When rewards turn risky: the hidden dangers and risk reduction strategies in case of incentive travels Open Access

The tourist sector has faced several major crises in recent years, resulting in substantial effects on both global and regional tourism. The crises encompass a range of issues, including health pandemics (Ho et al., 2024), wars (Bacsi et al., 2024), political instability (Jaaffar et al., 2023), terrorism (Liu et al., 2024), natural disasters (Pham et al., 2021) and economic shocks (Mousavi, 2025). The recent crises have prompted a rethink of the tourism and recreational growth and safety model (Selem et al., 2023).

This growth could be considered Meetings, Incentives, Conferences and Exhibitions (MICE) tourism because this sector has become a key driver for developing tourist destinations, generating significant revenue, employment and investment (Kotler et al., 2010). The conference and congress sector is the most researched area within the MICE industry, while incentive travel, exhibitions and fairs are under-researched areas (Mair, 2014).

Incentive travel programmes are a helpful tool in improving the business performance of employees, usually involving long domestic or international trips (Cho et al., 2006). Incentive travel is a form of group travel, in which case the travel behaviour (Su et al., 2022), travel experiences (Yin and Poon, 2016), tourist satisfaction (Su et al., 2020), group formation and decision-making (Delic et al., 2018) are research topics of particular interest. For group travel, scientific research has been done only on health risks (Mishori et al., 2016) in the topic of security and safety.

Adopting a qualitative research design, this research examines how 47 employees from Hungary-based international banking and insurance firms perceive risks and implement mitigation techniques within the context of incentive travel. The spectrum of research on incentive travel is broad, but its relationship to safety is considered a research gap (Lee and Chiang, 2017). The topic of this study differs from previous research directions, which have primarily focused on the motivation (Incentive Research Foundation, 2016; Cho et al., 2006) and contentment (Li et al., 2018; Lee et al., 2017) of incentive travel participants. The research is focusing on both human interaction factors and destination factors (Bianchi, 2015). The examination of incentive travellers’ behaviour regarding risk perceptions and risk mitigation techniques warrants particular focus in tourism research, especially with qualitative approaches (Rezaei et al., 2023).

The article begins by setting out the theoretical framework for incentive travel, then examines how risk perception is conceptualized in tourism, and finally, the risk reduction tools travellers employ. The exploratory research, which involved 47 structured in-depth interviews, primarily identifies the key aspects related to risk perception and reduction in the results section. This study contributes a safety perspective to the existing literature on incentive travel, culminating in practical recommendations for incentive travel organizers and clients presented at the conclusion of the article.

Human resource management (HRM) incentives include financial and non-financial rewards aimed at motivating and engaging employees, enhancing job satisfaction and improving organizational performance. Effective HRM incentive systems are customized to meet employee needs and preferences, taking into account both individual and team performance, while aligning with organizational objectives to promote a positive work environment and improve employee retention (Touré et al., 2010; Wani, 2025).

The effectiveness and structure of HRM incentives differ markedly across countries and sectors, influenced by institutional factors including employment formalization, tax rates and familiarity with incentive systems (Jansen et al., 2009). Furthermore, HRM incentives should be tailored to the size, sector and strategic orientation of the organization, as demonstrated in micro-firms and family businesses (Kidwell et al., 2012; Rodrigues et al., 2022).

The debate regarding competitive versus cooperative incentive structures highlights differing perspectives: proponents of competition assert that it drives enhanced performance and innovation, whereas advocates of joint-reward systems contend that they promote cooperation and support among employees (Livio and De Chiara, 2019). The effectiveness of these incentives is affected by psychological factors, including employees' perceptions of fairness and organizational support (Charness et al., 2016; Pan et al., 2018).

Organizational psychology offers a theoretical framework for analysing the impact of HRM incentives on employee motivation, attitudes and behaviours. Personnel psychology, a subfield of human resource management, examines motivation, leadership, staffing and performance management, with psychologists making significant contributions to empirical knowledge in these domains (Cascio, 2015). Organizational commitment represents a significant psychological outcome resulting from HRM incentives. Employees who exhibit commitment demonstrate higher levels of satisfaction, enhanced performance and a reduced likelihood of turnover (Dhaenens et al., 2018).

