“There is no medicine like hope, no incentive so great, and no tonic so powerful as expectation of something tomorrow.” ~ Orison Swett Marden
Sizing up the potential of India as a source market for the incentive travel market is always a happy cocktail of guestimates, economic growth indicators, and an array of anecdotal evidence. But with the growth in India’s stature as being among the fastest-growing big economies and soon to be the third-biggest economy in the world, it brings in a measure of its growing heft in the world of incentive travel.
Companies and brands woo their employees and clients alike with incentives to bring cheer, to reward performance, or to bring in a sense of brand loyalty or, in simple terms, to get more out of a relationship! What was once led by a movement of cash rewards has now turned into creating an incentive program that is experiential! Brands use incentives to create a memorable experience for their clients, instigating ‘recall and loyalty.’ The world of incentives is far more than a reward—it is a strategic business tool!
As per a report by Allied Research, “The global incentive travel market size was valued at $42 billion in 2021 and is projected to reach $216.8 billion by 2031, growing at a CAGR of 12.1% from 2022 to 2031.”
Inaugurating the South India Thought Leaders Conference (SITLC), Mr. Suman Billa, Additional Secretary and Director General, Ministry of Tourism, stated that states across India are unlocking tourism opportunities in their unique ways. Now, it’s time to place India prominently on the global MICE map. With iconic venues like Bharat Mandapam, Yashobhoomi, and Jio World Centre, and MICE being prioritised under the Incredible India campaign, our goal is to elevate at least 10 Indian cities, especially in South India, into global MICE destinations. He added India currently commands only 5% of the global USD 850 billion MICE market.
Inbound incentive programs into India need to bring in a hefty amount to an economy that will be among the top three! India is still a very small player in the inbound incentive space and needs to get its act together. Though we are getting a sporadic few board meetings of Fortune 500 companies, there has been no attempt whatsoever by India Tourism or the National Convention Bureau to woo this segment. With budgets for inbound tourism already at an all-time low, the need to get its act together and put money on the table is paramount. Nations with the size of a postal stamp have bigger marketing budgets. Mere sloganeering or wooing the Indian diaspora to send in tourists to India will not work. In a brutally competitive space where narratives and numbers are at play, India will do well to spend hard cash and create an international marketing campaign. ‘Meet In India’ will be just another great slogan put to waste.
Marketing India as a viable and aspirational destination for incentives is tough, but to ignore this high-spending segment totally is a tragedy. India has to get on to the ‘Performance Linked Incentive’ program’s initiatives to bring in ‘Incentives’ into the country. As much as India is a home of global tech, we do not have a website promoting this sunrise sector. The World of Incentives has already jumped onto the ‘Artificial Intelligence’ bandwagon to add value to their destination and nurture experiences. Technology can be a game-changer, and as a country, we will just lose out!
India Convention Promotion Bureau
Creating viable partnerships among stakeholders will further enhance our resolve to bring focus to this sector. There needs to be a built-in interstate competitive index with partner associations such as NIMA, ICPB, and SITE to bring this sector into greater focus.
As more international flights take to the wings in the Indian skies, the Indian FMCG and pharmaceutical industries have already driven numbers to international destinations. Though traditional sectors such as Sri Lanka, Thailand, and Bali showed a lot of growth, Singapore also created a huge buzz recently with its biggest incentive of 6000 delegates from Sun Pharmaceuticals.
India was always a market, once considered very cost-oriented and low on experiences, but it has now evolved into a high-value and demanding one. Even destinations in expensive Europe have their share of growth from India. Future Marketing Insights, in their latest report, added “India Outbound Meetings, Incentives to Europe Market, India Outbound Meetings, Incentives to Europe Market Size and Share Forecast Outlook 2025 to 2035. The India outbound meetings and incentives to the European market are projected to grow from USD 5.1 USD billion in 2025 to USD 8.3 USD billion by 2035, at a CAGR of 5.0%. Corporate group tours will dominate with a 38.6% market share, while luxury-oriented travellers will lead the consumer orientation segment with a 41.2% share.”
Incentive travel is already a key economic driver, bringing in value to stakeholders and government alike. When the results are in and the rewards are out, Indian achievers are not just boarding planes—they are boarding opportunities. And the Indian meeting industry is happy to keep the departures coming! As someone said aptly, “Cash fades, trophies gather dust—but a sunset shared with achievers can fuel the next big target!”