Hospitality Design - October 2010 - 55

interview: joe pine and jim gilmore

perspectives
By Chip Conley

experience economists
Part of the reason I was excited to have authors Joe Pine and Jim Gilmore involved in this issue was because they opened my eyes a decade ago to what we were doing in my company, magically. Anyone who wanted to understand the nature of the evolution of what we’re looking for as customers, and what as businesses we’re trying to provide, was summed up well in their book The Experience Economy. Then the guys gave me an award as the Experience Stager of the Year. It was then I came to realize that I needed to take this experience staging a little bit more seriously. So, we ended up creating something called the Experience Report Card, which we’ve had in place for almost a decade now, as a means of trying to focus on some of the intangibles of what makes for a great hotel experience. In this conversation, I’m hoping we’re going to be able to have Jim and Joe tell us about how the hotel industry can continue to remake itself, to become the ultimate experience industry.

Above: Jim Gilmore and Joe Pine. Below: The Geek Squad’s Geekmobile.
Chip Conley: Tell us a little bit about the theory that backed up The Experience Economy. What has happened in the world since then, and how does it relate to hospitality? Joe Pine: We’re actually in the midst of thinking about that ourselves, because we’re now writing a second edition of The Experience Economy to come out in paperback next summer. So, it will be 12 years after the original. And in the original book, we made the case that we are shifting into an economy where experiences have become the predominant economic offering, where goods and services are everywhere being commoditized, and what consumers want are those experiences, the memorable events that engage them in an inherently personal way. And what Jim and I have seen in the past dozen years is that it’s no longer just an emerging experience economy. It has emerged. It is in full flower, as we see across industry after industry that companies are ascending to the proposition that they are in the experience business. JP: And one of the surprising things we’ve seen is how many manufacturers are sort of skipping over services and getting into the experience business. CC: Like who? JP: Well, like Volkswagen, with its Autostadt theme park that gets over a million visitors a year in Germany. Like Apple with all of its stores. CC: Take us through that, because one of the things you’ve said is that a hotel should think of itself as having a turnstile. If you thought of your hotel as if it had a cost to get in, what would you do in terms of staging an experience? JP: Well, the key thing is what Jim just talked about, and that is theming; that you come up with the organizing principle for what the hotel is about, and then, organize all of the impressions and the positive cues to be able to fulfill that theme. And that’s why we gave JP: So it’s no surprise that Virgin just announced they’re getting into the hotel business. CC: Yes. And funny enough, Ron Johnson is the guy at Apple who in essence was the mastermind for all their retail stores. He went to college with me, a couple years ahead. And they actually went out and studied hotels in their process of creating those Apple stores, because they thought of the Genius Bar as sort of being the bar at a hotel. So hotels, actually, can inform all kinds of industries. JG: Well, when we walk people through chapter three, our theming methodology, there’s no industry that we rely upon more to illustrate the principles of harmonizing cues and creating impressions and taking into consideration the sensory phenomena of the experience. Clearly, people can learn much from hospitality venues. Jim Gilmore: Think of how Apple stores immerse people in the brand. Joe and I do learning excursions with clients, and I remember taking one group into the Apple store on Michigan Avenue in Chicago, and one executive saying, ‘Um, this is like walking inside of a Mac.’ And to me, what better way to immerse people in your brand?

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October 2010

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Table of Contents for the Digital Edition of Hospitality Design - October 2010

