Motivating the employee has always been one of the cornerstones of a company's success. The most basic incentive is, of course, the cash bonus, but more subtle forms are also used like gold stars for top salespeople, gold watches and plaques for outstanding service, etc.
But one motivator which has gained tremendous popularity, especially in the US, is the incentive trip where the employee, and often the spouse, is awarded a trip abroad either for doing his/her job well or as part of an overall programme to increase sales. It's now estimated that approximately $1,500m is spent on incentive travel programmes in the US and this figure is steadily increasing.
The business has given birth to a whole new industry, with companies specialising in designing the incentive sales programme; travel companies whose business depends completely on incentive travellers as well as the numerous magazines that have sprung up extolling the virtues of paradise locations like Bali, Hawaii, Barbados, Rio de Janeiro, etc. Nearly all are members of the industry's professional body - the Society of Incentive Travel Executives (SITE).
Almost every section of industry has used some form of incentive travel to boost its products or to motivate its employees. However, the most frequent users tend to be companies with multi-layered marketing systems involving several tiers of sales - people, distributors and dealers who are usually independent businesspeople rather than company employees. Several objectives can be achieved through the use of incentive travel, but the main reasons given by most companies for introducing it include:
Essentially, there are two basic types of incentive trips - dealer trips and salesforce trips. Dealer trips tend to be longer and more elaborate. Recently, Gallic Distributors took Ireland's top 25 Citroe dealers to the Prix de l'Arc de Triomphe by Concorde. According to John Galligan, General Manager of Executive Travel who handled the account, the trip was very successful.
According to Chris Maxwell of American Express Travel, salesforce trips, on the other hand, tend to be shorter and often have a business element tied in. Certainly, the company which can link the nature of the destination to the theme of the products it wishes to push, will get better results.
Last year, Irish Tea Merchants initiated a programme to stimulate sales of 'Stimorl" chewing gum. The top salespeople were brought to the Danish manufacturing company.
ITM's Sales Manager, Gerry Murphy, says: "They were so well treated by the Stimorl company on that particular visit, that when they came back sales of the product shot up even higher. They were able to relate to the product much better and their enthusiasm rubbed off on their customers".
The number of companies using incentive travel in Britain, is growing steadily. There have been some teething problems and several companies have had their fingers scalded, if not exactly burnt. Part of the problem is that several tour operators still regard incentive travel as a dressed up form of group travel. With ordinary business travel, whether it is for conferences or sales meetings, the destination is already known and cost is usually the overriding factor.
However, companies using incentive travel are more concerned with quality than with price and are more Interested in tailor-made packages. Moreover, the destination is only the end product of the scheme, and the actual details of the programme needed to increase sales, have to be worked out. It's been said that there is 10% of the workforce who will never improve their performance no matter what incentives are provided, while another 100/0 will work themselves to the bone regardless ol any rewards. In the US, companies such as Maritz, E F McDonald, Top Value, Carlson and Business Incentives specialise in designing incentive programmes to get the most out of the remaining 800/a.
Many of the incentive companies are now putting together more sophisticated and often bizarre, packages to cater for the more experienced and discriminating travellers.
The most successful travel companies are those which have been able to guarantee prices for up to 18 months. The advantages are obvious. There would be consternation if a buyer suddenly found himself over budget and the only solution was to inform the salespeople that more would have to be sold than was originally anticipated.
Many of the incentive companies are now putting together more sophisticated, and often bizarre, packages to cater for the more experienced and discriminating travellers. One company goes so far as to offer a lunch, complete with formal dress and white gloves and candelabra, right in the middle of a sawmill, or alternatively, a helicopter will ferry them to a Canadian glacier to eat. Dinner is sometimes taken in a hot air balloon. Groups arriving in Sri Lanka may find themselves welcomed by a group of trumpeting elephants, while the more adventurous incentive qualifiers may find themselves with Nepalese sherpa guides, trekking the hills of the Himalayas.
It sounds like fun and games and expensive for the company, but they are well worth the expense. There is always a large number of participants, but only a few qualifiers, so that most companies can expect at least a 200/0 increase in sales with a properly designed programme. Trips which include a business element are often quite demanding on the individual, but are carried out in such a way that they're enjoyable. A major problem facing any incentive buyer is evaluating the results of the programme. The incentive trip may simply become another cost in doing business rather than a method of increasing it. American travel companies specialising in incentive travel really come into their own by backing up their services with materials which emphasise the sales building nature of the programme. Usually, they will supply maps of the destination, gifts, posters, etc for the duration of the scheme to keep up enthusiasm.
To prevent interest flagging, companies themselves may complement the scheme with recognition programmes such as sales clubs, person-of-the-year awards or just simply putting the qualifying names in the company newsletter along with regular bulletins.
Incentive travel isn't just for adults. The Milwaukee Journal, recognising that its circulation depends on its 12-17 year-old delivery boys and girls, has built up a special travel programme for the kids. Trips are arranged to various amusement parks and ranches, as well as abroad. Incentive travel is still in its infancy in this
country according to John Galligan of Executive Travel and he believes the recession has been partially responsible for holding back its growth. Chris Maxwell of American Express Travel, says that most of the Irish companies which use lT are usually part of an international group and that the incentive package is often assembled by the parent company.
The biggest users in this country are the car distributors. Fiat has used it for a number of years, according to Marketing Manager, Joe Gantly. It is not confined to the sales department, it is also used in the parts and service departments where a points system is in operation to monitor performance by assessing correspondence from customers. The schemes vary according to their objective, such as a new car launch.
At the lower end of the scale, there are companies which operate voucher schemes which could be regarded as the bargain basement of incentive travel. Some travel companies will supply vouchers valued at about £10, which can be used by the recipient against the cost of a holiday Incentive travel has given a much needed boost to tourism in many countries and many tourist boards are designing specific packages for incentive travel planners complete with indigenous gifts, guides and assistance with customs procedures.
Ireland is no exception, and the Convention Bureau of Ireland - the Bord Failte arm - which promotes this country as a suitable site for hosting conferences - is actively pursuing the incentive houses in the US. Jury's Hotel has been one of the main beneficiaries and, in fact, its Marketing Director, Alan Glynn, was the first European to join the New York-based Society of Incentive Travel Executives. He says there is a very strong US traffic coming into Ireland and that they have catered for companies ranging from insurance, motor parts, office equipment and food. One recent group was a number of advertisers brought over by Klaus Radio which had used travel to encourage them to spend more with the Mid-West station.
