For small hospitality operators, John Cradden explores ways to boost guest experiences and value without major investment.
When travelers reserve a hotel room, campsite, theme park, or famous attraction, what exactly are they purchasing? For businesses in tourism and hospitality, framing their offerings as an experience can raise guest satisfaction and perceived worth.
What is the experience economy?
The concept of the experience economy is well-known among tourism and hospitality professionals, many of whom already adopt its principles. This strategy transforms basic products or services into unforgettable moments for customers.
Beyond tourism and hospitality, this model has spread to areas like retail, entertainment, events, arts, sports, culture, and heritage industries.
While the term was coined nearly 30 years ago, an Ibec Economic Insights report published in 2024 did a lot to popularise the notion of the experience economy for Irish businesses.
According to Ibec, the experience economy as a whole contributes €4 billion annually to the Irish economy, generates export earnings (from inbound tourism) of up to €7.0 billion, and employs over 330,000 people.
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The report said its emergence reflected a “fundamental shift in consumer demand, whereby consumers increasingly value experiences rather than a transaction that is typically traded in many goods and services sectors”.
It adds that the reach of the experience economy runs deeper than the surface of traditional front-of-house in hospitality, tourism, and entertainment, adopting a supply chain with many ancillary suppliers and contractors, particularly in the food and drink sector.
Case studies
The Ibec report provides several case studies featuring six Irish businesses (albeit large ones). These include a five-star hotel in County Clare, a Dublin museum, a large craft store brand popular with tourists, a music festival, and a linen supplier to the hospitality, leisure, and healthcare industries.
How can smaller businesses in this field boost guest experiences and perceived value without heavy spending?
Simple yet effective ways to increase value include leveraging local expertise, deepening guest engagement, and maximizing what’s already available.
How to enhance the guest experience
Start by noting everything you know about your local area and use this information to create a local guide (printed sheet or PDF) specifically for your visitors. Recommend hidden beaches or walks, suggest itineraries depending on the time of year and the day-to-day weather, and highlight local pubs, restaurants, stalls, artists, and events. This will help make guests feel they are getting insider access.
You could take this further by working on your guest welcome experience, incorporating the local guide into a welcome pack along with a simple orientation map, a personalised greeting, and practical advice about the area, such as parking, best times to visit places, etc.
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Are there activities that you can organise in or around the grounds of your own premises that guests could participate in, such as storytelling evenings, guided nature walks, or cooking or baking sessions or demonstrations? You could team up with other businesses to create these.
Building links with as many local businesses in your area may also generate ideas and opportunities to create a kind of destination eco-system that lifts all your boats in terms of revenue and income. Think of partnerships with bike-rental companies, local farms, traditional music venues, and artisan coffee stalls or vans. You could work on promotional materials and handouts as a group to make it look more professional.
This material could also incorporate storytelling to enhance the tourism experience, with information on the history of your building and surrounding area, your family’s links to the business, and local folklore.
To add to guests’ convenience, you could work on anticipating common problems and thereby remove any potential friction that could spoil their experiences. For example, providing in advance clear directions to the destination, information on Wi-Fi and charging points, public transport options, and early breakfast options for those who want to hike or play golf.
During their visits, encourage your guests to post social media content about the destination, such as by recommending good photo spots for ‘instagrammable moments’, creating a branded hashtag or QR codes, and sharing photos with permission.
And don’t forget to provide opportunities for giving feedback, whether it’s a comments book at reception or an online platform.
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