Here’s a question: what did you do with your last paycheck? What did you spend it on? Can you even remember?
Now, here’s another question: What was the last trip you took? Where did you go? Who were you with? What did you do? Chances are, you can recall this information pretty quickly. This is due to the psychology of travel.
Travel can be an outstanding “X factor” for your channel sales if used strategically as an incentive. In many industries, like the automotive aftermarket, channel sales are often commoditized, with very little personal buy-in from downstream dealers and channel partners. One manufacturer’s product is the same to them as another—so long as it sells and makes their customers happy.
If you’re a large OEM or distributor looking to gain mindshare and strengthen relationships with your smaller dealers and repair shops, incentive travel isn’t just a perk—it’s a powerful motivator that drives real business results. When done right, it promotes loyalty, boosts engagement, and turns impersonal channel partners into long-term brand advocates.
But don’t just take our word for it. As we continue to unpack the results from our latest report, “Small Shops, Big Impact: Driving Loyalty in the Auto Aftermarket”, one key takeaway that stands out is how smaller auto aftermarket dealers and repair shops view incentive travel.
We’ve previously highlighted the value that this dealer network places on simplicity and ease of use in their channel incentive programs. The managers, salespeople, and technicians of these smaller shops made this clear in their responses.
And yet, when they were asked to rank the effectiveness of various incentive program structures, they didn’t vote for the easiest program, or the simplest program, or even the cheapest program.
Instead, the incentive structure that came in at #1 was incentive travel. In fact, more than 70% said that earning incentive trips was either “effective” or “very effective” as a motivational tool for achieving sales goals.
But here’s where things get really interesting. Even though this network of dealers and smaller shops love the idea of an incentive travel program, few are actually participating in one.
When we asked survey respondents to name the types of programs they were involved in, only 16% mentioned incentive travel. This was one of the lowest rates among potential program types—only the 8th most used, in fact.
Ahead of incentive travel were things like MDF and Co-op (18%), B2B volume rebates (21%), sales SPIFFs (21%), and customer promotions (54%). And yet, none of these other incentive structures were perceived to be nearly as effective as incentive travel. None even cracked 40% in perceived effectiveness.
So, what gives? Could it be that these smaller dealers and shops have the option to participate in an incentive travel program, but, for whatever reason, aren’t choosing engage with it?
Possibly. But then how do we explain the disconnect between the low participation rate and the high perceived value that this group places on incentive travel?
We think the more likely reason is that this cohort simply isn’t being offered travel as an incentive reward.
Maybe that’s because their business is considered too small by OEMs and large distributors for this type of program. After all, according to the Incentive Research Foundation (IRF), incentive travel is often considered one of the most expensive channel incentive options for organizations.
However, for many who use incentive travel, cost is only one part of the equation. According to one incentive program owner: “The cumulative value [an incentive travel] program delivers to [our] business makes the investment worthwhile.”
This dovetails with other industry data we’ve highlighted in the past:
All of this points to an important conclusion. If the vast majority of down-channel dealer managers, technicians, and salespeople are excited about the prospect of an incentive trip, but never getting the opportunity to achieve one, is there a strategic program structure that could help bridge this gap?
To capitalize on the aspirational value of an incentive trip, a program should be designed systematically using the right incentive travel playbook.
What could this look like? Every industry’s channel is different, and who your target audience will always play a key role in the design of an effective travel program. But for the auto aftermarket, a potential model to use would be a program design for a national gasoline distributor.
In this example program, the distributor wanted to strengthen relationships with their dealer network, without participating in a race to the bottom on price against their competitors.
So instead, this distributor got creative and organized an incentive program for their dealer salespeople. The top performers in the program earned a grand prize, all-inclusive trip to Puerta Vallarta, Mexico for themselves and a guest.
The distributor managed to keep costs low with a fixed budget, while also customizing certain areas to meet its channel’s unique needs. These included:
Ultimately, this solution was highly effective. It generated $3 million in excess revenue after program costs, 3x year-over-year sales for program participants, and a second iteration of the program the following year found even more success across a variety of KPIs.
This is just an example, but a powerful one that emphasizes the ways in which an incentive travel program can stimulate broad behavioral change without breaking the bank.
There will always be a place for cash bonuses, rebates, and discounts in the world of automotive channel incentives. In fact, in the right strategy, they can be really effective and motivating.
But in some cases, what your dealer network is looking for isn’t just motivation, but aspiration. When engagement is a key concern, you’ll want to look to rewards that inspire, rewards that are memorable, that people will go above and beyond to achieve.
That’s where incentive travel comes in. Unlike cash rewards, which are often forgotten as soon as they’re spent, an incentive travel reward creates lasting excitement and emotional connection. The chance to earn a bucket-list experience gives your participants a compelling reason to engage with your program. It turns participation into something they want to do, not just something they have to do.
Is your channel strategy stuck in neutral? Contact us to find out how you can leverage incentive travel to inspire your unique network of dealer managers, salespeople, and technicians, to help you regain that competitive edge.