From time to time I’ll post an exemplar of the Transformation Economy. I plan on using the text somewhere in the book, but I’m not sure where yet. And in the meantime I think you could gain some value from understanding and learning from the example, beginning with this one on the travel industry.
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While tourism has always been in the experience business, it has evolved over the past 50-75 years in a way that mirrors the Progression of Economic Value.
Initially, it operated as a production-oriented industry, catering to the more tangible needs of traditional consumers. The focus was on offering concrete and well-defined aspects of travel, such as comfortable accommodations, reliable transportation, and other material comforts. The industry's main goal was to produce and deliver a tourism product (often, a standardized package) that met the fundamental and straightforward requirements of past consumers who valued stability, familiarity, and the assurance of quality in their travel experiences.
As the Service Economy displaced the Industrial Economy, the industry transitioned to a more service-oriented approach, emphasizing excellent quality, standard processes, and useful amenities. In today’s Experience Economy, the focus further evolved to meet the desire for memorable and authentic experiences with such additions as inviting lobbies, blissful beds, spacious bathrooms, and signature scents.
And now the travel industry – the biggest industry in the world in terms of employment, according to the World Travel & Tourism Council[i] – has started to shift in alignment with the forthcoming Transformation Economy. In fact, what’s know as “transformational travel” is one of its fastest-growing segments.
Virtually every high-end hotel or resort has added spas, wellness experiences, and classes of various types. In April of 2023, Accor Hotels named a Global Vice President of Well-Being. And in October of that year, the Ritz-Carlton Hotel Company sent an email to all its members promoting how “Transformative Moments Begin at The Ritz-Carlton”, beautifully illustrating the successive phrases, “You arrived a bud, you departed a bloom”, “You arrived a shell, you departed with wings”, and “How will your stay leave you?”. (The question arises on how much Ritz-Carlton actually and intentionally makes that happen for guests.)
Many places specialize in transformational tourism experiences, such as REVĪVŌ Wellness Resorts in Bali. Meaning “I live again” in Latin, REVĪVŌ offers guests a “unique journey to self-discovery and ultimate happiness”.[ii] Before booking a stay, guests – aspirants would be a better term in this case – complete an 80-question survey about their physical, mental, emotional, relational, and health needs, and the resort “wellness team” analyzes the data to design a “custom wellness journey”.
There’s even a Transformational Travel Council that seeks to inspire, promote, and convene around the concept, while also offering education on transformations for travelers as well as travel designers, hosts, hospitality organizations, and communities. Its manifesto focuses directly on the drives and needs of today’s transformational consumers, beginning with this statement: “Travel is ripe with the POSSIBILITY of transformation”.[iii]
Think of how your industry can likewise become an exemplar of the emerging Transformation Economy.
Joe Pine
© 2024 B. Joseph Pine II
[i] In 2019, before the pandemic, travel & tourism accounted for 10.4% of global GDP, one-tenth of global employment at 334 million jobs, and 25% of all net new jobs around the world from 2014-2019, according to “Travel and Tourism World Economic Impact 2021”, World Travel & Tourism Council, June 2021, https://wttc.org/Portals/0/Documents/Reports/2021/Global%20Economic%20Impact%20and%20Trends%202021.pdf.
[ii] “REVĪVŌ”, World Travel Marketing Bali, https://www.wtmbali.com/revivo.
[iii] “The Traveler’s Manifesto”, Transformational Travel Council, https://www.transformational.travel/manifesto, which is also the source of the image. Full disclosure: I am an advisor to the TTC.