What is the experience economy in hospitality?
The experience economy in hospitality is the shift from selling rooms and amenities to selling curated, transformational experiences as the core product.
Instead of asking, “What’s in the room?”, modern guests ask, “What will I feel and do if I stay here?” They want journeys that combine private chef dinners, authentic cultural immersion, meaningful wellness, and nature-based adventure into a coherent story.
This shift is visible in global research. A joint McKinsey & Skift report on the evolving role of experiences in travel shows how “travel experiences” (activities, attractions, guided encounters) are now a core driver of demand and spend, not an afterthought. McKinsey & Company
In this model, the room is infrastructure. The real product is the journey around it: how you design, curate, and deliver experiences that guests cannot easily copy or find elsewhere.
In short, the experience economy in hospitality means you are no longer in the “bed and bathroom” business – you’re in the transformation business.
How did guests shift from amenities to experiences?
Across markets and age groups, the direction is the same: standard amenities down, curated experiences up.
- Authenticity beats sameness.
McKinsey’s work on today’s luxury traveler confirms that affluent guests increasingly prioritise cultural immersion, local connection and meaning over traditional status symbols. McKinsey & Company - Gen Z and remote workers expect more.
Younger travellers and digital nomads want immersive, community-driven stays. Industry trend overviews show a strong tilt toward “immersive, authentic experiences” and eco-conscious journeys rather than classic luxury displays. César Ritz Colleges - Bleisure and long-stay are experience-led.
Business travellers extending trips for leisure look first at what they can do around the stay – wellness, nature, culture, coworking, networking – not whether the minibar has the right champagne.
Skift’s Rise of Experiential Travel describes this as “intense global demand for travel experiences that resonate on a deeper emotional level,” from in-home chef dinners to intimate cultural encounters. Skift
From Zenith’s work across Indonesia and Southeast Asia, the same pattern repeats: when we speak with guests or read unfiltered reviews, what they remember are moments and guides – not bathrobes and shower pressure.
In short, consumer behaviour has moved. Hotels that stay stuck in amenity thinking are fighting yesterday’s battle.
How much more will guests pay for curated experiences?
The experience economy in hospitality is not just a branding story – it is a pricing and NOI story.
Well-executed, experience-driven hotels consistently achieve:
- ADR premiums versus amenity-led competitors in the same destination.
- Higher total booking value when experiences are bundled into packages (curated itineraries often add ±40% vs room-only).
- Increased ancillary spend on F&B, spa, wellness and activities, because the stay is designed as a connected journey, not a collection of upsells.
- Stronger repeat rates and direct bookings, because guests return for the story and the way they felt, not for the mattress brand.
In wellness, the Global Wellness Institute reports wellness tourism spend at around $830 billion in 2023, with wellness travellers consistently spending more per trip than average tourists. Global Wellness Institute+1 Later analysis shows domestic wellness tourists spending a 175% premium over typical domestic travellers, underlining how transformative, wellbeing-led experiences command higher value. Global Wellness Institute
Academic and industry reviews of wellness travel note that wellness retreats and experience-led lodges can grow at 8–9% annually, significantly outpacing traditional segments. EHL Hospitality Insights
Properties that go all-in on experience – from remote eco-lodges to high-end wellness retreats – show that a small, tightly curated inventory can outperform larger, generic stock on absolute profit, not just percentage margins.
In short, curated experiences are one of the cleanest ways to grow ADR, length of stay and NOI without simply slashing costs or dumping rates.
Why amenities alone are now obsolete
Amenities are not useless – but they are no longer a differentiator.
Here’s why amenities have lost power:
- Anyone can copy your hardware.
Your mattress brand, coffee machine and pool size can be replicated by the property down the road. Deep local relationships, curated access and specialist programming cannot. - Generic amenities signal generic thinking.
A standardised amenity package tells guests: “We designed this hotel once and copy-pasted it everywhere.” Today’s travellers read that as low imagination and low care. - External platforms replaced old hotel advantages.
Ride-hailing, food delivery, coworking spaces, wellness platforms and on-demand services have eaten away the amenity premium of “we have everything in-house.” Guests can assemble amenities themselves. - Emotional memory drives loyalty, not object memory.
