The Experience Economy

1. The Experience Economy
Presented by Aj Scott Smith
Niche Tourism Lecture 5

2. Housekeeping
1. Thanks for the feedback
3rd Reaction paper, Find a journal article that interests you
and write a one page summary (demonstrate your
understanding). The Experience Economy would be
great, but you finding an article of interest to you is
most important.

3. Individual Assignment (25% of final grade)
You have your choice.
Choose either;
1. Assignment 5.5 page 69 of The Experience Economy
OR
2. Assignment 6.9 page 165 of The Experience Economy
OR
3. Airline Trends
Prepare a 350-500 word paper and a 4-5 min
PPT presentation outlining your thoughts.
Due December 11

5. Review

6. William Ury

7. “The 3rd side helps us go to the balcony”
William Ury

9. http://www.ted.com/talks/william_ury.html

10. 2 degrees of Separation ?
Joseph Pine-Thomas Thijssen-Scott Smith

12. Chapter 1- Introduction
Key Points:
Coffee Progression
Progression of Economic Value
Kotler feels differently…
A new generation of the experience
economy, co-creation.
Meaningful experiences
*Tips Read 1.4 and 1.5

16. http://www.ted.com/talks/lang/eng/joseph_pine_on_what_consumers_want.html
Pg2 “Their thesis is as soon as a country reaches a certain level of
affluence, the attention shifts from goods and services to experiences”.

18. Chapter 2
Meaningful Experiences
• The Ultimate Experience
• Motivation (Maslow) pg 25
• 5 senses
• 6 Characteristics of a meaningful experience
*Tip-Read 2.1.4 and 2.2

21. It’s OK to disagree
Asian Paradigm?
GenY?
PRIDE
?
2 out of 3
And You’re
?
motivated
?
Sanook
Money (FUN)

22. Engagement
Motivation
• Making numbers • Good Health
• Getting to the Top • Knowing my friends
• Famous • Being Loved & Appreciated
• Wealthy • Helping others
• Powerful • Green Issues
• Others want what you’ve got • Safety and Harmony
• Others copy you • Time and Money to do what I
• People offer you more for doing less enjoy
• Not having to worry about
Money

23. Discussion
(2 minutes)
What is your personal
definition of „experience‟ ?

24. Discussion
(2 minutes)
What are the most
significant personal
experiences that have
determined the course
of your life?

25. Discussion
(2 minutes)
What are the most
significant social
experiences that you will
never forget?

26. Discussion
(2 minutes)
What are the most
significant experiences
that you have paid for
and will never forget?

27. How
can experiences be created
and offered to customers
(students)?

29. Chapter 3
Meaningful Experiences in Society
Context of giving meaning to things
Personal, Socio-cultural, Physical
Watersheds in Human existence pg 39
Moens’ Fundamental Developments (Trends)

30. In your opinion what are the five
most important developments
currently taking place among
young people?

31. Chapter 4
The role of companies in giving meaning

32. Examples of Eatertainment
Eatertainment is the best example of
goods/service/entertainment all together.
Guests go in typically for dinner and leave
with memories and souvenirsrtainment=
Dinner show/movie themes/ jungle noises
“No, I don’t want to go pay 12 dollars for a
small crappy burger just so I can say I ate
there but we can run in and get t-shirts.”
– My Brother every time we are on vacation

34. Experience Economy
 Experiences on physical, emotional,
intellectual or even spiritual levels
Wrap offerings  Experiences won’t be the same for any
two people
with experiences  Spreads beyond theatres and theme
for higher levels
parks:
 Hard Rock Café, Planet Hollywood
of differentiation  Niketown
and profit  Geek Squad
“to go beyond the function and compete on the basis of providing experience”
- Sir Colin Marshall, Chairman, British Airways

35. the experience economy
The New Paradigm for Brands
Prepared by Heather White-Laird
Executive Creative Producer, iCrossing

36. “mass marketing is dead”
Alan Lafley, CEO of Proctor and Gamble

37. advertising
can
no longer
exist
by
blasting
messages
to an
audience

38. prior to the internet it was a
people to people
world

39. there were smiling shoe salesmen

40. now the relationship is digital

41. there were kindly bank tellers

42. now it’s all done online

43. in just the
last two years,
there has been a
fundamental shift
in how
we experience
the
world

44. people want
to be part
of a
community
& brands
need
to participate
in
that
conversation

46. we now live
in an
where
people have shifted
from
passive consumption
to
active participation
Joseph Pine and James Gilmore

47. once our
basic
needs
are
met…

48. We seek an emotional experience
we seek an emotional experience

49. this doesn’t satisfy us anymore

50. it’s all about the relationship

51. and instead of this

52. we seek a financial friend

53. a brand is not a place, it’s a direction
John Gerzema, Chief Insights Officer, Young & Rubicam

