The experience economy in India: how consumer preferences are changing

What is the experience economy?

The experience economy describes an economic model in which businesses compete not only through products and services, but also through the experiences they create for customers.

The concept was popularised by B. Joseph Pine II and James H. Gilmore in their 1998 Harvard Business Review article, Welcome to the Experience Economy. Their argument was that businesses could differentiate themselves by designing experiences that customers actively participate in and remember, rather than treating every transaction as a purely functional exchange.

Consider a birthday celebration. You could order a cake, arrange food and organise the gathering yourself. Alternatively, you could use a service that coordinates the arrangements and creates an occasion around the people involved. The products and services still matter. But the overall experience becomes part of the value being delivered.

The same principle applies across industries:

• Hospitality: booking, check-in, service quality and the overall stay shape how guests perceive a hotel.
• Dining: food, atmosphere, hospitality and presentation influence how customers experience a meal.
• Wellness: personalised treatments, the setting and ease of booking contribute to the value of a wellness session.
• Entertainment: live performances, immersive exhibitions and hands-on workshops offer participation rather than passive consumption alone.
• Travel: accommodation, activities, transport and coordination shape the overall journey.

The experience economy does not mean that products have become irrelevant. It means that the experience surrounding an offering can become an important source of differentiation. For businesses, the question is no longer simply what they sell. It is also how customers experience what they sell, and whether that experience delivers value beyond the basic transaction.

Experiential consumption: why people pay for experiences

Experiential consumption refers to spending money primarily to participate in an activity or experience rather than to acquire a possession. Examples include attending a concert, taking a cooking class, going on a trip, booking a wellness session or arranging a special dinner.

Material purchases and experiential purchases serve different purposes. A useful product can deliver value for years, while an experience may provide enjoyment, learning, social connection or a memorable occasion.

A 2015 review published in the Journal of Consumer Psychology, Experiential consumption and the pursuit of happiness, examined research on experiential consumption and well-being. The authors discussed how experiences can contribute to personal identity, social relationships and satisfaction, while sometimes being less affected by unfavourable social comparisons than material possessions.

These findings do not establish that experiences are always more satisfying than products. Outcomes depend on the individual, the purchase and the expectations involved. However, experiences offer a distinct form of value because they involve participation.

Buying a cookbook gives you a resource. Attending a cooking class gives you an activity, an opportunity to practise a skill and something to share with another person.

For Indian consumers, the decision also depends on practical considerations such as disposable income, occasion, convenience and perceived value. A family may prioritise a practical household purchase, while someone celebrating an anniversary may prefer an experience that marks the occasion. The question is not whether experiences are universally better than things. It is whether the purchase delivers the value the customer wants.

For experience-led businesses, understanding that motivation is essential. Marketing a cooking class solely through its duration and materials may miss the reason a customer wants to attend. For one person, the appeal is learning. For another, it is spending time with a partner. The experience itself may be similar. The value perceived by each customer can be different.

Premiumisation: what makes an experience worth paying more for?

Premiumisation is often associated with luxury labels, expensive venues and exclusive products. In the experience economy, however, a premium offering can derive its value from quality, personalisation, convenience, service and how well the experience suits the customer.

Consider two dinners at similar price points. One involves a standard reservation and an evening out. The other is planned around the occasion, includes arrangements suited to the people attending and allows them to enjoy the evening without coordinating every detail themselves. The difference may not be the food or venue alone. It may be the quality of the overall experience.

Deloitte India’s 2026 Consumer Signals report describes Indian consumers as increasingly selective about discretionary spending, with value, comfort and reliability influencing travel and hospitality decisions. Its findings suggest that consumers can remain price-conscious while choosing to spend more on offerings they consider worthwhile.

This is an important distinction. Premiumisation does not mean consumers will pay more for everything. It means they may be willing to pay more when the additional value is clear. For experience-led businesses, premium value can come from several factors:

• Quality: delivering a reliable product or service that meets expectations.
• Personalisation: adapting the experience to individual preferences and circumstances.
• Convenience: reducing the effort required to organise and enjoy the experience.
• Service: providing thoughtful assistance and clear communication.
• Exclusivity: offering access, settings or benefits that are not readily available elsewhere.

