siteglobal.com

Paul Miller2015 Immediate SITE Past President

Managing Director paul@spectra-dmc.com

“SITE has helped me become a better incentive professional, has brought me wonderful lasting friendships and has given my company an absolute return in business”

SITE is the only global network of travel and event professionals committed to motivational experiences that deliver

business results.

SITE provides insights and connections that inspire the utilization of this

powerful tool across diverse industries, regions and cultures.

SITE serves as a source of knowledge and best practices where members can

make personal connections that sustain professional growth.

what is site ?

2200members

88countries

30%buyers

35%DMCs

26%hotels

7%CVBs

where is SITE ?

Board ofDirectors

from 5 continents

ConnectionsAs the only global authority on incentive travel and motivational experiences, SITE not only connects its members around the world to a group of peers who share their skill and passion but also connects our members to business leaders who seek improved performance through these powerful tools.

TrustOur network of leaders and business owners take pride in achieving results for our companies and clients, and do it with an explicitly stated regard for ethics, transparency and mutual respect. We treat people right. Members trust SITE to help them grow their businesses and further their careers.

ResultsIncentive travel is a proven business strategy that provides a measurable return on its investment. We focus on delivering these results for our companies and clients. SITE also brings results for members: tools to increase business; a community supporting professional growth, and a platform for industry advocacy.

CreativitySITE’s members bring industry-leading expertise to their companies and clients, and something more — a unique can-do attitude that subverts barriers and transcends the everyday, inspiring clients and the people who benefit from incentive travel. This creative approach means we do things a little differently.

Our values tell people who we are, what webelieve in, and what makes us unique.our values

SITE‘s global networkAmericas

Arizona CanadaChicagoFlorida & CaribbeanMexicoMinnesotaNew YorkNorthern CaliforniaSouth America Southeast USASouthern CaliforniaTexas

Asia

ChinaIndia

EMEA

BelgiumFinlandGermanyGreat BritainGreeceIrelandItalyScotlandNetherlandsPolandSpainTurkeySouth AfricaUAE

As a member, you get a host of Tools & Resources …

• Code of Ethics• SITE Source (newsletter)• Career Center (job board)• Young Leaders Program (35 & Under)• CIS (professional certification)• SITE Foundation (research papers)• SITE Buyer’s Guide (online directory)• Diverse Global Network• Industry Advocacy

Member Benefits

education & certification

• Is a group learning seminar/workshop experience spread over two days

• Is a certification which acknowledges the experience of some and elevates the knowledge of all.

• Will give certified professionals a greater understanding of the theory and practice of creative and effective Motivational Programs and Motivational Travel within the value chain.

• CIS is designed for SITE members and non-members alike

The CIS, Certified Incentive Specialist, is an entry level certification program from SITE.

Professionally?

Personally?

Incentive travel. Business results. Incentive travel is the work our members do; business results are

what our companies and clients are achieving through this powerful tool.

We like to belongWe live together We accept hierarchyWe followWe leadWe dreamWe believe

“the human species is the only species with the ability to see what doesn’t yet exist” F.W. De Klerk

We are Tribal

• Two very different things

• Earning the incentive not winning it (not a lottery ticket)

• Being the best of the best and joining the elite group

• Sense of achievement

• Bragging rights

Reward vs Recognition

Cash as a Prize? 29%Research shows that this is the percentage of employees that

spent a cash incentive from their company on bills

18% do not remember what they

spent the reward on11%

spent it on savings and 11%

on gifts

All of us have stuff! How much more can

we have?

We buy what we want anyway !

Merchandise as a Prize?

The Incentive Travel Experience:

“the best deserve the best;a qualifier is treasured and pampered

in the best way possible”.

Incentive travel programmes increase

performance of an individual by 22% and

of a team by 44%

Travel as a Prize?

The reported strength of travel as a motivator continues to remain higher than merchandise and debit cards —and a bit more motivational than cash.

Travel Experiences Will Continue to Generate the Greatest Engagement and Loyalty Over Other Options

Not surprisingly, the use of incentive travel and merchandise/gift card differs across program types. The incidence of incentive travel is highest within Sales programs and lowest within Customer Loyalty. Merchandise/card use is highest in Channel and Customer Loyalty programs.

Optimism about the overall use of incentive travel experiences is at a four-year high!

48% of respondents say its use will increase or substantially increase in the next 6 months

The Site Annual Analysis and Forecast for the Motivational Events Industry

69% are similarly optimistic about the next 6 to 12 months

That optimism carries over to expectations for the next 1 – 3 years with 87% believing it will increase or substantially increase

The Site Annual Analysis and Forecast for the Motivational Events Industry

Acquire

• 67% of participants who did not earn a place on the travel program agreed they will work harder in the following year to earn the trip

• 61% of participants felt that competing in a motivational travel program that offers multiple levels of earning opportunities was more motivating

Bond

• 77% of participants surveyed said that earning the travel award increased their feeling of being part of the company

• 53% of participants believe the emotional impact of a group travel experience

Defend

• 95% of executives are concerned about retaining key employees

• 47% of top performers are actively looking for other employment

Learn

• 57% of participants agreed that feedback is important in motivating them to participate in a program, and that involvement in a program motivates them to create solutions to achieve desired results

• 70% of participants believe freedom in destination choice and activity on a program encourages them to motivate their behavior

$77 billion in the US • Incentive travel (US$22.5BN) • Merchandise/gift cards (US$54.4BN)

74% of U.S. businesses use non-cash rewards• 46% - Internal (Employee) Sales Incentives• 32% - Customer Incentives• 26% - Channel Sales Incentives

According to 2013 “Market Sizing Study” (Incentive Federation)

How big is the Incentive Travel pie ?

