SITE’s Padraic Gilligan Talks Key Findings from the 2025 Incentive Travel Index

Following the discharge of the 2025 Incentive Travel Index (ITI) on Smart Monday and an insightful panel dialogue through which business leaders broke down this yr’s survey outcomes, Meetings Today’s Taylor Smith tapped Padraic Gilligan, SITE’s head of analysis and consultancy, to get his fast, 15-minute snapshot of the 2025 ITI and the important thing takeaways at present’s incentive journey professionals have to know. 

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Transcript

Taylor Smith  

Hello, and welcome to this Meetings Today podcast. I’m Taylor Smith, content material supervisor of locations for Meetings Today, and I’m right here at Smart Monday with Padraic Gilligan, head of analysis and consultancy with SITE, who simply wrapped up an hour-long session diving into the outcomes of this yr’s incentive journey index, which had a pair new strains of inquiry this yr. So, excited to dive into these with you, Padraic.  

But within the 10-Quarter-hour we now have at present, I do not know the way we’ll sum up every little thing we talked about this shortly, however beginning with finance and budgets, which is, I believe, prime of everybody’s thoughts proper now, I heard quite a bit about progress in luxurious and high-end markets. I believed that was actually attention-grabbing. And then one other factor was 48.1% of funds is all allotted by way of lodge and airfare for applications that we’re waiting for on this yr as nicely.

So what ought to planners learn about these numbers and the budgets that the analysis that got here out round budgets that perhaps shocked you or the viewers at present?

Padraic Gilligan  

Yeah, so budgets, clearly, it is on the core of what we do as a result of, , to be able to really design an incentive journey program, you need to have an general funds from a company perspective. You know, so the funds that we’re speaking about is definitely solely the bit that pertains to what you spend within the vacation spot. There’s one other a part of the funds that is nothing to do with that.

But when it comes to vacation spot spend, what we’re seeing is we’re seeing a type of a focus of that spend going in the direction of the lodge. If you add meals and beverage into that as nicely, what you find yourself with is sort of a skewed type of share of the general spend remaining within the lodge versus different components of the vacation spot expertise.

So, we’re anxious to type of interrogate what meaning in relation to the standard of this system. So, if every little thing goes to the lodge, which implies you are type of throughout the lodge construction on a regular basis, are you actually getting an expertise within the vacation spot?  

And we had some nice panelists right here with us at present. We had Anisha Martin from Hilton, who was very, very strongly defending how the lodge really displays the higher vacation spot expertise. And it isn’t only a type of a gated neighborhood that is separate from the surrounds and so forth, that it is very, very a lot built-in into all features of the vacation spot.

But these are the issues that we really type of like to take a look at from a year-to-year foundation. What we’re seeing is with that improve in using resorts specifically after which much more so all-inclusive resorts, clearly the funds goes to type of skew in favor of the lodge spent.

Taylor Smith  

Another factor that I believed was attention-grabbing funds clever is we’re seeing the funds per individual improve for applications. Justin with Bishop McCann mentioned he is seen important progress on the $7,500 and above charge for per individual spend. And then there have been a pair with over $10,000 per individual. I believed that was simply thoughts boggling, bear in mind, as a result of the inflation and tariffs and every little thing we had been speaking about, funds is, it is such a giant query mark for thus many individuals proper now. So what do you assume that’s pointing to or exhibiting a significance?

Padraic Gilligan  

Well, I believe if you have a look at the demographics of a workforce, most of the firms utilizing incentive journey applications for reward and recognition, could have tens of hundreds of workers and the quantity that really qualify for the inducement journey program is a really, very small share of the general dimension of the corporate. But it is prefer it’s the Pareto Principle or a model of the Pareto Principle which is the 80/20 rule besides it could be the 95/5 rule.  

In different phrases, 5% of your salespeople are producing 95% of your gross sales. And firms due to this fact are on the lookout for completely out-of-the-box experiences to proceed to inspire, encourage and reward these extremely prime performers. So that is why I believe we’re seeing a type of a giant improve within the, in that type of, it isn’t even a visit of a lifetime as a result of I might by no means think about doing it in my very own lifetime, however it simply displays, I believe, that type of hyper-performer that basically is on the core of the company world that basically does a rare quantity of the heavy lifting in relation to income producing. And then that type of, that has an impression on design.

