There is a transformative shift in modern hospitality towards theexperience economy, which means more changes and trends are underway in theindustry's dynamic landscape. First used by B. Joseph Pine II and James H.Gilmore in 1998, the term experience economy refers to the sale of memorableexperiences to customers.
Rising middle-classpopulations, a surge in disposable incomes and modern audiences being dominatedby millennials and Gen Z—who prefer to spend on lasting memories andexperiences—is fuelling this economic shift. With the worth of this trendprojected to reach a staggering $12 billion by 2023, let us explore how hospitality businesses can rise to meet thenew demands of the experienced economy.
Emerging destinations and luxury experiences
Across the globe, countries like the United Arab Emirates, Qatar,Saudi Arabia, and Morocco are making significant investments in tourisminfrastructure, captivating business and leisure travellers. These nations areat the forefront of attracting tourists with opulent and exclusive experiences.Simultaneously, in South Asia, India, Sri Lanka, and Nepal have emerged asleisure and wellness tourism hotspots.
These nations promisemany experiences steeped in diverse cultural heritage, ancient traditions,spirituality, and rejuvenating Ayurveda-based wellness practices. Businessescan leverage wellness tourism, nature escapism, and exploration and tourservices, providing tourists with a chance to encounter new experiences.Powered by modern solutions designed for wellness and leisure services,delivering exceptional services that direct tourists to these luxuryexperiences is much easier.
Hyper-personalisation addressing individual needs
Most modern businesses are on the quest to create personalisedexperiences. In the experience economy, providing a mere place to stay nolonger suffices as discerning guests seek unique, exclusive and memorableencounters. To cater to these expectations, businesses are responsible forunderstanding and appreciating modern consumers' evolving preferences and howthey differ with gender, class, race, ethnicity, spending power and workingdiscipline. This can be achieved through meticulous analysis of guest datataken from a plethora of sources, including website chatbots, reviews, records,POS solutions, hospitality ERP systems, social media conversations and dataanalytics. Having the right software that captures data is of true essence.
By harnessing the powerof data, businesses can not only stay ahead of the curve in delivering tailoredexperiences, but also create lasting impressions with their clientele.Personalisation adds an intimate approach to hospitality and lays thefoundation of customer loyalty, repeat purchases and elevated guestsatisfaction.
Curated experiences and tailored services
The benefit of the rising number of hospitality solutions is thatthey leave a trail of data that businesses can retrieve and analyse to optimisetheir operations. Hospitality businesses can leverage modern technologysolutions in various ways to create and deliver curated service packages thatcater to their guests' specific needs and preferences. The wealth of guest datais an excellent opportunity to curate experiences that resonate with eachindividual.
For example, the rightsolution will provide data that can provide insights into customer behaviourand trends. This helps identify popular add-ons and services that can bebundled together to create curated packages. Solutions like chatbots, mobileapps and guest service modules help businesses engage with guests before,during and after their stay, and respond to queries as fast as possible. Pastpurchase data helps hotels understand their most repeated customer segments andoffer exclusive, VIP services and loyalty programs.
Give opportunities for immersive local experiences
Another significant element that is born from the experienceeconomy is the desire for immersive local experiences. According to ET TravelWorld 87% of millennials prioritise exploring new cultures overtraditional activities like shopping or partying. Hospitality businessowners need to know the right mix that can market their property as a localcommunity experience. Displaying original artwork and collaborating with localartists, tour operators and event planners is a brilliant strategy in thisregard. Further, offering exquisite meals using comprehensive POS solutions,hotels and restaurants can market homegrown dishes, beverages and menu combosthat reflect the local community.
Taking this experiencefurther, businesses can provide curated packages that include unique localexperiences such as guided tours, cooking classes, art workshops or visits tolocal markets. Detailed information and booking options can be provided throughthe hotel's website or mobile app.
Bridging gaps with digital connections
In today's digital age, connecting with guests online isparamount. This entails sending personalised emails on special occasions, encouragingguests to share their experiences on official social media pages, and invitingthem to tag the property. Such communications build a connection with customersbeyond a business transaction, fostering loyalty and creating a sense ofcommunity that entices the customer to interact and engage more with abrand.
In this light, theincreasing power of social media should not be overlooked, especially withtravellers and guests heavily influenced by "social proof". Creatinga strong online presence and encouraging guests to share their hospitalityexperience on a social network gives brands user-generated-content to reshare–potential guests then use this information when deciding their destinations,restaurants or accommodation options.
Unforgettableservices create lasting experiences
As the experienceeconomy continues to gain momentum, the hospitality industry is required tomove out of the traditional frame into a guest-centric service. Understandingguest preferences, personalisation and a dedication to unforgettableexperiences that embracing innovation is paramount.
After all, staying attuned to their audience's evolving needs is howhospitality businesses can thrive in this new landscape. Adaptability and acommitment to exceptional service is the key to success in modern hospitality.