The Experience Economy: Why Events Are More Valuable Than Ever

Happy New Year! As we kick off 2026, let's talk about why the Sharks passed on Getaway's $500,000 ask, and why Marriott later acquired them as the seed for their now portfolio of 1,200+ tiny cabins. It's the same reason people pay $40 for lectures they could watch free online (as we explored last issue). We're in the experience economy now, where transformation matters more than amenities, and events that understand these concepts can charge premium prices while competitors race to the bottom. In this edition of Event Pulse, we're diving into what the experience economy actually is, why it matters right now, and exactly how to apply it to your event strategy for the year ahead. Whether you're planning your first event of 2026 or your fiftieth, this framework will change how you think about value.

Here's to a year of creating events people remember, talk about, and are willing to pay for. Let's make 2026 transformative.

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Martin Kelly told a story of missed opportunity on LinkedIn, a story that I thought I’d share. It’s not about events, bear with me, it does have bearing.

The Sharks said "no" to Getaway. 10 cabins. $500,000 ask. Years later, Marriott acquired them. 1,200+ cabins. 29 locations. $41M in revenue.

Jon Staff was 25 and burned out from a startup job when he bought a 26-foot Airstream and drove across the American West. On that trip, he realized everyone was drowning in screens, always-on and always available, experiencing digital overload. So, he built a tiny cabin in the woods outside of Boston: no WiFi, 200 square feet, just trees and nature. He launched and sold out for 5 weekends straight.

Because people don't need a two-week escape to Maui or Bali. They need a 90-minute drive to disconnect from the noise. Postcard Cabins (formerly Getaway) now has locations within two hours of every major US city. Tiny cabins, massive windows, phone lockboxes to force disconnection. The hotel industry eventually figured this out. Hilton partnered with AutoCamp. Marriott acquired Postcard Cabins. Hyatt partnered with Under Canvas.

The hotel industry, not exactly known for nimbleness, figured this out and pivoted. Meanwhile, the event industry, which should be the most versatile player in the experience economy, often remains stuck in the old model: sell tickets, fill seats, measure attendance.

If massive hotel chains can recognize that people will pay premium prices for 200 square feet with no WiFi because of the experience it provides, why are event professionals still competing on price and square footage instead of transformation?

What Is the Experience Economy?

The experience economy isn't a new theory. Economists B. Joseph Pine II and James H. Gilmore introduced the concept in 1998, arguing that businesses progress through four economic stages: commodities, goods, services, and experiences. Each stage commands higher prices because each adds more value.

Coffee beans are a commodity, sold by the pound. Ground and packaged coffee is a good, worth more per cup. Brewed coffee in a diner is a service, priced higher still. But that same coffee in a carefully designed café with ambiance, community, and a story becomes an experience worth $6 or more.

The critical difference between a service and an experience is the role of the customer. In a service, the customer receives something done for them. In an experience, the customer actively participates. They're not just present, they're engaged. The event itself becomes memorable, personal, and time-bound. It's something that happened to them and with them, not something delivered at them.

Beyond experiences lies the highest economic value: transformations. This is where the participant leaves fundamentally changed. They've learned a skill, shifted a perspective, made a connection that alters their trajectory. Events have always had this potential. The experience economy simply puts language and economic value to what great event producers have instinctively known.

Why It Matters Now

Several forces have collided to make the experience economy particularly relevant as we enter 2026.

First, there's been a massive generational shift in spending priorities. Millennials and Gen Z prioritize experiences over possessions at rates previous generations never did. They'd rather spend money on a festival, a conference, or a dinner event than on material goods. This isn't anecdotal. Consumer spending data consistently shows experience spending outpacing goods spending, even accounting for inflation. According to Eventbrite's research, 78% of millennials would rather spend money on experiences than things. Harris Poll found that 72% of millennials prefer to spend more money on experiences than on material items.

Second, experiences have become social currency. In an Instagram and TikTok world, experiences are shareable in ways that possessions aren't. People don't just attend events, they broadcast their attendance. They create content from them. They use them to signal identity and belonging. This amplifies the value of the experience far beyond the hours spent in the venue.

Third, the post-pandemic hunger for connection and in-person interaction hasn't diminished. If anything, it's intensified. People spent years on Zoom calls and virtual events. They learned what can be replicated digitally and what can't. What can't be replicated is the feeling of being in a room with other humans, the spontaneous hallway conversation, the energy of a crowd responding together. The pendulum has swung back hard toward valuing in-person experiences.

Fourth, people are willing to pay what economists call a "participation premium." They'll pay significantly more for something they help create or customize, for something that feels designed for them specifically, for something that transforms them rather than just entertaining them. Getaway charges premium prices for cabins that offer less than a typical hotel (no room service, no gym, no WiFi), but the experience they're selling is worth more because it offers transformation: disconnection, reset, peace.

The experience economy isn't a trend. It's a fundamental restructuring of what people value and how they spend.

What This Means for Event Professionals

Understanding the experience economy isn't just academic. It has direct, practical implications for how we design, price, market, and measure events.

Pricing Strategy and Value Justification

If your event creates genuine transformation, you can charge accordingly. Too many event planners apologize for their pricing or compete on being the cheapest option. But Getaway doesn't apologize for charging $200+ per night for a cabin with no WiFi. They understand they're not selling square footage, they're selling transformation.

This reframes pricing conversations entirely. Instead of justifying costs by listing amenities (coffee service, AV equipment, swag bags), you justify price by articulating the transformation attendees will experience. What will they know, feel, or be able to do after your event that they couldn't before? Who will they have access to? What connections will they make? What problem will you solve for them?

