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MICE - Lecture 10: Incentive (Benefits of Incentive travel (Improved…
MICE - Lecture 10: Incentive
Benefits of Incentive travel
Improved retention
Drives desired Behaviours --> Financial benefits
Positive organisational culture
Recognition of employees
Builds motivation
Networking opportunities
Planning & Developing Incentive travels
Participants
set criteria to qualify
determine cost per winner
motivation factor
perceived value
raise staff morale
Timeframe
fixed qualifying period
timing for executing the award
expiry date for the award
planning timeline
Objectives
draw up what you want to achieve,
behaviour traits e.g. loyalty / high performance / teamwork
Funding approaches
Fixed budget
pre-defined amount to be spent on awards
can be per winner / a lump sum to be shared amongst e winners
close-ended programme (limited / fixed)
Unit sales allocation method
portion of sales from each unit is set aside to pay fr award
If sales ^ fund ^ and then no. of qualifiers ^
Self-liquidating
most common funding approach
uses the profits from incremental sales to offset the costs
Analyse current sales & profit projections
Calculate additional sales generated by the programme
Calculate incremental profit
Outcome: additional profit generated > costs of incentive programme
Treatments to incentive programmes
Multi-tiered programme
multiple awards
different targets for different awards
Travel award --> top prize
Builds up levels of excitement
Broaden the participation base
More incentive for staff to perform
Single-tiered programme
only one type of award
must hit target to win award e.g. Hit $100,000 sales --> 5D4N trip to Bali
Breakage
Using additional funds from the incremental incomes to help reduce the cost of the incentive programme
Buy-ins
Participant can buy some of the award components
(+) Get more participants to enjoy
(-) Loses exclusivity for the actual winners
Closed-ended programme
Fixed no. of awards given out
staff fight each other to win the award
Open-ended programme
multiple winners
those who reach the target get the award
Criteria for Incentive award
Rules
match the company's objectives
equal treatment for all
achievable
Reporting
Performance tracking
Accurate
Awareness
Easy to understand
Have a well-structured performance tracker
Timing
Definite start & end date
Clarity
Rules to be clear & concise
Specify who are the participants
Highly objective in nature
Venue selection
Commitment level
Commitment level of the hotel staff
Support from the venue operator?
Amenities
Does the hotel offer complimentary / special amenities?
Can arrangements be made to provide personalised amenities?
Banquet / dining options
Does the hotel have well-known dining outlets?
Are the chefs known for specific cuisines?
e.g. Michelin star restaurants
Appeal factor / perception / Property offerings
what is the destination known for
Image - luxury or economical
Rooms, Meeting facilities
Are meeting rooms available? Is it of good quality?