Safe and Easy Incentive Destinations Prevail

Incentive trips to far-flung destinations are no longer a given as companies tighten their budgets and rethink their level of risk aversion. Destinations like Puerto Rico and the U.S. Virgin Islands are poised to fill the gap, as are the Caribbean, Mexico, and Continental U.S. resort destinations.

Almost half (47%) of the more than 2,700 incentive travel industry professionals surveyed for the 2025 Incentive Travel Index (ITI) identified personal safety as the primary disqualifier for a destination, surpassing even difficult air access (40%). Geopolitical factors ranked as the next most significant deterrent (38%). The research pointed to destinations that are a shorter distance, resorts, and all-inclusives as top choices for incentive buyers.

“Cost and uncertainty have moved into the top tier of short-term challenges for North American buyers, and that is tempering long-haul, higher-risk international choices and nudging more programs toward short-haul, ‘easier’ options,” said Annette Gregg, CEO of the Society for Incentive Travel Excellence (SITE).

There’s also a continuing role for ‘no-passport-feel-foreign’ choices, she said. “U.S. territories such as Puerto Rico and the U.S. Virgin Islands sit in that sweet spot: culturally and experientially different, but operationally simpler than fully international long-haul.”

Fred Edson, director of incentive sales at Discover Puerto Rico, says he has seen “clear growth” in incentive bookings, including many first-time groups. A big reason is the ease of entry from the U.S., with no need for a passport or customs stop. “It’s exactly the same as flying to any other U.S. destination. This is a major advantage for incentive groups, especially when programs are announced on shorter timelines.”

Have a Plan B

“Selecting destinations has been more difficult because you have to ask yourself additional questions and clarify and quantify the risk of any decisions that you make,” said Tavar James, vice president, global head of events at Forrester, during the Skift Meetings Forum in September. 

He emphasized the importance of having a Plan B in the current geopolitical environment. “But you can’t have a Plan B forever.”

However, that’s exactly what one client of Desiree Abracosa, account manager at Ubridled, is doing: “saving” nearby places like Mexico and Hawaii in case they need to pivot from their desired destination. 

“Mexico and Hawaii have good hotel inventory with airlift,” she said. “It’s easy to source last-minute programs there through our relationships with hotels and DMCs, who are willing to work with us in regard to dates and pricing.” 

Nonetheless, the most popular incentive destinations for North American buyers are still international, according to the ITl: the Caribbean (35%), Western Europe (33%), and Mexico (29%). Charlene Rabideau, SVP & managing director, North America, at BCD Meetings & Events, concurs, saying she is still seeing demand for international incentives, with trips scheduled through 2026 in European destinations such as Ireland, Scotland, Prague, Barcelona, and Vienna; as well as Mexico and the Caribbean.

Caroline Main, senior solutions strategist at Streamline Events, continues to see strong interest in international bookings. “However, we do have groups that stay closer to home, typically bouncing between Hawaii, Mexico, and the Caribbean. For those groups, it seems the preference is closer to home versus staying domestic.”

Higher Costs Also Driving Decisions

At Maritz, Emily Laufgraben, senior market insights manager, reported that some customers are choosing destinations closer to home to reduce spend on airfare. The company’s preliminary numbers for 2025 show that North American destinations accounted for a slightly larger portion of clients’ bookings in 2025 (76%) versus 2024 (72%). There was also a slight uptick of programs to destinations in the Continental U.S. (non-Alaska/Hawaii), as well as to the Caribbean and Mexico. 

Cost now a primary destination driver, said SITE’s Gregg. “For the first time, cost is emerging as a key ‘go/no-go’ factor in destination selection for North American buyers, where previously it was important but rarely in the top slot.

That’s also influencing destination choices for groups traveling to Europe, she said, with buyers seeking out value destinations such as Portugal, and the Balkans, particularly Montenegro, Croatia, and Slovenia.