graphics. An online or e-
tives. Perform a detailed mail survey of all participants is easily developed, distributed,
examination of the pro- and tabulated. Some password-protected Web sites even give
gram as a whole, consider- you the ability to monitor participant chat rooms and bulletin
ing both the results of the boards for anecdotal feedback about the program.
winners and the record of If your incentive was developed in the traditional offline

manner, the post-program evaluation may be slightly more ments such as the incentive program logo and other graphics
time-consuming.The hours you spend, however, will not go to to maintain momentum.
waste: These results hold the key to making your next travel
Assistance for this article was provided by Doug Press, presi-
incentive program even better. dent of the Incentive Group Inc.,based in White Plains,NY;Todd
TAX INFORMATION: It is required by law to report participants’ Lucht, merchandising manager at the Minneapolis-based
additional earnings to the Internal Revenue Service. Carlson Marketing Group; and Julie Acciardo, manager
marketing communications, at Marketing Innovators in
Organized data will help facilitate this obligation. There are Rosemont, IL.
even online incentive systems that offer 1099
reporting for tax purposes. (For more information
on tax ramifications, see Chapter 3, “Crunch the
Numbers,” starting on page 10.)
GENERATING EXCITEMENT: With the program at an
end, it’s time to capitalize on it and build excite-
ment for next year’s program. When conducting
post-trip evaluations, make sure to incorporate ele-
program pointers
product
procedure
Expect to allocate between 10 and
20 percent of an incentive budget
to communication pieces.
The shorter the program, the more
frequent communication mailings
should be. As a general rule of
thumb, for incentive programs with
a qualification period of three
months, send a mailer once every
two weeks.Year-long programs
require a mailer each month.
Personalize all incentive-related
letters with the executive touch.
Make sure a company official signs
all congratulatory letters.
Recognition from upper manage-
ment reinforces employees’ hard
work.
Share incentive winners’ accom-
plishments with their colleagues
by highlighting their contributions
in a company newsletter or
e-mail memo.
Recognition doesn’t end at the
completion of an incentive program;
it should be ongoing.

group vs. individual travel

ifferent lifestyles call for different needs. In
all together now
D order to create the most impact, a company
should offer an incentive program that accom-
modates the desires, needs, and schedules of as
many participants as possible. Fortunately, two award
categories are available: group and individual. While
Group travel is a collective experience that provides a plat-
form for participants to bond, network, learn, and foster rela-
tionships in a unique environment. This is the format most
commonly used by organizations. In the “2005 Incentive
Travel Buyers Handbook Survey,” 27 percent of respondents
each experience offers trip attendees enrichment and
indicated that their organization offers only group travel pro-
excitement, both have distinct advantages and disadvan-
grams, while 21 percent only offered individual incentives.The
tages to consider. Understanding the fundamental differ-
majority of respondents offer a mix of both group and indi-
ences between the two can help determine which type is
vidual travel programs; this segment totals 52 percent.
most appropriate for your target audience
A better perspective on group travel programs requires a
program pointers closer look at its pros and cons.
PROS
special guests ONCE-IN-A-LIFETIME OPPORTUNITY: Group incentive travel is
the ultimate form of recognition. Not only do attendees get
Friends and family are an important part of an incentive winner’s
to go to a fabulous destination with their colleagues, they
success.These significant people provide the additional support and
also get personal recognition from senior management.
patience that help qualifiers meet their goals; they too deserve
Plus, the trip involves activities and events that they prob-
recognition. If an incentive travel program allows for guests, make
ably could not duplicate on their own. Even if winners had
sure they are not overlooked. Here are few points to consider:
the financial resources, they lack the expertise, insider
MAKE GUESTS FEEL PAMPERED: Enhance the motivational impact of an knowledge, and contacts needed to create such a high-cal-
incentive travel program by acknowledging incentive winners’ guests iber program.The motivational staying power of this expe-
from start to finish. If conducting a group travel program, make sure rience is incredible.
badges, table settings, and cards include all parties’ names. In an indi- PROMOTES CAMARADERIE: Most incentive professionals
vidual travel incentive, try to include the winner’s guest on letters report that qualifiers most value the chance group trav-
before and during the trip. el gives them to rub shoulders with top executives and do
OFFER ACTIVITIES: Sometimes incentive winners are required to
some networking in a relaxed setting. This positive envi-
attend functions, such as a mandatory meeting, where guests are
ronment allows attendees to celebrate their accomplish-
not allowed. During this downtime, make
ments with their peers and key executives, establishing a
activities such as spa treatments, shopping
level of relationship that it’s difficult to experience in
trips, or a golf outing available to guests to
the office.
OFFERS POSSIBLE LEARNING OPPORTUNITIES: Although some
ensure that they have something to do.
believe that it is best to keep meetings separate from the
DON’T FORGET THE KIDS: When children are incentive experience, other companies have benefited from
allowed to attend an incentive program, incorporating educational elements such as short training
make sure there are plenty of family- sessions or product launches. Having a target audience in
friendly activities. Research the destination one place allows companies to maximize dollars spent on
and offer a detailed itinerary in the pre-trip such efforts.
package. Offer child-care services when MAINTAINS MOMENTUM FOR FUTURE INCENTIVE STRATEGIES:
needed. At the completion of a group travel program, participants
are likely to talk about their experience to colleagues.These

CHAPTER 6 group vs. individual travel
success stories can create intrigue and interest for future get a sense of where they would like to go.
incentives, as well as motivate those individuals who didn’t SCHEDULE CONFLICTS MIGHT ARISE: From time to time, work or
qualify to work harder the next time around. family commitments might prevent an incentive winner from
taking part in the planned program.The motivational impact
CONS might be compromised when they have to forfeit their award.
CAN ALIENATE NON-QUALIFIERS: One potential pitfall of any PRESSURE TO “OUTDO” PREVIOUS PROGRAMS: In certain indus-
incentive program is that not all people will meet the neces- tries, such as insurance and automotive, incentives are essen-
sary goals to earn the award.When this happens, division can tial to the business strategy, and it is common for many sales
occur.The people left behind might feel unmotivated and envi- executives and dealers to be “experienced”incentive travelers.
ous of their colleagues’ success. They could be less likely to In order to capture the interest of this particular segment,
achieve in the future due to discouragement. planners are under constant pressure to develop creative and
PARTICIPANTS HAVE NO SAY IN THE DESTINATION CHOICE: compelling programs year after year.
Historically, when it comes to group travel, participants
are at the whim of an incentive planner’s decisions. going solo
Satisfying everyone’s preferences can be a challenge, if Individual travel incentives, unlike group travel, offer recipi-
not downright impossible. For example, Paris might not ents a customized award for meeting goals. Emerging as a
appeal to someone who just vacationed there last month. flexible solution to address an organization’s time con-
A beach resort won’t entice someone who does not like straints, budget cuts, and staffing concessions, numerous
the sun. While it’s impossible to satisfy everyone, survey individual incentive programs are now offered by airlines,
your target audience before you establish the program to hotel companies, and incentive companies.
With these awards, incentive participants no longer
case study have to give up an incentive prize because of personal or
professional conflicts. Companies can accommodate
strength in numbers their employees’ and customers’ needs with this alterna-
tive, which offers choice, convenience, scheduling flexi-
Being a part of the winning circle means a lot to incentive partici- bility, and more of an opportunity to include family and
pants, and the opportunity to share the experience can enhance friends.
interpersonal relationships in the office.To encourage that spirit of There are several individual incentive travel products
being part of the group, teambuilding programs can be a crowd suitable for all lifestyles. Award certificates, offered by
pleaser—if done right. For Wayne-Dalton, a garage door manufacturer airlines, hotels, and incentive companies, can be utilized
in Ohio, sticking with literal teams helped bring their top sales in plateau-structured programs. Recipients redeem the
people and VIP customers together. certificates, issued in different denominations or levels,
On last year’s incentive trip to Bermuda,Wayne-Dalton held for options that can include transportation, accommoda-
their own Olympics complete with team jerseys, cheers, and sand tions, and activities in their selected destination.
sculpting competitions.“The reaction to the Olympics was great. Customization and ease of use are what make travel cer-
It was obviously a teambuilding event, so people balked at first in par- tificates extremely popular.
ticipating, but they were amazed at how much fun they had,” In pre-selected awards programs, the incentive planner
says Eden Silver, associate director of travel program management determines all of the elements—from the destination to
at Dittman Incentive Marketing in New Brunswick, NJ.“We were hotel to transportation to trip delivery—for the recipi-
thrilled with how elaborate the team cheers became.What is nice is ent. While these awards still offer autonomy, recipients
that everyone is together and interacting in an Olympics event instead have less flexibility.
of being in separate boats.” Air miles can be used to motivate your target audience
Personalized touches like hula-hoop Olympic rings in the sand, as well. Companies can give them to participants, who
ribbons, and medals rounded out the teambuilding experience.The can then apply them toward their respective frequent
key to the overall success of the Olympics and the most important flyer programs. Now that you understand the different
part of planning, says Silver, is hosting fun-filled events at all athletic individual incentive program structures out there, here’s
levels so that everyone can be involved. a look at the pros and cons.
continued on page 30