In sales management, incentives (e.g. financial rewards, merchandise, travel) motivate employees to achieve and maintain exceptional performance levels, thereby recognizing and rewarding their efforts (Abbas et al., 2023). However, unlike other incentives, incentive travel also has a “trophy value”, providing long-lasting positive reinforcement (Shinew and Backman, 1995). Boros et al. (2025) research suggests that recognizing and rewarding employees for a job well done is neither redundant nor generous but rather necessary because it enhances performance. Business networking and prestige travel positively impact organizational commitment and satisfaction (Li et al., 2018). However, it is essential to emphasize that employees who do not participate in incentive travel may be expressing negative feelings towards the company (Jeffrey, 2014). Because of these spill-over effects from the travel, the incentive travellers should get a deeper understanding with qualitative researches in the tourism literature.

Incentive travel, according to Mill and Morrison (1985), can be seen as a “hybrid” since they are “pleasure trips” that is financed by firms for their employees for business reasons. To be perceived as unique by the participants, incentive trips are designed to be as unique and creative as possible (Li and Bao, 2015). Since incentive trips involve services tailored to a specific client, there are travel agencies specialized in organizing them (Millán et al., 2016). Incentive travel is increasingly organized as individual recreational programmes, in addition to the fact that they usually include a professional component (Li et al., 2018).

The Incentive Travel Index (2022) report shows that the incentive industry is growing again following COVID-19. However, 67% of North American customers will return to international travel in 2022, compared to only 50% of customers from the rest of the world. Incentive travel is forecast to grow in the finance and insurance and IT sectors while remaining static or declining in pharmaceuticals and retail. Changes in the traveller persona (that is, the workforce participating in incentive travel is more diverse) are also changing expectations; for example, wellness has become a key programme element.

Risk is characterized as the potential for danger, damage or loss, representing an event with unforeseen and unfavourable consequences (Ritchie and Jiang, 2019). Individuals assess the types and significance of risk factors variably, with perceptions influenced by personal characteristics (Deng and Ritchie, 2018). Risk comprises two main elements: the probability of exposure and the severity of the consequences (Hichang, 2010). Perceived risk is understood as a consumer's assessment of possible negative consequences arising from a decision, based on both the likelihood and severity of such outcomes (Mowen and Minor, 1998). Perceived risk serves as a critical factor influencing behavioural intention (Sönmez and Graefe, 1998). In psychology and economics, expected utility theories make the assumption that people subjectively and inaccurately assess the likelihood and severity of a potential result, but incorporate this information into their assessment of perceived risk (Chiang et al., 2011). Inadequate knowledge of the probability of risk can, in turn, create actual risks for tourists (Wilks, 2006).

Tourists' ignorance of “other” locations, the intangibility, heterogeneity, inseparability and perishability of tourism products and services, and the delay between booking and participation make tourism intrinsically vulnerable to a number of dangers (Zou and Meng, 2020). Safety is a fundamental concept in tourism, yet risks are an integral part of the tourism experience, which affects the travel decisions and behaviour of tourists (Chien et al., 2017; Larsen and Brun, 2011). Tourism is described by Williams and Baláž (2014) as a combination of risks and uncertainties that are only partially understood. Threats refer to known uncertainties, while uncertainties refer to the unknown. In research topics in multidimensional tourism models, risk perception focuses mainly on the overall study of psychological risk, destination image, behavioural intention, the COVID-19 crisis and general perceptions of risk (Lin et al., 2022).

Tourists' perceptions of risk play a significant role in shaping their travel choices (Kozak et al., 2007). However, perceptions of travel risk are situation dependent (Seabra et al., 2013), and travellers may be more aware of particular dangers when making travel decisions, depending on the situation. However, people often overlook probability when assessing risks, focusing instead on the seriousness of potential outcomes. A bias known as probability neglect causes travellers to overrate the likelihood of low-probability adverse events, such as terrorist attacks or shark incidents, while underestimating more common risks, like contracting the flu or getting sunburnt (Gaissmaier and Gigerenzer, 2012). A further problem may be that tourists tend to limit the possible negative outcomes associated with themselves when considering the issue, rather than considering all possibilities (Wolff et al., 2019).

The potential risks in tourism include health, physical, performance or functional, financial, social and psychological, as well as those related to equipment, organization, terrorism and political instability (Adam, 2015). The perception of health risk denotes the probability of specific hazards occurring within a defined timeframe at a particular destination (Chien et al., 2017). These have been broken down by the World Health Organization (World Health Organisation, 2012) into infectious diseases, injuries and violence, exposure to bodily fluids, psychological health and environmental dangers. The primary concern for most tourists is health risk (Kozak et al., 2007) due to a lack of knowledge about the destination or preventive measures (Page, 2009). Still, this type of risk is also frequent in international tourism due to the threat to local communities (Abraham et al., 2020). Travellers' decision-making is also influenced by health risk; if people judge a place to have a high level of health risk, they are less inclined to go there (Bhati et al., 2020).

