Hospitality Management: Experience Economy & Cultural Shifts

This essay explores the application of the experience economy in the hospitality sector, emphasizing customer experience. It highlights the transformation of the hospitality industry from a social construct to a commercial phenomenon, focusing on cultural diversity and economic contributions. The study examines how the experience economy enhances customer engagement, using Hotel Windsor as an example. It contrasts the modern approach of selling experiences and memories with the historical focus on service quality and delivery. The essay concludes that hospitality is not only about cultural and social development but also about enhancing customer experience, which drives economic growth.

Running head: HOSPITALITY MANAGEMENT
Hotel and Hospitality Management
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This current report highlights on the application of the idea experience economy in the
hospitality sector. However, this term focuses on the customer experience in this industry. It has
been received that hospitality sectors not only contribute to the social and cultural development
but also enhances the customer experience. In the recent years, hospitality industry adds value to
the customers by providing an excellent unique service. According to the experience economy, it
has been found that consumers purchase memory and experience from the hospitality industry.
This is the main importance of such industry in the global market.

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Table of Contents
Introduction......................................................................................................................................4
Hospitality industry and the experience economy approach...........................................................4
Role of “experience economy” approach to understand that hospitality industry differs from the
previous cultural social and historical meaning of hospitality........................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The management of the hospitality and hotel is an evolving process. The history of the
hospitality industry highlights that this industry has transformed from social construct to a
commercial phenomenon. However, the hospitality industry is a sector of social integration,
where people come from different cultures and religions (Loureiro 2014). A cultural diversity
occurs in the hospitality industry, which is an important aspect of the social construction. In the
recent years, hospitality sectors are considered as the commercial place as it contributes a good
proportion of the economy of a country. This sector is associated with the social development
and economic development of a country. This study deals with the role of experience economy
approach, which ensures that hospitality differs from past cultural, social and historical meaning
of hospitality.
Hospitality industry and the experience economy approach
Experience economy is considered as the fundamental change that is currently going on
the modern economy (Ali et al. 2016). In the recent years, service or goods are predominate
economic offering in the industrial economy. In the hospitality sectors the goods are treated as
the commodity and it can move from the industrial economy to a service economy. For the
hospitality sectors, the experience economy focuses on the customer's experience. However,
customer's experience refers to the interaction between the customer and the organization based
on the service or product. The hospitality sectors provide service to the customers to engage
them with their organization. As for example, Hotel Windsor a popular hotel in Australia focuses
more to enhance their customer experience by offering innovative service to their customers.
They offer the online opportunity to the customers to book the service. This is a significant way

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of such organization to enhance the customer experience (Thehotelwindsor.com.au 2018). They
have various departments to complete their operation, which allows such organization to solve
the customer query. However, they have a special department to solve the customer query
regarding any service within 10 hours. This enhances their economy by increasing the customer
experience.
Experience economy in a hospitality sectors highlights the experience that the customer
obtains from the seller in exchange for money (Manthiou et al. 2014). However, experience
economy is a new economic era, where the business industry makes a memorable event for their
consumers. In the context of the hospitality industry, customers have a high expectation
regarding the service. Hence, hotels have to increase their customer service as well as the facility
which will make their customer valuable. However, if the hospitality sectors provide excellent
service to the customers then it will help them to satisfy their customers and build a good
relationship with the customers. Service and products of the hospitality industry play an
important role to add value to the customers. However, if the hospitality sector provides a
comfortable and spontaneous service along with the effective communication then it will be
beneficial to enhance the customer experience in the experience economic era.
Role of “experience economy” approach to understand that hospitality industry differs
from the previous cultural social and historical meaning of hospitality
In previous hospitality industry is associated with the social integration. However, social
class, status, and ethnicity have a great impact on the hospitality sectors. The hospitality industry
provides economic support in the development of the education. On the other hand, it provides
protection to the visitors while they are staying in a hotel or hospitality sector. Therefore, the

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cultural meaning of the hospitality industry refers to the cultural diversity in this industry. People
from different cultural backgrounds come to visit in the hospitality sectors. This allows such
sectors to bring cultural diversity in their organization. Hence, this industry has a great
contribution to the social and cultural development. The historical meaning of the hospitality
industry focuses that the term hospitality, which means the taking care, helping and pampering
others (Radder and Han 2015). In previous, the aim of the hospitality industry was to provide
excellent customer service and to satisfy their customers. There was no account of analyzing the
customer experience in this industry. The idea experience economy ensures that hospitality
sector is not just the cultural and social development but it has more importance in enhancing the
customer experience (Chang 2018). Therefore, to meet the needs of the customers is not one and
only motto of the hospitality industry. In the recent years, this sector gives their concern to the
customer experience by providing unique service. Experience is the core area of the hospitality
industry as by enhancing the customer experience this sector can enhance their economic growth.
As for example, Hotel Windsor offers far-reaching service to the customers by creating a unique
design in their setting. They have various small departments and each of the department is
specialized for a particular service to provide a better service to the customers. Such design in
their organization is helpful for them to make their business unique in the global market.
According to the previous concept, the customers buy quality and service from the
hospitality industry. However, experience economy approach shows that customers buy
experience and memory from the hospitality industry rather than the service quality and service
delivery (Harkison et al. 2018). Hospitality industry offers accommodation and catering service
to the customers, which highlights the experience economy as it provides more experience to the
visitors along with improving the economy. Hence, it can be said that hospitality sectors are not

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only associated with the cultural and social development and the delivery of the service but also
enhances the customer experience. This sector not only just sells the service but also sells the
experience to the customers.
Conclusion
The entire piece of the study deals with the experience economy approach in the context
of the hospitality sector. However, experience economy focuses on the customer experience. As
per the history, the hospitality sector is considered as the place of social and cultural integration,
where people from different cultures come and take service. Hence, this sector has great
contribution in developing cultural diversity in their business by providing service. However, as
per the concept of experience economy, it has been found that hospitality industry is a sector,
from where customers buy experience in terms of service.

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References
Ali, F., Amin, M. and Cobanoglu, C., 2016. An integrated model of service experience,
emotions, satisfaction, and price acceptance: an empirical analysis in the Chinese hospitality
industry. Journal of Hospitality Marketing & Management, 25(4), pp.449-475.
Chang, S., 2018. Experience economy in hospitality and tourism: Gain and loss values for
service and experience. Tourism Management, 64, pp.55-63.
Harkison, T., Hemmington, N.R. and Hyde, K.F., 2018. Creating the luxury accommodation
experience: case studies from New Zealand. International Journal of Contemporary Hospitality
Management, (just-accepted), pp.00-00.
Loureiro, S.M.C., 2014. The role of the rural tourism experience economy in place attachment
and behavioral intentions. International Journal of Hospitality Management, 40, pp.1-9.
Manthiou, A., Lee, S., Tang, L. and Chiang, L., 2014. The experience economy approach to
festival marketing: Vivid memory and attendee loyalty. Journal of Services Marketing, 28(1),
pp.22-35.
Radder, L. and Han, X., 2015. An examination of the museum experience based on Pine and
Gilmore's experience economy realms. Journal of Applied Business Research, 31(2), p.455.
Thehotelwindsor.com.au. 2018. Hotel Windsor. [online] Available at:
http://www.thehotelwindsor.com.au/en/default.html?
utm_source=google&utm_medium=organic&utm_campaign=local [Accessed 17 Feb. 2018].