Incentive Industry Research Points to Significant Impact from Trump Policies

The 2025 Incentive Travel Index (ITI), just released by the Incentive Research Foundation (IRF) and the Society for Incentive Travel Excellence (SITE), indicates that rising costs and geopolitical instability are having a significant effect on the industry. 

Half of the respondents (49%) said political considerations have become first and foremost in their plans for 2026 and 2027, and 40% rated inflation as their top long-term concern.

The biggest damage is being felt in the U.S., which the report concludes “is losing its appeal as an incentive destination, due to a perfect storm of political strife, travel restrictions, and shifting DEI policies.” A full 70% of respondents believe recent political events will result in a decline in inbound incentive travel; 65% think that the complex visa process and travel restrictions are making the U.S. less attractive; and 46% point to shifting views around DEI and the LGBTQ community.

Annette Gregg, CEO of SITE, emphasized that negative perceptions of the U.S. as a destination for incentive travel do not apply to the entire country. “Quintessential incentive destinations like Hawaii and resort areas are experiencing steady incentive bookings and optimistic future outlooks,” she said. “U.S. Travel is working hard to give data-backed information about security and safety in U.S. cities."

Nonetheless, almost a quarter (23%) of respondents said the number of attendees will decrease for 2026 programs. The three areas where incentive planners typically make the first cuts when budgets tighten are likely to see shrinkage: 28% of respondents expect to cut the amount they spend on gifting and 25% will cut entertainment and decor. These cuts could help offset expected price increases on hotel, air, and travel anticipated by many respondents: 49% expect hotel prices to rise, 46% air, and 45% food and beverage.  

Looking Ahead

At SITE’s C-suite Agency Summit this week, all of the agencies attending conveyed optimism about business over the next two to five years, said Gregg. “Their clients are continuing or increasing incentive investment and even booking further into the future.” 

Few respondents, buyers or suppliers, expect incentive travel activity to fall below 2025 levels. However, the report found that only 37% of buyers anticipate activity above or significantly above 2025 levels over the next two years. Suppliers are more optimistic: The majority of DMOs (56%) anticipate greater incentive travel activity levels in 2027 than in 2025, followed by DMCs (49%).

The survey was based on insights from 2,700 incentive travel professionals from 85 countries — corporate end users, third-party agencies, DMCs, destination suppliers, and DMOs — gathered between May and July. Almost half (46%) of respondents are based in North America. This  joint research initiative from the IRF and SITE is supported by Oxford Economics.