Every autumn the incentive industry gets its annual health check. The Incentive Travel Index 2026, produced by the Incentive Research Foundation (IRF) and the SITE Foundation with Oxford Economics, surveyed 2,017 people across 83 countries between May and July 2026.
Most of what has been written about the 2026 Incentive Travel Index so far is the press release, lightly rearranged. We’ve read all 79 pages. Here’s what matters if you’re planning an incentive programme in Europe for 2027, and what we think it means for companies of different sizes.
Key Takeaways
- Western Europe has the strongest destination momentum of 2026 (+29.3%), with Emerging Europe second (+25.3%).
- Buyers based in Western Europe feel geopolitical disruption more than anyone: 84.6%, against 60.5% globally.
- Average spend per person rose 7.8% to $5,500. Western European buyers average $4,900.
- Top-tier accommodation is now the number one destination must-have (47.9%), overtaking direct air access.
- Buyers want new places, shorter trips and better design, and Western Europe trails every other region on AI use.
What is the Incentive Travel Index?
The Incentive Travel Index (ITI) is one of the most comprehensive annual surveys of the incentive travel industry, now in its eighth year. It covers corporate programme owners, incentive agencies, destination management companies (DMCs), hotels and destination marketing organisations.
One thing to know before reading the numbers: the sample leans towards North America (38.4% of respondents), with Western Europe at 19.0%. European figures come from smaller groups, so treat them as a clear direction rather than a precise measurement.
Why is Europe gaining momentum?
The headline for anyone in Europe is simple: buyers want to come here.
The index measures “net destination momentum”: the share of buyers planning to use a destination more, minus those planning to use it less. Western Europe comes top at +29.3%, followed by Emerging Europe (+25.3%), the Caribbean (+20.7%) and Southeast Asia (+19.9%). The United States sits mid-table at +5.0%.
Part of that is Europe’s own appeal. Part of it is what’s happening elsewhere. The Gulf States (−23.6%) and the rest of the Middle East (−25.6%) are at the bottom, and Mexico, a top gainer last year, has slipped to −6.5%. For many planners, Europe now feels like the safe choice as well as the attractive one.
Why do European planners feel the disruption most?
This is the finding that deserves more attention. Asked whether geopolitical instability is disrupting the destinations they use, 60.5% of buyers worldwide said yes. In Western Europe the figure is 84.6%. In North America it’s 51.5%.
It’s already changing behaviour. In the past twelve months, 63.5% of buyers removed a destination from a shortlist and 39.6% moved a confirmed programme elsewhere. Only 16.7% say their bookings haven’t been affected.
Western Europe is also the only region where buyers are less optimistic about 2028 (22.7% expect more activity) than about 2027 (24.0%).
How much does an incentive trip cost per person in 2026?
Average spend per person rose 7.8% to $5,500 in 2026, ahead of Oxford Economics’ forecasts for inflation (4.5%) and business travel spending (7.1%).
| Buyer region | Average spend per person, 2026 |
|---|---|
| North America | $6,100 |
| Global average | $5,500 |
| Western Europe | $4,900 |
| Asia-Pacific | $4,900 |
| Rest of world | $3,400 |
The figures include flights and cover everyone travelling, guests included. Hotels (25.1%) and airfare (21.4%) take nearly half of the average budget. By sector, technology buyers spend the most ($6,000 per person).
What do buyers want from a destination?
The biggest shift this year is the hotel. Top-tier accommodation is now the most common destination must-have, chosen by 47.9% of buyers, up from 34.3% in 2025. It has overtaken direct air access (39.5%).
The reasons to rule a destination out have hardened too. Setting aside cost and personal safety, geopolitical factors are now the leading disqualifier (64.5%, up from 37.8%), with difficult air access close behind (62.2%).
On the ground, group cultural experiences (71.1%) and group dining (66.0%) are the most valued programme activities. There’s a gap worth noticing: 64.0% of buyers rate free time as one of the most important parts of a programme, against 42.4% of sellers.
What the Incentive Travel Index 2026 means for 2027 planning
Four pressures stand out for 2027: making budgets work harder, finding the right destination, using AI sensibly and managing risk.
Cost containment: value engineering without losing the “wow”
Inflation has quietly ended the old idea of doing more with less. Spend is up this year, but for 2027 most buyers (52.1%) plan only to match inflation and 30.7% plan to trim. In Western Europe, 82.6% are simply matching inflation.
The answer isn’t to cut evenly. It’s value engineering: protecting what qualifiers will remember and saving where they won’t notice.
- Protect the hotel. It’s now the number one must-have. A downgrade is the cut people notice first.
- Protect one signature moment. One unforgettable evening beats three average ones.
