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IHow Incentive Travel Can Motivate your Entire Sales Team
By Robert Mcgarvey
SellingPower.com
Motivating everyone on a sales team may sound like a tall order, especially with Baby Boomers and GenXers on the same slate. In fact, according to some experts, at times sales reps qualified to take incentive trips don’t show at boarding time. “A small percentage of qualifiers don’t go on the trips,” says Janine Chapman, director of group sales with Signature Vacations, a Toronto, Canada-based travel planning firm. Chapman adds that frequently no-shows are top producers. So what’s happening?
“The demographics of qualifiers are changing,” says Diane Kaufman, a marketing director with Marriott International. For instance, the age of qualifiers has dropped. The upshot is that “we are seeing many more Generation X participants and fewer Baby Boomers,” says Kaufman. So what? That is in fact a very big deal, suggests Kaufman, because Gen- Xers aren’t necessarily motivated by the same trips that worked for Boomers.
Smart incentive planners are factoring in that generational shift. Add in dramatic changes in desirable locations and, plainly, the twenty-first century has ushered in new rules for incentives that work.
One unchanging reality: Trips still are king of the incentives mountain. In a survey conducted for American Express Incentive Services (AEIS), 40 percent of respondents chose travel rewards as the most coveted incentives. The next most popular reward, getting 23 percent of the vote, was for a “shopping spree” – which pairs nicely with travel awards. Last on the list were electronics awards – just 4 percent said they would work harder to get the latest gizmos. Today’s truth: Incentives work, particularly when more employees are saying their companies are asking ever more of them but those employees want to know what’s in it for them. Incentives are an answer and travel incentives, by vote of the AEIS respondents, top the list.
At the same time, however, new research says that incentive programs should offer rewards that tantalize middle performers, says Mike Trowbridge, a vice president with Get Up and Go, a provider of travel incentive packages. The logic is simple. “A 10 percent performance increase in the bottom two-thirds of a sales force generates more revenues than a 15 percent lift in the top one-third,” says Trowbridge. Chew on that when generating an incentive program. What awards will turn on – and be attainable by – the performers who are in the middle tier?
But just as today’s qualifiers are different, so is what they want. “Baby Boomers wanted status. GenXers and younger want experiences,” says Kevin Martin, director of marketing for IMI, an incentives company in Atlanta GA. “Experience is king. The more unique the better.” In that vein, it’s a start to take an incentive group to, say, Delectus, a highly rated boutique winery in Napa, for a tasting. But to really ramp up the experiential component, have the tasting led by Delectus’ winemaker and owner, Gerhard Reisacher. “Take people behind the scenes – that’s what they want,” says Martin. Adds Patrick Sullivan of PRA Destination Management in Manhattan, “what works well for incentive packages are experiences people aren’t likely to get on their own.” That’s a key guideline for scrutinizing any proposed program, say the expert planners: If the experiences are off-the-shelf, rethink the program. Give people moments they will savor and that they can brag about with friends(“I tasted that wine with the winemaker”) and this is the fast track to incentives success.
Destinations That Matter
Traditionally, “incentive travel” was synonymous with trips abroad. No more. “Foreign locales aren’t the default position anymore,” says Glen Holbert, director of sales for Marketing Innovators in Illinois. Bruce Tepper, a principal in Joselyn, Tepper and Associates, a California meeting planning firm, concurs. By his estimate, 75 percent of incentive travel is now is the U.S.
A big winner in the U.S. is Las Vegas, say many experts, particularly in an era where the quest is for unique experiences. “Experience is what we sell,” says Michael Massari, vice president for meetings sales at Harrah’s. A proof of Las Vegas’s power is that, according to Get Up and Go, Las Vegas has a big lead as its most popular destination.
Ditto for Hawaii, which continues to top the list of preferred destinations according to many incentive planners, who particularly tout Honolulu, Kauai and the Big Island as venues that appeal to twenty-first century qualifiers. Get Up and Go data ranks Hawaii fifth.
New York, too, is winning back incentive groups, says Sullivan. The hitch is staggeringly high hotel room rates ($500 per night isn’t uncommon for modest accommodations) – but, says Sullivan, “Many of today’s qualifiers are people who don’t regularly travel to New York on business. For them, the trip becomes about the New York experience” – and, from shopping to saloons, New York is crammed with places that are regularly mentioned in newspaper and magazine write-ups. That helps stoke demand for incentive travel to the Big Apple.
Also scoring high are truly classic resorts – a prime example is the Broadmoor, at the base of Pikes Peak in Colorado – where a stay can be the stuff of conversations for years to come (“Were you at the Broadmoor meeting?”). With these classic resorts – other examples are the Greenbrier in West Virginia and the Hotel del Coronado in San Diego County – the hotel itself becomes the talking point, much more so than the location. A plus is that a resort like the Broadmoor offers a medley of memorable activities – rock climbing, fly fishing, mountain biking, golf, and enough other choices to keep the most finicky incentive travelers busy.