54. the new value paradigm is
no longer
commodities,
nor products,
nor services,
but

55. for decades
the mantra
was always
show the
product

56. always
show
the
product

57. or show someone famous with
your product

58. now product takes a back seat to
experience

61. service vs. experience

62. design has the power to enrich
our lives through
image
form
texture
color
sound
smell

63. As marketers,
we must help brands
participate in that
through design

64. A business model based on happiness

65. Do we really need more proof that we live in
an experience economy?

66. Chip Conley told us about the development of his company
Joie de Vivre Hospitality, with which he won the world‟s
„Experience Stager of the Year‟ award in 2001. He creates
niche boutique hotels dedicated to the adjectives described in
a lifestyle representing magazine.
Brands are mirrors! the whole corporate culture that
he designs by working with, among others, „work climate
surveys‟ and an „open door policy‟ for which he won the 6th
„Best Company to Work for in California‟ award.
http://www.jdvhotels.com/
http://www.ted.com/talks/lang/eng/chip_conley_measuring_what_makes_life_w
orthwhile.html

67. Typical Business Cards?
No more!

68. Questions?

70. A man of 92 years, short, very well-
presented, who takes great care in his
appearance, is moving into an old people’s
home today.
His wife of 70 has recently died, and he is
obliged to leave his home.
After waiting several hours in the retirement
home lobby, he gently smiles as he is told
that his room is ready.

71. As he slowly walks to the elevator, using his
cane, I describe his small room to him,
including the sheet hung at the window which
serves as a curtain.
"I like it very much", he says, with the
enthusiasm of an 8 year old boy who has just
been given a new puppy.
"Sir, you haven’t even seen the room yet,
hang on a moment, we are almost there. "

72. " That has nothing to do with it ", he
replies.
" Happiness is something I choose in
advance. Whether or not I like the room
does not depend on the furniture, or the
decor – rather it depends on how I decide
to see it. "
" It is already decided in my mind that I like
my room. It is a decision I take every
morning when I wake up. "

73. " I can choose. I can spend my day in bed
enumerating all the difficulties that I have
with the parts of my body that no longer
work very well, or I can get up and give
thanks to heaven for those parts that are still
in working order. "

74. " Every day is a gift, and as long as I can
open my eyes, I will focus on the new day,
and all the happy memories that I have built
up during my life. "
" Old age is like a bank account. You
withdraw in later life what you have
deposited along the way. "

75. So, my advice to you is to deposit all the
happiness you can in your bank account of
memories.
Thank you for your part in filling my
account with happy memories, which I am
still continuing to fill…

76. Remember these simple guidelines for happiness.
1. Free your heart from hate.
2. Free your mind from worry.
3. Live simple.
4. Give more.
5. Expect less.

77. Jorge
Colombo
Niche Tourism 101

78. SPECIAL INTEREST TOURISM

79. Tourism
Activities
Mass Niche
Tourism Tourism

80. • Mass Tourism: Conventional tourism
involving large numbers of tourists in
staged settings
• Niche Tourism: Special Interests,
culture, and/or activity-based tourism
involving a small number of tourists in
authentic settings

82. Cultural
• Heritage
• Tribal
• Religious
• Educational
• Genealogy
• Research

83. Environmental
• Nature and wildlife
• Ecotourism
• Adventure
• Coastal

84. Rural
• Farms
• Camping
• Wine
• Sport
• Festivals and events

85. Urban
• Business
• Conference
• Exhibition
• Sport
• Gallery
• Art

86. Others
• Photographic
• Small Cruise
• Volunteer
• Youth
• Transport

87. NIGHT VIEW OF BANGKOK

88. Principles of Ecotourism:
• Minimize impact.
• Build environmental and cultural awareness
and respect.
• Provide positive experiences for both visitors
and hosts.
• Provide direct financial benefits for
conservation. Provide financial benefits and
empowerment for local people.
• Raise sensitivity to host countries' political,
environmental, and social climate.

89. Responsible Travel Myths
 I have to sacrifice quality and luxury of
accommodations.
 It's expensive!
 It's too difficult to be a responsible
traveler.
 It means traveling to tropical jungles.
 It's for backpackers.

90. Extreme Tourism
• Extreme tourism or impact tourism is
including a kind niche tourism clearance
to the dangerous places (mountains,
jungle, deserts, caves, etc.) or
participation with into dangerous cases.

91. Patagonian Desert

92. Canoe on the Amazon River

93. Rock Climbing in Pakistan

94. Fashion Tourism
• Paris
• Milan
• New York
• Tokyo
• Shanghai
• Sydney

95. Champs Elysees, Paris

96. Milan Luxury Shopping Arcade,
Italy

97. ARCHITECHURE
• Chicago

98. Ginza, Tokyo