Incentive Travel Trends 2025

Global Data and What It Means for Istanbul

The Incentive Travel Index 2025, produced by the Incentive Research Foundation (IRF), SITE Foundation and Oxford Economics, is the most respected global benchmark for the incentive travel industry. Based on insights from more than 2,700 professionals across 85 countries, it shows how incentive travel budgets, destination choices, and buyer priorities are evolving worldwide.

Below, we summarize the most important findings and explain what they mean for companies planning incentive travel and MICE programs in Istanbul.

Three things define today’s incentive travel market:

• Higher budgets per person
• More focus on experiences and quality
• Stronger demand for reliable, professional local partners

This is exactly where destinations like Istanbul gain advantage.

Incentive Travel Remains Strong Worldwide

Despite economic and geopolitical uncertainty, incentive travel continues to be one of the most powerful motivation tools for global companies. The majority of industry professionals agree that incentive travel is as strong as ever, even though organizing programs has become more complex.

This confirms what we see on the ground in Istanbul: companies are still investing in high-impact incentive travel programs that reward, motivate and retain their top performers.

Incentive travel is no longer seen as a luxury. It is a strategic investment in performance, loyalty and company culture.

What Incentive Buyers Look for in a Destination

When global incentive buyers choose where to send their top performers, several factors consistently rank highest:

The most important destination criteria include:

• Easy and direct air access
• High-quality international hotels
• Strong local Destination Management Companies (DMCs)
• A destination with global recognition and “bucket-list” appeal
• Unique cultural and local experiences

Istanbul checks every one of these boxes.

With its international airport connections, five-star hotel brands, iconic landmarks, Bosphorus venues, and rich culture, Istanbul delivers both prestige and authenticity — exactly what modern incentive travelers expect. All of these elements are brought together in Istanbul’s MICE ecosystem.

How Much Is Being Spent Per Person

Spending by region shows a very clear split between markets:

• North America: USD 6,000
• Global average: USD 5,100
• Asia Pacific: USD 4,300
• Rest of world: USD 4,000
• Western Europe: USD 3,200

This means international buyers are used to paying high prices for incentive programs, but many European buyers still operate with tighter budgets. This is why Istanbul has become one of the best value premium incentive destinations in Europe.

For Istanbul, this creates a powerful positioning. A city that delivers a premium experience but at a more efficient price point than London, Paris, New York or Dubai.

How Incentive Travel Budgets Are Spent in 2026

Budgets are not just growing. They are being allocated very differently than before.

In 2026, buyers expect nearly half of every incentive travel budget to go into two items:

• Hotels
• Airfare

The full expected budget split looks like this:

• Hotel: 28%
• Airfare: 20%
• Food and beverage: 18%
• Destination experiences and activities: 13%
• Third party agency fees: 7%
• Ground transportation: 6%
• Gifting: 4%
• Other including AV: 4%

This tells us something very important. Buyers are spending less on gifts and more on real experiences, great hotels and immersive destinations.

Istanbul fits this trend perfectly because:

• Five star hotels are more affordable than in Western Europe or North America
• Dining, venues and experiences deliver high perceived value
• Transportation and logistics are cost efficient at scale

These are exactly the components that Istanbul delivers exceptionally well for corporate events.

Which Markets Are Driving Incentive Travel

Half of the global incentive travel market is driven by North America.

The rest is split mainly between Western Europe and Asia Pacific.

• North America: 50%
• Western Europe: 25%
• Asia Pacific: 15%
• Middle East: 6%
• Other regions: 4%

This matters for Istanbul because it sits at the crossroads of all three major source markets.

North American groups see Istanbul as a long haul bucket list destination.
European groups see it as exotic but easy.
Asian buyers see it as a gateway between cultures.

What Makes an Incentive Program Successful

Buyers no longer judge a program by how expensive it is. They judge it by how meaningful it feels.