Global security issues can influence international tourism, significantly impacting the behaviour of tourists (Han et al., 2019). For instance, travellers’ perceptions of danger may have been impacted by the extensive media coverage of the COVID-19 crisis, which in turn likely altered their attitudes and actions (Bhati et al., 2020). Knowledge of travel risks from the pandemic could also affect future travel behaviour among tourists (Foroudi et al., 2021).

Employees in the tourism sector experienced a heightened risk of infection during the pandemic, attributed to their frequent interactions with guests and coworkers from diverse regions (Thiessen et al., 2022). Employees perceived the return to work during the pandemic as a health risk. Concerns encompassed the inadequacy of suitable personal protective equipment, limited access to current information, and the difficulty in executing all mandated safety protocols (Kogler and Schöttl, 2023). Organizations were advised to mitigate these risks by providing clear information, instructions and supervision, as well as implementing workplace health and safety policies, which include online training on COVID-19 transmission and safety measures (Demirović Bajrami et al., 2021).

Physical risks (e.g. accidents), financial risks (e.g. unforeseen expenses) and social risks (e.g. changes in the way friends and family view the traveller as a result of the journey) also affect the tourist's decisions and satisfaction (Fuchs and Reichel, 2006). Psychological risk concerns the psychological symptoms around an event, such as anxiety, worry and regret (Kurtz and Clow, 1997). Psychological risk is common regardless of the destination (Sharifpour et al., 2014).

A functional or performance risk is the occurrence of problems with equipment or organization during the trip or in the host area (Adam, 2015). Terrorism (the possibility that tourists may be victims of a terrorist act), political instability (the potential for engagement in political unrest in the visited country) and satisfaction risk (the potential for personal dissatisfaction with the vacation experience) are also linked to tourism (Richter, 2003).

The risk of geopolitical tension between countries warrants attention due to its considerable effects on economic stability (Raheem and Roux, 2023). Geopolitical risk refers to the potential disruptions in international relations caused by wars, terrorism or tensions between states (Caldara and Iacoviello, 2018). War dangers, nuclear threats, tensions relating to the military and terrorist acts and threats are all included in the authors' geopolitical risk index. Consequently, this can be regarded as a more comprehensive indicator of global insecurity, including terrorism (Raheem and Roux, 2023). As the focus has moved from terrorism to wider geopolitical challenges, numerous empirical studies (e.g. Demilaray and Kilincarslan, 2019; Gillena and Mostafanezhad, 2019) have explored this area.

Tourism risks can arise from multiple sources, which can be complemented by risk perceptions arising from insufficient understanding of the destination and inadequate awareness of future conditions (e.g. weather) (Chang, 2009). When perceived risk surpasses acceptable levels for travellers, they implement risk-reduction strategies to enhance decision-making, aiming to reduce doubts and concerns associated with purchasing a product or service (Mitchell et al., 1999). However, this does not mean that reducing risk perceptions per se increases travel intentions (Pappas, 2016). Rather, risk perception is an anti-motivation factor that needs to be managed as a barrier, restriction or requirement (Lőrincz et al., 2023) because if tourists perceive a destination as unsafe, they will not choose it due to their negative impression, since avoiding the destination is the most efficient method of risk management (Kim et al., 2021).

Strategies for risk reduction in tourism can be categorized into two main types: modification of travel behaviour and information-seeking activities (Pham Minh and Ngoc Mai, 2023), with a dual aim: reducing both uncertainty and unintended consequences (Jiménez and San-Martin, 2016). Tourists may adopt different approaches to manage identical perceived risks, with the choice shaped by each person's subjective assessment of risk (Adam, 2015). However, excessive information gathering (especially online) may also have counterproductive effects, possibly reinforcing individuals' perception of risk (Madeira et al., 2023; Kökény et al., 2022).

