In our experience, travel rewards usually work when you want to improve your sales team’s performance. When you plan out these trips, you’ll probably see some great results – businesses that use travel incentives consistently see their sales increase by about 18% and get more than double their money back on the investment. These experiences can create memories that’ll stick with your team in ways that cash bonuses just can’t match.
But there’s more to see than just the positive results. These trips can generally cost between $5,000 and $8,000 per person, which can add up quite fast. You’ll also want to ensure all sales reporting is honest and make sure that your program feels fair to everyone. The planning tends to take some time, too – you need to watch out for situations like political problems at destinations. The right balance between planned group activities and free time actually changes how your team enjoys the trip.
Remember, what separates a helpful sales incentive from just an expensive vacation is what these trips can do for your team and where things might go wrong. Just think about it – when your team gets to pack up their bags for a reward trip, your sales numbers will likely climb!
Let’s talk about the pros and cons so you can decide whether or not this is a good option for your team.
Sales Growth Through Travel
Trips as rewards can usually improve your sales team’s performance. As you’d expect, your team members will work even harder to reach their goals when they have some travel to look forward to! The memories that they make on these trips can keep them feeling motivated even after they get back to work.
The data supports what you might already know from your own personal experience. A study from not long ago showed that 80% of employees find travel rewards very or extremely motivating. Most people generally like trips over cash bonuses or other types of rewards. Your team will probably put in the extra effort for months when they know that they might win a trip to somewhere fun.
Take the Midwest Insurance Group as an example from last year. When they told their sales team about a possible trip to Cancun as the main prize, their sales went up by 34%. According to their sales director, the whole office felt more lively because of the friendly competition.
Your sales team will probably respond well to travel rewards for a few strong reasons. Cash bonuses often end up paying for bills or costs. But trips can actually give people experiences that they’ll talk about for years to come. These shared adventures also help to build better teams. When your salespeople travel together, they can connect in ways that help them be more helpful when they’re back in the office.
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However, your company can also gain quite a bit financially from this particular strategy. Businesses that use travel as their rewards tend to see their revenue grow three times more than businesses that only give you cash bonuses. Well-planned programs improve your sales productivity by about 18%. For businesses, that means that they get back around 112% on what they spend on these programs.
Planning these trips takes some time and money, though. You’ll want to remember what your team members might like and create something that they’ll work for. Even so, the trips that work best generally give people some experiences that they probably couldn’t set up by themselves. It helps to try arranging some access to events or creating custom adventures just for your team.
Memorable Travel Experiences
Travel rewards tend to be more helpful than cash because they usually create memories that last for a lifetime. Giving someone money means they’ll probably use it for their bills or costs while sending them on a trip means they’ll come back with stories that they’ll tell for years. The cash disappears fast, but the memory of watching a sunset from a mountaintop stays with people forever.
Travel often touches people’s emotions in a way that money just can’t match. Think about your team zip-lining through a rainforest or enjoying dinner on a beach at sunset together. These experiences create a warm connection between your team members and your company. Your sales reps probably don’t even remember that bonus from last year. But they still talk about that boat trip they took as a team.
The science normally supports this, too. In most cases, your brain remembers new experiences more than the routines. When your team tries something that they’ve never done before, the new destinations and activities make people feel more alert and present in the moment – this heightened awareness helps to make the memory of their reward even stronger and connected to your company.
Just think about it – traveling as a group builds team bonds in ways that individual rewards basically can’t. Your team members create inside jokes and share stories that strengthen their relationships for years. They see different sides of each other outside the office – maybe discovering who’s exceptional at navigating or who knows how to barter at the local markets. These connections often cause better teamwork when everyone returns to their desks.
Cultural experiences add something special to trips that money can’t buy. Learning to make pasta in Italy or dancing with the locals in Brazil helps your team connect with destinations in authentic ways. These moments become stories that they share again and again. Even small experiences like trying some street food or learning to say “thank you” in another language can become real memories that last forever.
When you introduce the excitement of looking forward to a trip, your team will generally spend months anticipating their upcoming adventure together. They’ll research the destination, shop for some new clothes, and share their excitement with everyone around them. Why not tap into this natural motivation for your business?
Travel Costs and Risks
Let’s face it: incentive trips can take a big bite out of your company’s budget. Most businesses will generally spend between $5,000 and $8,000 per person on these rewards. That’s money that might not work for your company if you’re smaller or going through some tight financial months.
In reality, you might run into some ethical dilemmas with these rewards, too. Some of the salespeople occasionally bend the truth about their numbers just to get that fancy vacation. Others might push too hard with their customers, which can hurt how people see your company down the road. Before you know it, you’ve created a workplace where sneaky behavior gets rewarded instead of honest work.
The team morale can often take a hit with these trips because of their exclusive nature. When only the top performers get to pack their bags, everyone else feels left behind. The split between the “winners” and “everyone else” creates some bad feelings that linger long after the travelers come back with their tans and souvenirs.
Honestly, your HR team faces quite a challenge when planning these getaways for the winners. They need to manage the travel papers, book rooms, and plan activities for everyone going. Keep in mind that your company remains responsible for keeping all employees safe during the trip, which can add even more things to worry about.
