A new Incentive Marketplace Estimate Research Study released by the Incentive Federation, Inc. reveals that U.S. businesses continue to invest heavily in non-cash incentive programs for businesses, including award points, gift cards, trips and travel, merchandise, experiential rewards, recognition, and corporate gifting. For organizations looking to reward sales staff, employees, channel partners, and customers, the study reinforces the growing role of tangible rewards and group incentive travel in business growth strategies.
The Incentives Market Is Growing
IFI’s study shows the non-cash incentives market grew a remarkable 49% since the last market estimate study in 2016. In addition, 92% of companies with revenues of $5 million or more use at least one form of non-cash incentive programs. Gift cards, including digital gift cards, are most prevalently used in all programs, with Award Points the second most used in three of four program types. Trips and travel are used as rewards in sales incentive programs and channel/distributor/partner programs more often than in the other targeted types. Branded merchandise and logoed merchandise are the most prevalent uses for client gifts, which are used in 75% of companies with more than $1 million in revenues.
What the Incentive Federation Study Included
The final white paper report of the study, a comprehensive reference deck and a convenient infographic document are available on the home page of incentivefederation.org for review and use.
The Incentive Federation conducted the survey in partnership with Richard Garlick & Associates Consulting and Market Research Services. Data was drawn from a national sample of 1,000 business executives responsible for non-cash incentive programs in companies with at least $1 million in revenues.
The study also revealed:
- Companies with revenues from $1 million – $10 million represented 91% of businesses in the overall sample.
- Non-cash sales incentives and employee rewards are the most prevalent forms of non-cash incentives, with 55% of businesses using sales programs and 70% of companies having employee programs.
- Non-cash customer loyalty programs are used in 55% of firms, while 48% of companies use non-cash channel/distributor/partner programs.
Why Non-Cash Incentives Matter for Business Growth
The study points to a clear trend: businesses are using non-cash incentives because they help create motivation, recognition, and loyalty in ways that ordinary compensation may not. Gift cards, award points, merchandise, corporate gifts, and travel rewards all serve different purposes, but they share one important advantage. They give companies a tangible way to recognize performance and encourage continued engagement.
For sales organizations, sales incentive travel programs can be especially powerful because they give participants a memorable goal to work toward. A trip is not simply a reward after results are achieved. It can become part of the motivation strategy that keeps employees, agents, partners, or sales teams focused throughout the qualification period.
“This study reaffirms that the use of non-cash incentives (like incentive travel) has been and continues to be an important part of many businesses’ growth strategies. The growth in the use of non-cash incentives is an important signal that U.S. businesses value tangible incentives over simply using cash to recognize performance and loyalty,” – Mike Donnelly, Chair of the Incentive Federation
How Companies Use Non-Cash Incentives
Non-cash incentive programs can support several business priorities at once. They can motivate sales performance, recognize employee achievement, strengthen customer loyalty, encourage channel partner growth, and reinforce company culture. The right program depends on the audience, the desired behavior, and the business outcome the organization wants to influence.
For example, customer loyalty and channel incentives can help companies engage distributors, dealers, partners, and high-value customers. Employee recognition trips can help celebrate internal achievement and strengthen retention. Corporate gifting can support client appreciation and relationship-building. Each format has a role, but the strongest programs are built with clear goals and a thoughtful reward strategy.
Why Travel Rewards Stand Out
Among non-cash incentives, travel rewards stand out because they combine recognition, status, connection, and experience. A trip can create anticipation before the event, emotional impact during the experience, and lasting memories afterward. This is one reason many organizations find that incentive travel outperforms cash as a reward for many audiences.
Well-designed corporate incentive travel can also create shared experiences that build stronger relationships. Participants spend meaningful time with colleagues, leadership, clients, or partners in a setting that feels more personal than a meeting or standard recognition event. Those connections can strengthen loyalty and support long-term business outcomes.
Turning Incentive Market Trends Into Strategy
The size and growth of the incentives market show that companies are not treating non-cash rewards as extras. They are using them as strategic tools to influence performance, engagement, recognition, and loyalty. For businesses evaluating their own incentive mix, the key is to match the reward to the audience and the business goal.
When the objective is to motivate performance, build relationships, or recognize top achievers in a memorable way, incentive travel can be a strong fit. With the right planning, clear qualification criteria, and an experience that feels meaningful to participants, incentive travel can improve the bottom line while creating a reward people genuinely want to earn.
“The Federation’s research in 1996 revealed that only 26% of U.S. businesses were using non-cash incentives, and our 2000 research reflected a $27 billion marketplace,” said Steve Slagle, the Federation’s Managing Director. “The growth in the marketplace over 25 years is certainly gratifying and a tribute to the excellent work by the industry’s companies to educate businesses about the value of all forms of non-cash incentives.” READ MORE