But an emerging trend is to “seek out new destinations,” says Maritz’s Brewer and this means foreign venues are again creeping back onto the radar screen. For several years after 2001, meetings close to home topped the popularity charts, but now “we see groups that want the exotic.” This is not a stampede, but, definitely, groups are looking further afield in 2006. That said, with most incentive trips running four or five nights (seven nights at the outside), very long air travel is out. Few groups are enduring the 20+ hours involved in flying to India, for instance. But, says Brewer, many groups are heading to destinations that would have seemed impossible just two years ago. For instance: Panama is winning intrepid travelers who want a different view of Central America (Sol Melia’s Panama Canal hotel is an example of a five-star hotel that wants its share of incentive travelers). Also rising fast: the Dominican Republic (where Sol Melia’s Paradisus Palma Real is a five-star property with meetings know-how).
A last emerging destination: the Dalmatian Coast, says Maritz’s Brewer, who indicates that favorable pricing and a breathtaking location on the Adriatic are winning bookings from planners. A plus of any of these – Panama, Dominican Republic, Croatia – is that they aren’t the same old stops. Few travelers have been to them and that is a plus in today’s market.
Going Solo
A sea-change in incentives design is that GenXers frequently prefer individual travel incentives, say the experts, and this small but growing niche is getting more attention as companies hear that qualifiers want to go off with their own family, not with 500 coworkers. No one is predicting that solo travel will supplant group – but no one is saying solo can still be ignored. With some audiences it is exactly the right solution, say the experts.Also “in,” according to Get Up and Go’s Trowbridge, is choice. “Qualifiers tell us they want a choice of destinations and also a choice of travel dates.” It’s just gotten much harder for families to coordinate schedules for a trip and that’s why flexibility is key. Key, too, is allowing freedom in inviting travel companions, says Marriott’s Kaufman, who indicates that the age-old tradition of a husband and wife traveling together on a corporate incentive trip is no more. Sure, those couples fill some rooms, but smart planners now let a qualifier invite any family member or significant other and that covers a broad range from grandchildren to elderly parents as possible companions. Activities, too, need to shift to accommodate this expanding mix of travelers. Offering optional children’s activities is, increasingly, good planning, says Kaufman.
A big take-away: “We advise clients to be sensitive to the lifestyles of their qualifiers,” says Marketing Innovators’ Holbert. In that vein, he adds, “we are seeing more companies offer qualifiers a choice between a family-friendly destination and a more traditional resort.” That might mean a choice between, say, Orlando and Las Vegas.
Sarbanes-Oxley
One further complication that is causing consternation among incentives planners: “Sarbanes-Oxley is scaring many companies,” says Tepper. Sarbanes-Oxley, the 2002 federal law, demands more financial transparency, particularly among publicly held companies. An upshot is that many companies are skittish about expenditures for incentives. The law doesn’t ban them, but it does say much information that once was kept private now has to be made public. So companies are reluctant to authorize substantial incentives spending, says Tepper. “There’s a lot of fear. We don’t believe companies have to be scared of Sarbanes-Oxley but many are.” Holbert also says a Sarbanes-Oxley trend is that many companies are increasing the meetings component of incentive trips.
Perhaps a by-product of those concerns is that, in 2006, a surprisingly popular incentives activity is for the group to put in a day of charitable work. “We’ve arranged for incentive groups to build houses with Habitat for Humanity,” says Tepper. Janine Chapman says her company, too, has arranged charitable work –“we’re setting up groups to help build houses in Cancun,” a destination that was very hard hit by 2005 hurricanes. Note: Such activities usually amount to perhaps one day in a four- or five-day incentive trip. There’s still ample time for spa, golf and umbrella drinks – but an increasing message is that incentive winners want to share their abundance with the less fortunate. Watch for this trend to grow, say the experts.
A final, huge change in the 2006 incentives marketplace: “It’s shifted back to a seller’s market,” warns Bill Boyd, president of Sunbelt Motivation and Travel in Irving, TX. “If you know where you want to go, book early – 18 months out is ideal.” Occupancies in premium destinations, particularly ones that can handle large groups (200 and up), are soaring. This means the most desirable locales are going fast. A proof is Seabourn, the ultra premium cruise line, which one month into 2006, said it only had a very few Caribbean sailings still available for charter (“The Baltic and Med sailings are sold out for 2006. We’re now signing up groups for 2007,” says Tanya Barnette, head of incentive sales for Seabourn). Very large groups – over 1,000 rooms – should plan even further out. “Booking 24 months in advance is our advice for big groups,” says Brewer. The strong take-away: Don’t dither, book now and get a Grade A destination that will indeed provide an incentive for your salesforce. Fail to do that and, just
maybe, you’ll be forced to meet in the Cumberland Mountains which, according to Get Up and Go statistics, ranks as just about the least popular incentive destination on the planet – and that’s no way to fire up a group.
