Incentive spending level in 2008

A total of $46.1 billion was spent by U.S. companies on incentive travel and merchandise in 2006, according to the “Federation Study 2007: A Study of the Incentive Merchandise and Travel Marketplace,” sponsored by the Incentive Federation and conducted and prepared by GfK, the fourth largest marketing research organization in the world. That total represents a significant increase from the just-under-$30 billion figure that was reported in the Federation’s last comprehensive survey in 2000. It also represents $32.7 billion spent on incentive merchandise and $13.4 billion on incentive travel.

In addition to budget figures, the report looks at how merchandise and travel incentives are being used. According to the study, some 34% of U.S. companies overall used either travel or merchandise incentives last year, with 31% using merchandise and 10% making use of travel incentives. The average budget for travel incentives in 2006 was $164,271, with more than three-quarters of incentive travel end-users spending between $100,000 and $500,000. The typical budget for merchandise incentives was lower - $119,008 – and just under half of merchandise incentive users spent between $100,000 and $500,000.