Your guests don’t want service, they want a show!

Most businesses are chasing “good service,” when what really drives profit and loyalty is experience.

Pressing pause made me realise we’ve all been measuring the wrong thing. And that realisation? It sits at the very heart of something bigger, what economists and strategists call The Experience Economy.

Where the Term Came From

Back in 1998, two Harvard Business School thinkers, B. Joseph Pine II and James H. Gilmore, coined the phrase “The Experience Economy.” They described it as the next evolution in how we create value, moving from selling goods and services to staging experiences.

Their idea was simple, but revolutionary:

“Work is theatre, and every business a stage.”

They argued that people no longer buy things for the thing itself, they buy for the experience attached to it.

In the late 90s, that meant things like themed restaurants, immersive retail and unforgettable customer interactions. It was about adding emotional value to physical transactions.

Fast forward to today and The Experience Economy has levelled up. It’s not a trend, it’s the economy we’re living in.

What It Means Now

Customers have infinite options. They can get the same meal, tour, or stay almost anywhere. What they can’t get everywhere is how your business makes them feel.

That’s the currency of modern hospitality and tourism.

We’ve entered an era where people expect connection, personalisation and purpose. They want to belong to the story your brand tells. They’re not just visitors, they’re participants.

And here’s the best bit: those feelings have a direct ROI. According to recent studies, businesses that prioritise customer experience see up to 80% higher revenue growth than their competitors.

Now that’s strategy!

Growth Starts with CX Strategy

Hospitality and tourism operators are uniquely positioned to lead this charge because experience is already in our DNA. But it’s not enough to just “be friendly” or “go the extra mile.”

The Experience Economy demands that you:

1. Design the journey. Map every touchpoint before, during and after the visit.
   
2. Add the wow. Find those moments of surprise and delight that guests rave about.
   
3. Use data and tech smartly. Automate the routine so you can focus on human connection.
   
4. Personalise. People want to feel known, not processed.

And yes, that means bringing AI into the mix, not to replace your warmth, but to amplify it.

Imagine an AI follow-up that remembers a guest’s anniversary, or a chatbot that sounds genuinely local and fun. That’s not tech getting in the way. That’s tech helping you scale your hospitality magic.

Why It’s Bloody Profitable!

Here’s the thing: the Experience Economy rewards the businesses brave enough to think differently.

When you shift from service to experience, you move from transactional to transformational. And that shift builds loyalty that lasts, the kind that keeps tables full and bookings steady, even when the market wobbles.

If your guests are coming back, spending more and bringing friends, that’s not luck. That’s experience design in action.

And the best part? You don’t need a million-dollar marketing budget to do it. You just need a few intentional “wow” moments built into your customer journey.

Ready to Create Your Own Experience Advantage?

If you want to start turning your good service into repeat business gold, grab my free guide:
7 Wow Moments to Increase Repeat Visits