What’s on the Horizon

WHEN IT COMES TO TRAVEL INCENTIVES, `LOCATION, LOCATION, LOCATION’ IS NO LONGER THE GOLDEN RULE.

Travel giveaways are among the most popular and effective incentives for marketers, accounting for an estimated $8.4 billion in 2000, according to the Society of Incentive & Travel Executives (SITE), New York City. In a recent survey of marketers co-conducted by SITE and The Incentive Federation, White Plains, NY, more than 80 percent of respondents said travel incentives best help them achieve their goals.

With so many companies offering trips to consumers, employees, and clients, marketers increasingly need travel packages that stand out in the crowd. (Let’s face it, it’s the trip that really draws the attention, not the brand supplying it.) Trips to places such as London, Aruba, and Cancun have dominated sweepstakes prize pools, but even the most exotic locale can lose its impact if offered too often.

Marketers, therefore, have changed their incentive strategies in recent years, shifting from using straightforward vacations to showcasing “themed” activity trips that appeal better to the target audience. On paper, a trip to rustic Lime Rock, CT, may only appeal to wealthy New Yorkers fleeing the Big Apple for a weekend. However, packages to attend the town’s Skip Barber Racing School – where folks get in the driver’s seats of professional racecars – proved to be a hit for Bethesda, MD-based Discovery Communications’ TLC (The Learning Channel) network, which has run a sweepstakes dubbed Adrenaline Rush for the last four years. In addition to the Lime Rock experience, this year’s sweeps offered winners the choice of a storm-chasing expedition. “We want to offer experiences that coincide with our programming,” says TLC brand manager Heather Tinsley.

For the upcoming Adrenaline Rush effort, which is sponsored by Subaru, Cherry Hill, NJ, TLC will award a different trip each night of a week-long programming block. Trips include various thrill-ride theme parks and a mountain-biking excursion. The sweeps average 20,000 to 30,000 entries each year.

From African safaris to Alaskan glacier hikes, themed trips work well – not only because they generate more excitement, but because they can help reinforce the brand message.

“We used to put people on a plane and try to make the trip something for everyone,” says Ed Kinne, director of marketing relations at travel incentive agency Carlson Marketing, Minneapolis. “Now, each trip is geared to the client’s [brand or] offer.”

THE ARMCHAIR ADVENTURER Today’s traveler craves excitement. Promotions agency RPMC, Los Angeles, offers clients a “Thrillseeker Adventures” package that can send contest winners or top salespeople off for such extreme activities as skydiving, bungee jumping, white-water rafting, astronaut training at Space Camp – even shark diving.

“Adventure vacations are huge these days,” says Giselle Hull, RPMC’s manager-product development. “With the help of television and the Web, less sophisticated demographics are being exposed to new places, and are now responding well to these types of promotions.”

One major drawback of themed vacations is the fact that they tend to be more expensive than traditional trips. Several years ago, RPMC developed a sweepstakes for multiple clients that let winners fly a Russian MIG fighter jet in Moscow at the cost of $5,000 a pop. “You’re hiring certain vendors to do certain things,” says Hull. “[And] theme trips tend to include more activities.”

The “fly a MIG” offer is currently being employed by Pittsburgh-based General Nutrition Centers, which is running an in-store sweeps for its ProPerformance Turbo ATP sports supplement, asking entrants to submit an essay of 75 words or less describing how they’ve benefited from using the product.

Though many travelers like to play Indiana Jones, the operative word is “play.” Travel planners need to set a firm barrier between adventure and hardship. “People want to experience the local lifestyle, such as mingling with the Indians in the mountains, but they also want the luxuries of home,” says Eileen Graham, a product purchaser at Maritz Performance Improvement Co., St. Louis.

“We began bundling trips to Bali with ones to Hong Kong when two Four Seasons resorts were built there, one on the beach and one in the jungle” notes Hull. “It’s great for people who want something exotic but who also want a safe place to sleep.”

FAMILIARITY BREEDS CONTENT Of course, traditional vacations are still very popular, although many journeys now get a boost from more creative components. RPMC offers a “Live Like a Star” package that turns the standard Hollywood vacation into a celebrity experience, with makeovers, shopping sprees, and walk-on parts in TV shows or movies part of the deal.

Another way to spruce up the offer is through selection. “Today, instead of one large trip, you offer a choice of 10 smaller trips,” says Maritz director of product services Judy Jackson.

Here’s a look at the destinations marketers are using most often these days:

ASIA Western travelers are flocking to the Far East as a strong U.S. dollar and slumping Asian economy combine to make the region more affordable. Price packages typically start in the $1,000 range, but can soar upward depending on region, accommodations, and activities. Specific destinations of note include:

Hong Kong: “For a few years, people were nervous about the communist takeover, but now the region is hot again,” says RPMC’s Hull. Among the island nation’s attractions are world-class shopping and dining, and the Westernized taste of China it provides without the potential shock of the mainland.

Vietnam: Interest is brewing in this once verboten destination, which now boasts a number of five-star restaurants and hotels. Baby Boomers (whose early years were dramatically affected by the Vietnam War) are frequent visitors, as are entrepreneurs who see business potential in the country’s fledgling economy.

AUSTRALIA Incentive travel planners are split on the popularity of Australia. According to RPMC, interest has been sparked by the upcoming Olympics and declining airfares. But Maritz says that the trip’s expense and duration can still be off-putting for potential travelers.

AFRICA While certain regions of Africa get more media coverage for their social unrest and strife, the continent is one of the hottest spots for incentive travel programs. “Apart from South Africa, Africa is huge,” says Carlson’s Kinne. “Tanzania and Botswana are especially appealing to people who like the excitement of big game safaris.” Morocco is also popular for travelers who don’t require the usual amenities – and who are capable of dealing with sometimes less-than-friendly attitudes toward Westerners.

“Egypt is home to so many wonders of the world,” says Maritz’s Jackson, “although it tends to attract older, more sophisticated travelers with a higher income.” With the U.S. government saying it’s once again safe for Westerners to visit the country, tourists are streaming back.

EUROPE The old standards still offer a lot of incentive. Cities like Amsterdam and Madrid offer culture and nightlife, and secondary cities such as Seville, Spain, and St. Petersburg are catching on. Chateaus in France, Barcelona, and Switzerland hold particular appeal. “The dollar is so strong that even though prices are increasing [throughout] Europe, U.S. travelers really haven’t felt it,” says Maritz’s Jackson.

CANADA Think the Great White North is too boring to entice responses? Think again. Resort towns such as Whistler and Banff made their name through winter activities, but actually offer even more fun in the summer. Maritime properties in Quebec also hold strong appeal.

LATIN AMERICA Countries in Central and South America could be the hottest incentive tickets in the next few years. “It’s really so new to so many people,” says Maritz’s Graham. “We deal with a lot of travelers who’ve been around the world but not to South America.” Central America, particularly Costa Rica, is especially popular among “younger industries” such as computer companies and investment firms. South America tends to draw an older, more affluent demographic.

ICELAND Thank the Viking settlers who named it for making sure Iceland never became a tourist trap. But that fact may change as more travelers realize that the country offers some of the most beautiful scenery in the world. RPMC client Discovery Networks offered a sweeps trip to the “land of fire and ice” that included pony trekking, skeet shooting, mountain biking, dipping in hot springs, and beach barbecues. Maritz is also scouting out Iceland for future packages.

LAS VEGAS Marketers looking to keep it local often head to the desert, where the Town Formerly known as Sin City is becoming a reputable family destination as well (although its still wild enough for the fez-sporting conventioneer crowd as well). And getting there can be dirt cheap.