Asian demand growth brings ‘massive potential’ in corporate incentive travel

From left: PCMA CEO and president Sherrif Karamat and Melbourne Convention Bureau CEO Karen Bolinger talking about the research at AIME (Photo: Adelaine Ng)

Corporate incentive travel (CIT) is rising in popularity among corporations in Asia, and the region is rising as a key player of the sector, a research commissioned by the Melbourne Convention Bureau and the PCMA Foundation has found.

“CIT is becoming increasingly important to corporations in Asia, particularly as a tool for acquiring and retaining talented staff rather than just paying cash bonuses,” said PCMA CEO and president Sherrif Karamat at AIME 2019.

From left: PCMA CEO and president Sherrif Karamat and Melbourne Convention Bureau CEO Karen Bolinger talking about the research at AIME (Photo: Adelaine Ng)

In addition, the research also found that the CIT sector is looking to source unusual destinations, and is eyeing secondary or third-tier cities as potential incentive travel locations.

Melbourne Convention Bureau’s CEO Karen Bolinger told TTGmice that regional areas and some Asian cities will have a steeper learning curve to ready themselves for the sector’s growth, but relayed that “they’re learning fast as they go”.

The report projects that with Asian travel expected to grow to US$1.2 trillion by 2026 and the CIT sector growing substantially within that, a new revenue opportunity with “massive potential” is presented for those who can tailor their offerings.

In order to better capture the expanding market, local destination bureaus should work with business events suppliers to create ‘wow’ experiences.

“Many corporations today engage professional CIT planners to book and plan these trips, and these planners play an important role in the supply chain,” Karamat added.

Bolinger shared that in her city’s case, it’s all about taking common tourist experiences to the next level.

“For example, people can go on a street art tour and they’ll say that’s nice, but anyone can do that. Nowadays, incentive travellers want to roll their sleeves up, immerse themselves and want bragging rights,” she elaborated.

“So instead we (can organise) a street art tour with an actual street artist, who then takes you back to one of the warehouses, and you get cans of paint to create your own street art.”

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