- Move the dates, not the standard. Avoiding peak season and trade fairs can make a big difference. We’ve looked at how hotel prices can rise up to five times during European trade fairs.
- Shorten the trip. 58.2% of respondents agree shorter, more intense trips are the future.
- Trim where buyers already trim. Gifting is the first thing buyers cut (55.4%) and the smallest budget line (4.5%).
Emerging second-tier destinations in Europe
77% of buyers plan to increase their use of destinations they haven’t used before, and 61.7% of respondents agree a well-designed programme in a secondary city beats an underwhelming one in an iconic destination.
For Europe, that opens up the map: Bilbao or San Sebastián rather than Barcelona, Zadar rather than Dubrovnik, regional Italy rather than the Amalfi Coast. Secondary destinations offer better value, more availability at good hotels and a sense of discovery. The trade-offs are fewer flights and fewer top-tier rooms, so check both early. We compared two Basque favourites in Bilbao vs San Sebastián for corporate events.
| Not sure which second-tier city suits your group? Our planners live in the places they plan for, and many were born there. Tell us your group size and dates, and we’ll suggest two or three places worth a closer look. Ask a local planner |
Practical AI integration
According to the Incentive Travel Index 2026, six in ten respondents use AI for three or more tasks, and 76.6% of buyers use it for destination research. Western Europe is the exception: a quarter (25%) of respondents there don’t use AI at all, against 11% to 16% elsewhere, and only 8% use it for risk management.
The index is also a reality check. Only 24.4% agree AI users are already out-performing rivals. AI is best at the groundwork: early research, drafting briefs and communications, and monitoring news and travel advice. It can’t tell you which restaurant will take 40 people on a Saturday in June, or what your qualifiers will actually love.
Risk mitigation and compliance
With 84.6% of Western European buyers already feeling disruption, risk belongs in the brief, not at the end:
- Agree trigger points early. 71.8% of buyers use government travel advice. Decide what change would make you move.
- Keep an alternative ready and ask for named backups for the hotel, venue and transport.
- Read the contract. 23.4% of buyers sought extra political risk insurance or force majeure cover last year.
- Check the compliance basics: tax treatment for participants, company policies, data protection and honest sustainability claims.
When a destination hits the headlines, 77.5% of buyers say relationships and local experience are what help them see past the noise.
Our take: what it means for your company
The index doesn’t break its findings down by company size, so this is our interpretation, based on the data and the programmes we plan.
Start-ups and scale-ups
Smaller budgets don’t mean smaller ambitions. For a team of 10 to 40, secondary destinations and boutique hotels are the sweet spot: you get the top-tier stay buyers now prize, without paying for capacity you don’t need. Keep it short, keep it personal, and make the founders part of it. Flexible dates are your biggest saving.
Mid-sized companies
This is where the cost squeeze bites hardest: programmes big enough to need real logistics, budgets too tight to absorb inflation. Value engineering matters most here. Protect the hotel and one signature moment, cut gifting and nights rather than quality, and choose a destination where your budget goes further. A simple written plan B is worth more than an extra activity.
Corporates
Your biggest risks are reputation and disruption. With large groups, a single strike or headline affects hundreds of people, so contingency planning, contracts and duty of care need to be built in from the start. Expect procurement to ask harder questions, and have a clear objective and itemised costs ready. Large groups can still use second-tier cities by splitting into smaller hubs or choosing destinations with enough top-tier rooms.
Plan 2027 with people who live there
Our planners are local to the destinations we serve, and many of them were born there. They know which restaurant will take 40 people on a Saturday in June, where to move the dinner when the weather turns, and the town your group hasn’t heard of yet.
Tell us your group, dates and budget, and we’ll come back with ideas. Talk to a local planner or email info@thedmccollective.com.
Frequently asked questions
What are the key findings of the Incentive Travel Index 2026?
Spend per person rose 7.8% to $5,500. Western Europe has the strongest destination momentum (+29.3%). 60.5% of buyers say geopolitical instability is disrupting their destinations, rising to 84.6% in Western Europe. Top-tier hotels are now the number one must-have.
What is the average cost of an incentive trip per person in 2026?
According to the 2026 Incentive Travel Index, the global average is $5,500 per person. North American buyers average $6,100, and buyers in Western Europe and Asia-Pacific $4,900.
Who produces the Incentive Travel Index 2026?
The Incentive Research Foundation and the SITE Foundation, with research partner Oxford Economics. The full report is at incentiveindex.com.
Are incentive travel budgets being cut in 2027?
Some are. 30.7% of buyers plan to trim per-person spend in 2027, but 52.1% will match inflation. Two years out, more expect to improve programmes (32.1%) than to trim them (19.0%).