program pointers
meetings etiquette checklist
According to the “2005 Incentive Travel Buyers Handbook group activities can enhance camaraderie and the sense of
Survey,” 83 percent of incentive trips include at least some achievement.
meeting components.While the percent of companies who
CHOOSE THE RIGHT CONTENT: The focus of the meeting should
spend more than 30 percent of their incentive travel time in
relate somehow to the accomplishments that brought the group
meetings dropped this year.These meetings can translate into
to the incentive trip in the first place. Be sure to highlight the
tax savings (see Chapter 3 “Crunch the Numbers”).They should-
stellar performances that won attendees a spot on the trip, or
n’t, however, be allowed to ruin the fun of the incentive pro-
sketch their goals for next year, or briefly explore quarterly or
gram. Here are a few things to keep in mind when planning
year-end results at the organizational level. Short keynote
meeting programs within an incentive trip:
speeches help keep things interesting.
SCHEDULE APPROPRIATELY: As a rule of thumb, meetings on incen- GET A BABYSITTER: More incentives include families, and during
tive trips shouldn’t go past noon. Often, they’re combined with meetings those family members must be accounted for. Either
breakfast, allowing participants to get the “work” portion of the make room for them during meetings, and keep the content
day out of the way early so they can enjoy the rest of the day’s light; or arrange substitute activities to keep them occupied,
activities. Limit any day’s meetings to a couple of hours— like meals or recreational excursions, if they are to be excluded.
remember the incentive “reward” component should be the driv- If you arrange for spouse programs during such times, either
ing force, not the meetings element. At night, meetings are defi- include the children or be sure that there are babysitting
nitely not allowed—but awards banquets, dances, and other services or special programs designed for the kids.

continued from page 28
PROS survey says...

EASE OF USE: Individual incentive travel programs give recipients autonomy. Program partic-
ipants can celebrate their accomplishments on their own time, without the restrictions of
other people or mandatory events.
it’s a group thing
CELEBRATE WITH FRIENDS AND FAMILY: Often, individual incentive travel awards are designed According to the “Incentive Travel Buyers Survey,”
the size of incentive travel groups remains steady
to include the award recipient and another person of their choice, giving the travel experience
for 2005.The more intimate groups of fewer than
more significance. 25 people remain the most common.The average
FITS ALL LIFESTYLES: Sports enthusiasts, spa lovers, or wine connoisseurs—no matter what size calculated from the survey responses is 79
your target audience prefers, chances are that there are individual incentive programs people per travel program.
designed to meet their interests. Offering an award that resonates is easier and easier, as more
specialized packages enter the marketplace.
CONS
DOES NOT PROMOTE CAMARADERIE: The experience does not offer the bonding and teambuild-
ing elements that make group travel such a popular award choice, and some argue that such
experiences therefore lack the long-term motivational impact of group travel programs.
DIFFICULT TO OFFER APPROPRIATE RECOGNITION: When designed poorly, individual incentive
travel programs can lose their motivational impact. What good is recognition if no one else
knows about it? Make sure to present the award in front of the winner’s peers to reinforce
achievement.
Assistance for this article was provided by Julie Carroll, national director of industry relations
for WorldTravel Meetings and Incentives, based in Atlanta, GA.

outsourcing options available and the services they provide.There are

suppliers dedicated to fulfilling every aspect of an incen-
tive travel plan, and any combination thereof.
INCENTIVE COMPANIES: Also called incentive houses,
these organizations often have the tools necessary to
manage every aspect of incentive travel, from the con-
ceptualization of goals and strategies to trip delivery.
Some, but not all, large incentive houses are part of larg-
er travel agencies or travel management companies—
most of the largest agencies have an incentive travel divi-
sion—and so they can handle airline ticket fulfillment
too. Large incentive houses also typically have signifi-
cant buying power with hotels and other suppliers, some-
times more so than the company hosting the incentive.
Costs vary significantly, often including commissions and
sometimes including a management fee, all of which
he process of planning an incentive travel pro-
T
depends heavily on the size and breadth of the incentive
gram can be complex. Between structuring the program and the services required.
programs to meet corporate goals, finding DESTINATION MANAGEMENT COMPANIES (DMC): A typical
transportation providers and hotels, and staging DMC can assist in finding and negotiating with hotels,
entertainment and leisure activities, some planners have entertainment providers, and leisure activities within the
looked beyond their companies’ resources for ways to city or region it serves. Many planners have found DMCs
meet all their needs. As such, entire industries have to be a key cog in an incentive travel program, as the
developed around the outsourcing of incentive travel, local knowledge that DMCs retain can help planners find
with scores of companies willing to help manage all or quality options they might otherwise not know about, and
certain parts of your program. The outsourcing process their relationships with suppliers can help with negotia-
itself can be intricate, as planners must decide what spe- tion. A DMC might charge a flat fee or negotiate a per-
cific aspects of the program, if any, could be handled by centage of total event cost. In recent years, some DMCs
a third party as well as what suppliers to use, whether have banded together to form nationwide or global net-
such action will assist in meeting the goals of the incen- works, allowing planners to be easily referred from one
tive, and if doing so will be cost-effective. DMC to another.
An outsourcing strategy can free planners to devote INDEPENDENT PLANNERS: Either as part of a large firm or
more time to more important issues, such as strategy and working solo, independent planners typically can provide
content, and expose their programs to a wider and better any and all services related to incentive travel manage-
range of suppliers. Some third parties have significant ment, including site selection, contract negotiation, logis-
buying clout that can result in better hotel rates and tical management, and event production. Fees vary based
prices for entertainment and leisure options. But the ben- on services requested and the size of the event.
efits of outsourcing are not free, and pricing philosophies SITE SELECTION FIRMS: These companies typically exist to
vary. find and solicit bids from properties capable of hosting
your event. Site selection firms can negotiate contracts
the choices and provide some meeting management services, based
The first step in deciding whether the involvement of a on the buyer’s needs.They are paid by hotels and work on
third party would help your program is to examine the commission, usually 10 percent of the room rate.

CHAPTER 7 outsourcing
why outsource? Entire industries have

There is no one set of conditions in any incentive travel developed around the
program that automatically dictates outsourcing. Every outsourcing of incentive
program is different; every company’s goals are unique
to its culture and context. But some of the reasons why
travel, with scores of
planners choose to outsource form a common thread companies willing to help
through different corporations and programs, as do some manage all or certain parts
of the reasons why they decide to keep planning func-
tions in-house. Below are some areas planners should
of your program.
consider in their decision-making.
COMPLEX PROGRAM: A large incentive travel program, or national or domestic, many planners have found value in
one that involves multiple destinations, can often benefit retaining the services of a third party that has long work-
from the inclusion of third-party services. More atten- ing relationships with local hotels, transportation
dees, especially if they are departing from several loca- providers, and production and entertainment companies.
tions, means more details and more intricate itineraries. Almost every popular domestic incentive destination is
INTERNATIONAL PROGRAM: Incentive programs in coun- home to at least one destination management company;
tries outside the United States can pose an entirely dif- they typically know how to find available hotel or resort
ferent set of challenges than domestic events. Incentive space and can suggest fun and interesting tours and
buyers must consider factors like international and activities that you might overlook.
value-added taxes, a myriad of different transportation TIME: A sales executive or other employee planning an
options, currency conversion, possible language barriers, incentive travel program in conjunction with regular job
local laws and customs, and different methods of book- responsibilities might quickly discover that incentive
ing space. A third party familiar with these complex planning is no part-time affair. Many companies, even
issues can save time and ultimately money. those with professional incentive planners on staff, have
LOCAL KNOWLEDGE: Similarly, whether a program is inter- found outsourcing beneficial to reduce workload.
CONTINGENCIES: Many third parties have the experience
to be able to address ancillary but important aspects of
survey says... incentive travel, like security and contingency planning,
local knowledge that might slip past the inexperienced planner. In addi-
tion, large incentive houses often have the clout to han-
When holding incentive programs in cities you don’t know well, local dle unexpected and potentially disastrous incidents, such
knowledge can come in really handy. Incentive organizers are likely as a cancellation on the part of the hotel, better and
to use the services and resources of a convention and visitors
more quickly than a planner at a small company.
bureau or tourist board.
on the other hand

