Key concepts Archives - Site-Int Incentive Tourism Blog Wed, 26 Jun 2024 07:48:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://www.site-intl.org/wp-content/uploads/2024/06/cropped-hitchhiker-7434431_640-32x32.png Key concepts Archives - Site-Int 32 32 Business travel https://www.site-intl.org/business-travel/ Wed, 06 Sep 2023 07:44:00 +0000 https://www.site-intl.org/?p=32 More than 100 million business trips are made worldwide every year. They are unevenly distributed geographically.

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More than 100 million business trips are made worldwide every year. They are unevenly distributed geographically. A significant portion of business travel is directed to Europe. The structure of business travel on the European continent is dominated by business trips of businessmen, congress tours, trips to exhibitions and fairs, and incentive tours for company employees.

Ranked first in the world in terms of the number of arrivals and expenditures on business tourism, Europe is gradually losing its leading position in this segment of the tourism market. In terms of business tourism growth, it lags behind other regions of the world. During the economic downturn, firms had to save money: they reduced the number of business trips by combining several trips into one, improved communication systems to solve most issues on the spot, booked inexpensive accommodation and bought discounted airline tickets. Unlike European firms, American firms continued to increase their funding. Despite the unstable economic situation, they increased spending on the business part of the trip, saving on organizing leisure and entertainment for businessmen.

A typical business traveler is a middle-aged man with a university degree, a qualified specialist or an executive. English language proficiency is almost a prerequisite for a business traveler.

Germany is the main supplier of business tourists in Europe. Every year, more than 5 million Germans go on business trips, of which 3% go abroad, 21% travel abroad and within their country, and 76% make business trips within Germany alone. The average duration of a business trip to a country on another continent is 12-13 days, within the region – 5-6 days, and within the country – 3-4 days.

Among the European countries that receive business travelers are Germany, the United Kingdom, France, the Netherlands, Italy, Spain, Sweden, and Switzerland. A special place is occupied by Belgium with its capital

Brussels, which is also the capital of the EU. One in ten arrivals to France and Belgium is for business purposes, and one in three to the UK.

Central and Eastern European countries play a significant role in the business tourism market. According to UNWTO forecasts, the attractiveness of Central and Eastern Europe as a business tourism market will grow.

Business tourism is growing rapidly on the American continent: every eighth trip here is a business trip. The main flows of business people are directed to the United States, Canada and Mexico, which are leaders in all segments of the Western Hemisphere tourism market. In these countries, the number of business trips is growing steadily, but at different rates. In the United States, the dynamics of business travel is in line with global trends in international tourism. In Canada, the volume of business tourism is growing more slowly than the number of leisure arrivals. In Mexico, the growth rate of business travel exceeds that of tourist arrivals.

The flow of business tourists in Latin America is gaining strength. With the development of the economy, expansion and strengthening of trade ties, many countries in this region have strengthened their positions in the business tourism market. The number of arrivals for business purposes to Paraguay, Guatemala, and Costa Rica is increasing.

In Southeast Asia, there is a noticeable increase in the number of business trips: every fifth trip is a business trip, one third of which is to Hong Kong, Singapore and Taiwan.

Indonesia experienced a real boom in business tourism in the mid-1990s. Demonstrating the highest growth rate of business arrivals in the region, the country surpassed Taiwan and Singapore in terms of the number of business trips by 1995. The financial crisis that gripped Southeast Asia also hit Indonesia. The depreciation of the national currency and deep economic and political crises brought the country to the brink. The massive riots that engulfed Jakarta and the threat of hunger riots led to the curtailment of business ties and the exodus of businessmen from the country. The tragic events of the fall of 2002 only exacerbated the situation.

Tourism in Africa and the Middle East is developing rather unevenly. Ups and downs in the dynamics of arrivals depend mainly on the political situation in the region. The early 1990s were relatively calm both on the African continent and in the Middle East. As the situation stabilized, business activity picked up. In recent years, the political situation in the Middle East has deteriorated again, causing a decline not only in educational, health and religious tourism, but also in business tourism.

In Africa, high growth rates of business tourism have recently been observed in the Republic of Congo, Zimbabwe and Ethiopia. Egypt, South Africa, and Morocco were the leaders in terms of arrivals. In the Middle East, the main flows of business people were directed to oil-producing countries (Saudi Arabia and others), as well as to Israel and Jordan. The aggravation of the political situation in the Middle East and a series of terrorist attacks in Africa (Egypt, Kenya, Tanzania) led to a decline in business tourism in these regions. The prospects for business tourism development here remain uncertain.

