International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

Incentive travel: A tool for Motivating Employees to deliver higher level of

performance
SUNIL PANWAR
Assistant Professor
Subharti University
+91 9897493494

NITIN GUPTA
Associate Prof.
IIMT Hotel Management College
lovelynitinkansal@gmail.com
9045504439

Abstract
Motivation is a very important part of human resources management. The aim of motivation
programs is to create strategies and systems that help companies get the right employees in the
right positions, and keep them motivated. Incentive travel has emerged as a popular means of
rewarding the employees achievements and contributions, by several business houses especially
multinational companies, Insurance Companies, Banks, Pharmaceuticals Firms, etc.
A travel reward is unique from other types of rewards because it is experiential. The anticipation
of the experience drives behaviour in a way that other rewards cant. Major players in todays
incentive travel and motivational meetings business include airlines, cruise lines, hotels,
destination management companies, adventure travel suppliers, corporate-events consultants,
restaurants, and attractions. In this study, researchers shows Incentive travel as a tool that uses
exceptional travel experience both for employee motivation and employee engagement, to
deliver higher level of performances in support of organizational goals.

Key Words: Incentive Travel, Motivation, Reward, Travel Supplier,

International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

Introduction
Incentive is an act or promise for greater action. It is also called as a stimulus to greater action. It
means additional remuneration or benefit to an employee in recognition of achievement or better
work. Incentives provide a spur or zeal in the employees for better performance. It is a natural
thing that nobody acts without a purpose behind. Besides monetary incentive, there are some
other stimuli which can drive a person to better. This will include job satisfaction, job security,
job promotion, and pride for accomplishment. Therefore, incentives really can sometimes work
to accomplish the goals of a concern.
There are various types of incentives to motivate employees:Monetary incentives- Those incentives which satisfy the subordinates by providing them
rewards in terms of rupees. Money has been recognized as a chief source of satisfying the needs
of people. Money is also helpful to satisfy the social needs by possessing various material items.
Therefore, money not only satisfies psychological needs but also the security and social needs.
Therefore, in many factories, various wage plans and bonus schemes are introduced to motivate
and stimulate the people to work.
Other incentives- Besides the monetary incentives, there are certain non-financial incentives
which can satisfy the ego and self- actualization needs of employees. The incentives which
cannot be measured in terms of money are under the category of Non- monetary incentives.
Whenever a manager has to satisfy the psychological needs of the subordinates, he makes use of
non-financial incentives.
Non- financial incentives can be of the following types:-

International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

Job security It is an incentive which provides great motivation to employees. If his job is
secured, he will put maximum efforts to achieve the objectives of the enterprise. This also helps
since he is very far off from mental tension and he can give his best to the enterprise.
Recognition- The praise or recognition satisfies the ego needs of the employees. Sometimes
praise becomes more effective than any other incentive. The employees will respond more to
praise and try to give the best of their abilities to a concern.
Job enrichment- Job enrichment is another incentive in which the job of a worker can be
enriched. This can be done by increasing his responsibilities, giving him an important
designation, increasing the content and nature of the work. This way efficient worker can get
challenging jobs in which they can prove their worth. This also helps in the greatest motivation
of the efficient employees.
Promotion opportunities- Promotion is an effective tool to increase the spirit to work in a
concern. If the employees are provided opportunities for the advancement and growth, they feel
satisfied and contented and they become more committed to the organization.
Incentives travel- A travel reward is unique from other types of rewards because it is
experiential. The anticipation of the experience drives behavior in a way that other rewards cant.
A cash reward is often absorbed into the participants day-to-day budget and is then forgotten
about. However, a travel incentive reward contributes to behavior change because of its appeal.
Incentive travel primarily is used in programs to increase sales, purchases, or, in the case of
employees, productivity or quality. The official definition by the Society of Incentive & Travel
Executives (SITE) says that incentive travel rewards people for specific results in formal
incentive programs. Many companies that offer travel, however, use it in loosely structured

International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

programs in which employees or customers are singled out to attend a motivational meeting.
What distinguishes incentive or motivational travel from traditional travel is the focus on
creating an extraordinary experience for the winner, or an experience that builds morale,
communicates the corporate message, or fosters improved communications between the
company and its employees or its customers.
Incentive travel has grown in recent years as Corporate Indias motivational and marketing tool.
Incentive travel programs not only keep employees happy, they also push up your brand image.
Businesses use incentives to:
-

Motivate employees to work toward a common goal;

Recognize performance;

Get people to make a purchase they might not otherwise make;

Reinforce a marketing message.

