The New Experience Economy: Why (Time + Cost) Experience = Satisfaction
By Scott Hale Chief Experience Officer, Brand New Stay | April 21, 2013
Where did this New Experience Economy come from?
Let's sit down for a cup of coffee. Back in the day of the commodity driven economy, we would have bought or traded for our own basic coffee-creating commodities like water, firewood, coffee beans, milk and sugar to prepare that delicious cup of coffee. Our cost for a commodity based cup of coffee would be pretty low.
Leap forward to the goods based economy. We're not interested in basic undifferentiated goods. Instead we're looking for distinctive tangible goods like our favorite fresh coffee beans in a can all ready to dump into our automatic electric coffee maker. Our cost for a cup of coffee just went up.
Flash forward to today and we'll outsource the whole project. We aren't at all as interested in the cup of coffee as we are the experience that comes with it. We spend time finding the hottest coffee shop, check our phone for their daily special, wait in line, check-in to the shop on our phone, wait for our beverage, take a picture of our beverage and share it with our peers, pay top dollar for the coffee and then try to find a seat to enjoy it.
Welcome to the New Experience Economy
Just like with a cup of coffee, hotel guests seek experience. As we've just demonstrated, an experience is a distinctive economic offering. That's good news for hoteliers because you're in the business of selling and delivering experiences. Sounds easy, but these experiences need to satisfy your guests. Satisfying today's guest means that you're really in the transformational business.