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Conference tourism market – important growth factors https://www.site-intl.org/conference-tourism-market-important-growth-factors/ Mon, 21 Aug 2023 07:40:00 +0000 https://www.site-intl.org/?p=29 Conference tourism is a dynamic sector that focuses on organizing and hosting events such as conferences, congresses and exhibitions.

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Conference tourism is a dynamic sector that focuses on organizing and hosting events such as conferences, congresses and exhibitions. It involves bringing together professionals, experts and stakeholders from different industries to share knowledge, communicate and collaborate. The market covers a variety of services, including venue management, event planning and accommodation.

Recently, the industry has undergone a transformation driven by globalization, technological advances and the adaptation of virtual and hybrid event formats, reflecting an evolving landscape shaped by changing preferences, sustainability concerns and responses to the challenges posed by the COVID-19 pandemic. .

The conference tourism market offers significant growth opportunities due to several factors:

  • Technological advancements: Integration of advanced technologies such as virtual reality and interactive communication tools enhances the visitor experience and promotes hybrid event formats, which drives market development;
  • Globalization and business expansion: Increasing globalization is driving the need for conferences as key platforms for international collaboration, networking and knowledge sharing, stimulating demand for conference tourism;
  • Emphasis on sustainable development: the growing awareness of environmental responsibility is driving the introduction of eco-friendly practices in the conference tourism sector, aligning them with the preferences of environmentally conscious participants and organizers;
  • Adapting to virtual and hybrid formats: The shift to virtual and hybrid event formats, accelerated by the COVID-19 pandemic, is driving greater participation, improving accessibility and reducing costs, contributing to market sustainability and growth;
  • Innovations in event formats: The opportunity lies in developing innovative event formats that incorporate interactive elements, engaging content and hands-on activities to increase participant satisfaction and attract a diverse audience;
  • Diversity of destinations and market niches. Exploring untapped destinations and serving niche markets opens up opportunities for growth. By offering unique and specialized conferences, the market can attract a wider range of participants and stakeholders, contributing to increased demand and revenue.

In recent years, the conference tourism market has seen several mergers and acquisitions as companies seek to expand their market presence and leverage synergies to improve their product offerings and profitability.

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Business trips and participation in conferences https://www.site-intl.org/business-trips-and-participation-in-conferences/ Sat, 05 Aug 2023 07:34:00 +0000 https://www.site-intl.org/?p=26 There is no doubt that conferences and traveling are stressful. They can also be frustrating. For you as an advocate, it's a job, and as a great advocate, you have to take them seriously.

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There is no doubt that conferences and traveling are stressful. They can also be frustrating. For you as an advocate, it’s a job, and as a great advocate, you have to take them seriously. Every single one of them. If you can’t take an event seriously, don’t speak there. As with everything about advocacy, the success of your conference depends on your excitement.

You should have prepared your speech and researched the audience. You should have looked at what other speakers are doing and talking about to avoid duplication. That’s why it can be frustrating when others use a conference as a “time out from the office”. And it gets worse when you find yourself in an almost empty room due to organizational problems. Try to avoid this. Be as excited about the event as the organizers and attendees are about you. The fact that every great advocate should always remember is this:

People have paid money to see you, and the organizers are relying on you to entertain, inform, and educate. If you are not present at the event, you are cheating both the organizers and the attendees. You’re not a rock star who can sing one song and then leave under the cover of security guards. You need organizers and attendees to do your job. This starts with planning your trip to the event properly.

Be in touch with the conference organizers and ask the right questions in advance so that you can get to the venue on your own and be in the right place at the right time. Offer to be flexible, but make sure you don’t need someone to hold your hand. Give yourself enough time to be there when you need to be in the conference. Nothing causes more stress for an organizer than not being able to find a presenter.

Conference organizers are the best people to ask about their event. They will know the best modes of transportation and have booked the right accommodations for other speakers and their staff. Ask them about these things instead of guessing on your own.

Who pays what?

This can be a controversial topic, and I’ve had some pretty heated debates with companies and conference organizers. This is also an important topic. For me, conferences are like concerts: without a band, there is no concert. This means that the organizers should treat you well, and you should treat them well. No one likes a prima donna, no matter how beautiful you are. No one likes a miser either.