COST: The concept of cost is one that some companies use
to justify outsourcing incentive travel—and others use to
rationalize keeping the program planning in-house.
Neither is wrong. There is going to be additional cost
incurred when parts of an incentive travel program are
outsourced. However, it’s certainly possible that some of
that cost might be offset by the better hotel and trans-
portation rates a third party may secure. One single
answer about the cost-effectiveness of outsourcing is
impossible due to the unquantifiable nature of its bene-
fit: Time saved. Quality of the experience. Minimization
of mistakes and snafus during the program. You might

weigh these benefits as more or less valuable than hard use destination management companies, site selection
cost savings, whereas another planner or company might firms, or independent planners to handle parts of it, you
have a different view. will have many options to consider and several compa-
CORPORATE CULTURE: Planners sometimes cite concerns nies. Finding the ones that best fit your program at a rea-
about corporate culture, as no outside party can appre- sonable cost is not tremendously complex, but it is an
ciate the values and traditions of a corporation and its important process.
employees as well as someone who works for that com-
pany.This concern is often exacerbated when senior man- 1. FIND THIRD PARTIES
agement is involved with an incentive travel program, as Some of the larger incentive houses—Maritz, BI,
planners frequently want to ensure service levels for WorldTravel Meetings & Incentives, USMotivation,
those executives. On the flip side, if planners can convey Carlson Marketing Group, and Navigant, for example—
the elements they’re looking for, a third party can help are well known and have planted deep roots in the indus-
make sure such needs are met. try. The same is true for the largest site-selection firm—
CONFUSING RELATIONSHIPS: Outsourcing can lead to a HelmsBriscoe—and the largest independent planning
convoluted communication process among the planner, companies, Conferon and ConferenceDirect. The compa-
the third party, and the hotel, with a lack of clarity as to nies listed above perform a wide variety of services, beyond
which party is responsible for maintaining each line of one specific aspect of incentive travel. But if you are look-
communication. Clear contracts and agreements can ing for a destination management company or a smaller
alleviate such problems. incentive house, site-selection firm, or independent planner,
IMAGE AND APPEARANCE: Perhaps the most common rea- it could take a bit more digging to find them.
son given by planners who resist outsourcing incentive REFERRALS: Perhaps the single most important tool in
travel is the fear that utilizing the services of a third the incentive planner’s arsenal is the testimony of peers.
party will result in senior management determining there Fellow planners are usually perfectly happy to share
is no need for an internal position dedicated to planning their impressions of third parties they have used for their
incentives. Opinions vary on the validity of this concern, own programs, and those companies’ prices, service lev-
but the concern certainly exists. els, ability to deliver on their promises, reliability, and
execution of the program. This can offer you an unvar-
nished look at a potential outsourcing partner.
INDUSTRY ASSOCIATIONS: Many third parties, large and
The concept of cost is one small, belong to at least one industry association, most
that some companies use to frequently the Society of Incentive & Travel Executives.
SITE’s Web site includes a search engine that lets plan-
justify outsourcing incentive ners search for outsourcing partners by type and loca-
travel—and other use to tion, and the association has dozens of chapters through-
rationalize keeping the out the world. Other associations with third parties as
members include Meeting Professionals International
program planning in house. (MPI) and the Professional Convention Management
Association (PCMA).
CONVENTION & VISITORS BUREAUS (CVB): Almost every
the process popular incentive destination in the United States has a
Should you decide to outsource all or part of your incen- convention and visitors bureau, while foreign destina-
tive travel program, the next step is to determine not only tions tend to have tourist offices. In either case, these
the level of third-party involvement, but the actual sup- agencies can provide the names of third parties in their
pliers you will use. Whether you decide to turn all, or the area, and in some cases they can make referrals. Be
majority, of your program over to an incentive house to aware, though, that oftentimes members, including
manage every logistical and strategic facet, or decide to potential outsourcing partners, pay dues to the bureau,

Convention and visitors bureaus or tourist offices can provide

the names of third parties in their area, and in some cases they
can make referrals.
making it impossible for a CVB to recom-
mend one supplier over another. Also, the CVB
will sometimes be required to forward the
lead (your program) to all members who sat-
isfy your requirements. In addition, the CVB
or tourism office might be able to provide you
with ancillary services itself.
2. SEND RFPS
Once you narrow your list of possible out-
sourcing partners, the next step is to send for-
mal requests for proposals. There is probably
no such thing as too much detail here—the
more the third party knows about your pro-
gram, the more specificity it can use to
address your unique situation. Include the
date of the program, its size, potential desti-
nations, history of the program, the results
hoped to be achieved through incentive travel,
and the budget, if you know it.
3. APPRAISE AND MAKE A

FINAL DECISION
With bids tailored to your program in hand, it’s
time to follow up and determine exactly what
services third parties will be able to offer your
company and at what cost. Now is the time to
iron out issues such as which party would be
responsible for which incentive travel function;
how the third party plans to internally manage
your program—is it a team effort or will you
deal with just one manager?—and exactly
what fees are charged for each service ren-
dered. If possible, many planners have found it
beneficial to meet executives from the third
party in person and see exactly how the com-
pany manages such programs. With specific
information about how the outsourcing partner
would handle your program, now is a good time
to more fully check references.

choosing a destination
BIG ISLAND, HAWAII
electing the right destination is one of the most
S crucial tasks in constructing an effective incentive

travel program. Good sites can make for magical
experiences for incentive participants, and, con-
versely, troublesome destinations can create headaches for
both travelers and planners.
Rather than relying exclusively on personal evaluations
of favorite vacation spots, or the valuable, yet subjective
opinions of well-traveled incentive participants, also con-
sider the characteristics of the current market to make
an informed destination selection, based on detailed
research and analysis.This chapter describes a few of the
major trends in incentive travel destinations. It also iden-
tifies key factors to consider in choosing destinations,
case study and offers tips for making the big decision.
island life with all the trends in

incentive destinations
comforts of home When it comes to domestic incentives, big-name cities
are still garnering the lion’s share of incentive groups.
GamePlan Financial Marketing, one of the world’s leading annuity
Perennial domestic favorites for incentive trips include
marketing organizations, was on the hunt for a destination that
Las Vegas, Orlando, San Diego, New York, and Phoenix.
would “wow” their producers when they stumbled onto one of the
These marquee destinations have a lot to recommend
U.S.’s hottest destinations: Hawaii. One of the executives had read a
them.They all benefit from good air support, ample hotel
recent article about the Four Seasons Hualalai and felt the combina-
inventories, and wide varieties of local activities. Big
tion of Hawaii and the service of the Four Seasons would be ideal
domestic destinations also have positive name recogni-
for the company’s incentive program.
tion, and that means a lot when it comes to stimulating
“Since the group was looking for a destination for only four
participants’ interest.
nights, they thought a domestic destination would be a better
So, start with an open mind and don’t rule out first-tier
choice,” says Mark Herbert, president of Incentive Solutions in
cities as destinations because of concerns over high prices.
Atlanta, GA. Even though the island state requires more travel time
First do some research. Although major U.S. cities are still
when compared to a continental locale, it was worth it for this
relatively expensive for incentives, some top municipalities
group.“Hawaii is a great incentive destination. It offers everything
are still suffering from overbuilt hotel inventories and slug-
you need to put together a great program plus has a high
gish demand, which means that affordable housing can
perceived value for the participants,” says Herbert.
sometimes be found in places that might be perceived as
A full 176 recipients won the travel reward to the Big Island with
prohibitively expensive, such as San Francisco or New York
GamePlan Financial. And while there, the group had a wide variety of
City. Also, inexpensive airfares can often be found at the
activities to choose from, including golfing, deep-sea fishing, horse-
competitive air hubs that serve first-tier cities.
back riding, snorkeling, sunset sail, spa treatments, and a zodiac
While many incentive groups are sticking to first-tier
tour. In addition, familiar cell phone service, robust Internet connec-
sites, off-the-beaten-path domestic destinations have their
tions, and zero language barrier made travel easy. As suspected,
own selling points. For one thing, they tend to be less expen-
Hawaii proved to be an inspiring destination, with the target group
sive than big-name cities. And, if they’re marketed effective-
exceeding its overall revenue goals for 2004.

