As the U.S. economy continues its struggle to rebound in 2011, EIBTM reported some encouraging trends for the Meetings and Events Industry in their Annual EIBTM Global Industry Trends and Market Share Report.  While not completely out of the woods yet, the report highlights some trends that show significant improvements for the year ahead.

Highlights of the report include:

• Corporate restrictions on business travel have eased significantly
• Cost management for corporate meetings continues to be a key issue for Buyers but keen negotiations and a greater focus on “basics” is the driving force
• Lead time for corporate meetings has shortened from 30-45 days
• Incentive travel has also show a recovery, although not as dramatic as meetings
• Average number of nights for incentive travel has decreased from 6.5 to 4
• Greater focus on domestic or short-distance international destinations to reflect shorter trip lengths
• Predictions for travel in 2011 and 2012 show a positive growth trend

By its very nature, incentive travel should have an air of luxury and absolutely must be enticing in order for it to function as an incentive. It simply cannot be a run-of-the-mill trip that the potential participants could easily throw together themselves. Incentive travel packages must be memorable, meaningful, perfectly planned and expertly executed.
That being said, incentive travel planners are under increasing pressure to cut costs and deliver travel packages that fit into new, reduced travel budgets. As they struggle to meet the demands of their supervisors or client companies, while staying within budget, incentive travel planners are now constantly looking for ways to lower travel expenses. The trick is to find ways to cut costs without cutting corners.

Here are some ways that travel planners are adapting to the changes that have come with this economic downturn:

1. Opting for all-inclusive incentive cruise
2. Choosing lower-cost domestic and international destinations
3. Opting for lower-cost food, beverage and hotel choices
4. Planning more free time into the travel schedule, as opposed to offering multiple planned activities
5. Reducing the number and cost of pillow gifts, or cutting them out completely

When determining the best way for you to cut costs without cutting corners, keep in mind that a lower-cost destination choice coupled with upscale pillow gifts and luxury amenities will deliver a more memorable, enjoyable trip, as compared to opting for a stripped down travel package at a high-end destination.