The most successful events in 2026 won't be the cheapest. They'll be the ones that deliver the most transformative experience and communicate that value clearly.

Sponsorship Evolution

Traditional event sponsorship is transactional: logos on lanyards, banners in hallways, booth space on the expo floor. The experience economy demands something different. Sponsors need to become experience creators, not just brand displayers.

Smart event producers are integrating sponsors into the experience itself. A coffee sponsor doesn't just provide coffee, they create a morning ritual space where meaningful conversations happen. A tech sponsor doesn't just have a booth, they host an interactive challenge that attendees remember. The sponsorship becomes part of the story attendees tell afterward, not background noise they ignore.

This benefits everyone. Sponsors get genuine engagement rather than passive exposure. Attendees get richer experiences. Event producers can charge premium sponsorship rates because they're delivering transformation, not impressions.

Designing for Memory and Meaning

Every element of your event should be designed with one question in mind: Will attendees remember this? Not just remember that it happened, but remember specific moments that mattered to them.

This doesn't mean every event needs Instagram walls and photo ops, though those can be part of it. It means thinking carefully about the emotional arc of the experience. Where are the high points? Where are the quiet moments of reflection? Where do attendees feel seen, heard, or challenged? Where do strangers become connections?

The Getaway cabins have massive windows and phone lockboxes because those create memorable moments of choice and disconnection. What are the equivalent touchpoints in your event? What are you doing that attendees couldn't get anywhere else?

ROI and Impact Measurement

The experience economy demands new metrics. Attendance numbers and session ratings aren't enough. Those measure delivery, not transformation.

Start asking different questions. Did attendees make connections they'll maintain? Did they learn something they'll apply? Did they leave feeling differently about themselves or their work? Can they articulate what changed for them? Would they pay more for this experience next time?

These are harder to measure than bodies through doors, but they're what actually matters in the experience economy. Consider post-event surveys that ask about application and change, not just satisfaction. Track LinkedIn connections made at your event. Follow up 30, 60, 90 days later to see what stuck.

When you can demonstrate transformation, not just satisfaction, you can justify premium pricing and secure long-term loyalty.

Creating Competitive Advantage

Here's the strategic opportunity: most of your competition is still operating in the service economy. They're delivering events to people rather than creating experiences with people. They're competing on price and amenities rather than transformation.

This is your opening. When you design for experience and transformation, you're playing a different game entirely. You're not competing with the conference down the street that's $200 cheaper. You're offering something categorically different.

This is what Jon Staff understood. He wasn't competing with hotels on amenities. He was competing on a different dimension entirely: the quality of disconnection and reset. Event professionals who embrace experience economy thinking can similarly step out of commodity competition.

Your 2026 Planning Framework

As you plan your events for the year ahead, use Pine and Gilmore's experience realms as your design framework. They argue that the richest experiences combine four elements:

Entertainment (passive absorption): The keynote that captivates, the performance that delights

Education (active absorption): The workshop where attendees learn applicable skills

Escapist (active immersion): The networking game, the collaborative challenge

Esthetic (passive immersion): The carefully designed environment, the sensory details

Map your event against these four realms. Are you heavy in one area and light in others? The most memorable experiences usually hit all four. A keynote might be entertainment and education. A networking reception might be escapist and esthetic. Interactive workshops hit education and escapist. Design deliberately across all four realms.

Then ask yourself three critical questions:

1. What transformation are we selling? Not what are we delivering, but what change are we creating in attendees? Can you articulate this in one clear sentence? If not, that's your starting point.

2. Where are the memorable moments? Walk through your event minute by minute. Which moments will attendees talk about afterward? Which moments create emotional impact? If you can't identify at least three, you need to redesign.

3. Are we measuring transformation or just delivery? Look at your post-event surveys and success metrics. Are you asking about satisfaction or about change? Shift your measurement to match what actually matters.

The common pitfall to avoid is surface-level experience design. Adding an Instagram wall doesn't make your event experiential. Calling something "immersive" doesn't make it transformative. The experience economy rewards genuine transformation, not cosmetic updates. Attendees can tell the difference between an event that looks experiential and one that actually is.

Looking Ahead

The experience economy isn't coming, it's already here. It's why Coachella sells out at premium prices while local concerts struggle. It's why boutique conferences with 200 attendees can charge more than massive conventions with 20,000. It's why Getaway went from 10 cabins to a Marriott acquisition while traditional campgrounds close.

The infrastructure already exists. We know how to create environments where people connect, learn, and change. We know how to design emotional arcs and memorable moments. We know how to bring people together in ways that matter. We just need to recognize the economic value of what we're creating and design accordingly.

The hotel industry figured this out and pivoted. Marriott, Hilton, and Hyatt all moved quickly to capture the micro-escape market. They recognized that people will pay premium prices not for amenities, but for transformation. They saw that 200 square feet with no WiFi could be worth more than a suite with every luxury, if the experience delivered the right kind of value.

The event industry should be the most versatile player in the experience economy. We're already in the business of creating meaningful moments and facilitating transformation. We just need to claim that territory confidently.

The Sharks passed on Getaway because they saw tiny cabins. Marriott acquired them because they saw the future. As we start 2026, the question for event professionals is simple: Are we going to be the Sharks, or are we going to be Marriott?

The experience economy isn't coming. It's already here. Let's not miss our $41 million opportunity.

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