How Destinations Can Stand Out with Unique Experiences
What can tourist destinations learn from the experience economy, where human engagement is at the heart of creating meaningful and memorable events? Today’s destinations succeed not by merely highlighting beautiful beaches or exclusive dining options, but by capturing the unique charm of local culture and fostering authentic exchanges between visitors and the place.
What Defines an “Experience”?
The concept of the experience economy was revolutionized in 1998 when Joseph Pine II and James Gilmore introduced it in their book The Experience Economy. Pine and Gilmore proposed that economies have evolved from agrarian to goods-based, then to services, and ultimately, to experiences. According to them, an experience is crafted when a company uses services as a stage and products as props to engage customers in a way that leaves a lasting impression.
This framework has reshaped how business leaders envision their offerings, and yet many destinations claim to provide “experiences” without fully understanding what that means. Is an experience simply tours and activities, or something more profound?
Research on happiness and well-being suggests that experiential purchases bring people greater joy than material ones. For Generation Z travelers in Europe, for instance, top experiences include tasting local cuisine, exploring urban culture, and participating in cultural activities, emphasizing a desire for immersive, memorable experiences.
Why is “Experience” Important for Destinations?
Traditionally, tourist destinations competed on similar features—often sandy beaches or iconic landmarks—making them interchangeable in the eyes of travelers. This competition on sameness, or points of parity, leads to commoditization, price wars, and ultimately lower profit margins. To make up for these margins, destinations must attract higher tourist numbers, which strains resources and diminishes quality of life for local communities.
To escape this cycle, destinations need to differentiate through unique cultural experiences that can’t be replicated elsewhere. Take Japan as an example. Post-pandemic, Japan became one of the world’s most popular travel destinations due to its distinct cultural offerings: from savoring Japanese cuisine and soaking in onsens to participating in traditional festivals and visiting historic temples. This authentic immersion in Japanese life is an experience that only Japan can provide.
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Co-Creating Experiences with Tourists
Today’s travelers seek active participation—they want to fully engage with local culture through all five senses. Culinary tourism is an excellent example: tourists want to taste dishes as they’re authentically prepared in a region, comparing these to versions they may have tried at home. Destinations can keep an eye on trending interests and collaborate with local businesses to create immersive activities, like combining a hike through the Swiss Alps with a traditional fondue meal.
This approach allows tourists to participate in local life while creating opportunities for the community to share their traditions, fostering positive interactions that build local pride.
Stand Out by Offering Authentic Experiences
Emerging destinations often build awareness by highlighting common features they share with popular destinations. However, emphasizing points of parity, such as shopping or luxury hotels, rarely creates a lasting impression since such amenities are widely available. Unique selling points, on the other hand, attract visitors by offering something truly different.
Experiential purchases enhance personal well-being because they foster meaningful social interactions. Giving tourists the chance to connect with locals can create powerful emotional memories, whether through something as unique as a religious ceremony or as simple as a shared sport. Dubai, for instance, has actively encouraged interactions between locals and tourists in public spaces like parks and bike trails, creating spontaneous moments of connection that leave visitors with lasting impressions of the city’s hospitality.
In the experience economy, destinations that celebrate and share their unique cultural heritage stand out, creating happier tourists and more sustainable, meaningful tourism.