Strategies employed by tourists seeking information to mitigate risk include: asking acquaintances and family members with first-hand experience of a destination or the situation there for advice; seeking the opinions of experts such as travel agents and asking advice from previous travellers via the internet (e.g. reading travel blogs) (Boros et al., 2025; Xie et al., 2021). In addition, some tourists may seek advice from their home country's consulate using the emergency number (Nugraha et al., 2020), whereas others turn to nearby law enforcement and security organizations for guidance on minimizing or avoiding hazards. National tourism organizations' information offices can also give tourists helpful guidance that can lessen the perceived hazards of a site (Adam, 2015).

When it comes to risk-reduction strategies, group and individual travellers behave differently (Matiza and Kruger, 2021). Individual travellers use low-cost travel options, conduct Internet searches for information and prefer short trips as strategies to mitigate risk. In contrast, group travellers rely on information from friends, print and electronic media and travel companies (Zhang et al., 2023). Travel agencies should communicate the importance of proactive measures, allowing tourists to book through them to reduce risk, travel in larger groups or to opt for short trips (Chien et al., 2017). They can also pay more for unforeseen expenses, purchase travel insurance, dress like locals and hire local guides (Nugraha et al., 2020; Michalkó, 2004). Tourists make other arrangements at their destination, which include restricting late-night travel, staying away from crowded areas, and not using public transportation while by themselves (Cui et al., 2016).

Organizational trust is defined as the readiness of individuals or groups to accept vulnerability to the actions of an organization or its members, grounded in positive expectations of future behaviour, despite the presence of risk or uncertainty (Ng and Allen, 2018; Zhang et al., 2026; Zolfaghari and Madjdi, 2022). Trust does not equate to risk-taking; instead, it signifies the readiness to accept risk, thereby differentiating it from the act of engaging in risk-taking. Trust is a psychological state that precedes and facilitates risk-taking behaviours in organizations (Costa, 2017; Kim et al., 2008).

Multiple theoretical frameworks explain the connection between organizational trust and risk behaviour. Trust is regarded as a precursor to risk-taking behaviour. When trust exceeds a specific threshold in relation to perceived risk, individuals are more inclined to participate in behaviours that entail vulnerability, including cooperation, information sharing and dependence on others' expertise (Costa, 2017).

Trust functions to mitigate perceived risks in organizational operations. It arises as a reaction to uncertainty and risk, where optimistic expectations regarding the actions of others promote participation in risky scenarios (Jabareen and Carmon, 2010). In situations characterized by potential risks, trust serves as a significant predictor of behavioural intentions. Trusting beliefs, defined as the belief in an organization's dependability, and risk beliefs, characterized by the perceived possibility of loss, collectively impact decisions to engage in risk-related behaviours (El Emam et al., 2011).

The concept of trust has been extensively examined in the context of risk behaviour, involving multiple mechanisms and dimensions that affect individual decision-making. Trust is shaped by assessments of the trustee's competence, goodwill and moral principles. If these are considered adequate, trust is established, enhancing the propensity to embrace risk. Trust comprises beliefs in good intentions, domain competence and online competence, each influencing risk behaviour variably in high-risk contexts (Marett et al., 2015).

Organizational trust serves as a mediator in the relationship between organizational climate, including safety climate and various outcomes such as motivation for safe behaviours, job satisfaction and decreased turnover intentions (Kath et al., 2010; Liu et al., 2020). Trust functions on various levels: between individuals (interpersonal) and within systems or institutions (organizational/institutional). Both forms significantly impact risk-related behaviours (Chen et al., 2015; Zheng et al., 2017).

Our research aims to better understand consumer behaviour towards incentive trips. Within this, two key research areas were addressed: the attitudes of individuals towards risk-taking and risk reduction. Due to the under-researched nature of the topic, we conducted an exploratory analysis, as the scarcity of literature made it challenging to identify hypotheses. In the case of research examining consumers with other travel purposes, the applicability of the results to describe the behaviour of incentive travellers, in general, needs to be investigated. It is by no means specific that the types of risk perceptions identified in the research on leisure travellers are entirely consistent with the perceptions of those who travel for leisure. On this basis, two main research questions have been formulated:

Among the qualitative techniques, structured in-depth personal interviews were used. A total of 47 Hungarian people were interviewed in April 2024 using a snowball sampling method in Hungary. A snowball sampling strategy was applied, as this approach is particularly effective in accessing participants within specific professional contexts (Creswell and Poth, 2016). The interviewees had travelled for incentive tourism purposes in 2019–2023. They are employed by top multinational financial and insurance companies, usually as sales representatives or referents. The companies are employing between 1,500 and 2,000 employees in Hungary.