Swiss Alps by the day or an evening in Paris? Star execs can work out in style

All-expenses-paid luxury cruises, tickets to live programmes of celebrity artists and upgrades to business class - travel-related incentives are getting bigger and better this appraisal season as employers look for ways to pamper and retain their top performers.

Companies have seen such incentives helping boost motivation and improve stickiness among employees, especially the younger ones who like experiential travel, said travel industry executives. These incentives also encourage competition among employees to get into the league of top performers and help team building when high achievers or entire teams are travelling to a common destination.

"We are witnessing a growing trend of corporates maximising on travel as an attractive incentive tool to reward and recognise top performers, be their employees or partners," said Rajeev Kale, president and country head Holidays, MICE and Visa at Thomas Cook (India). The travel services provider has seen companies from consumer goods, financial services, pharma and paint sectors offering domestic and international travel experiences to their employees, he said.

Many companies are also decentralising incentive travel, offering gift cards and holiday vouchers that give employees the flexibility to choose their preferred destination and time to travel, Kale said.

According to travel industry executives, the favourite domestic places for such trips include Goa, Rajasthan and Kerala, while the top international destinations are Thailand, the UAE, Switzerland, France and the US. Companies are also increasing the budgets to sponsor such trips and some allow the spouse or even the entire family to accompany the employees, said SD Nandakumar, president and country head, Holidays & Corporate Tours, at SOTC Travel.

Monish Shah, CEO and cofounder at DreamSetGo, said companies are increasingly moving away from traditional cash rewards and bonuses, "towards meaningful, experiential rewards".

Companies are rewarding their employees with travel for their loyalty and tenure, celebrating company milestones and personalised getaways for individual achievers, he said.

This year, travel services company Ixigo hosted its annual offsites for employees in Thailand and Dubai. "Shared experiences play a big role in building stronger teams," said group CEO Aloke Bajpai. SOTC too has reward programmes for its top performers where it offers them experiences at attractive destinations.

Hari Ganapathy, co-founder of Pickyourtrail, said the company that provides customised tour packages is seeing a 20% increase in the number of people receiving such perks over the last 3 years.

Companies have started allocating specific budgets (ranging from $3,500 to $5,000 per person) for this purpose, he said. "It goes beyond bonuses by offering tangible, feel-good rewards that employees can enjoy and remember."