Merchandise Programs
Companies across the country have been using incentive travel for years. Could there be a slow down? Here are a few of the pitfalls of incentive travel. Over the years the cost of travel has been going up and up. In 2003 the average cost for 1 persons trip to a 7 day destination was $2045. In 2008 that exact same trip is $2500. Basically 20% more for the same value. That may not seem to drastic, until you multiply that cost times two. Don’t forget, your winner will also be taking a spouse with them.
During these tough economic times, we see merchandise rewards programs coming out as the big winner. If you had your choice right now to receive a brand new ATV by Polaris or any other piece of merchandise or a trip to Cancun? Over 50% of you would switch. Here is what our clients are telling us.
- While recipients have enjoyed travel over the years, many are challenged in leaving home for an extended period.
- When asked if you would rather receive $3500 in merchandise instead of travel, 55% of the audience opted for merchandise.
- When asked if they would redeem items for themselves or for someone else, 64% said that they would pick items that the whole family would use.
- It is a Qualified Program: (this means that it is in writing and is part of a company policy)
- Award Limits are $1600 maximum award for any 1 person, as long as the average awards do not exceed $400 per person. (Qualified program, unqualified program allows max of $400 per person)
- The awards need to be “Merchandise” and can not be Cash, Sports Tickets or other types of rewards.
- The awards are given for 2 types of performance awards: Safety and Service Awards (based on each 5 years of service, beginning on the 5th year)
Related posts:
Leave a Reply