Guests rarely say, “I came back for that kettle.” They come back because of a sunrise ritual, a guide who changed how they see the place, or a program that helped them sleep and think better.
In 2025 and beyond, amenities are hygiene. They must be good enough not to create friction. But they will not win you the guest, the ADR or the investor.
In short, amenities are the floor. Curated experiences are the ceiling.
How to pivot to an experience-first model: 5-step framework
This is where most owners struggle: how to pivot from amenity-led to experience-led without losing financial discipline.
Use this 5-step framework as a practical “HowTo” map you can brief to your team or consultants.
Step 1 – Co-create with the destination, not just decorate it
Stop treating the destination as a backdrop. Make it your co-author.
- Build long-term partnerships with local artisans, chefs, healers and guides instead of transactional, last-minute vendor relationships.
- Turn local culture into structured programs: workshops, rituals, tastings, story-led walks, not just “on request” activities.
- Use your property as a platform for local excellence – a place where guests meet the best of the region.
Outcome: Your hotel becomes the gateway to the destination’s soul, not a sealed-off bubble.
Step 2 – Design curated itineraries, not activity lists
Activities on a bulletin board are not a product. Journeys are.
- Build a simple pre-arrival profiling process (preferences, energy level, interests, dietary boundaries).
- Create 3–5 signature journey archetypes (e.g., “Regeneration & Wellness Reset,” “Cultural Deep Dive,” “Ocean & Adventure,” “Creative Retreat”).
- Design 2–7 day itineraries that bundle room, F&B, transfers and experiences into one coherent, priceable package.
Reports like “The Evolving Role of Experiences in Travel” highlight how thoughtfully designed experiences can significantly increase total spend per trip and loyalty. McKinsey & Company
Outcome: Guests buy a story they can step into, not a list they have to assemble themselves.
Step 3 – Make wellness and nature part of the core product
Wellness and nature immersion are now part of mainstream luxury travel trends, not niche spas.
- Integrate sleep, recovery and mental fitness into your concept – from room design to programming.
- Combine nature with movement: guided hikes, surf and free-diving, cycling routes, sunrise and sunset rituals.
- Offer measured outcomes when possible (sleep improvement, HRV trends, stress markers) so guests feel a tangible shift.
The Global Wellness Institute and others show wellness tourism as one of the fastest-growing segments in travel, with guests spending more per trip than the average tourist. Global Wellness Institute+1
Outcome: Your property becomes the place guests associate with feeling better – physically, mentally and emotionally.
Step 4 – Embed community and sustainability into the experience
Guests increasingly ask: “If I spend money here, what does it support?”
- Make local hiring, fair wages and training a visible part of your story.
- Support community projects or conservation work guests can visit, understand and, if they wish, participate in.
- Move from “less harm” to regenerative impact: reforestation, ocean clean-ups, cultural preservation, or education.
The World Economic Forum’s report Travel & Tourism at a Turning Point underlines how destinations and operators must shift from volume to value, integrating nature and community outcomes into their models. World Economic Forum Reports The World Travel & Tourism Council (WTTC) likewise emphasises sustainability, destination stewardship and “nature positive” tourism as core to long-term sector value. World Travel & Tourism Council
Outcome: Guests feel their stay matters beyond themselves – and that justifies both premium pricing and lasting loyalty.
Step 5 – Use data and AI to personalise and price experiences
The experience economy in hospitality still needs a brain behind the magic.
- Build a light experience CRM where you track guest preferences, journeys and feedback by profile, not just by room number.
- Use revenue management principles to price experiences based on capacity, demand and uniqueness.
- Deploy AI tools to suggest itineraries, help your team answer questions in multiple languages and surface upsell opportunities – while humans stay focused on empathy and presence.
Outcome: Experiences are not random or chaotic. They are structured, trackable and priced with the same discipline as your rooms.
Case notes: how experience-driven hotels win on rate and loyalty
Globally, the hotels that have embraced the experience economy in hospitality share a clear pattern:
- They design for emotion and meaning first, not hardware.
- They integrate destination, community and wellness into their core offer.
