Not long ago, I came across a shocking article. Several respected incentive travel companies claimed that the ROI of event travel was “intangible” and impossible to measure.

I had to read it twice.

If there’s one thing I learned in my years advising executives on multi-billion-dollar programs, it’s this: no leader should sign off on a multi-million-dollar investment without a solid business case and path to providing proof of measurable impact.

Yet the world of meeting, incentive, and event travel unfortunately remains in the dark ages of measuring ROI. Companies invest millions into retreat and incentive programs. Most do so without ever taking a step back to assess whether those programs are actually moving the needle to deliver on their enterprise strategy. The only metrics tracked consistently are budget adherence and sales target attainment (without real attribution to the travel program). The result is the same: the same program, run year after year until no one is certain why they are still doing it.

But who could be blamed for this mindset when incentive travel companies they entrust to put on these programs themselves claim that the only benefits they drive are “intangible”?

Awestruck Incentives was founded to do things differently by filling this gap in strategic, impact-oriented event travel. We know that every dollar invested into incentive and retreat travel is a dollar that could have been allocated elsewhere in the business. As such, we believe that it is our responsibility as your strategic partner to hold event travel to the same rigorous ROI standard as any other investment. Read on for how we measure ROI to move from feel-good outcomes to concrete, defensible results.

The Problem with the Industry’s Current Approach

Most travel programs report success with fuzzy metrics:

• Smiles on stage
• Positive post-trip anecdotes
• A few survey comments about “feeling motivated”

While those moments are valuable, they don’t hold up in a boardroom (and certainly cannot justify multi-million-dollar investments when long-term, tough budget calls need to be made). Executives need numbers they can stand behind, and data that connects investment to measurable business impact.

How Awestruck Incentives Measures ROI Differently

The problem with the event travel industry’s current approach begins far upstream of measuring actual program results. It starts with a gap in strategy.

Most incentive travel companies begin the incentive or retreat planning process by asking prospective clients about their vision for the trip. This approach misses the point entirely. Without understanding the why behind the event travel investment, it is no wonder that other TMCs stumble in the dark looking for metrics to demonstrate success after the fact.

At Awestruck Incentives, we start with strategy from day one. Rather than asking for destination ideas and headcount, we work to understand what drives our clients’ total business strategy. What’s the purpose of this trip? What business problem do we expect event travel to solve? Then, we build the measurement framework into the program design from day one.

Here’s what that looks like:

1. Understand Overarching Business Objectives

We start by understanding our clients’ top strategic priorities, so that we can orient the travel program into the broader company context. This helps us design the best program for our clients. A 12-person executive retreat solves a very different problem than a 250-person President’s Club trip. Understanding our clients’ top challenges helps us distribute their total event travel spend envelope towards the objectives most important to maximize the value of every dollar.

2. Assess Whether These Objectives are Best Served by Travel

Event travel is powerful, but it is not a solve to every challenge our clients face. Using our decades of event travel experience, we help our clients understand which of their strategic goals can be best supported through travel. This ensures that their investment dollars align with greatest areas of need, and sets expectations upfront on where we can expect to move the needle.

3. Develop a Suite of Metrics, Tied to the Problem to Solve

There are more indicators of success than cost and sales target attainment. We work with our clients to set a suite of metrics that measure progress on the problem we set out to solve. This often includes cultural, commercial, and operational KPIs beyond sales.

4. Align the Baseline and Measurement Approach Up-Front

Too often we see event travel management companies taking undeserved bows. Their post-travel surveys show high engagement and employee NPS. But there is nothing to compare these results to before the program in order to demonstrate whether the trip itself drove value.

We work with our clients to establish the right baseline for each metric up front, and define a feasible approach to measuring results before travel. In doing so, we ensure that we can prove the incremental value of the trip, using a method we all agree upon. This also allows us to compare the performance of travel programs to other types of incentives, bonuses, and recognition programs, so that our clients can allocate every incentive dollar where it will drive the most value for their businesses.

5. Measure with Rigor, and Learn From the Results

We measure each program’s results carefully, then meticulously report the findings to improve program performance year over year. Our approach takes nothing for granted. Instead, we think critically about how to evolve future programs to drive different results or target different objectives. In doing so, we create travel that evolves with our clients’ business goals.

The Future of ROI in Event Travel

The era of “trust us” is over. Executives should demand proof of returns, and incentive travel companies that can’t deliver should be held to a higher standard. At Awestruck Incentives, we are excited by this shift and believe that it demarcates a changing paradigm. Event travel, measured well, can be one of the most effective, efficient levers for growth and culture in a company’s arsenal, not just a cost center.

If you’re ready to rethink the ROI of your event travel, we’d love to help show you how.