One10’s Takes: IRF 2025 Industry Outlook Blog

The Incentive Research Foundation (IRF) annual report is a powerful tool for understanding the key trends shaping rewards and recognition programs. And if you’re anything like us, this is a report you never miss.

The 2025 IRF Trends Report highlights the importance of refining strategies in response to new challenges—and opportunities. Let’s break down the major trends from the 2025 report and look into what they mean for your business.

Adapting Budgets Without Compromising Impact

Cost-Conscious Creativity  

Inflation has pressured budgets across industries, but incentive professionals are responding with creativity. Merchandise rewards in the $50–$100 range are gaining traction in North America, proving that big impact doesn’t require spending big. Forward-thinking planners are pairing these rewards with experiences to enhance perceived value.

Regional Shifts  

European programs are taking the opposite route, with higher-value merchandise becoming the norm. Average spend-per-reward rose to €232 in 2024, signaling a shift toward premium offerings such as electronics or tailored experiences.

At One10 we focus on meeting the wide range of clients’ needs through Rewarding You, our proprietary gifting solution. It offers a plethora of reward options, from merchandise like a new beach hat to a diamond bracelet, to experiences ranging from a baseball game to an all-inclusive vacation. There is truly something for everyone.

What This Means for You:  

• North American planners should focus on affordability and personalization.
• European organizers can differentiate their programs by elevating reward quality.

Incentive Travel Goes Bold

A New Era of Travel  

After years of cautious travel due to the pandemic, planners are prioritizing fresh, adventurous destinations. The demand for unique, bucket-list experiences and less-explored locales, like river cruises in the Mediterranean or tours through Slovenia, is higher than ever.

The 2024 Incentive Travel Index revealed that 70% of planners are prioritizing unfamiliar destinations. This growing appeal also extends to cruises, which offer multiple destinations, all-inclusive packages, and high perceived value for both attendees and planners.

Our CRO, Richelle Suver, recently attended a river cruise for a conference and found it to be an incredible and educational experience—definitely something for planners to consider.

Strategic Tip for Planners: 

• Focus on destinations that offer exclusive cultural interactions or one-of-a-kind experiences, as these tend to resonate with younger and high-performing employees.
• For a budget-friendly yet impactful option, consider Caribbean cruises with their all-inclusive pricing structures.

Technology Holds the Key to Efficiency

The Rise of AI

Artificial intelligence is making its mark in the incentive industry. While AI adoption is still in its early stages, its impact is already tangible. Planners are leveraging AI for tasks like program forecasting, creating marketing materials, and analyzing attendee feedback.

Opportunities to Watch in AI for Incentives:

• Operational Efficiency: AI speeds up processes, like designing seating plans and managing surveys.
• Data Insights: Use predictive models to evaluate program rules and ensure incentives drive desired behaviors.
• Customization: Some companies are employing private, secure AI systems that streamline workflows while safeguarding sensitive data.

At One10, we’ve been using AI to optimize our programs and drive results for a while now. Check out our CRO’s blog: Navigating AI in Incentives, for actionable tips and strategies!

Expert Tip for Executives: 

Balance the excitement of AI with critical thinking. Fact-checking, data security, and governance strategies are essential for maximizing return on investment (ROI).

Meeting the Expectations of a Younger Workforce

Generational Shifts  

With Millennials and Gen Z comprising the majority of today’s workforce, incentive programs must evolve to meet their preferences. These younger groups value recognition, flexibility, and experiences. They also tend to favor personalized rewards over one-size-fits-all solutions.

At One10, we’ve already implemented these strategies into our practice. On a recent incentive trip to Argentina, attendees could choose from three unique experiences: exploring Mendoza’s vineyards, an alpine escape to Bariloche, or an extreme adventure in El Calafate with helicopter rides to ancient glaciers. Each trip was tailored to deliver unforgettable, personalized experiences for each attendee.

What This Could Look Like or Your Program: 

• More flexible agendas for incentive travel programs, giving attendees more autonomy in choosing activities.
• A focus on wellness and inclusivity, with features like alcohol-free options and dietary accommodation.
• Tech-savvy interactions, including virtual registration, app-based itineraries, and on-demand content.

Sustainability Is a Slow but Steady Priority

While sustainability is a hot topic, its adoption in incentive programs remains slow in many regions. However, Europe leads the charge, with nearly 33% of programs giving higher priority to eco-conscious strategies.

Recent Advances Include:

• Incorporating refillable water bottles at events.
• Sourcing sustainable merchandise, such as eco-friendly apparel or upcycled materials.
• Offering lower-carbon travel options.

Sustainability doesn’t need to be overly complicated. For example, at a recent conference, One10 composted all leftover food and beverages, turning them over to a local farm, with workers sorting scraps from every plate.

Why It Matters: 

Clients and employees are increasingly attracted to brands that align with their values. Demonstrating sustainability isn’t just good for the planet—it’s smart for business, too.

Actionable Insights for 2025

The IRF 2025 Trends Report underscores that incentives are more important than ever for building culture, enhancing performance, and maintaining employee engagement. However, adaptation is key. Whether you’re addressing budget constraints, catering to changing workforce demographics, or integrating technology, the opportunity to drive measurable impact is clear.

If you’re ready to rethink your incentive strategy, reach out to our team at One10. Our experts can help you design a program that aligns with your goals and sets your organization apart.