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Experience economy in hospitality and tourism: Gain and loss values for service and experience

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  • Chang, Seohee

Abstract

In the experience economy, distinct from the service economy, industry revenue increases according to the extent to which consumers enjoy their experience. This study explores the experience economy from various viewpoints, but particularly by examining whether consumers perceive differences in the monetary values between experience and service, as well as perceive gain and loss values differently in the same experiential component. The online survey was conducted with 550 adult participants. Data were analyzed using descriptive analysis, paired t-test, and multivariate analysis (MANOVA). The findings show that consumers still tend to perceive the service industry more important than the experience industry. However, as the loss values of experience are found to be larger than its gain values, it is very important to convince consumers to not lose an opportunity to experience future experiential consumption.

Suggested Citation

  • Chang, Seohee, 2018. "Experience economy in hospitality and tourism: Gain and loss values for service and experience," Tourism Management, Elsevier, vol. 64(C), pages 55-63.
    • Handle: RePEc:eee:touman:v:64:y:2018:i:c:p:55-63
    DOI: 10.1016/j.tourman.2017.08.004
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    2. Živojinović, I. & Weiss, G. & Wilding, M. & Wong, J.L.G. & Ludvig, A., 2020. "Experiencing forest products – An innovation trend by rural entrepreneurs," Land Use Policy, Elsevier, vol. 94(C).
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    4. Juan Antonio Jimber del Río & Ricardo D. Hernández-Rojas & Arnaldo Vergara-Romero & Mª Genoveva Dancausa Dancausa Millán, 2020. "Loyalty in Heritage Tourism: The Case of Córdoba and Its Four World Heritage Sites," IJERPH, MDPI, vol. 17(23), pages 1-20, December.
    5. ShiNa Li & Yixin Liu & Shanshan Dai & Mengxin Chen, 2022. "A review of tourism and hospitality studies on behavioural economics," Tourism Economics, , vol. 28(3), pages 843-859, May.
    6. Robinson, Richard N.S. & Baum, Tom & Golubovskaya, Maria & Solnet, David J. & Callan, Victor, 2019. "Applying endosymbiosis theory: Tourism and its young workers," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    7. Hanife Aysen Karagoz & Tevfik Demirciftci & Ezgi Erkmen, 2022. "Local Restaurants’ Effect on Tourist Experience: A Case from Istanbul," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 65(65), pages 313-327, June.
    8. Yong, Shih Ween & Cheah, Jun-Hwa & Lim, Xin-Jean & Ng, Siew Imm & Leong, Yee Choy, 2023. "How to make you spend more in the airport? An investigation towards ECSI model on willingness to spend more in airport," Journal of Air Transport Management, Elsevier, vol. 112(C).
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    10. António Azevedo, 2023. "Pull and Push Drivers of Giant-Wave Spectators in Nazaré, Portugal: A Cultural Ecosystem Services Assessment Based on Geo-Tagged Photos," Land, MDPI, vol. 12(2), pages 1-23, January.

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