Strong in “traditional” incentive sectors:• Automotive and Automotive parts• Finance and Insurance• Medical and Pharmaceutical• Direct Selling Organizations

Growing:• Information Technology (Service Providers)• Telecommunications

How’s Business?

2009 :Recession hits incentive travel hard

2013: better than expected (some sectors never wavered – IT)

2014: recovery

2015 – 2016:o80% of respondents planning for growtho “Convergence” of meetings with incentivesoPressure to “prove ROI/ROO” intensifying

Taken from “SITE Index” Forecast for 2014

Incentive Travel is Trending Up

1. A destination that recently has something new to offer - hotel, increased air schedules, incentive quality activities and off-site venues

2. Strong potential for promotion3. A destination that has the infrastructure in place to support incentives and

meetings but not much experience 4. A destination that is investing in tourism

6. Ability to get more for your spend – better value than traditional incentive & meeting destinations

5. Economic and political stability

Top Six Definitions of an Incentive Emerging Destination

Top 8 infrastructure criteria critical for a destination to be considered “emerging”

1. Safety – political and economic stability

2. Sufficient air scheduling

3. Quality 4/5 star hotels

4. Interesting cultural/historical activities

5. Great weather

6. Experienced DMC

7. Quality ground transportation

8. Unique & able to promote

1.Prague (Czech Republic)

2.Costa Rica

3.China

4.Dubai

5. South Africa

6. Abu Dhabi

7. Riviera Maya

8. Russia

Top 8 destinations to make the transition from emerging to mainstream

Top 10 Emerging Destinations1. Panama

2. Croatia

3. Southeast Asia – Vietnam

4. Budapest

5. Guatemala

6. India

7. Peru

8. Brazil

9. Iceland

10. Dominican Republic

1. Sellers market – demand is exceeding the supply

2. More difficult to negotiate on price, inclusions, concessions, etc.

3. Price is much higher than in the past years

4. Less time to move to contract – clients must make decisions faster than ever before to ensure they retain preferred space and dates

5. Procurement and industry regulations are dictating hotel quality and brand

Hotel Market…what buyers and clients are saying

Hotel Market…what buyers and clients are saying

6. Mix of resort hotels to city hotels is predominately 50:50 based on the impact of meetings

7. All inclusive resorts are primarily preferred in the U.S. market and appeal to about 10% of clients

8. Prevailing trend continues to be for four and five star properties for this market segment

Procurement…what buyers and clients are saying1. Becoming more knowledgeable of the incentive travel business

2. Impact felt globally, however U.S. relationships are more advanced

3. Guided by corporate spending and compliance regulations

4. Influential factor in the buying process

5. Demand line item pricing – no packaged costs

6. Focus on bringing “real” savings to the bottom line

7. Interested in consolidating spend and leveraging business volume (opportunities for multi-year and brand agreements)

Contracts…what buyers and clients are saying

1. Less flexibility; more one-sided than in the past

2. More focus on cancellation, attrition and force majeure

3. Higher rates, minimum spend requirements

4. Seeing payment for program elements that have not been a cost in the past – site inspections, room rental, etc.

5. Higher deposits and more aggressive payment schedules

6. More desire for standardized terms and agreements

• Since 2011, budgets have increased with 2014 showing the strongest growth to date.

• 50% of planners in the autumn of 2014 said they would increase their budgets

• Per person spend is also up, with an estimated average of $3,440 – up significantly from studies conducted last year.

• More than a quarter of respondents said their budgets would exceed $4,000 per person.

Incentive Travel Budgets are Trending Up

• 75% of respondents from third-party incentive and 55% of corporate buyers noted that their budgets would be between $2,000 and $4,000 per person

• More corporate buyers (30%) than incentive houses (23%) noted that their budgets would exceed $4,000 per person heading into 2015.

Incentive Travel Budgets are Trending Up

Programme inclusions…what buyers and clients are saying

• More choice!!

• More teambuilding vs. traditional “sight seeing”

• Spa has become “king”

• More interest in thrill-seeking, adventure activities – ski, dive, fishing

• Golf continues to be a “must-have”

Programme inclusions…what buyers and clients are saying

1. Shopping and historical site-seeing still very important

2. Need a la carte pricing from suppliers

3. Introduction of more lifestyle offerings – cooking, horticulture, nature hikes, wine tasting, etc.

4. Need for socially and environmentally conscious programming – clients are looking to give something back to the communities they are travelling to

Safety/Security…what buyers and clients are saying

1. Absolutely impacts the destination decision

2. If safety is “perceived” to be compromised, clients will not go to the destination

3. Increased airline procedures are considered more a “state of the world” vs. a deterrent to travel

4. Weather patterns will impact decisions

5. Evacuation and emergency plans MUST be established

6. Any destination “in the news” with political or economic unrest will be viewed as unacceptable by most clients

• Giving back to the community • Offset Carbon Omissions • Leave a legacy • Work in partnership with client CSR objectives• Offer advice and assistance with CSR policies

Corporate Social Responsibility

Strengths of a Destination

Strengths of a Destination

W E A K N E S S E S

Creativity…...

Follow The Trends or....start them!

Summary• Consider travel as a motivator• Incentive travel programmes are self funding • Becomes part of the marketing and sales strategy within a company • Increases the productivity of employees• Maintains customer and employee loyalty & retention• Is measured to deliver the required business results• Creates a once in a lifetime experience never forgotten

• Join Site!

THANK YOU

Paul |Miller2015 Immediate SITE Past President

Managing Director paul@spectra-dmc.com