Unexpected events can throw off your incentive trip plans despite all your best work. Natural disasters, health scares, and political complications can all pop up without any warning. Travel problems like airline strikes or canceled flights could leave your team stranded far from home.
Actually think about data security when your employees travel for these rewards. They usually bring their work laptops or phones that have sensitive information – this creates some dangers you wouldn’t have if everyone just stayed at the office. Have you considered what happens if those devices get lost or stolen abroad?
Reward Travel Planning
First and foremost, you should figure out what you want to achieve with your sales team trip. Do you want to celebrate all your top performers or strengthen your team to be more helpful together? When you set some clear goals early on, the rest of your planning can usually become much easier for everyone.
Picking the right destination matters for your sales team. Some groups love beach resorts, while others might like something different. You should ask your team members where they’d like to go. People tend to work harder when they’re excited about the destination they’re visiting. Think about the travel time and the weather conditions as well.
You can combine fun activities with some team building in your schedule. Let’s face it: nobody wants to spend their reward trip sitting in meetings all day! Plan just one or two short business sessions and leave lots of time for enjoyment afterward. Give your team some free time during the trip as well. When people can choose their own activities, they generally come back feeling more refreshed.
At this point, you should work out your budget before you get too far into planning the trip. Make sure to cover everything in it – meals, activities, and transportation. Unexpected costs can sometimes put a damper on an otherwise fun trip for everyone.
You should keep your team up-to-date about all trip facts well ahead of time. Let them know what they need to do to earn their spot on the trip. Also, you can send standard communication to build excitement as the trip gets closer. Make sure that everyone knows what to pack and what to expect when they arrive at the destination.
For a better experience, try adding some local activities to your trip itinerary. Don’t just stay at the hotel the whole time. Maybe you can book a cooking class or a guided tour of the area. These kinds of experiences help your team connect in new ways and make the trip more memorable than standard tourist activities.
You should prepare for a few mishaps along the way. Just remember that flights can get delayed, and people sometimes get sick during trips. Have some backup plans ready for the important parts of your trip. Working with a travel expert helps you avoid common problems because they’ve seen it all before and know how to fix problems faster for you.
Non-Travel Alternative Rewards
Travel incentives don’t always work that well for your sales team. You might find that some other rewards connect better with your team members. Cash bonuses and gift cards usually let people pick what they want.
Extra time off generally motivates people, and it costs you less than expensive trips. Keep in mind that your team can spend this time relaxing with their family or doing activities they like. Team members with kids or other family responsibilities tend to value this flexibility more since traveling isn’t always easy for them.
As we all know, professional development rewards your team while helping them to grow. When you pay for courses, conferences, and certifications, you show them that you care about their future. Just remember that you and your team members win – they gain some new skills, and you build a more loyal team.
Recognition programs like “Employee of the Month” barely cost anything, but they make your team feel valued. Try pairing these with some small benefits such as better parking places or lunch with the company leaders. Your public recognition often matters more to people than whatever prize comes with it.
Health and wellness benefits increasingly replace travel rewards in businesses. Consider offering gym memberships, meditation apps, or wellness days to your team. These benefits help your team stay healthy and avoid burnout.
Donations to charities in your team members’ names can be a meaningful reward. Younger employees often connect with this because they care about giving back. The positive feeling that comes from helping others normally lasts much longer than the standard rewards.
Local experiences can give your team the fun of traveling without the hassles. Think about tickets to popular concerts, sports games, or great restaurants for them. The good news is your team gets memorable experiences without spending any time away from their family or dealing with travel plans.
Level Up Your Incentives and Rewards
When you’re picking out some rewards for your sales team, you should think about what they’ll like. Travel rewards can generally create some long-term memories and build strong team connections. But they do need some planning and clear goals.
You should actually see what matters to your team before deciding on anything. Some people might like group trips to more engaging locations. But others might like some options that fit their personal lives better.
Rewards will usually work best when they match your company style and what your team actually wants. The first step is to ask your team directly about their motivations – you’ll probably be surprised by their honest answers and see much better results from following their input. Getting the combination right between desirable rewards and good business results takes some real effort. You should also look back at what has worked well before. Which rewards have actually excited your team and improved their performance? You can use these plans to help optimize your incentive strategy. When you find these achievements, you’ll tend to see much better morale, higher retention rates, and even stronger results.
At Level 6 (that’s us!), we help businesses perform much better through different reward options. The good news is we can improve your sales team’s results and also make your employees much happier at work.
Our tools feature some branded debit cards, recognition programs, and helpful sales incentives designed to meet your requirements. We build programs that make a real difference for you. Feel free to reach out to us for a free demo and see how we can help successful businesses increase their sales performance!
Claudine is the Chief Relationship Officer at Level 6. She holds a master’s degree in industrial/organizational psychology. Her experience includes working as a certified conflict mediator for the United States Postal Service, a human performance analyst for Accenture, an Academic Dean, and a College Director. She is currently an adjunct Professor of Psychology at Southern New Hampshire University. With over 20 years of experience, she joined Level 6 to guide clients seeking effective ways to change behavior and, ultimately, their bottom line.