- They treat experiences as a P&L line item, not a marketing gimmick.
In markets like Indonesia, we see:
- High-end wellness retreats turning small key counts into disproportionate NOI through deep, program-led stays.
- Boutique coastal resorts using curated surf, dive, cultural and culinary experiences to achieve ADRs and total spend far above generic beach competitors.
- Eco-lodges and off-grid stays justifying long travel times and high rates by offering stories and participation guests cannot replicate anywhere else.
In short, the winners are the ones whose operations, teams and P&L have been rebuilt around experience – not just their Instagram grid.
How Zenith Hospitality Global supports owners and investors
Most decks talk about experiences. Few properties are actually built for them.
Zenith Hospitality Global sits exactly at that junction between vision and execution. Our role is to help you:
- Define an experience-first product from pre-concept, not after the architect is finished.
- Build operational architecture – SOPs, staffing, training and governance – that consistently delivers curated guest experiences.
- Develop financial models where experiences are tied to ADR uplift, package yield, average length of stay and ancillary revenue.
- Structure partnerships with local experts and communities that are fair, long-term and operationally realistic.
If you want to see how we think about returns and risk, you can also explore:
- The ROI Lie: Deconstructing Hospitality ROI in Southeast Asia
- Overcrowding in Bali: A Strategic Action Plan
- Lombok Mandalika: A 6-Pillar Strategy for Sustainable Tourism Growth
- The Rise of Digital Nomads and Bleisure Travel: A New Blueprint for Hospitality in Indonesia
In short, we don’t just say “curate experiences.” We build the systems, teams and numbers behind them.
Summary takeaways
- The experience economy in hospitality has shifted value from amenities to curated, transformational experiences.
- Amenities remain hygiene, but they no longer justify premium ADR or build deep loyalty.
- Owners who embrace experience-first design can achieve meaningful rate premiums, stronger ancillary revenue and more resilient NOI.
- A practical pivot requires destination co-creation, curated itineraries, integrated wellness, real community impact, and data/AI-backed operations.
- Zenith Hospitality Global helps owners and investors turn experience ambition into disciplined, measurable operating systems from pre-opening through daily excellence.
FAQ: Experience economy in hospitality
Q1. What is the experience economy in hospitality?
It’s the shift from selling rooms and amenities to selling curated, transformational experiences – cultural, culinary, wellness and nature-based journeys as the core product.
Q2. Why are amenities no longer enough to compete?
Because amenities are easy to copy and widely available. Guests now expect strong basics and pay premiums for unique, emotionally resonant experiences rooted in the destination.
Q3. How much more can experience-driven hotels charge?
Depending on segment and execution, experience-led hotels often command 10–40% ADR premiums, higher total spend per stay and stronger repeat rates compared to amenity-led competitors.
Q4. Does this only apply to ultra-luxury resorts?
No. Lifestyle hotels, city boutiques, villa clusters and even select-service assets can build experience layers that upgrade positioning, rate structure and overall profitability.
Q5. Where should an owner start if their hotel is still amenity-driven?
Start by defining 2–3 signature guest journeys you want to own, then align product, partnerships, staffing and pricing around those journeys instead of adding random activities.
About the author – André Priebs
André Priebs is the CEO and Founder of Zenith Hospitality Global, with more than 30 years of experience leading hotels, resorts and mixed-use projects across Europe and Southeast Asia. He specialises in concept development, P&L optimisation, pre-opening systems and operational turnarounds – with a strong focus on guest experience and owner returns.
Zenith Hospitality Global is based in Bali and works with investors, developers and owners across Indonesia and the wider region to transform hospitality assets into experience-led, financially disciplined operations.
Call to action: design your next experience-first asset
If you are planning, repositioning or operating a villa, hotel or mixed-use project in Indonesia or Southeast Asia, ask yourself one hard question:
Are you still competing on amenities – or are you ready to compete on curated guest experiences?
If you want help designing an experience-first product, financial model and operating system, talk to the Zenith team.
Start with a concept audit or experience-driven feasibility review and get a clear, owner-first view of how the experience economy in hospitality can work for your specific asset.
