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.
Why this matters for property managers
As travelers increasingly spend on memorable stays rather than mere lodging, properties that offer distinctive design, a sense of place, or curated local touches can command higher rates and stronger reviews than comparable but generic units. This shift rewards differentiation: a thoughtful, well-story property stands out in crowded search results and earns the repeat visits and word of mouth that lower acquisition costs. Treating a rental as an interchangeable commodity, by contrast, leaves it competing almost entirely on price.
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