The activities that matter most today are:

• Group cultural sightseeing experiences
• Group dining experiences
• Team building activities
• Free time to explore
• Award celebrations
• Luxury and bucket list experiences

This explains why cities like Istanbul are outperforming resort only destinations. Istanbul combines culture, food, scenery, history, nightlife, and authenticity in one place.

It allows planners to create programs that feel rich, emotional, and memorable.

Where Budgets Are Increasing in 2026

Buyers expect cost pressure to continue, but not because of cutting quality. Costs are rising because programs are getting better.

The biggest expected increases in 2026 are:

• Hotels
• Airfare
• Food and beverage
• Destination experiences
• Ground transportation

At the same time, buyers are cutting back on:

• Gifting
• Excessive entertainment
• Over production

This again favors destinations like Istanbul. It is much easier to absorb hotel, food and transportation cost increases in Istanbul than in cities where base prices are already extremely high.

What This Means for Incentive Travel in Istanbul

Global data shows a clear shift. Incentive travel is becoming more premium, more experience-driven, more selective, and more dependent on strong local partners.

Istanbul fits this new reality almost perfectly. It offers:

• A world-class, globally recognized destination
• Excellent air connectivity
• Strong luxury hotel inventory
• Deep cultural and historical appeal
• Competitive pricing versus other premium cities
• A mature network of professional DMCs and suppliers

At the same time, nearly 70% of buyers are actively seeking new destinations for 2026 and 2027. Istanbul delivers both familiarity and discovery. It feels safe and recognizable, yet still exciting and different.

It also aligns directly with the key trends shaping incentive travel:

• Premium experiences with budget efficiency: High-end hotels, exclusive venues, and memorable programs at a lower cost than Western Europe or North America
• Global connectivity: Direct air access from Europe, the Middle East, Asia, and North America
• Strong destination appeal: Bucket-list name value combined with real cultural depth
• Risk management through local expertise: A professional DMC in Istanbul ensures safety, logistics control, and on-the-ground reliability
• High customization: From private Bosphorus events to bespoke cultural and culinary experiences

Together, these factors make Istanbul one of the most balanced and competitive destinations for modern incentive travel.

Incentive Travel Trends 2025: Outlook for 2026 and 2027

Most buyers expect incentive travel volumes to remain strong through 2026 and 2027. What is changing is not how often companies travel, but how much they invest in each trip and how carefully they select destinations.

The data shows a steady move toward higher quality programs. Average per-person spend increased from $4,900 in 2024 to $5,100 in 2025, and budgets continue to shift toward better hotels, flights, and on-site experiences.

Looking ahead:

• 2026: 59% of buyers expect activity to remain the same or increase, with budgets increasingly driven by hotel and airfare costs.
• 2027: 79% of buyers expect activity to be at or above 2025 levels, with 34% planning to increase spend specifically to improve program quality.

Key trends shaping the next two years:

• Per-person spend will continue to rise as programs become more premium
• Buyers will favor destinations that balance safety, cost efficiency, and strong “wow-factor”
• Customization will become the standard rather than the exception

This confirms that incentive travel is not slowing down. It is becoming more valuable, more curated, and more experience-driven.

Why Local DMCs Matter More Than Ever

When buyers choose a destination today, three factors are critical:

• Direct air access
• Top tier accommodations
• Presence of a strong local DMC

At the same time, the top reasons to reject a destination are:

• Safety
• Difficult air access
• Geopolitical risk
• Weak infrastructure

This is why professional destination management companies in Istanbul are a major part of the city’s competitive advantage. A strong DMC does not just provide buses and guides. It provides risk management, real time local intelligence, supplier control, and operational stability.

In a world where programs are more complex and budgets are higher, buyers want fewer surprises and more certainty.

Planning Incentive Travel or MICE in Istanbul?

If you are planning an incentive trip, conference or corporate event in Istanbul, we would be happy to support you with destination management, logistics, venues, hotels and full on-site coordination.

Contact Oskar Tours to start planning a high-impact incentive program in one of the world’s most exciting destinations.