CHAPTER 8 choosing a destination
ly to incentive participants, out-of-the- that the top international incentive destinations are
ROME, ITALY
way destinations can take on the allure of Mexico, the Caribbean and the Bahamas, Canada, and
the exotic. Lesser-known destinations Europe. Canada and Mexico are popular spots, thanks in
may be more difficult to sell to decision- part to the facts that they are very easy to reach from
makers and attendees, but they can help most cities in the U.S., and they typically require short
create truly unique motivational experi- transport times. Both Canada and Mexico are also good
ences.The trick, here, is to create a theme values, comparing favorably to other countries when it
that suits the incentive participants and comes to budgeting, and they have many features that
highlights the unique, positive character- pique the interest of incentive groups.
istics of the destination. For many of those same reasons, the Caribbean and
the Bahamas are also perennial favorites as interna-
going global tional incentive destinations. Resorts are the strong suit
When it comes to worldwide destination here, and the popular all-inclusive deals that character-
selection, big names like Paris and ize these destinations represent an attractive purchasing
London still have prestige, but these option for incentive planners. Generally, the Caribbean
days most international incentive trav- and the Bahamas also benefit from well-developed trav-
elers are sticking to the closest, most el markets that provide quality services at acceptable
comfortable spots. Incentive Magazine’s prices.
“2004 Travel FACTS Report” revealed Unfavorable exchange rates, especially in Europe right
case study now, may eventually have a dampening effect on incen-
tive travel to that market, but for now, they remain quite
once-in-a-lifetime, literally robust, according to the “2005 Incentive Travel Buyers
Handbook Survey.” Many European countries have a
For the senior executives at Cincinnati Bell, a telecommunications
history of pursuing group business with aggressive deals
company based in Cincinnati, OH, the most important aspect of their
incentive program is delivering an experience people couldn’t usually
have on their own. After receiving a rousing reception from last survey says...
year’s trip to Ireland, they felt the best thing to do would be to
return to Europe.
“Accessibility has a lot to do with planning an international trip,”
close to home
In 2005, the following states ranked highest for
says Ira Almeas, CITE, at Impact Incentives and Meetings Inc., in
incentive travel:
East Hanover, N.J.“We were able to get direct flights to Rome for
the recipients, and that really allows everyone to spend more time
enjoying the destination.”
The cultural aspect of this trip couldn’t be beat, and it’s not likely
it could ever be duplicated, either.The group of 33 sales profession-
als arrived in Rome during the mourning period of the Pope.“It was
a very passionate time to visit the Vatican and the Pope’s tomb, and
a lot of our attendees did go to see that,” says Almeas.“It was a true
once-in-a-lifetime event.”
Of course, not every group can happen upon a major historical
event like this, but they can certainly plan cultural events of their
own-both serious and not-so-serious.The Cincinnati Bell group
enjoyed an elegant rooftop dinner, an excursion to Florence, and an
“I Love Lucy”-style grape stomping contest at a family-owned
restaurant and winery.“It was amazing to see these sales people roll
up their pants and get into a barrel filled with white grapes. It just
proves that they’ll compete for anything,” laughs Almeas.

that attract decision-makers. Contact tour operators, things to consider

travel agencies, or incentive houses to gain a basic idea Incentive destinations must fulfill several criteria. First of
of which international destinations are courting the all, they must be safe.They must also be convenient and easy
group markets. to reach. Once these basic criteria are satisfied, examine the
Generally speaking, incentive travelers tend to be various features of the destinations under consideration.The
coming out of their shells since the shock of 9/11, and right sites will have enough variety to satisfy the diverse
are venturing further afield than they have in recent tastes of attendees, and they will lend themselves easily to
years. Riskier adventures, however, are still not flying off creative themes that will be used for building itineraries and
the shelves like they were during the dot-com era—but marketing campaigns.
that’s not to say they wouldn’t be popular for your par-
ticular group. Planners should remember to take cues SAFETY
from their target participants. Risk management is an important goal in any travel pro-
gram, but safety is especially important for incentive groups,
program pointers which usually represent the most valuable human capital
possessed by sponsor organizations. Incentive planners must
international determine beyond a doubt that their itineraries are safe, and
the best way to do this is by researching the issue and obtain-
site checklist ing complete information from trustworthy sources.
Most incentive planners start by talking to suppliers.
Although international incentive trips present some logistical According to the “2005 Incentive Travel Buyers
challenges, they’re an effective means of providing incentive Handbook Survey,” 93 percent of planners assess the
participants with unique once-in-a-lifetime experiences.When it safety of destinations based in part on information pro-
comes to choosing an international site, consider these rules of vided by airlines, hotels, or other vendors. While asking
thumb: vendors about the safety of a destination, ask for refer-
SCHEDULE FOR DELAYS: International travel means extra travel delays
rals to other incentive planners who have brought
from customs and immigration. If participants have less than a
groups to the destination. Don’t rely on the reputation of
week for an incentive trip, consider staying in the United States.
the destination for an indication of its safely level.
Always double-check the conditions on the ground at foreign
Instead, ask specific questions of the people who are
destinations and allow for extra time for onsite travel in unfamiliar
most familiar with it: vendors, tourist boards, and recent
environments.
visitors.
Local governments, as well as the U.S. Department of
BUDGET FOR THE UNEXPECTED: International travel can be had State, periodically issue intelligence reports on destinations
for reasonable prices or it can be surprisingly expensive. Don’t that have troublesome safety records. And some govern-
automatically assume marquee destinations are too expensive, ments issue safety bulletins even when there are no acute
and don’t assume that offbeat destinations are cheap. Do assume risks, just to keep the public updated. Forty percent of incen-
that you will have to pay extra taxes and tariffs on international tive planners consider such safety information, according to
trips. Remember to account for exchange rates and peak seasons. the handbook survey. It is important to note that while gov-
DO EXTRA RESEARCH: Out-of-country destinations have great ernment bulletins might provide good background informa-
potential for surprising and troublesome details, but familiarization tion on the risks associated with a destination, you can’t rely
trips and interviews with convention and visitors bureaus and on that information exclusively. It might be out-of-date and
suppliers are great ways to get educated. If possible, talk to other it will not provide the level of detail needed to ensure a safe
incentive planners who have experience with the destination and the itinerary.
specific vendors you’ll be using. More incentive planners are turning to professionals for
evaluations of the safety of destinations, but they are still
KNOW YOUR AUDIENCE: Some incentive travelers are savvier than
in the minority. Of the respondents to the handbook survey
others. As a general rule, higher paid, more senior participants
who consider safety to be a major concern, only 9 percent
will be better prepared for international jaunts, and more junior
hire security experts for destination analysis. And 12
incentive participants will need more handholding.

