Table of Contents
Introduction
Every wave of economic growth up to now has been defined by a distinct characteristic. For example, the agrarian system is dependent on agriculture, whereas the service economy relies by providing services, not manufacturing products. “Experience economy,” as it is known “experience economics” was first coined in 1999 to define the new trend in the process of economic growth (Pine Gilmore and Pine 2013). In an economy that is based on experience customers’ experiences are the primary driver in the purchasing decision-making process and affect the growth of the company. According to Frias (2014) Frias (2014), customers are no longer content with only the quality of products and services they are looking for an exceptional experience during the entire process of choosing the purchase, purchasing and use of products or services. The consequence of this type of innovation for companies is that they need to come up with new and innovative features that differentiate their services or products from those provided by their rivals.
The advancement of technology is also a major development that impacts the expansion of companies across the world. Technologies can aid companies to increase efficiency as well as provide services that are in line with changing needs of their customers. In today’s experience-based technology, it is possible to help in delivering better customer experiences. However, there are several concerns that businesses have about the backlash to technology, which was caused by negative experiences with certain technologies. The paper aims to analyze the effect technologies have on growth of an experience-based economy as well as discuss the impact of technology backlash on the use of technology.
Operations and Technology
In the first place operational technology can be employed by businesses to enhance specific procedures or automate them thus reducing expenses and increasing profitability. In the field of hospitality and tourism the use of technology can improve a range of procedures, such as customer service marketing, security as well as market research. Hotels for example, make use of technology to improve security of their information (Law, Buhalis & Cobanoglu 2014). Technology is also crucial for managing events and tourism in that they permit customers to book reservations online, book their flights ahead of time and also access customer support promptly when they need. The internal processes can be improved with the help of technology. For instance, since facial recognition is gaining popularity the technology could find use for event management, allowing more security and faster checking-in of guests.
Another important trend in tourism that was made possible thanks technological advancements is the concept of smart tourism. According to Gretzel and colleagues. (2015) smart tourism involves the use of technology to enhance visitors their experiences. In the context of smart travel initiatives hotels could create apps that offer personalised suggestions for places to go restaurants, places to eat, and other leisure activities according to the profile of the user and the data available. Additionally, these apps can be used to contact the customer service department and making requests without having to contact the reception of the hotel. Utilizing smart technology in tourism can result in better customer experiences and simultaneously improving the efficiency of the hotel’s operations which contributes to the growth of an experience-based economy.
Delivering Experiences
Technology can also be utilized to enhance the delivery of customer experiences. According to Neuhofer, Buhalis, and Ladkin (2014) the customer experiences can be enhanced by the technology of virtual reality and mediation. The further development of virtual reality, for example could open up a completely new market segment in the field of tourism and event management. This is because companies can provide experiences to their customers who are from different locations. Utilizing virtual reality technology users can take part in diverse events or visit destinations from their home. The advancement of virtual reality technology will enable the ability to communicate an impression of location which allows consumers to enjoy a complete experience when visiting an location or event. Virtual reality is an exciting technology that will certainly aid in the expansion of the economy of experiences.
Another approach to improve the experience offered to clients is by using technology that allows you to customize your experience to the individual needs. Technology has made it easier to exchange information, enabling businesses to collect data on the preferences of their customers and their interests. The data is utilized to tailor services, which means that they can provide direct experiences to customers before they even make a purchase. Thus, by leveraging technology, businesses can boost the customer experience and make more profit, which is also helping the economy of experiences.
Technology Backlash
Technology-related backlash is a major worry for companies that rely on technology to improve the customer experience. The backlash against technology is mostly focused on the concerns of people about the growth technologies in the coming years and also its use in the present (Sutcliffe and von Kameke, 2018). In particular, many have concerns regarding privacy and security of data particularly in wake of recent leaks of data from Facebook as well as other big corporations. Many are concerned that technology can replace human-to-human communication and experiences. The backlash from technology could affect the usage of technology, particularly when it causes people to limit their use of certain technologies or to oppose the latest technological advancements in the technology sector. This could happen if the users have concerns that are not addressed by businesses active in using technology to deliver services.
But it’s important to remember that the proportion of people who are awed by technology and utilize regularly despite some reservations remains high. A small percentage of people avoid using gadgets or the Internet This implies there’s an opportunity to reverse the negative impact of technology. To do this it is vital to address the elements of technology that contribute to it. For instance, enhancing the security of information and creating the safety of online environments can assist in addressing backlash from technology and build trust in technology advancements. Through a well-planned approach to address issues of users, businesses can enhance their image and make it easier to use technology, thus reversing the negative reaction.
Conclusion
Nowadays, a lot of businesses including those in the fields of event management and tourism are operating in an experience economy. In the past, when it was a matter of economic growth, consumers made purchases based on the needs they had for goods and services, now buyers buy based on experiences they receive. Therefore, companies must seek to improve the customer experience and come up with new methods to deliver these. Technology is able to help businesses increase profits through improving processes and customer experiences which will contribute to the expansion of the economy of experiences. The future development of technology may also offer new methods to deliver experiences, like virtual reality technology. However, the backlash to technology that we see in our society may affect the usage of technology, and even hinder the progress of the”experience economy. To avoid this it is crucial that companies address user’s concerns and provide secure and reliable technology that improve the experience of customers.