So, what we’re seeing as nicely is we’re seeing type of using multi-tier awards. So, the place you will have this prime tier that have one thing that you would by no means even think about, like it’ll value 10, 20, much more thousand per head. And then you will have type of the decrease spending mid-tier applications which might be perhaps costing type of three grand. And, , they’re nonetheless fantastic applications and so forth. But there’s that type of, I suppose it is one thing to do with human psychology, there’s that tremendous performer. So how do you really hold that tremendous performer engaged? And it is by arising with probably the most superb incentive journey applications that you just do.

Taylor Smith

And a novel twist to it too, proper? Because I used to be, and through your presentation at present, you had been mentioning just a little bit shifting away from conventional experiences. And one of many stats that I actually thought was attention-grabbing was 63% of respondents have booked a model new vacation spot, by no means used earlier than for 2026 or 2027. But then we additionally noticed that word the place shorter distances, locations nearer to dwelling for the participant are additionally growing when it comes to vacation spot choice. So it is virtually contradicting itself there. 

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Padraic Gilligan  

Yeah, it does. And there’s numerous that. And I believe that is the place the evaluation is available in. And we’re very lucky to have had the chance at present to get entry to actually, actually brilliant people who find themselves doing this each day, and due to this fact are capable of assist us type of perceive these deeper traits which might be rising. But sure, there’s various counterintuitive knowledge.  

You know, if I might clarify it, it could be most likely within the following phrases. I’d say that as an alternative of going to Paris, that incentive journey applications at the moment are taking a look at Bordeaux, they’re now taking a look at Biarritz, they’re now taking a look at places outdoors of the primary place that they at all times went to. And they’re discovering nice worth there. They’re additionally taking a look at locations which might be up and coming. And there are simply so a lot of them, Taylor. Like there’s, , in the event you contemplate Europe, which is clearly the a part of the world that I do know greatest, you’ve got bought rising type of locations in Europe, like Slovenia, for instance,  Albania.

Taylor Smith

I imply, I simply had a gaggle that, I heard a few group that went to Albania, and I used to be like, whoa, I did not even consider that vacation spot earlier than.

Padraic Gilligan  

But the worth in Albania is simply unbelievable. Like you’ll be able to really, you are able to do quite a bit with a $2,000 funds per head someplace like Albania. You might by no means do it in Paris or you would by no means do it in London otherwise you could not even do it in Dublin. But so that is what’s taking place. We’re on the lookout for locations that we by no means imagined may very well be incentive journey places, and we’re discovering methods of constructing applications there that basically shock and delight.

Taylor Smith

There was one other panelist at present, and forgive me, I believe I wrote down who it was, however oh, Jenny, she mentioned, we now have to get extra artistic and supply extra ROI with the identical quantity of {dollars}. And I believe that ties into the vacation spot choice too, as a result of such as you mentioned, we will not at all times be going to Paris, however how can we give that genuine French expertise, which in a manner, virtually stepping outdoors of the busy one or finished over and over locations, that is the place the genuine native vacation spot emergent actually is available in generally.

Padraic Gilligan  

Well, there you go. I imply, we all know that, , a part of the trending type of decisions are coming from the need for authenticity. So sure, , there is a good purpose to keep away from the tried and the true and to begin taking a look at these locations which have a tremendous type of story to inform, however they have not really been forefront for alternative as incentive journey places.

Taylor Smith

So, I type of wish to faucet into the brand new strains of inquiry that you just had within the incentive journey index this yr. One was concerning the future. And I actually, as a Gen-Z type of reporter within the business, beloved once we had been taking a look at what’s the youthful technology valuing? What do they need in incentive journey applications? And there was a stat that I’ve to level out. 39% of respondents assume youthful generations of qualifiers would fairly see Taylor Swift than Hawaii, and 30% are not sure. So personally, I might choose Hawaii. Maybe I’m just a little biased, however what do you assume that is pointing to?

Padraic Gilligan  

I believe it is pointing to shifts in demographic desire. And that is commonplace, as Tom Jones may say. I do not know in the event you get that joke. But it is not uncommon as a result of it is at all times been the case. Younger generations do not wish to do essentially what their dad and mom did. And it was Andy that really got here up with that query about Hawaii and Taylor Swift, and we had been thrilled with the reply as a result of there is a sturdy perception, whether or not it is knowledgeable straight by Gen-Z contributors or whether or not it is a type of a viewpoint of the non-Ge- Z, that that is what they might say.