percent of respondents reported that they employed other basic idea of the transportation options available at a
tactics in researching the safety of destinations, including given destination. The more vendors, the better.
in-person site inspections and having internal security The first consideration is transportation. If the group is
departments research the destination. (For more infor- traveling by ground, identify primary and secondary routes
mation on ensuring safety, see Chapter 11, “Safety and to the site. If incentive participants are traveling by air,
Security,” beginning on page 55.) check to make sure several carriers serve the destination,
and create backup plans for getting participants home in
ACCESSIBILITY case of an emergency. Convention and visitors bureaus,
Incentive destinations should not only be accessible to airports, and travel agencies are good places to look for
groups, they should be as convenient as possible, and they indications of the quality and quantity of transportation
should benefit from a robust travel market that pro- available for specific destinations. In general, the higher
motes quality service at reasonable prices. A cursory the number of vendors serving the destination, the high-
search of major Internet travel retailers should give a er quality transportation you can expect.
Also consider the transportation infrastructure within
program pointers the final award destination. Interview vendors and do
research to ensure that unexpected transportation hassles
domestic site will be avoided on site. Check the condition of local roads
checklist and make sure there are backup transportation options

available. Ascertain the true distance between the airport
With its cosmopolitan cities, charming towns, and unspoiled
and the hotel, and remember that weather has great influ-
wilderness, the United States has a diverse selection of destinations
ence on accessibility and transportation: By talking to
for incentive groups. And there are logistical advantages to booking
experienced suppliers, make sure incentive travel plans are
in the land of the free. But choosing a domestic incentive destination
not unduly threatened by disruptive weather patterns.
presents its own set of challenges. Remember these basic maxims of
When it comes to arranging safe and smooth travel for
domestic destination selection:
incentive participants, the key is to plan for contingencies.
OBEY THE BOTTOM LINE: As a rule of thumb, domestic destinations are Identify backup flights and alternate airports. If bad weath-
cheaper than international ones, but that’s not always the case. For er strikes, have a backup itinerary ready, and backup modes
instance, Hawaii is farther from Boston than London is, and New York of transportation. A good transportation plan makes for
can be more expensive than Paris. Beyond airfare and room rates,
check out important financial factors like average per diems and spe- survey says...
cial taxes by talking to convention and visitors bureaus, destination
management companies, and other key suppliers. the islands have it
DON’T REST ON YOUR LAURELS: Domestic travel usually entails fewer Islands continue to make up the most popular type of
transport hassles, making American incentive trips an especially likely destination for international incentive travel.Top
results for 2005:
choice for groups that include families. Short transport times make
domestic sites good for busy groups, and attendees tend to feel com-
fortable in most domestic destinations. Still, even seemingly mundane
destinations can trigger culture shock and unexpected hassles. Check
with convention and visitors bureaus to make sure no hidden surpris-
es await incentive participants.
LOOK FOR VARIETY: The prestige of a destination will help make it a

popular choice among incentive participants, but the destination
must have something for everyone.The best sites offer many differ-
ent activities, ranging from gaming to mountain biking to lively the-
ater and opportunities in between. Consider what participants are
looking for, and find a destination that matches those expectations.

pleasant travel, and is extremely important in case of an NIGHTLIFE: A world-class selection of restaurants, cafes,
emergency. If a change in plans becomes necessary, incen- and bars always creates a buzz among participants.
tive travelers will rely on those plans for a way home. Theater and musical performances are key for some
(For more information on transportation options, also see groups.
Chapter 10, “Negotiating the Incentive Experience,” begin- HISTORICAL ATTRACTIONS: Landmarks, museums, and
ning on page 50.) famous institutions, such as forts, castles, and historic
sites might have special group tours, and they make
DESTINATION DETAILS unique venues for special events.
Research the general features of destinations, as well as the SHOPPING: Make sure it’s appropriate for the spending
specific amenities offered by potential venues, to ensure you levels expected from attendees. Score a bonus if the kind
have a good fit with the diverse needs of the group. In a of shopping is unique to the destination.
word, look for variety.There should be enough variety at the LOCAL CULTURE: Consider location-specific cuisines, tradi-
incentive destination that the trip will suit each particular tional music, dancing or art, and special events like
incentive traveler. Mardi Gras in New Orleans, jazz festivals in the
FEATURES AND AMENITIES: Convention and visitors bureaus, Caribbean, and New Year celebrations in Asia: All these
destination management companies, incentive houses, and things count as valuable cultural selling points.
local suppliers will help educate you as to the most impor- SPORTS: Golf, tennis, skiing, diving, boating, and hiking
tant features of the destinations you are considering. are just a few of the sports participants favor for incen-
Any destination that tive trips. Discover the physical activities that attendees
survey says... you’re considering should value most, and look for ways to not just satisfy but
have a well-developed inspire them with potential destinations.
variety above all travel infrastructure: a SPAS: They have become an an absolute necessity on the
competitive selection of amenity menu, appealing to both women and men. Ask
It’s important to look for a variety of destina-
tion features when choosing a final locale for air carriers, hotels, for marketing materials and testimonials to find the right
an incentive trip. Following are some of the ground transportation local spas.
most important aspects (rated on a scale of 1 companies, and other GAMING: This is a selling point for many groups but a turn-
to 6) for respondents from this year’s
“Incentive Travel Buyers Handbook Survey”: travel-related vendors. off for a select few. Make sure there are entertainment
High-quality service is alternatives for group members who choose not to gamble.
also key and best deter-
mined by a site visit and Most destinations will not have every aspect outlined
references from groups on this list—and that’s okay as long as you stay focused
that have used the desti- on finding destinations that match the specific desires of
nation. Reputation— your incentive groups. The best way to identify those
among incentive plan- desires is to ask participants directly. Surveys that allow
ners, winners, and the respondents to indicate what they want out of the incen-
public at large—goes a tive trip are good for identifying must-have features. Or,
long way toward getting if surveys aren’t feasible, try interviewing several repre-
travelers interested. sentatives of the incentive group, such as leading execu-
NATURAL ATTRACTIONS: tives or top performers. Factors like the presence of
Beautiful weather is spouses and children are important to note and will also
something to look for, as influence the site-selection process.
are clean beaches,
forests, or other ecolog- Assistance for this article was provided by Julie Carroll,
ical wonders that will national director of industry relations for WorldTravel
Meetings and Incentives, based in Atlanta; Jim Gossett, a
pique the interest of the Chicago-based attorney with the Society of Incentive &
incentive group. Travel Executives, and Steve O’Malley, vice president, north-
ern area, at Maritz Travel Company in Fenton, MO.

working with cruise lines

ruise incentives are a hot item for 2005, accord- cious accommodations and a dizzying array of activities,
C ing to the “Incentive Travel Buyers Handbook

Survey,” with 61 percent of incentive organizers
offering them this year.
That’s up from only 44
percent offering cruise
cruise ships now offer such amenities as dedicated meeting
rooms, cyber cafes, and fantastic spas.The novelty of cruis-
ing can also provide a fresh alternative to get incentive par-
ticipants motivated.
incentives in 2004, which group options

represents nearly a 50 Incentive travel buyers can take their qualifiers to sea in
percent increase in pop- one of three ways: full-ship charter, half-ship charter, and
ularity. as a group on board a regular sailing.
That’s a real vote of con- FULL-SHIP CHARTER:
fidence for the cruise Customization options are virtually unlimited with a full-ship
industry, which has over- charter. An incentive buyer can take the notion of exclusivity
hauled its group offerings to the extreme, from having the ship fly the company flag to
in the last four or five selecting the itinerary, within certain limits.With so many dif-
years. In addition to spa- ferent kinds of ships, an incentive buyer can charter a ship for
case study a group from 50 to 1,000 or more people. But stiff obliga-
water ways tions come with the benefits of a full-ship charter.The incen-
tive sponsor typically must supply an irrevocable letter of
White glove stewardess service, glasses of champagne, Bvlgari ameni- credit, and essentially there is no cancellation without paying
ties, Egyptian cotton linens, flat screen TVs in room, and Balinese sun the full fee (in the case of cancellation, the cruise company
beds that allow you to sleep outside...These aren’t typical luxuries, will try to resell the ship, but the logistics of doing so make
but they are standard onboard a private SEADREAM chartered cruise. it unlikely they’ll succeed).
For a recent three-night incentive cruise for 100 information systems HALF-SHIP CHARTER: Half-ship charters are typically
employees, award recipients got all this and more. based on cabin category, allowing qualifiers to receive
The group sailed out of St.Thomas, and then cruised to St. Barts cabins not too disparate in quality. Incentive buyers can,
where they experienced the trendy lifestyle of the rich and famous, however, charter by deck if they wish. As with a full-ship
topped off with a private beach party hosted by the island’s best DJ. charter, incentive sponsors are often required to submit a
That evening it was dinner under the stars. letter of credit. But if the sponsor needs to cancel or has
On the last day, while anchored off the island of Yost Van Dike, the overestimated the number of cabins it needs, the cruise com-
company’s top executives turned on the charm with what they call pany can more easily resell the cabins, since a half-ship
the Champagne and Caviar Splash.With guests sunbathing on the charter is part of a commercially scheduled cruise.
shore, the executives boarded a zodiac, waved the company flag, Also on the plus side, incentive buyers booking half-ship
pulled onto the beach, and personally served champagne and caviar charters can usually reserve a dining room or one seating
off floating surfboards.“Everyone was blown away by the gesture,” exclusively for their groups.You can usually also reserve one
says Josephine Kling, president of Landry & Kling.“They really felt of the larger lounges or the theater for awards ceremonies
like it was a once in a lifetime experience.” as long as you don’t interfere with other passengers.
By the end of this exclusive cruising experience, the CEO-who was GROUPS: Unlike full- and half-ship charters, groups need
supposed to announce next year’s land-based incentive-decided to no letter of credit.They simply pay a deposit of about $50
hold off so she could consider another cruise instead.“Because it is to $250 per person, with scheduled payments usually
so affordable and convenient for national companies, cruises are until about 60 days prior to departure. As with hotels,
becoming part of the regular rotation,” says Kling. however, groups are subject to an attrition schedule.

