When booking a hotel, campsite, or visiting a theme park, guests are really buying an experience, not just a product or service. The term “experience economy” is familiar to many in the industry, and it is about re-branding and re-marketing offerings as memorable experiences.
This approach is now applied to various sectors, including retail, entertainment, and arts. An Ibec Economic Insights report published in 2024 popularized the notion of the experience economy for Irish businesses, stating it contributes €4 billion annually to the Irish economy.
The Value of Experience Economy
The experience economy generates export earnings of up to €7.0 billion and employs over 330,000 people. Its emergence reflects a shift in consumer demand, where experiences are valued over transactions. The reach of the experience economy goes beyond traditional front-of-house in hospitality and tourism, and it involves a supply chain with many ancillary suppliers and contractors.
The Ibec report features case studies of six Irish businesses, including a five-star hotel and a music festival.
Enhancing Guest Experiences
Small operators in the sector can enhance guest experiences and perceived value without significant capital investment. One way to add value is to exploit local knowledge. They can improve guest interactions and make better use of existing assets. Creating a local guide, recommending hidden beaches or walks, and suggesting itineraries can help make guests feel like they are getting insider access.
Small operators can also work on their guest welcome experience. They can incorporate the local guide into a welcome pack along with a simple orientation map and personalized greeting. Organizing activities such as storytelling evenings or guided nature walks can also create memorable experiences for guests.
Building Partnerships and Anticipating Needs
Building links with local businesses can generate ideas and opportunities to create a destination ecosystem that benefits all parties. They can partner with bike-rental companies, local farms, or traditional music venues to enhance the tourism experience. Providing anticipatory services, such as clear directions to the destination or information on Wi-Fi and charging points, can also remove potential friction and improve guest satisfaction.
Encouraging guests to post social media content about the destination, such as recommending good photo spots or creating a branded hashtag, can also drive repeat visits and word-of-mouth. Providing opportunities for giving feedback, whether it’s a comments book at a reception or an online platform. By combining attention to small details, strong community business links, and regular events or rituals, small operators can drive repeat visits, strengthen margins, and deepen customer loyalty.
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