These factors do not automatically justify a higher price. Customers must perceive enough value to make the additional expenditure worthwhile. A more expensive experience can still disappoint if the service is poor, the arrangements are inconvenient or the offering fails to match what was promised. Conversely, a relatively simple experience can feel premium when it is thoughtfully delivered and suited to the customer.

Premiumisation is not about charging more for the same thing. It is about delivering additional value that customers actually care about.

Personalisation: moving beyond one-size-fits-all experiences

Two customers can purchase the same service and want completely different outcomes. One couple might enjoy a long tasting menu. Another might prefer an afternoon outdoors. One customer might choose a crowded concert, while another would rather spend the evening in a quiet setting.

A generic recommendation can introduce someone to an option. It cannot always establish whether that option suits their preferences, budget, available time and reason for going. Personalisation addresses this gap by adapting recommendations, services or arrangements to the individual.

In hospitality, this might involve room preferences or tailored amenities. In wellness, it could mean selecting a treatment that suits the customer’s needs. In dining, it might involve dietary requirements or a menu designed around an occasion.

For experience-led businesses, personalisation begins with understanding why someone is making a purchase. Are they celebrating something? Looking for relaxation? Trying to learn a new skill? Spending time with someone they care about? Seeking an experience they would not normally arrange themselves? The answers can influence what the business recommends and how it delivers the service.

For couples, personalisation introduces another consideration: both people need to be considered. An experience should not automatically favour whichever partner is more decisive or more familiar with planning. It should reflect their shared preferences, individual interests and practical constraints. A couple with different interests might prefer an experience that combines a creative activity with dinner, rather than choosing an activity that appeals to only one person.

The objective is not to customise every detail or create an elaborate experience for its own sake. It is to make the offering relevant to the people choosing it. Personalisation also needs to be operationally practical: businesses must balance individual preferences with availability, cost, service quality and the resources required to deliver the experience. When done well, it makes it easier for customers to find an offering that feels appropriate to their needs rather than settling for a generic alternative.

Convenience: the often-overlooked part of the experience economy

Imagine finding a workshop you both want to attend. You check available dates, compare prices, read reviews, figure out transport, make a reservation and decide what to do afterwards.

The activity sounds enjoyable. Getting there has become a project.

This illustrates an often-overlooked part of the experience economy: the effort required before the experience even begins. Convenience does not mean removing every decision or making every service completely effortless. It means reducing unnecessary friction between wanting to do something and actually doing it.

For consumers in busy Indian cities, this can be particularly relevant. Work commitments, travel times and competing responsibilities can make it difficult to coordinate even a relatively simple outing. When free time is limited, inefficient planning can make an otherwise appealing activity less attractive. Businesses can address this in several ways.

• Simplify discovery. Help customers understand what is available and which options suit their needs without forcing them to navigate an overwhelming list.
• Make booking straightforward. Communicate availability, pricing, requirements and cancellation policies clearly.
• Reduce coordination. Where possible, bring related arrangements together rather than making customers manage several separate bookings.
• Communicate expectations. Explain what is included, what the customer needs to do and what happens next.
• Provide support when needed. Make it easy for customers to ask questions or resolve issues before and during the experience.

These principles apply beyond leisure. They are relevant to travel planning, hospitality, wellness appointments, events and any service involving multiple decisions or arrangements. For experience-led businesses, convenience is not merely an administrative benefit. It can be part of the value customers are paying for.

Five experience categories shaping leisure and hospitality

The experience economy spans many industries. Five categories illustrate how businesses can create value beyond a basic product or service.

Experiential dining

Dining can offer more than food. Interactive cooking sessions, chef-led menus, distinctive settings and carefully planned meals give customers additional reasons to choose one experience over another. For couples and groups, these experiences can provide a shared activity as well as a meal. The value depends on the occasion and the customer: a quiet dinner may be ideal for one person, while another may prefer an interactive format that makes the evening more engaging.

Wellness and relaxation

Spa sessions, wellness retreats and restorative activities appeal to people seeking time away from everyday responsibilities. For busy professionals, the appeal may be less about luxury and more about having a dedicated period to slow down. Convenient booking, clear information about treatments and an experience that meets expectations can all influence perceived value.

Staycations and short getaways

Not every break requires a long holiday. A hotel stay, a short trip outside the city or a weekend away can provide a change of setting without the planning required for an extended journey. For hospitality businesses, the opportunity lies in making short stays feel worthwhile through appropriate facilities, reliable service and well-considered arrangements.

