Experience economy necessitates new marketing

Source: Tourism Update, 12/10/2016

In today`s experience economy, the emphasis is no longer on products,
but on customers, says Emeritus Professor Ernie Heath.


The marketing drivers of the past are no longer relevant to today`s
traveller. Instead of product, price, place and promotion, today`s
marketing drivers are customers, connection, conversations and
content.


This was the message Emeritus Professor Ernie Heath shared with
members of the tourism industry and representatives from the
Department of Tourism attending a policy discussion last week.


Heath said in today`s new era, dubbed the `experience economy`, the
emphasis was no longer on products, but on customers. He said these
customers were driven by the desire for experiences, authenticity,
family travel and a seamless travel experience.


While the tourism winners of the past were iconic attractions and big
marketing budgets, Heath said today`s winners were experiences and
differentiation. He quoted James Gilmore, one of the authors of The
Experience Economy, who said: "Today, consumers increasingly desire
neither goods nor services but sensation-filled experiences that
engage them in a personal and memorable way."


Brands should position themselves around the sum of experiences they
offer, said Heath, adding that destinations that had done this
successfully included New Zealand, Australia and Canada.


According to Heath, South Africa is well positioned to cater for the
desire for authentic and local experiences. He said the country`s
rural and open spaces should be regarded as assets, adding that
developing routes was an important tool to open up these areas for
travel. He also emphasised the need to empower communities and to
promote products in smaller towns as well as local experiences, or
"hidden gems".


He questioned whether it still made sense to split markets according
to geography and demographics and emphasised increased air
connectivity and the use of online marketing to reach travellers. He
also suggested that South Africa should look to niche tourism to grow
its arrivals. He highlighted cycling tourism, in particular, as an
area with a lot of potential in South Africa.


Finally, Heath emphasised the need for a policy framework that
prepared the industry for the future.