Making Memories - The Rise of the Experience Economy
Last month, Airbnb launched Airbnb Experiences, where guests can book experiences in the area where they are staying. As part of this launch, they have also introduced Airbnb Originals, which are extraordinary experiences designed exclusively for Airbnb. From pasta making at French Bastards bakery with chef Raphaelle Elbaz, to beach volleyball with an Olympian on Rio’s iconic Leblon Beach, there is an experience to suit all tastes.
Airbnb are tapping into the growing experience economy, where consumers increasingly value life experience over consumer goods, whether attending music festivals, travelling, or trying new restaurants.
Whilst this economy is being driven by Gen Z and young millennials, older generations are also seeking experiences that they may not have had the opportunity to do throughout their lives.
The recent popularity of the experience economy has been driven by COVID lockdowns, where the majority of travel and other experiences were cancelled, and the increasing use of social media. Why do these experiences continue to be so popular?
Patrick Mahomes for Airbnb Originals
Forming Connections
Experiences can be had with friends and family, or as a way to meet new people with similar interests. Airbnb Experiences plan to include the ability to see who is also attending an activity, and you can message the group or individual guests during the experience, and stay in touch afterwards.
Social Sharing
Experiences are shareable on social media, which is particularly important to the younger generations.
Identity
Experiences can form part of your identity. Attending a concert of your favourite band or supporting your local football team says a lot about who you are.
Heineken Departure Roulette
Enriched life
Engaging in an experience enhances lives through enhancing their skills or shaping their perspective. They may even set someone on a brand new path. This is often more valuable to people than purchasing consumer goods.
Memories that Last a Lifetime
Unlike consumer goods, which have a limited lifespan, memories of an experience cannot be taken away and last forever. Often, people will refer to a holiday or their first concert as their favourite memory as opposed to a new phone or couch.
Escapism
Travel, in particular, provides a sense of escapism. The exclusivity and uniqueness of these experiences allow individuals to break free from routine and daily pressures, offering a sense of renewal and pleasure that is deeply personal and emotionally rewarding. Starbucks may not sell the best coffee but has created what they term “a third space” where customers can relax and socialise, a loungeroom out of their homes.
IKEA Climbing Wall
So what does this mean for brands that offer consumer goods? As products and services become harder to differentiate, creating memorable, meaningful and shareable experiences is important for brand value and loyalty.
One brand that does this well is Lululemon; they host in-store yoga classes, fitness workshops, and wellness events to ensure their customers have experiences in the store, not just purchases. They have also created a number of runs globally to create an opportunity for their community to participate in this experience.
Another example is Lindt who offer their consumers the opportunity to create with one of their Master Chocolatiers. This type of experience will be shared by participants and be remembered long after the chocolate has gone. There is some food for thought.
Team Contributor: Michaela Scott
Get in touch: michaela.scott@arrowvane.com | LinkedIn