Creative and hands-on activities

Pottery, painting, cooking workshops and similar activities offer customers something to participate in rather than simply observe. They appeal to beginners as well as people with established interests, and give businesses an opportunity to create value through instruction, atmosphere, materials and the overall experience. For couples, friends and families, the activity itself becomes part of the time spent together.

Outdoor and adventure experiences

Trekking, cycling, guided nature experiences and adventure activities offer alternatives to conventional indoor entertainment. Customers may be looking for physical activity, exploration, a shared challenge or a change of scenery. Providers need to communicate suitability, safety requirements, equipment, weather considerations and any relevant restrictions clearly. An appealing experience must also be responsibly delivered.

Across these categories, the common thread is not luxury or price. It is the opportunity to participate in something that serves a particular purpose for the customer. The business challenge is to understand that purpose and deliver an experience that meets expectations.

What the experience economy means for couples

For couples, the experience economy offers a useful way to think about how discretionary spending can support shared interests and occasions. A date does not have to involve an expensive restaurant. It could be a creative workshop, a cooking lesson, an outdoor activity or a meal planned around a particular interest. The right choice depends on the people involved, their budget and the kind of time they want to spend together.

There is also a practical consideration: finding an activity is only one part of planning an experience. Coordinating availability, transport, bookings and other arrangements can take time. For couples who enjoy planning, this may be part of the process. For others, getting help with the arrangements may make it easier to turn an idea into a plan.

The useful question is not whether every date should be different or elaborate. It is whether the experience fits the people choosing it and offers enough value to justify the time and money involved. This is where curation can be useful. Rather than starting with an endless list of options, couples can begin with their preferences, the occasion, the time available and their budget. The resulting experience may be simple or elaborate. What matters is that it suits them.

How ELSE by Wingmann brings curated experiences together

Finding an activity is rarely the only decision involved in planning an experience. Customers may also need to coordinate bookings, transport, timings and other arrangements. ELSE by Wingmann is designed to help couples turn their preferences into a planned experience, rather than leaving them to work through a generic list of ideas.

1. Discuss your preferences. Connect with ELSE for a quick call and share what you enjoy, what you’d like to try and what kind of experience you’re looking for.
2. Receive a proposed plan. ELSE curates an experience around your preferences and shares the plan and price within 24–48 hours after the call.
3. Review and refine. You can review the proposal and request changes before committing.
4. Confirm when you’re happy. You pay only after reviewing and confirming the plan.

Depending on the experience and package selected, arrangements can include bookings, transport, a personal host and photography. You can also combine an activity with dinner, creating a more complete evening around your preferences.

ELSE currently operates in Bengaluru, Hyderabad, Chennai, Delhi NCR, Mumbai, Kolkata, Pune, Ahmedabad, Visakhapatnam and Vijayawada. A minimum of 72 hours’ notice is required to arrange an experience.

An experience might involve a creative workshop, an outdoor activity, a special meal or a combination of activities. The purpose is not to make every date extravagant. It is to make it easier to plan an experience that suits the couple, with less time spent coordinating the arrangements themselves.

What businesses can learn from the experience economy

The experience economy is not simply about encouraging people to spend more on leisure. It highlights how businesses can create value by understanding what customers want from an offering and delivering it consistently. For businesses considering an experience-led strategy, four principles are worth prioritising.

• Understand the occasion. Customers may buy the same service for different reasons. Identify whether they want convenience, relaxation, learning, celebration or social connection.
• Make the value clear. Explain what the customer receives, why it matters and how it differs from a basic alternative. Avoid relying on a premium price or attractive presentation to communicate value.
• Reduce unnecessary effort. Review the customer journey from discovery to booking and delivery. Identify where confusing information, multiple decisions or poor coordination create friction.
• Deliver what you promise. Personalisation and thoughtful service only create value when the actual experience matches the customer’s expectations.

These principles apply across dining, hospitality, wellness, travel and curated leisure services. They also provide a more useful framework for evaluating the experience economy than assuming that all consumers are moving away from material purchases.

The strongest offerings are not necessarily the most expensive, exclusive or visually impressive. They are the ones that deliver what customers actually want.

For consumers, that means evaluating an experience by the value it provides rather than its price or presentation alone. For businesses, it means treating the customer experience as part of the offering itself.