Experience Economy

The experience economy, a concept introduced by Pine and Gilmore in 1998, describes a macro-economic shift in which consumers increasingly spend on experiences — travel, activities, dining, events — rather than physical products. In vacation rentals, the experience economy manifests in guests' preference for unique, locally embedded accommodations over standardized hotel rooms, and their willingness to pay premium rates for properties that deliver a distinctive sense of place. Hosts who lean into experiential offerings — curated local recommendations, add-on experiences like cooking classes or guided hikes, distinctive design, and personalized welcome packages — capture the growing segment of travelers who prioritize memorable stays over price minimization.