If the conference budget does not include money at least for speakers’ accommodation and travel, it is a terrible budget. Being at an event means that you devote your time, dedication, and effort. This should be recognized and paid for. If you are traveling on your own, you are actually paying for the event you are speaking at. This may be necessary in the beginning or if the conference is a big opportunity for you. In the long run, this is neither professional nor serviced.

You are more likely to work for a company if you are a lawyer and the company can cover some of the costs of your participation in the event. It can also be part of a sponsorship package – we pay for our speaker’s expenses and get coverage. But for you, as a defense attorney, there are several dangers in this.

Essentially, you have to be yourself on stage. You don’t want to be the fool representing the company because he or she has to do it. This means you have to be somewhat independent of both your company and the conference organizers. Neither of them will be able to tell you what to cover, instead trust your professionalism to do the right thing. If it’s not possible, you need to work on it first. It’s trust both ways. Many companies will want to pay for your presence so that the organizers can’t tell you what to do. This is nonsense because it means that your company wants to be in that position.

This is not for lawyers. It’s for salespeople. And no one wants them. The audience is annoyed when something is clearly a veiled advertisement. Speakers know that people expect them to be hot air with sparkle in these talks. Sponsored talk slots should go down in flames. They are a product of times past and only exist because of convenience.

In a best-case scenario, try to achieve the following:

  • Ask the conference organizers to pay for your travel and accommodation – after all, they know best.
  • Give back to your company by representing them and giving a talk after the event – how was your speech received? What did the competition do? Which contacts should you follow up with? Did you meet a potential hire?
  • Split the difference – your company can cover additional hotel days and travel expenses. This makes it cheaper for the conference organizers.
  • Clearly separate your presence at the event from any form of sponsorship – you shouldn’t turn into something to be traded for. You should choose the events you go to and shouldn’t go because a speaking slot was part of the package. That’s insulting to anyone involved and won’t help you or your company.

This is going to be something that you have to define hard and fight for. Being a speaker who paid to get into a conference is a reputation killer. Don’t try to get yourself in that position. Your reputation is that of an independent technical person, not a marketer.

Another thing to keep in mind is that many people earn their living by attending conferences. For them, not charging them to be there means they lose money. Don’t be the person who underestimates them and creates enemies for yourself.

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What does incentive travel give to employees? https://www.site-intl.org/what-does-incentive-travel-give-to-employees/ Thu, 13 Jul 2023 07:32:00 +0000 https://www.site-intl.org/?p=23 When choosing a company, most job seekers pay attention not only to salary and career prospects, but also to the atmosphere in the team

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When choosing a company, most job seekers pay attention not only to salary and career prospects, but also to the atmosphere in the team, as well as the ability of management to encourage and appreciate their work. Since the success of a company depends on its employees, managers have started to use various incentives more frequently to increase employee loyalty and motivation, as well as team cohesion.

Among them are bonuses, bonuses for completed plans and gift certificates. Some of the most attractive, however, are incentive trips.

An incentive trip is a group corporate trip that a company organizes for its employees as a motivation or reward for successful work.

Such trips can include both only rest with paid air tickets and hotel, and the full program of the entire tour with various sightseeing routes and activities, often not related to work.

What does incentive tourism give to employees?

It is important for every employee to feel significant in their company. It significantly increases self-esteem, builds loyalty, and encourages them to work and achieve company goals while having fun.

In addition, such a trip helps to relieve fatigue and release the stress accumulated during work. If you are allowed to take your family on the trip, it will bring even more joy and satisfaction, as all loved ones will rest and recharge.

It is important to remember that not everyone can afford such a vacation due to various circumstances. Therefore, such a tour can also help to fulfill a long-held dream.

Why does an employer need incentive tourism?

As mentioned above, incentive tourism contributes to the growth of employee loyalty, better job performance and, as a result, an increase in the company’s income.

In addition, incentive trips can also motivate those who have not yet been sent there. Once they learn that their colleagues have been sent on a tour for their merits and achievements, employees will work harder to get such an opportunity in the future.

In addition, this type of incentive will also attract potential employees, raising their value in their eyes when choosing a company.