But we, I do recall the same dialog the place we had numerous Gen-Z within the room, and so they collectively agreed within the room that they did not wish to go to outdated buildings throughout incentive journey applications.

Taylor Smith  

I discover that loopy. I like historic buildings. That’s one in all my favourite issues to do.

[Related: Hyatt Leaders Discuss Shifting Business Travel Trends and Meetings Outlook for 2026]

Padraic Gilligan    

Yeah, and this was a gaggle of Gen-Z in our business, and so they mentioned very clearly, so we put that into the index.

And within the index it was rejected, like that that would not be the case, that, , tradition when it comes to constructed heritage has an enormous half to play in creating that final incentive journey expertise.

Taylor Smith

And goes again to that genuine vacation spot immersion too. Exactly. Almost contradicting stuff once more there.

Padraic Gilligan  

Yeah, precisely. But equally, I do get it. I imply, like Taylor Swift is, she represents the zeitgeist for youthful type of individuals at present. And there’s at all times been any person, There’s at all times been any person. There’s at all times been some type of celeb that in some respects turned the type of the individual that everyone needed to be or see and um I’m not shocked I I’ve kids myself who I can think about would favor to see Taylor Swift in Hawaii yeah.

Taylor Smith  

Taylor’s nice however not higher than Hawaii I’m sorry however um one. Thing you see Taylor will not at all times be Taylor however Hawaii will at all times be Hawaii so like that is the opposite.

Taylor Smith  

Yeah and I believe it does it. Justin with Bishop McCann, thanks. He wrapped it up with a quote on the finish that I believe type of ties all of it collectively rather well. And he mentioned, it isn’t sufficient to only be a vacation spot or a good looking lodge. It’s what’s the expertise I’m going to get that makes me get to say I used to be there. And that I believe is what it is all about proper now too. So in the event you needed to depart our listeners with one factor at present, or a tidbit from the inducement journey index, and even only a name to motion to go obtain it perhaps, what would that be?

Padraic Gilligan  

I believe that the determine or the decision out that I might make can be in relation to the truth that all of us imagine that incentive journey works, however 75% of us imagine that it is a actually, actually laborious business. And I type of assume that is a bit exaggerated. You know, I like the business that we’re in. I do not deny that it is laborious, however something that is worthwhile is tough. To be a surgeon is tough, however there’s unbelievable rewards that come from, , it is a life type of enhancing and giving present to be a surgeon.  

And, , we’re not curing most cancers or we’re not saving lives, maybe, as incentive journey professionals, however we’re, in our personal manner, probably contributing to world peace by utilizing journey in the way in which that Mark Twain described it, which, , journey is the enemy of bigotry. You know, if you sit with any person from a completely completely different tradition to your self, are you able to really hate them? Can you assume that they are type of, , undeserving of your love and your outreach? Not in any respect. Because you notice that, basically, we’re all human beings, and that is our shared humanity is large, and that is what we notice once we take ourselves out of our consolation zone.  

And we go from our, no matter it occurs to be, I’m from Ireland, I’m type of imbued with Western tradition. When I’m going to the Middle East, it appears to be like completely completely different. It sounds completely different. I can not perceive what individuals are saying. They look, they’re dressed another way to the way in which that I’m dressed. But after I take the time to really work together with them, I notice there’s such a wealth and a richness that comes from that. So yeah, I believe incentive journey is a troublesome job, however I believe it is actually worthwhile.

Taylor Smith  

And all of it goes again to that transformative expertise that’s the reward of all of it ultimately.

Padraic Gilligan  

Absolutely.

Taylor Smith

Yes. Thank you for becoming a member of me at present, Padraic.  That was a beautiful dialog, as at all times, and I do know our viewers will be taught quite a bit from you.

Padraic Gilligan    

Thank you, Taylor Smith, not Swift.

Taylor Smith

Yes. That was Padraic Gilligan, head of analysis and consultancy with SITE. Once once more, I’m Taylor Smith, locations supervisor for Meetings Today. Thank you once more for becoming a member of us for this Meetings Today podcast. If you wish to take heed to extra, go to meetingstoday.com/podcasts. Until subsequent time.