Government Business

We’re all beginning to feel the effects of the credit crunch, individuals and businesses alike. The rise in the cost of food and fuel means that they now account for more of the weekly household budget, leaving less disposable income. Personal budgeting has become essential and, as a result, there is less room for purchasing luxury items.
    
For instance, high street fashion has reportedly experienced its worst sales for eight years while some restaurants are suffering as diners choose to enjoy a good bottle of wine with a meal at home as a better value alternative.

Taking time off
Certain luxuries, however, remain a priority in spite of a downturn in the economy. Specifically, few people are willing to give up their annual holiday as the essential reward for working hard throughout the rest of the year and as an invaluable opportunity to make time for some of the more important things in life.
    
It is for this reason that travel and leisure incentives provide highly appealing and aspirational rewards that can be used as part of a motivation programme at public sector organisations. The range of gift cards and vouchers that now cater for this sector forms a significant proportion of the market and one that is expected to continue developing with the wider applications of prepaid gift cards.
    
Among The Va members that offer vouchers and gift cards that offer travel related incentives are Marriott Individual Incentives (the incentives branch of Marriott Hotels), travel specialists Thomas Cook and lastminute.com, Tuxedo Money offering international money transfer services, companies offering experiential gifts such as Red Letter Days, The Virgin Voucher and Experience More, as well as various agencies that have now added travel and leisure products to their portfolio.
    
“Holidays are the most memorable event of the year for many people”, says Maggie Tindal, head of business incentives at Thomas Cook. “We look forward to them for months and always look for new and exciting places to visit.
    
“In the corporate market, holiday/travel vouchers are ideal for generous one-off rewards of £500 or above, which provides the perfect motivation for employees to achieve specific goals and targets.”
    
Kuljit Kaur, head of business development, The Voucher Shop, comments that the continued popularity of travel vouchers has been notable throughout the first months of 2008 when most people are not usually spending: “From a month on month comparison of voucher sales from January to June 2007/8, the Voucher Shop has seen a steady but significant increase in demand for Thomas Cook vouchers. It is interesting to note that with our travel vouchers there have been huge peaks in sales during February. This could indicate a prevailing trend that sees an increase in the purchase of summer holiday travel vouchers after Christmas. It is certainly makes it worthwhile to consider using travel vouchers for incentive rewards in the first half of the year, as holidays are the focus of heavy post-Christmas advertising.”
    
Travel vouchers can also incorporate more than reduced rate flights. For instance, Marriott Individual Incentives is able to offer theatre breaks, pamper days as well as golfing and dining experiences thanks to the facilities available at its hotels.
    
Julian Bonnett, UK sales manager at Marriott Individual Incentives, says: “Travel vouchers are so popular because they offer an experience. Marriott Individual Incentives has a wide product range to ensure that all tastes can be catered for across international destinations.”

Prepaid cards
The expansion of prepaid cards has also widened the possibilities for travel incentives. Tuxedo Money, for example, a provider of prepaid Maestro cards and stored value solutions, offers specialist international money transfer services. Mark Simon, CEO at Tuxedo Money, commented: "Prepaid cards provided for use on the international payment schemes like MasterCard are simply the least expensive and most convenient means of spending your money, or that of your company, when abroad. The same applies to transferring money to family members travelling or living abroad. This is beginning of a very significant new chapter in payments."
    
In addition to money transfer services, holiday bookings, flights and accommodation, UK breaks and theme parks as well as associated products such as car hire, insurance and airport parking can now all be paid for using a prepaid card.
    
G-T-P Group Ltd has recently launched the Love2travel Gift Card. Helen Child, chief executive at G-T-P, commented: “Anyone’s who’s ever watched Holiday Showdown will know that one person’s idea of holiday heaven is another’s idea of holiday hell. Travel gift cards like Love2travel and Park’s new range of Holiday Travel Cards give the gift of choice and flexibility. Recipients can tailor their flights, accommodation and holiday extras to their own unique preferences and travel requirements.”
    
So, as you can see, there really is a fantastic range of products on the market offering travel incentive solutions. Even while the outlook for the economic climate remains about as sunny as the weather forecast for British summertime, travel rewards should be expected to remain a popular incentive for public sector workers.