Hospitality in the Experience Economy

Hospitality in the Experience Economy

Aditya Ranjan, Shweta Chandra, Rohan Bhalla, Sumedha Agarwal
Copyright: © 2022 |Pages: 22
DOI: 10.4018/978-1-7998-8775-1.ch005
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Abstract

Experience economy plays a predominant role in the hospitality industry. Consumer experience has always been of great importance for the hospitality business. As consumer experience evolved, businesses needed and still need to find new ways to differentiate themselves. To remain competitive and stay in the market, hospitality firms are working towards creating outstanding and memorable experiences that exceed guest expectations. In the context of Pine and Gilmore's experience economy conceptual model, the chapter attempts to theorize and explain how hospitality businesses are curating consumer experiential encounters. Digital nomads are the ignition source of driving an experience economy. The chapter further highlights how technology would additionally ease hospitality enterprises to frame excellent strategies focused on supplying the value to the digital consumers and then expecting their customers to generate additional business.
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Understanding Experience Economy

Experience Economy includes services, retail, travel, food & beverage, tourism, entertainment, technological, cultural, sporting, and heritage industries (Lorentzen, 2009). It connects multiple components of the economy by bringing together small businesses and regional economies to generate employment. Economies have a dynamic nature with unique progression. Structural change in the economy comes as an inevitable consequence of economic growth (Pine II & Gilmore, 1998). Initially, the financial system began with economies of commodity. A commodity formed the basis of the barter system in an undifferentiated agricultural economy. Gradually the economy evolved to a goods economy. Increasing demand for goods led to the expansion of the industrial sector, which led to the standardisation of goods. For example, today, different cars in the same price range offer almost the same benefits making the selection process more challenging. While discussing hospitality, the same categorisation of hotels has nearly the same set of services and facilities to offer (Cser & Ohuchi, 2008).

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