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History of Intensive Tourism https://www.site-intl.org/history-of-intensive-tourism/ Wed, 05 Jul 2023 07:26:00 +0000 https://www.site-intl.org/?p=20 Along with trips to congresses and exhibitions, business tourism includes incentive tours. The term "incentive" is interpreted as inducing, encouraging.

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Along with trips to congresses and exhibitions, business tourism includes incentive tours. The term “incentive” is interpreted as inducing, encouraging. This type of tourism means trips, which commercial companies reward their employees for high performance in work or motivate them to more productive work in the future, as well as holding seminars, meetings, conferences. There are two types of incentive tours: individual tours; traveling seminars, conferences, dealer schools.

The first incentive tour was conducted in 1910 in the USA by the National Cash Register Company of Danton. Agents and dealers of the company were rewarded with a free trip to New York for excellent results in work. The beginning of the regular use of incentive travel was started in the 60s of the twentieth century thanks to the beginning of civilian jet airplane flights.

Incentive tourism has several purposes:

  • presentation and promotion of a new product or service;
  • increasing productivity and quality;
  • creation of dealer and agent network;
  • formation of a loyal and cohesive team.

Depending on the objectives, three types of incentive pro grams are distinguished:

1) incentive programs;
2) motivational programs;
3) team building.

Incentive programs are the best means of rewarding employees, officers, senior executives, customers or dealers, the effect of which will last for a long time.

The distinctive feature of incentive programs is that they are designed exclusively for the individual customer. These tours involve high-class accommodation and service on the route.

The total annual turnover of European incentive tourism is 4.5 billion dollars.

The beginning of the use of trips in the form of incentives for success in the work was laid in the 60’s of XX century in the United States. Unlike other types of tourism, which, before being formalized, became the property of many countries in different regions of the world, incentive tourism did not leave the New World for quite a long time. Only in 1970-1980s, with the expansion of the flow of premium tourists from America to the old continent, it covered Europe, and then was borrowed by Asia. It was at this time that five-star hotels began to be specifically built in Europe and Asia.

The geography of incentive tourism has not changed much since then. The USA is still the main “supplier” of premium tourists. They account for 60% of incentive trips to Europe. The popularity of incentive tours in the U.S. is evidenced by the outstripping growth of U.S. companies’ expenditures on incentive tourism compared to the cost of material incentives for employees. The duration of incentive tours is increasing. Preferred destinations for incentive tours from the U.S. are Mexico, the United Kingdom, Asia and the Pacific Rim.

So, in incentive tourism about 80% of trips are to Europe, 10% – to the U.S., 6% – to the countries of Southeast Asia, 4% – to other destinations. France, Spain, Switzerland, Austria, Cyprus, the USA and the Caribbean islands are at the top of the ranking of incentive destinations for European tourists.

Travel rewards are becoming increasingly common in Europe. Practice shows that incentive tours are the best stimulant to labor compared to any consumer product. In Great Britain they account for 2/5 of the total amount of expenditures of firms on remuneration of their employees, in France and Germany – almost half. Incentive tours range in cost from $500 to $1,500 per person or even higher, and in duration from three to seven days. The routes of incentive trips lie mainly in the territory of European countries: France, Spain, Switzerland, Austria, Cyprus, as well as the United States and the Caribbean islands.

According to the European Association for Incentive Tourism, among the main countries – suppliers of incentive tourists are still leading the USA (about 60%), Great Britain (20%) and Germany (11%). Incentive networking from Japan has grown in recent years.

Group travel remains the dominant segment of the incentive tourism market, despite a decline in its share since the early 1980s. The number of tourists in an incentive group can range from a few to 100 people or more. In half of the groups the number of tourists does not exceed 10 people. Incentive groups are made up of company executives, middle and senior management, and ordinary consumers, such as regular customers. Incentive groups include executive staff (31%), sales managers (20%), consumers (26%), agents and distributors (14%).

In the simplest case, an incentive tour is a standard tour with accommodation in a four- or five-star hotel and a rich sightseeing program. Such standard programs, strangely enough, most of all ordered by American tourists. There is another kind of incentive, when the program of the trip is built in accordance with the main idea. As a rule, incentive operators offer a choice of 20-30 programs for each country. It can be a golf tournament for an incentive group in a country club, a hot air balloon ride, a picnic on an alpine peak, a cruise with music and dance evenings, a drinking or gastronomic tour.

Experts note that incentive tourism has a great future. In the XXI century it will become the main form of incentives for employees in the leading sectors of the world economy.

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