CHAPTER 9 working with cruise lines
Incentive buyers can release a contractually set percent- expenses but many cost little or nothing. Here are just a
age of rooms at set intervals, usually up to 30 or 60 days few of the possibilities:
prior to departure, without paying attrition fees. The fees • Private events on board in smaller lounges, poolside, or in
kick in at that time and grow steeper as a percentage of the small, specialty dining rooms on large ships
cabin price as the departure date draws nearer. • Private tours, events, and on-shore transportation
In the case of cancellation, the smaller the group is in • A private captain’s reception
proportion to the size of the ship, and the more advance • Exclusive seating in portions of main dining rooms and
the notice, the easier it is to resell the space. Some lines lounges for shows
allow full refunds for group trips canceled a set number • An information desk exclusively for the group
of days, 70 days for example, prior to departure. Although • An exclusive daily newsletter or closed-circuit TV b ro a d -
the group doesn’t get the customization advantages of cast about the group’s activities
taking over a ship, a group cruise experience is similar to • Cabin-door plaques with qualifiers’ names
that of a hotel or resort incentive experience.
Assistance for this article was provided by Cyndi Murphy,
vice president of operations, and Richelle Taylor, marketing
all-inclusive pricing manager, Landry & Kling, based in Coral Gables, FL; Betsy
Myers, vice president of meetings and incentives of the
It may come as a surprise, but incentive travel buyers can
Lewisville, NC-based Cruise Connections; Richard
often get more for their money on sea than on land, thanks Weinstein, vice president of corporate and incentive sales
to cruising’s nearly all-inclusive pricing. Cruise prices include for Carnival Cruise Lines, based in Miami; and Laura
Johnson, senior account executive, Rust Insurance Agency
nearly everything an incentive buyer needs to stage a suc- in Washington D.C.
cessful program, with the possible exception of some of the
“frills.” High-end cruise lines typically offer more
as part of their standard package than mass-
market lines—gratuities, champagne, daily press-
ing service, for example—with, of course, a corre-
spondingly higher base price.
In addition to sleeping rooms, here’s a list of
what’s typically included in the price of a cruise:
• Round-trip air transportation and ground trans-
fers with air/sea packages
• All on-board meals, including snacks and
room service
• On-board entertainment, including floor
shows, live music, first-run movies, and lectures
• On-board recreation, including use of the
fitness club
• Use of on-board meeting rooms and lounges for
private events, including refreshments, audiovisu-
al equipment, and entertainment in many cases
• 24-hour medical service
• Taxes, including port charges
customizing a cruise
Customization really comes into its own on a full-
ship charter. But an incentive buyer who takes a
group to sea as part of a commercially scheduled
cruise can also build a certain degree of exclusiv-
ity into the voyage. Some ideas require extra

negotiating the
incentive experience
successful incentive program requires a top-
negotiating with hotels
A notch experience, from the moment partici-
pants step onto their airplane to their arrival at
the hotel and the service standards throughout
the trip. “Top-notch,” of course, doesn’t have to mean
“most expensive.” It does, however, mean a program in
Set the stage for an excellent incentive program during the
negotiation sessions with the hotel. Once the contract is
signed, both sides should feel they made wise concessions and
received the best value proposition possible.
• Begin negotiations as soon as possible. Many hotels will
which participants will feel special and well cared for.
only block a certain number of rooms for group business and
Ensuring that experience starts with smart negotiating
you don’t want to get locked out by making your arrange-
on the part of the planner.
ments too late. Early negotiations can also ensure protection
program pointers in the case of changes in market conditions; consult with your
lawyer about the best way to incorporate protective clauses
requesting concessions into your contracts.
• Communicate with the hotel.Tell the property about your
from hotels group’s best incentive program ever. Also tell them about any
negative experiences so they know what you don’t want to
Group business is important to hotels. If the hotel can’t or won’t
negotiate on price, you might be able to negotiate in other important encounter. Give the hotel as much information as possible
areas. Even if you do get a good price, it’s worthwhile to see what about what kinds of things work for your particular group.
else you can include in your contract. • Let the hotel know what makes this incentive different from
your past programs.Share your theme so they can help make it
Before asking for concessions, be clear on what you want and need.
a reality and work with you to come up with new ideas.
Make a prioritized wish list. Start at the top and keep going.
• Be sure all winners have the same type of room or have
Anything is negotiable, but keep requests within reason. Establish a
good reasons for putting participants in different categories.
reputation as a professional incentive planner, not someone who takes
advantage of suppliers. GETTING THE RATE
Evaluate a property’s need for your business: low demand times or • Evaluate both the hotel’s highest published price, known
underperforming hotels are in a better position to offer price breaks or as the rack rate, as well as the lowest price available on the
other concessions.
Internet.Your group rates will likely fall in between.
Ask questions about how the hotel does business to establish its • Be prepared to demonstrate your group’s value to the
most profitable items versus what is easiest for the hotel to give away. hotel. In addition to room rates and planned food and
Demand that the hotel’s general manager play a role in your incentive beverage functions, additional revenue comes from group
program.That builds the relationship and makes the hotel accountable or individual spending in the spa, gift shop, casino, even
for the success of your program or any problems that crop up.
from minibars.
Typical concession requests include free or reduced: • Comb through the contract for service charges, resort fees,
• Resort fees • Upgrades to suites and the like; they might be negotiable or even eliminated.
• Welcome drinks • Daily newspaper delivery • The room rate should be less than 50 percent of the total
• Health club/spa access • Preferred tee times program budget.
• Dataport hookups • For smaller budgets, it generally pays to buy the best
• Room gifts (such as fruit baskets, chocolates, etc.) experience available from a less expensive property than a

CHAPTER 10 negotiating the incentive experience
minimal experience from an expensive property. an event of a similar size within a year.
• Remember that hotels in high-demand markets can ask for and FOOD AND BEVERAGE
get high rates from other guests, if not your group. You’ll lose After room rates, food and beverage will most likely be the next
some negotiating power in such instances. largest part of your hotel budget.This is no place to skimp, but
negotiating is key.
AVOIDING PENALTIES • Tell the hotel your budget and then work with the chef to
In today’s business climate, this has become increasingly impor- determine what can be done. Often they can come up with cre-
tant.With a closed-ended program, you should know your exact ative ideas and still contain costs.
room block early in the game, but with an open-ended program, • Design menus according to destination and the group’s
you might not know until the end of your qualification period. In demographics. Older groups will likely enjoy sit-down meals
either case, it’s good business practice to minimize your exposure while younger groups often prefer buffets. Take into account
to damages. Here are some strategies to accomplish that in the your other activities in any given day—will the group want a
hotel contract: hearty breakfast before a day of diving?
• When determining the room block and estimating what per- • Research the specialty of the area and the chef.Requesting an
centage will not show up, take the group’s history into account. unfamiliar dish or one that incorporates ingredients that need
Does the group historically have a last-minute rush of winners? to be flown in will drive up costs. •
Have the number of winners fallen short of expectations in the Include the number of servers per person, servers’ dress code,
past? and other serving information in your contract.
• If you’re unsure of your group’s numbers, consider asking to
have the attrition clause eased or waived and sacrifice thecom- THEME EVENTS AND VENUES ON SITE
plimentary welcome drink,VIP upgrades, or the like. Not every food function needs to be a “special”or “theme”event.
• In the cancellation clause, stipulate that the group will rebook Still,this is one of the best ways to turn an incentive into a mem-

