How to Set an Incentive Travel Program Budget Using Industry Benchmarks

Part One of A Data-Driven Guide to Budgeting for Incentive Travel and Platform-Based Reward Programs

Why Start With Benchmarks 

Every organization's incentive program is unique, but budget conversations go much more smoothly when they start from an external reference point rather than a guess. Third-party research gives program owners three things a gut-feel number cannot: 

• A credible number for finance and procurement. A budget anchored to independent research is far easier to defend than one based on “what we spent last year.”
  
• A way to benchmark against your industry. Spend patterns vary meaningfully by sector, and by whether the audience is employees, salespeople, or channel partners.
  
• A way to track your position over time. Annual studies let you see whether your organization is keeping pace with, falling behind, or leading the market.

Setting a Budget for Incentive Travel

Step 1 — Consider the Global and Regional Baseline

The 2025 ITI reports a global average incentive travel spend of approximately $5,100 per person, up about 4% year over year. Region matters significantly, however: North American programs average $6,000 per person — the highest of any region — while APAC averages $4,300, the Rest of World averages $4,000, and Western Europe averages $3,200 per person.

Not all industries invest in incentive travel at the same level. The ITI's own industry breakdown shows a clear hierarchy, with Technology, Pharmaceuticals/Health Care, and Finance & Insurance spending above the global average, while Manufacturing and Automotive track closer to it.

And importantly, top-performing organizations in high-spend sectors like Financial Services, Manufacturers, and Distributors push meaningfully higher, averaging over $9,000 per person. 

An IRF Top Performer Study that compares top-performing companies to their peers across sectors adds an important layer: top performers in Automotive & Manufacturing spend over $2,000 more per person on incentive trips than their comparator peers. The ITI confirms this “top performer premium” exists broadly across industries, too: the highest tier of incentive programs averages $9,000 per person — roughly double the cost of a typical broad-participation program.

We asked Next Level’s VP of Travel Solutions, Jennifer Mazza, her take on the numbers.

“In 2026, our average per person ground program cost $6,600 (not including air), but Financial Services and channel loyalty sectors averaged much higher. Among Manufacturers and Distributors, competitive pressure for channel share of wallet means that customers have options and programs can influence relationships and loyalty.”

“Per person spend on small, high-profile programs such as board meetings or CEO Platinum Clubs for Financial Services organizations is often driven by quality and exclusivity, and these high touch events require investment.

“When we are working with our clients, they always have the strategic reason for the program and its ROI in mind for every budget decision.” 

Step 2 — Size the Overall Program Budget, Not Just Per-Person Spend

Per-person spend tells you how to design the trip; total program budget tells you what to plan for financially. When talking with clients about their overall budgets, Jennifer begins by asking for: 

• Historical details about program budget, ROI, and destinations 

• Number of participants and if the program is open- or closed-end 

• Demographic and company culture insights 

• Business rules influencing costs, such as airline class requirements 

Step 3 — Know Which Way the Market Is Moving

Budget posture varies across the market, and it helps to know where your organization sits relative to peers. The 2025 ITI found that budget posture splits three ways among buyers: 

When working with our clients, Jennifer and her team often present a good-better-best model.

“We want our clients to truly understand what value they can get for their investment. As their partner, we have an open dialogue that includes options, market conditions, air estimates, and cost analysis. At Next Level, we can work within a number of pricing models to help our clients control costs. Guaranteed pricing is a win for the client in a highly variable marketplace.”

Step 4 — Budgeting Responsibly: If You Need to Trim, Trim the Right Things

When budgets are under pressure, the ITI data offers a clear playbook: protect the trip, adjust the extras. Among buyers planning to trim programs, the most cited tactics are reducing gifting (45%), choosing a less expensive destination (42%), and shortening the trip duration (42%).  

Among the programs we operate, Jennifer notes, “Some of our clients have adjusted program elements to stay on track, but we do not see programs shortening. Over the last few years, we have seen increased interest in international destinations, which often require longer stays due to travel time and time changes. A client choosing an international destination might forego gifting or a second day of activities in favor of an additional night in a bucket list location.” 

How to Find Reliable Benchmarks 

Incentive program benchmarks change every year, so it's worth building a habit of checking in on fresh data before each budget cycle. A few practical ways to stay current: 

1. Follow the annual release calendar. The ITI is typically released each October at IMEX America; IRF's Industry Outlook is typically released in December  

2. Segment any benchmark you use by program type. A single “average spend” number is far less useful than knowing where your specific program type (employee, sales, or channel) and industry fall within it. 

3. Revisit reward-value assumptions annually. Gift card values, merchandise costs, and travel per-person spend all shift meaningfully year over year — numbers that are a year or two old can understate what's needed to stay competitive. 

4. Track both the headline number and the trend. Whether budgets are rising, holding steady, or being cut across the industry is often just as useful for planning purposes as the dollar figure itself. 

5. Go to the source. IRF and the Incentive Travel Index publish their full studies and reference decks directly. 

6. Check out our Intel Hub where Next Level curates the latest research by industry.  

Ready to Build Your Budget? 

Whether you're designing a group incentive travel program, a platform-based rewards program, or both, grounding your budget in current, independent research from IRF and SITE gives you a stronger foundation for internal buy-in and better program outcomes. Our team works with clients every day to translate these industry benchmarks into a budget and program design tailored to your goals, industry, and audience. 

Have questions about where your program should land relative to these benchmarks? We'd be glad to talk it through. Contact us today.