Hospitality Design - October 2010
Contents
Online Contents
From the Editor
Guest Editor Letter
People
Sketchbook
Places
Interview
Profile
Best of Boutique
Textiles
Accessories
The Westin Resort, Costa Navarino
Hotel Punta Tragara
Ventana Inn & Spa
Tse Yang
Girl & The Goat
Zulu Camp at Shambala Game Reserve
Back Space
Hospitality Design - October 2010 - Hospitality Design - October 2010
Hospitality Design - October 2010 - Cover2
Hospitality Design - October 2010 - 1
Hospitality Design - October 2010 - 2
Hospitality Design - October 2010 - 3
Hospitality Design - October 2010 - 4
Hospitality Design - October 2010 - 5
Hospitality Design - October 2010 - 6
Hospitality Design - October 2010 - 7
Hospitality Design - October 2010 - 8
Hospitality Design - October 2010 - 9
Hospitality Design - October 2010 - 10
Hospitality Design - October 2010 - 11
Hospitality Design - October 2010 - 12
Hospitality Design - October 2010 - 13
Hospitality Design - October 2010 - 14
Hospitality Design - October 2010 - 15
Hospitality Design - October 2010 - 16
Hospitality Design - October 2010 - Contents
Hospitality Design - October 2010 - 18
Hospitality Design - October 2010 - Online Contents
Hospitality Design - October 2010 - 20
Hospitality Design - October 2010 - 21
Hospitality Design - October 2010 - 22
Hospitality Design - October 2010 - 23
Hospitality Design - October 2010 - From the Editor
Hospitality Design - October 2010 - 25
Hospitality Design - October 2010 - Guest Editor Letter
Hospitality Design - October 2010 - 27
Hospitality Design - October 2010 - People
Hospitality Design - October 2010 - 29
Hospitality Design - October 2010 - 30
Hospitality Design - October 2010 - 31
Hospitality Design - October 2010 - 32
Hospitality Design - October 2010 - 33
Hospitality Design - October 2010 - 34
Hospitality Design - October 2010 - 35
Hospitality Design - October 2010 - 36
Hospitality Design - October 2010 - 37
Hospitality Design - October 2010 - 38
Hospitality Design - October 2010 - 39
Hospitality Design - October 2010 - 40
Hospitality Design - October 2010 - 41
Hospitality Design - October 2010 - 42
Hospitality Design - October 2010 - Sketchbook
Hospitality Design - October 2010 - 44
Hospitality Design - October 2010 - 45
Hospitality Design - October 2010 - 46
Hospitality Design - October 2010 - 47
Hospitality Design - October 2010 - 48
Hospitality Design - October 2010 - 49
Hospitality Design - October 2010 - 50
Hospitality Design - October 2010 - Places
Hospitality Design - October 2010 - 52
Hospitality Design - October 2010 - 53
Hospitality Design - October 2010 - 54
Hospitality Design - October 2010 - Interview
Hospitality Design - October 2010 - 56
Hospitality Design - October 2010 - 57
Hospitality Design - October 2010 - 58
Hospitality Design - October 2010 - 59
Hospitality Design - October 2010 - 60
Hospitality Design - October 2010 - Profile
Hospitality Design - October 2010 - 62
Hospitality Design - October 2010 - Best of Boutique
Hospitality Design - October 2010 - 64
Hospitality Design - October 2010 - 65
Hospitality Design - October 2010 - 66
Hospitality Design - October 2010 - Textiles
Hospitality Design - October 2010 - 68
Hospitality Design - October 2010 - 69
Hospitality Design - October 2010 - 70
Hospitality Design - October 2010 - Accessories
Hospitality Design - October 2010 - 72
Hospitality Design - October 2010 - 73
Hospitality Design - October 2010 - 74
Hospitality Design - October 2010 - 75
Hospitality Design - October 2010 - The Westin Resort, Costa Navarino
Hospitality Design - October 2010 - 77
Hospitality Design - October 2010 - 78
Hospitality Design - October 2010 - 79
Hospitality Design - October 2010 - 80
Hospitality Design - October 2010 - 81
Hospitality Design - October 2010 - Hotel Punta Tragara
Hospitality Design - October 2010 - 83
Hospitality Design - October 2010 - 84
Hospitality Design - October 2010 - 85
Hospitality Design - October 2010 - Ventana Inn & Spa
Hospitality Design - October 2010 - 87
Hospitality Design - October 2010 - 88
Hospitality Design - October 2010 - 89
Hospitality Design - October 2010 - Tse Yang
Hospitality Design - October 2010 - 91
Hospitality Design - October 2010 - 92
Hospitality Design - October 2010 - 93
Hospitality Design - October 2010 - Girl & The Goat
Hospitality Design - October 2010 - 95
Hospitality Design - October 2010 - 96
Hospitality Design - October 2010 - 97
Hospitality Design - October 2010 - Zulu Camp at Shambala Game Reserve
Hospitality Design - October 2010 - 99
Hospitality Design - October 2010 - 100
Hospitality Design - October 2010 - 101
Hospitality Design - October 2010 - 102
Hospitality Design - October 2010 - 103
Hospitality Design - October 2010 - Back Space
Hospitality Design - October 2010 - Cover3
Hospitality Design - October 2010 - Cover4
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