Laura Yates, account executive for Navigant Performance Group in Boston, agrees that travel is rebounding, but companies continue to be cautious with their budgets. “They are not running back to Europe and it’s not because of a fear factor, it’s the value. If we do run a program to Florence or Rome, we’re cutting back on a few things to make it affordable.”

“We’re still struggling with a certain amount of uncertainty,” adds Jeff Broudy of Philadelphia-based United Incentives. “But companies realize they need to use incentives more than ever. I’m encouraged by the number of newbies that are using incentives, and they’re not just traditional users.” United Incentives has put together first-time programs for companies in the food industry and financial services companies that manage money for high-wealth individuals.

Broudy says that United Incentives’ clients are spending more and looking at top destinations. That means companies that became accustomed to last-minute planning and enjoyed widespread availability of high-end hotels will have to break that habit.

The Fairmont Hotel’s John Meissner, executive director of corporate group markets, agrees: “We’ve already hit our goals for this year and I continue to get leads, although it’s still tough to close the business,” he says. “The groups are smaller but the most promising thing we’re seeing is the pure incentive business is back. Most of the incentive business we’ve been getting is meetings. Now we’re seeing more recognition or awards programs – less meetings and more for fun.”

Steve Aasgaard, vice president of the travel group at Minneapolis-based BI, says, “We’ve seen bookings increase where I didn’t have any trouble getting hotel or airline space in the past few years.”

The weak economy has made companies more conscious of return on investment for incentive travel programs, Aasgaard says. “Customers are demanding proof that they are getting measurable results for their program. They are challenging companies like BI to get the data they need to justify the program. We document the return and justify the expense.”

Many companies use travel experiences as a means to get their national team of distributors together once a year to network and share success stories. Modern Supply in Knoxville, Tenn., sends its independent distributors to Europe and the Caribbean. Planner Dorothy Ramsey says participants catch up with each other each year.

“Our winners are plumbers and heating and air conditioning contractors who earn the trip based on purchases. These are people who can afford to buy whatever they want as far as merchandise, but the travel experience is something they really look forward to. They love the group experience, meeting with other distributors and sharing a vacation with their spouses.”

Vicki Cahill, director of recognition, incentives and communications for Verizon Communications also believes strongly in the power of travel. “We know travel is a real motivator. It’s one incentive that will drive results. Winners have sustained results over non-winners. Not only do we get a spike in sales, the incentive also has a residual effect. They come back with a ‘never going to miss a trip’ attitude, and those that didn’t make the trip get really pumped to win next time.”