Eight Incentive Trends Reshaping Programs in 2026

Practical guidance for incentive travel, rewards and recognition leaders

Costs are rising while budgets remain tight. Participant expectations are shifting, global risk is affecting travel decisions and AI is changing program operations.

The IRF 2026 Trends Report identifies the choices facing incentive leaders now. Organizations are still investing in motivation, recognition and connection, but every program element must work harder.

The following trends show where budgets, design priorities and measurement practices are moving in 2026.

1. Incentive Travel Is Moving From “More” to “Meaningful”

Rising costs and relatively flat budgets are forcing planners to rethink every program element. The 2026 Incentive Travel Index puts average incentive travel spend at $5,500 per person, up 7.8% year over year. For 2026, half of buyers expect budgets to keep pace with inflation, while 25% expect budgets to outpace it. At the same time, one in four buyers expects to reduce per-person spending.

Reducing gifting, choosing less expensive destinations and shortening trips are common responses. The harder decision is determining which moments have enough motivational value to protect.

What to do: Protect the experiences participants will remember and discuss. Replace low-impact extras with intentional micro-moments, such as local hosts, pop-up workshops or sensory reset experiences, that build connection without unnecessary cost.

2. Merchandise and Event Gifting Are Becoming More Selective

Merchandise remains an important part of points programs and event gifting, but inflation, tariffs and price volatility are raising the stakes for thoughtful curation. Average merchandise spend per instance has increased to $276 in North America and €306 in Europe, even as purchasing power remains under pressure.

Many organizations expect event gifting budgets to rise, but few anticipate gains above inflation. This is leading planners toward fewer gifts with stronger perceived value.

What to do: Curate rewards around relevance, choice and quality. Review assortments often, monitor availability and make each item feel purposeful rather than promotional.

3. Geopolitical Risk Is Now a Core Design Consideration

Destination selection now requires closer attention to international instability, contracting, air access and participant confidence. Sudden security or geopolitical changes can disrupt even well-developed plans.

What to do: Build risk assessment into destination strategy from day one. Create viable backup scenarios, define decision triggers and communicate clearly with stakeholders and participants.

4. Strong Partnerships Are a Performance Multiplier

Internal teams cannot be experts in every destination, technology and participant need. Destination management companies, destination marketing organizations and technology providers add local knowledge, specialized capabilities and execution support.

What to do: Involve partners earlier. Share business goals as well as logistics, and establish clear roles, data expectations and contingency plans. A strong partner network can improve agility and provide access to distinctive destination experiences.

5. Gift Cards Are Delivering Practical Motivation

Flexible rewards can feel especially relevant during periods of economic uncertainty. Gift cards let people cover an everyday need or choose a small indulgence, with dining options gaining momentum.

What to do: Offer meaningful choice across daily essentials, dining and experiences. Use personalization and thoughtful presentation so flexibility does not feel generic.

6. Air Travel Concerns Require More Empathy and Planning

Flight reliability, cost, capacity and the overall traveler experience can affect how participants feel before they reach the destination. Air strategy is part of experience design, not simply a back-office detail.

What to do: Consider lift, connections and traveler friction alongside destination appeal. Provide proactive communications, visible support and practical contingency options throughout the journey.

7. Human Connection Matters More in the Age of AI

Research, communications, personalization and administration can all become more efficient with AI. Trust still depends on authentic recognition and real human interaction.

What to do: Use AI to remove friction, while preserving human touchpoints where empathy, judgment and celebration matter most. Technology should create more time for personal connection.

8. Leaders Must Articulate the Business Value of Incentives

When budgets are scrutinized, program owners need a clear explanation of impact. Participation and satisfaction matter, but they do not tell the whole story. Leaders also need to know how an experience changes what people feel, do, believe and build together, and how those changes support performance, retention, engagement and business outcomes.

Measure Return on Experience: One10’s Xperience Index evaluates four dimensions of return: emotional, behavioral, relational and brand. Together, they show whether participants felt recognized, acted differently after the program, built valuable connections and developed a stronger view of the organization.

What to do: Define the desired change before the experience begins. Establish benchmarks, collect feedback at intentional moments and track priority behaviors for 60 to 90 days after the program. Connect those findings to business measures and participant stories. One10’s Return on Experience framework shows how measurement can guide program design from the start.

Priorities for 2026 Program Planning

• Protect the moments participants will remember and discuss.
• Use choice, relevance and quality to guide reward decisions.
• Plan for geopolitical and travel disruption before committing to a destination.
• Bring strategic partners into program design earlier.
• Use AI for efficiency while keeping recognition personal.
• Measure emotional, behavioral, relational and brand return alongside attendance and satisfaction.

Make Every Program Element Accountable

Budget pressure does not make meaningful experiences less important. It makes discipline more important. Clear objectives should determine which program elements stay, which change and how results are measured.

One10 combines strategy, technology, rewards, experience design and the Xperience Index to connect participant experience with measurable business outcomes.

Ready to make every program element count? Talk with One10 about designing an incentive strategy that creates meaningful experiences and measures the results that matter.

Sources: Incentive Research Foundation, IRF 2026 Trends Report; 2026 Incentive Travel Index.