How does one infuse fresh energy and creative thinking in employees stuck in the rut of routine work? How should a company reward its star performers?

Traditional incentives include awarding certificates, 'employee of the year' awards, bonuses, increments and promotions.

How about some fresh thinking on the subject such as buying your valued employee a holiday package which could be more cost-effective than a bonus? A holiday could help him regain his rhythm, recharge his batteries and make him become more creative, say travel officials. The return on investment could be much higher and more rewarding.

Incentive travel has become a $22.9 billion industry globally and is seen at the highest boardroom level as a 'superior motivational' approach to maintaining morale.

Vacation and travel incentives are one of the most powerful methods of attracting business, retaining profitable clientele, increasing profits, enhancing product awareness and improving employee productivity.

Businesses which have used vacation incentives in their marketing and promotions have seen at least a 30 per cent increase in sales.

Research also shows that travel incentives are right up there with social and peer recognition as motivational options.

Travel is the perfect reward for the 'unsung' heroes who work in human resources, finance, administration and engineering divisions that are relatively behind the scenes but equally vital to the success of a corporation or organisation.

Incentive travel is becoming quite popular as a rewarding method in corporate circles for employees, associates, and sales representative of major brands.

Pankaj Sen Gupta, manager of Motivents, a division of Al Tayer Travels, says: "Investment in people is the critical element in the programme and underscores the new corporate attitude towards generating loyalty and morale in the workforce."

Al Tayer Travel Agency, Malaysia Airlines and Tourism Malaysia have recently joined hands to launch 'Winning Circle' - a travel incentive programme for achievers in organisations.

"In today's highly competitive marketplace, it can be a tough task to make a sale. Consumers nowadays are being smart.

"They are shopping for the best bargains and they all seem to want more than what they paid for. Every industry, both online or offline, needs a cutting-edge cost-effective powerful marketing tool that appeals to every kind of consumer. This requires creativity among professionals," says an incentive specialist.

S. Ranganath of Magma Consultants, the facilitators of the Winning Circle initiative, said: "Companies have to constantly devise new methods of showing their appreciation to attract and retain top talent. The government of Dubai has taken the lead in recognising and rewarding excellence and the private sector has to keep pace and do their part."

Winning Circle has earmarked five group departures this year for a four-day fun-filled adventure trip to Sabah in Malaysian Borneo.

According to some surveys, travel is considered to be the most effective reward. "Cash bonuses are necessary but travel is a higher reward," says V. Porterfield.

Additionally, in a recent survey of American workers, 85 per cent said they were motivated by vacation travel incentives.

What are the benefits?
* Knowledgeable and attentive employees account for 80 per cent of the reasons consumers feel satisfied, according to a PNC Bank Corp. survey.

* Fewer than one in four American workers is working at full potential; half of all workers do no more than directly asked, and 75 per cent of employees say they could be more effective in their jobs, according to the Public Agenda forum.

* About 70 per cent of unhappy customers abandon vendors because of poor service, according to the Forum Corp.

* A five per cent increase in customer retention can increase lifetime profits from a customer by 75 per cent, according to the Loyalty Effect by Frederick Reichheld.

* 'Reward and retention efforts can produce multi-million dollar returns.' That's what Andersen Consulting found in a survey of about 500 executives at more than 250 companies. The study revealed that programmes to reward leading sales, marketing, and customer service people can give a $40 million lift to a business' bottom line.