Incentive trips are growing in popularity in India, with a 30% increase in requests for them in the first quarter compared to the previous year. Companies use these trips as employee reward programs, sending top-performing staff to new destinations to foster team building and motivate younger and mid-career employees. Incentive trips are preferred by both employers and employees over vouchers or cash incentives, with the Indian business travel market surpassing pre-pandemic levels and continuing to grow.
The Global Business Travel Association projects an 18% growth in business travel spending in India by 2024, reaching $38 billion and returning to pre-2019 levels by 2025. India is the ninth-largest market globally for business travel expenditure, representing 5.7% of spending in the Asia Pacific region. The global incentive travel market is expected to reach $217 billion by 2031, with the highest rate of growth in the Asia Pacific region. Indian corporates are major contributors to incentive travel, with nearly half of arrivals from South Africa for meetings, incentives, conferences, and exhibitions.
FCM has managed incentive trips for a variety of Indian companies, ranging from startups to large-scale enterprises, in popular destinations like Thailand and Indonesia as well as emerging destinations like Vietnam. Popular destinations in Asia for incentive travel include Bangkok, Singapore, Ho Chi Minh, Kuala Lumpur, and Colombo. Hong Kong and Macau are also gaining traction again due to increased air seat capacity and tourism marketing initiatives. Companies are advised to book group movements at least 9 months in advance to save on airfare costs, as fares for full-cost carriers can be comparable to low-cost carriers with a larger booking window.
The recovery of business travel has been hindered by a lack of airline capacity and competition, with the average ticket price for flights booked for business travel increasing post-Covid. FCM Consulting noted a 25% increase in economy fare for flights between Mumbai and London, while business class fares on the route rose by 13%. The incentive travel market in India is expected to continue growing, with companies increasingly prioritizing trips as employee rewards over vouchers or cash incentives. Indian corporates play a significant role in incentive travel, with companies like South African Tourism highlighting their importance in attracting visitors to the country for meetings, incentives, conferences, and exhibitions.
