Incentive Roundtable: Trends and Challenges for 2025

Growing uncertainty around incentive programs was a primary take-away from the April Northstar/Cvent Incentive PULSE survey. Our study revealed that programs are being impacted by government policies, tariffs, budgeting issues and more in 2025.  

We asked six industry leaders to share their takes on the current business landscape, on these challenges as well as the positive trends that they and their members or clients are experiencing. Our 2025 incentive thought-leader roundtable participants are:

• Rob Adams, CEO and partner, Bishop-McCann
• Jeffrey Brenner, director of special markets, Seiko Watch of America, and president, Incentive Marketing Association
• Annette Gregg, CMM, CEO, Society for Incentive Travel Excellence
• Stephanie Harris, president, Incentive Research Foundation
• David Peckinpaugh, president and CEO, Maritz
• Richelle Suver, chief revenue officer, One10

Here’s what they had to say.

What are the biggest challenges you are facing now?

HARRIS: Uncertainty is the biggest challenge in the industry at the moment. We’re hearing more discussion about the challenges associated with long-term planning. More program owners appear to be holding off on making decisions about structures and contracting for travel programs until there is a clearer view of both the economy and the policy impacts going into 2026 and beyond. 

PECKINPAUGH: The environment of uncertainty is top of mind for our clients: the economy, immigration concerns, airline issues and tariffs. In particular, the auto sector is feeling pressure from frequently changing tariff announcements. These factors have added to the pressures clients already face to deliver an exceptional experience against net flat budgets and incentive costs that have risen 40 percent or more since 2019. 

ADAMS: We’ve certainly seen more companies exercising caution in response to the uncertainty that exists today, whether that’s due to economic conditions, geopolitical dynamics or internal budgetary pressures. However, many organizations are continuing to invest in incentive programs as a strategic tool to retain top talent, foster connection and reinforce culture.
 
GREGG: Political, economic and social policy shifts are creating concerns and possible hesitation in booking, budgeting and planning. Additionally, the squeeze on budgets, where more planners report reductions than increases for 2026, compounds pressure on delivering high-quality, transformative incentive experiences.
 
SUVER: The biggest challenge at the moment is managing expectations and educating clients on how cost increases — including air, F&B, décor —– have taken up more of their budget than in years past. Many clients have increased their budgets, but not always to the extent of these rising costs. However, planners still expect the same level of quality, luxury and service as always. The goal for us and our clients is to top last year’s program and surprise and delight; that becomes challenging when the budgets don’t go as far as they once did.

How are tariffs and economic policies affecting incentive professionals and programs? 

BRENNER: Currently, tariffs are having a negative effect on multiple categories within the broader industry, including merchandise and travel. For merchandise, a lot depends on the country of production; the ongoing up-and-down policies [of ] imposing tariffs is making it difficult for brands to decide how to set prices. Some merchandise categories such as cookware, are experiencing a metal tariff in addition to a production tariff. 

HARRIS: While the full impact of tariffs is not yet clear, the concerns for incentives primarily center around cost increases associated with gifting experiences for incentive travel and merchandise rewards in recognition programs. If proposed tariffs go into effect — and stay in place — program owners will need to work to ensure they have broad options in their recognition programs and explore opportunities for enhanced local gifting in incentive programs to help minimize the impact.

Have you noticed any recent shifts in the market?

SUVER: I have noticed more short lead-time programs dropping in. I cannot explain why this is; perhaps the client’s company was awaiting budget approval or perhaps this was due to other geopolitical factors, or maybe people are just now starting their first incentive trip. But it is becoming more typical that we have shorter windows to work within prior to event execution. 

HARRIS: Budget challenges are driving shifts, such as the use of so-called secondary cities that are more budget-friendly and provide a new experience for attendees; cruise-ship and all-inclusive bookings; and the increasing incorporation of free time. Added free time is a big driver of satisfaction with both U.S. and European attendees. We also see safety and security rising higher on the list of program-owner destination considerations.  

GREGG: While both U.S. and Canadian members are impacted by cost pressures and political uncertainty, there seems to be increased reluctance among Canadian planners to send groups into the United States, and likewise, some U.S. planners are avoiding destinations like Mexico. Nationalism, immigration concerns and social policies appear to be influencing destination sentiment.

What is keeping you up at night? 

GREGG: What keeps me up at night is the potential erosion of confidence. Not just among planners and buyers, but among participants — those who are meant to feel celebrated and inspired by these experiences. When planners talk about fear, uncertainty and turning to cash [rewards] over travel, it signals a need for us as an industry to recommit to the transformational power of incentive travel. 

ADAMS: The level of uncertainty we’re all navigating right now. Whether it’s economic volatility, inflation or global geopolitical challenges, it all adds a layer of complexity to everything we do. Planning large-scale experiences in that kind of environment requires agility, foresight and trust. At the same time, expectations from our clients and their attendees are higher than ever. 

SUVER: Talent and recruitment is so important in this industry. I really hope that we encourage the next generation to pursue careers in our field. So many don’t even know [incentives] is a career.

What are you optimistic about?

GREGG: Despite all the challenges, there are promising signs. Planners are still sourcing new programs, and interest in international destinations is rising again. AI is being used more to streamline planning, marketing and ROI measurement, which bodes well for smarter, more efficient program delivery. While we are seeing sentiment data reveal concerns, the group-booking and business- travel data is still strong.
 
PECKINPAUGH: Overall, business is better than a year ago, almost across the board. Corporate clients are continuing to book events into the future, often with short lead times. We are seeing shorter timelines to respond to RFPs and condensed planning cycles. 

ADAMS: Tech, life sciences and financial services are leading the way in terms of growth and investment in incentives. These sectors are dealing with high competition for talent and are turning to experiential rewards as a differentiator. They understand that well-executed incentive travel programs can strengthen loyalty and engagement in ways that compensation alone cannot. 

BRENNER: There will be challenges in business — this is not new — and it’s how we react to those challenges. We need to be creative!

HARRIS: The sense of partnership and community in the incentives industry is strong, and what we do matters — the need to reward and recognize people doesn’t go away, as we’ve seen in the past with down economies or a pandemic. So, for me, it’s more about the lessons of the past that are promising.