Tips, Trends and Deals
You’ll Never Guess What Is In
The emerging must-go destination now is St. Petersburg, Russia, says Madison Toms, Orient-Express Hotels director of sales for North America, which operates the Grand Hotel, an iconic nineteenth-century masterpiece that’s now fully updated. “This is the unseen, untraveled destination. Groups get excited about this city,” says Toms, who points out that St. Petersburg houses world class art and is itself an attractive, well-kept old-style city. Skeptical? Tanya Barnette, head of incentive sales for Seabourn Cruises, says much the same. Seabourn has introduced a Baltic sailing (with several nights in St. Petersburg) that is proving wildly popular. (This sailing usually features stops in Helskini, Copenhagen and Estonia, too.) Also a region of surprising emerging interest: Libya, says Diane Moore, vice president of sales and marketing for Windstar Cruises. Windstar hasn’t yet initiated programs in Libya, but Moore indicates the line has been getting a stream of requests. Bottom line: At least some incentive groups have tired of the traditional stops and are genuinely on the prowl for new destinations, particularly cities that still offer good value for the weakened U.S. dollar.Buy the Whole Place
It’s a mounting trend: small incentive groups increasingly are buying out whole boutique hotels to achieve the ultimate in privacy. You don’t want anyone overhearing your chatter? Take over the 43-room Maison 140 in Los Angeles, for instance (price: $10,000 per night, inclusive of parking, a reception party and Continental breakfast). On the other coast, The Chanler in storied Newport, RI – the former summer residence of New York Congressman John Winthrop Chanler and his wife, Margaret Astor Ward – will make its 20 guest rooms available for private meetings (price: $28,000 per night, including breakfast, tea and dinner). Some hotels resist buy-outs (it’s awkward to fit one into a schedule without losing business on either side of the arrival/departure dates) but nowadays the word is: If a group wants to take over a property, just ask. The answer may be a surprising yes, particularly if the meeting isn’t in the hotel’s peak season.Star Power
Want the secret for turning out star power for a New York event? A small donation to Broadway Cares (www.broadwaycares.org) may be plenty to net two or three actors in current Broadway hits, says Patrick Sullivan of PRA Destination Management in Manhattan. How small? $500 might do it, Sullivan says, because Broadway Cares has developed deep ties with most Broadway casts and actors are enthusiastic about doing these pro bono appearances. You probably won’t get headliners but you will get supporting cast who are good at schmoozing and sharing backstage stories. A particularly popular event in PRA Destination Management’s New York portfolio is a theater night followed by a cocktail reception with a few cast members stopping by. The hottest ticket right now: Jersey Boys, says Sullivan, and that’s because this musical about the Four Seasons pop group is a feel-good night that moves to a lively beat.
Celebrity Chefs Cook
“When Bobby Flay is at Caesar’s, guests treat him like a rock star. They want his autograph!” relates Michael Massari, vice president of meeting sales for Harrah’s Las Vegas properties, including Caesar’s Palace, where New York chef Flay has opened an outpost of his Mesa Grill. Flay isn’t unique. Suddenly, celebrity chefs are hot and smart incentive trip planners are building in meals at restaurants operated by celeb chefs and, in some cases, they also are finding ways to bring the chefs in for a meet and greet with the group. What chefs are in? Any chef with a show on the Food Network is hot; ditto for chefs with PBS shows. Topping the list are Mario Batali (New York-based), Martin Yan (a longtime PBS fixture), Emeril Legasse (a Food Network star with restaurants in New Orleans, Orlando and Las Vegas), and Wolfgang Puck (his restaurants are almost everywhere). An opinion spreading through meeting planner circles is that the premium prices fetched at celebrity chef restaurants just may be warranted by the enhanced impact of a meal that is, by definition, special.
Golf Is Out!
That’s the word from Bill Boyd, president of Sunbelt Motivation and Travel in Irving, TX, who says that the long-time incentive champ has been toppled by spa. Reasons are simple: Not everybody golfs, but everybody can get a massage and, usually, spa price points are significantly lower than a round of golf at a prestige course. Boyd is not predicting the end of golf-oriented incentives; for the right group, a dream trip remains playing St. Andrew’s in Scotland, where it all began, or other storied courses. But recognize that changing demographics of qualifiers are leading to a shift in what your salesforce wants to do. The antidote: Keep an ear to the ground and don’t be shy about canvassing participants about their dream list for an incentive program. What they say may not be what they get and that disconnect means less effective incentive programs.
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