orable experience. very large or coming from multiple destinations not

• Hotels do special events all the time.Work closely with your served by one carrier, or if availability to the given destination
catering manager to come up with ideas. is otherwise insufficient. Be sure to look into any guidelines
• Many hotels have low-cost sets or theme decor already and restrictions that airlines might have that could preclude
available on site to tie into their location. their use, such as a minimum number of travelers required,
• Find out what else the hotel has on hand and can provide at blackouts during your timeframe, and so on.
little or no cost: linens, chairs, centerpieces, etc. For an international program, some destinations are
• Check if the property has a renowned chef or an exclusive serviced directly by U.S.-based carriers. In other cases,
arrangement with an entertainer. U.S. airlines will coordinate on your behalf with their
• Use different spaces for meals and functions so that the international alliance partners to block required space
events don’t become boring. and provide discounted group fares. If your incentive pro-
• It is effective to have at least the first and last night events gram is to be held at a foreign destination not served by
in the hotel. On the first night, attendees are often tired from a major U.S. carrier, also consider working directly with
traveling; on the last night, they might be concerned about a foreign airline.
early flights. Because airline service must be determined several
months, if not a year or two in advance, early contracting
negotiating airfares is required. Some airlines recommend you block out a
Most domestic incentive programs as well as trips from pre-determined number of seats as far in advance as pos-
the United States to other countries most likely will sible to avoid availability issues—and then negotiate the
require air transportation. For simplicity and consistency, specifics at a later date. Permitting each employee/travel-
stick with a single airline whenever possible. It will give er to separately book the air segment of the program,
you additional negotiating power. Plus, you then can while providing more flexibility for individual traveler
include the airline information in all your marketing needs, can cause complications.
materials and sometimes partner with the airline for addi- PRICING
tional concessions or value-added. However, you might In addition to flight routes, service, and preferred agree-
need to expand to more than one carrier if your group is ments, your choice of airline, of course, might be based
on specific pricing levels. Of course, pricing varies by des-
program pointers tination and is impacted by current market and compet-
itive conditions, the number of connecting flights you
logistical options need to move your travelers, and the size of the initial
deposit you are willing to make. Airlines also have been
Incentive travel planners have three options for interfacing with
known to bid competitively for business against offerings
transportation providers: work directly with the suppliers, work with
from other airlines, so keep this in mind. Being aware of
an incentive agency (either a specialized incentive house or a con-
a few basic types of fares can be helpful.
tracted travel agency of record), or hire an independent incentive
• Zone Fares—Flat, published fares based on geo-
planning consultant.
graphical distance that require advanced purchase and
There are pros and cons to each path, of course.A third party with
may have restrictions, but airlines might be willing to
incentive planning experience can make the job much easier. It can
negotiate this rate depending on the customer.
be a daunting task to coordinate various flights from various desti-
• Group Rates—Often these are branded by the air-
nations in order to convene a multitude of travelers at an airline’s
lines. They offer 5 or 10 percent discounts off full coach
hub airport for the primary group flight at the front end of the jour-
fares, depending on how far in advance they are booked.
ney—and then reverse the process for the trip home.
These fares will generally be more expensive than zone
But professional services obviously come at a price. Bear in mind
fares but offer more flexibility.
that the savings you gain by not paying a third party could be lost if
• Corporate Negotiated Rates—Rates that are based
you can’t negotiate the rates and handle the logistics as well on your
on discounts that have been negotiated by your company
own.
with a specific airline may not be applicable or suited to

your incentive program, but it never hurts to check.

program pointers
PENALTY CLAUSES
Airlines can be flexible with incentive planners but nonethe- traveler specifics
less generally include penalty clauses in contracts. For Once a block of seats on a specified flight or flights is set aside, air-
example, at 30 to 60 days out, they will usually confirm lines generally will allow the company extra time to determine
that you plan to use the entire block of seats they have set specifically which employees will be traveling. Be sure to check with
aside and will penalize you for unused seats. Some airlines your contracted airline as to when names must be provided. As a
may require only a percentage of seats be confirmed at that general rule, plan to do so at least two weeks to as far as two full
point, allowing a small number of seats to go unused with- months in advance.
out penalty. Make sure you know the exact deadline and
precisely what is required of you by that point. Foreign car-
riers may have longer lead times, with penalty clauses kick- soda, and rum punch to the tunes of some Jamaican music so
ing in as far as 120 days out. If larger changes are that the Jamaican experience begins the moment they hit the
required—shifting from an overseas trip to a domestic one, ground.
for example—carriers will work with you to make the For more local transfers, it’s most common to work directly
appropriate shifts, if it is done far enough in advance. with your ground transportation provider, although you can
Conversely, carriers may eliminate frequencies or routes, work with a DMC or a travel bureau to aid in coordinating. In
especially in lean economic times, that could impact your some cases, hotels have their own transportation or can help
program. Make sure this eventuality is addressed before- you work with a local vendor.Especially in a foreign destination,
hand and develop a contingency plan. local DMCs can be key in arranging other ground transporta-
tion options and in fact may be closely affiliated with motor-
on the ground coach operators.Unlike counterparts overseas,U.S.DMCs gen-
While not as common, there are cases where motorcoach or erally do not own ground transportation inventory and serve
other ground transportation is the preferred method for trans- simply as a service contractor. Based on a budget that you or
porting attendees to their incentive destination. For example, a your agency provides,they will deal with local providers on your
group based in New York City might opt for a luxury bus or sev- behalf.Airport transfers generally come by way of motorcoach,
eral limousines to transport winners to a casino in Atlantic City. limousine, or sedan service, based on client preference.
For those who are flying, ground transportation generally kicks Motorcoaches and vans are popular means of transportation
in on arrival. throughout the incentive trip as they can easily and comfortably
Work with your agency, DMC, or a convention and visitors move large numbers of participants from one activity to the
bureau to make arrangements and develop a “meet and greet” next.
program for your incoming travelers, and to coordinate ground
transportation, including airport transfers and other services GETTING HOME
while your employees are at the destination. DMCs also can In most cases, transporting travelers back to the original
keep a watchful eye on any changes to your manifest, and then departure point will mirror the outbound process on the
relay those changes to ground transportation providers. You same transportation provider. While return flights generally
might also choose to work directly with ground transportation are pre-determined for the group, certain travelers may
providers,including limousine and black car services and motor- have different scheduling needs that call for special flight
coaches. arrangements—make sure to work this out beforehand
While a group will almost always need to be transported with the transportation provider.
from the airport to the resort or hotel, in some cases, there’s a Because incentive trips may be “the trip of a lifetime,”
fairly long trip involved and then the ground transportation your employees may proactively seek to arrive early or
becomes part of the travel experience as a whole. For example, depart late.This is common and you should make sure you
for a group going from the United States to Jamaica’s Ocho work with the airlines to ensure a degree of flexibility. In
Rios, you might arrange for air conditioned vans or buses to such cases, be sure flights are available and tickets
transport attendees the two hours, along with supplying water, reserved well in advance.