Incentive travel primarily is used in programs to increase sales, purchases, or, in the case of
employees, productivity or quality. The official definition by the Society of Incentive & Travel
Executives (SITE) says that incentive travel rewards people for specific results in formal
incentive programs. Many companies that offer travel, however, use it in loosely structured
programs in which employees or customers are singled out to attend a motivational meeting.
What distinguishes incentive or motivational travel from traditional travel is the focus on
creating an extraordinary experience for the winner, or an experience that builds morale,
communicates the corporate message, or fosters improved communications between the
company and its employees or its customers.

International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

Incentive Travel as a Motivational Tool

Incentive travel is a global management tool that uses an exceptional travel experience to
motivate and/or recognize participants for increased levels of performance in support of
organizational goals. (Lassila 2002, 13.)
Incentive travel has emerged as a popular means of rewarding the employees achievements and
contributions, by several business houses especially multinational companies, Insurance
Companies, Banks, Pharmaceuticals Firms, etc. Employees are given free tickets or holidays
packages to select destinations all paid by company. These are given as added perks to keep up
the interest of the executives who are the high performers of the company. Incentive tours market
has become fast growing sector within the tourism industry. Most of the companies organize
incentive trips on a regular basis.
Travel awards still rate highly as motivational tools for enhancing employee productivity
but suppliers of such tools and incentive programmes are set to face more pressure to prove
that they deliver results.
Companies have the motivation program as a tool to move employees out from under their daily
work routine and away from careless behavior. If the company management has already decided
on an amount that can be spent for the employees, the right motivational package, including a
nice incentive trip, can offer the following benefits:

Loyalty for the company will increase

Employees get to know other destinations and may consider working for the company

elsewhere
Working teams can be together and the working relationships can be strengthened
After working hard to earn the trip people feel ready to work hard for future goals

International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

Though the trip is a cost to the company, there are offsetting tax benefits
It creates good PR for the company; the employees will tell everybody about the

generosity of their company for providing the trip.

It serves to reward participants for a companys achieving better financial results or the
target groups improved performance, to establish informal business relationships, or

to encourage greater loyalty by means of special custom-tailored trips.

Incentive travel is very important because nowadays people have more tasks and they
have to be more productive. Often, companies dont have the chance to go around with
huge salaries, so they have to show they care in other ways. Today, the most successful
companies are the ones who treat their employees well.
Effect of incentive tourism on employees performance

All employees like travel. They like getting to know new cultures, they are proud to reach
destinations that they would have never visited in their private life. They feel that the fruit of
their all-year work is ready-to-eat. They will be open-minded for the future; they learn to
embrace new ideas and are willing to follow them. They like to be rewarded for their work and
maybe promotions can take place during the incentive trip. They will be proud of themselves as
they have been selected for such a high level trip and they will tell to all relatives/friends that the
company has done something for them.
An incentive, in general, stands for an irritant at work that may influence the employees
behaviour. It may be everything from a coffee machine and comfortable chair to a bus ticket and
fitness card. An employee feels comfortable at work only if s/he can satisfy his/her own needs.
Working environment should improve employees performance and efficiency at work.
(Ruohotie & Honka 1999, 23.)

International Conference on Emerging Trends in Hospitality & Tourism Sector

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Incentive aims to motivate an employee and maintain his/her performance. A reward, on the
other hand, is something that comes after the work done and aims to fulfil existing needs.
(Ruohotie & Honka 1999, 22.) Consequently, incentive travel may occur as ether one, an
incentive or a reward, depending on the companys objectives.
It has been already said that incentive travel should motivate employees and lead to greater
performance. But why people think that employees will do better work if they are promised an
incentive trip? For example, the majority of U.S. corporations use incentive programmes to
motivate employees but it is the rarely examined belief that they do make employees to perform
better (Kerr 1997, 15). However, in another American research it has been proved that only
financial rewards are not seen as a sufficient motivation tool and may even have negative effect
if they are not seen to be big enough. The trip is remembered and its effect is more long-term.
(Lassila 2002, 7.)
Davidson & Cope confirm that incentive travel is widely recognised useful management tool that
is considered to be rewarding and motivating for the employees. However, he states that the
effectiveness of the programmes is mostly explained by the popularity of the trips among the
winners. (Davidson & Cope 2003, 159.)
Conclusion
Today, people are more mobile, they travel more in every sense, the availability of information,
especially on the Internet, is much improved and with the development of the incentive tourism,
chances are better that they have already been on an incentive trip, so that the level of
expectations is generally much higher. The criterion of the first-class services and
accommodation is implied today, just like it goes without saying that the soup served must be

International Conference on Emerging Trends in Hospitality & Tourism Sector

(Subharti University Meerut)

warm.Everybody has the need to be respected and to belong. People feel calm, safe and satisfied
when they feel wanted and important. To be rewarded a trip for your effort invested and results
achieved, creates certain pride and the feeling of victory and success in the rewarded. Social
status is improved, not only because he/she is recognized as a top salesperson, but because
he/she is one of a few to be able to experience this special reward.
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