Much like the world it operates in, the incentive sector is moving in seemingly contradictory directions.
This week’s SITE ANZ Incentivise Conference at W Sydney explored the trends both from a local and global level. Here are some of the key takeaways from the roster of speakers on the day.
On a local level, Michael Rodrigues, NSW’s first-ever 24-Hour Economy Commissioner, explored the successes and challenges of turning Syndey into a 24hr economy in a regulatory system “which has been designed to say no”.
The solution was to look at the whole picture rather than individual pieces, and that meant streamlining planning and licensing processes, creating greater flexibility for outdoor dining and street activation, modernising entertainment and sound management, and supporting more live music and performance across New South Wales.
The effects of that streamlining now flow through to business events.
“Rather than event organisers starting from scratch, building relationships and coordinating, they can tap into a destination that is already designed for collaboration,” he said.
A case in point was last year’s International Astronautical Congress, which transformed Chippendale into an extension of the congress experience for its 5,000 delegates.
Across 24 venues, delegates experienced Sydney’s food, music, art, hospitality, and creativity through a space-themed activation centered on Kensington Street. The event also featured 21 multicultural cuisines, engaged more than 30 local performers and creatives.
It’s a template that is being actively considered by other large global conferences and one that Rodrigues would like to expand beyond the CBD.
Looking at incentive industry through a commercial lense, Mercedes Ibbett of EVT Incentive Marketing and Nick Merry of Motivforce argued that the incentive travel industry needs to change the way it sells itself.
In today’s landscape, incentive companies, destinations and suppliers are no longer competing against each other, they’re competing against cash, gift cards and the CFO’s spreadsheet.
The global corporate rewards market is described as worth around US$310 billion annually, yet approximately half goes to cash, discounts and rebates, with another 30% going to gift cards. That leaves experiences and incentive travel fighting over the remaining 20%.
Their case for the power of incentives – cash can motivate behaviour, but its impact is short-lived and often gets absorbed into everyday expenditure. In contrast, incentive travel is a key motivational driver that builds both relationships and status. The biggest challenge – quantifying the ROI.
Ultimately, the two argue that incentive companies should focus less on selling travel and start selling business outcomes.
Finally, Pádraic Gilligan, co-founder of SoolNua, and Selina Sinclair, CEO of REALM Events, gave the audience a first look at some of the key insights from the upcoming 2026 SITE Incentive Travel Index which will be officially launched in October.
Globally, optimism is cooling despite growth in the incentive sector continuing. Buyers expecting growth fell from 33% to 27%, while the decline in optimism among DMCs was considerably larger. However, the story becomes more fractured when you zoom into each region, with APAC pushing ahead and the US distorting the global picture.
Another polarising trend was a hollowing out of the middle tier. Lower-budget programs are declining while expenditure at the premium end is increasing. Companies appear increasingly prepared to invest substantially in incentive programs that deliver results.
Rising costs are also eating into budgets. Historically, about 30% was left for the destination experience after airfares and hotels costs were taken into account. That slice of the destination experience budget has shrunk as airfares have increased this year, making it a particularly acute short-term challenge for incentive companies.
Sinclair warned that the industry will be left behind if it doesn’t listen to the changing nature of incentive travel, with personalisation now a key driver. The good news is that those companies who are spending on incentive travel are spending more.
“Incentive travel finally has its seat at the boardroom table,” she said.