safety and security

ention security today and most people imme- tacts at your destination and resort for their input. They
M diately think “terrorism” or “war”. Naturally,

those are big considerations. But there are
plenty of other security concerns that all come
back to your key role as an incentive planner: Keep your
attendees happy (yes, of course), but also safe.
shouldn’t whitewash the situation if they’re true profession-
als. Here are some examples of things to consider in partic-
ular places and situations.
• Have a program in Costa Rica where you’ve planned a
whitewater rafting experience? Caveats all focus on the
Every incentive planner has to become a risk manager. It health and well-being of attendees.
means that you need to try to anticipate everything, includ- • For a winter program, consider the effects of the cold
ing all the things that could possibly go wrong with your pro- and dangers of skiing or sledding. Mountain locations, while
gram, then take whatever steps are necessary to prevent beautiful, pose concerns about altitude sickness, especially
those things from happening. among smokers or drinkers.
• A cruise incentive can prompt thoughts of a disabled ves-
the macro level sel, seasickness, and ship-wide epidemics.
Simply put, this is everything that could happen to things and • Planning a tropical-island program? Consider the health
to people, regardless of the destination location or type of standards and infrastructure of your destination. Also con-
incentive program you’re staging. Sit down with staff and sider the possibility of food poisoning, and watch those menu
have everyone make a “what-if” list of possibilities. Some selections.
things to consider include: • Speaking of islands, don’t forget the possibility of a hur-
• What could happen to your technical equipment used in ricane in the late summer and fall. Similar concerns apply for
any planned programs? It could be stolen, dropped from a desert locales during the brutal summer months.
truck, soaked when a water sprinkler system goes off acci- • Have older participants? You might want to have an
dentally, ruined by an ignorant operator, etc. emergency medical team with defibrillators on hand. This
• What might befall the tangible property that your atten- caution can even apply to sedentary 35-year-olds having a go
dees themselves will bring along? Laptops, cameras, jewelry, at a ropes course.
and other items could be stolen, pockets could be picked, lug- Also be sure to keep abreast of current events in the cho-
gage could be lost. sen destination. For example, an event planned several
• What risks does your meeting face that may prevent it months hence in a country
from actually happening as planned? Consider the possibili- with a faltering economy survey says...
ty of an airline or resort strike, a resort fire, loss of electric- could prompt you to consid-
ity, broken pipes, and flooding. er canceling outright, if safety check
• What risk does your corporate information face? economic collapse and civic Planners are responsible for the safety of
Corporate sabotage, premature leaks to the press, and so on. unrest is possible.You can’t their groups. Here’s how they gather the
• What could happen to attendees personally? The most anticipate everything—but facts they need:
dire is death, but other possibilities include sickness, acci- you do need to find a work-
dents and injury, or kidnapping of top executives. able target zone of things
that are most possible and
the micro level probable.
These items are “micro” not because they are any less
important, but because they are confined to a particular preparation
event, space, and situation. While it’s possible that terrorism and planning
or an earthquake (for example) can happen anywhere, they Always have a Plan B. For
are more likely to happen in certain circumstances and example, that might mean
places. In addition to your staff’s “what if” list, poll your con- identifying where an incen-

CHAPTER 11 safety and security
tive program could be moved in case of an emergency at the ple, of course, but if you’re taking precautions, you’ll want your
original destination. Make sure your knowledge of force winners to take care too. For example, in the case of an interna-
majeure clauses in hotel contracts is up to date. tional incentive, consider the following:
When on site,make sure the facility is safe and secure.You can • Advise participants to take simple precautions, such as
do this by preparing plans for most eventualities (or using your dressing in a low-key manner that respects local norms.
facility’s plan). Ingredients could be evacuation plans, sheltering, • Winners should not use a business card as a luggage tag. All
package and mail delivery, surveillance techniques, means of bag tags should be covered.
contacting essential personnel, restricting entry, employee ID, • Attendees must clearly advise planners and company offi-
and the building’s HVAC systems. cials of any existing medical problems. Send a form to all par-
ticipants to detail any medical or physical problems.
communication
Part of your responsibility is to make sure participants are liability and insurance
aware of things that can go wrong.You don’t want to scare peo- Incentive planners have four legal duties:
1. The duty to investigate all aspects of the event and act
accordingly
2. The duty to inform and warn attendees and participants of
web sites to watch known hazards as may be necessary
3. The duty and responsibility to plan for the safety and well-
Here are some Web sites that provide security information, critical
being of every attendee and participant
updates, or other useful information for incentive planners:
4. The duty not to subject attendees and participants to unrea-
AIR SECURITY INTERNATIONAL PROVIDES INTELLIGENCE FOR CORPORATE sonable risks of harm
SECURITY,AVIATION,AND TRAVEL DEPARTMENTS: www.airsecurity.com
Incentive planners should be concerned about their own legal
AIR SECURITY INTERNATIONAL’S WORLD WATCH MONITOR: liability should the unforeseen happen. If all due diligence and
www.monitor.airsecurity.com appropriate risk-shifting haven’t been considered, you could be
ETURBO NEWS OFFERS GLOBAL TRAVEL TRADE NEWS: accountable.
www.eturbonews.com Liability insurance is important,but may be difficult to obtain
CAP INDEX MONITORS CRIMES AGAINST PERSONS AND PROPERTY: in some markets, so shop early.
www.capindex.com • Brainstorm with your staff to determine everything that
TRAVEL WIRE NEWS,WITH COMPREHENSIVE REPORTS ON WORLD could realistically go wrong with one of your events and for
HAPPENINGS: www.travelwirenews.com which you would need insurance.
U.S. STATE DEPARTMENT PROVIDES INFORMATION ON POLITICAL, • Put your risk management policies in writing to demon-
ECONOMIC,SECURITY, AND MEDICAL CONDITIONS IN FOREIGN COUNTRIES: strate you’re a good risk,to reduce your claims,and to help keep
www.travel.state.gov; www.ds.state.gov your premiums in line in the future.
U.S. STATE DEPARTMENT’S OVERSEAS SECURITY ADVISORY COUNCIL • Use insurance companies that are familiar with the incentive
HAS SECURITY-RELATED INFORMATION FOR AMERICAN BUSINESSES industry. And compare policies, not just prices.
OVERSEAS: www.ds-osac.org The key always is preparedness.As one incentive planner says,
CENTRAL INTELLIGENCE AGENCY DISCUSSES CONDITIONS IN SPECIFIC it’s not the elephants that will get you, it’s the sand fleas—but
COUNTRIES: www.odci.gov/cia/publications/factbook you have to keep on the lookout for the elephants nevertheless.
TRANSPORTATION SECURITY ADMINISTRATION FOR TRAVEL-RELATED
AND SECURITY INFORMATION: www.tsatraveltips.us Assistance for this article was provided by John S. Foster, Esq.,
CHME, principal, Foster, Jensen & Gulley, LLC, based in
THE WEATHER CHANNEL ONLINE: www.weather.com Atlanta; Carol Krugman, CMP, CMM, president of Krugman
Group International Inc., an incentive planning company based
CENTERS FOR DISEASE CONTROL,WITH TRAVEL HEALTH & MEDICAL in St.Petersburg,FL;Keri McIntosh,events director,The Castle
INFORMATION: www.cdc.gov Group, based in Boston; Nikki Nestor, president, and Barbara
Mattos, vice president-operations, World Class Travel By
FAA AIRPORT STATUS: www.fly.faa.gov/flyfaa/usmap.jsp Invitation,based in La Costa,CA;Richard Werth,CPP,president
of Franklin,TN-based Event & Meeting Security Services; and
Ken Wheatley, president of Royal Security Group/Sony
Electronics, in San Diego, CA.

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2005 SUPPLEMENT TO

VNU TRAVEL NETWORK

It could be this increasingly strategic view of incentives that is contributing to another

THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005 1

crunch the numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

motivate, monitor and measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

group vs. individual travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

safety and security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005 3

COURTESY OF RITZ-CARLTON, ORLANDO GRANDE LAKES

4 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

short term vs. long term

Establishing the optimal time frame requires analysis of an

6 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

N determine exactly who you will motivate and how.

10 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

12 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

crunch the numbers

T structured incentive program will cover its costs,

14 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

to meet or award is offered under

not to meet written plans or programs

16 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

choose the award

U been in abstract terms of goals, measurements,

shake it up factors about your target audience:

18 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

For more information circle #210 on Rapid Info card

20 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

22 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

award delivery either motivating or rewarding.

survey says... a spouse or significant other makes in order for participants to

THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005 23

24 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

For more information circle #171 on Rapid Info card

group vs. individual travel

26 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

28 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

30 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

PROS survey says...

For more information circle #13 on Rapid Info card

outsourcing options available and the services they provide.There are

32 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

why outsource? Entire industries have

on the other hand

34 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

36 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

Convention and visitors bureaus or tourist offices can provide

3. APPRAISE AND MAKE A

For more information circle #208 on Rapid Info card

S crucial tasks in constructing an effective incentive

island life with all the trends in

38 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

40 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

that attract decision-makers. Contact tour operators, things to consider

42 THE INCENTIVE TRAVEL BUYERS HANDBOOK | 2005

checklist and make sure there are backup transportation options

LOOK FOR VARIETY: The prestige of a destination will help make it a