I saw an interesting sign today while driving around my hometown of Pagosa Springs. It read, “there’s no substitute for experience”.

That’s an interesting thought. And, one with some merit, especially in the context of business which is what this sign was referring to. About the only thing I can think of that makes for a reasonable substitute is cash. Coming in second is patience. You need a healthy supply of both to make-up for the mistakes that inexperience sometimes brings.

Hiring someone with experience is much like having a security blanket. You feel all comfy when you’ve got it, and you get a little edgy when you don’t. You feel better knowing you have someone hired who’s been there and done that. Hopefully, they can do it better, quicker and cheaper. And, keep you out of trouble at the same time. That’s the value of experience.

But, there’s a problem with experience. It can bring on a serious case of tunnel vision leading you down a path of mediocrity yielding an average experience, average customers and very average returns on your investment. People who are “too experienced” are usually set in their ways, overly cautious, fearful of mistakes and are generally risk averse. These same people rarely push the envelope, experience the great “breakthrough” ideas or develop remarkable products. And, they probably don’t have as much fun.

Hiring people with experience is a good thing as long as they have a demonstrated desire to learn. Make sure they have a track record of taking some chances and trying new things. You don’t need blinders on, especially if you’re launching something new.

The only thing experience should help you avoid is the edge of the proverbial cliff. Otherwise, it should provide a safety net enhancing your ability to deal with new direction, ideas and problems…as long as you get the right person on the team.

Here's an article about a TIA study based on 5,000 respondents that makes the following point:

"leisure travelers decide where they want to go and for how long before they even consider the price tag"

I guess sometimes it just takes 5,000 people and a few thousand dollars to tell us what we already know. Once people move along a path from "needing" something to "wanting" it, price becomes less important. And, leisure travel is all about what we want, and more importantly, how we want to feel.

They could have just read The Want Factor.

Rarely anymore, do we purchase what we “need”. Rather, it’s a lot more about what we “want”. And, that’s driven mostly by the number of choices we now have. We’ve gone from a commodities buying society with very limited options to one searching for personalization and meaning based on the multiple niches available. We are moving away from places like Holiday Inn when we simply needed a comfortable place to stay to design and caring filled experiences like W, Four Seasons and Inn at Blackberry Farm.

This concept is extremely important in our business of hospitality. The quicker a prospective guest strays from “need” to “want”, the more important the design, story and caring elements become. Unless, of course, you’re in the fortunate position of being the only choice. Then, you’re in the catbird seat. But, that’s extremely rare.

And, to make it complex, the want factor is different for everyone. After fulfilling the basic need of obtaining a meal or a hotel room in a certain locale, wants start to kick-in. What’s seen as a dire necessity by some (in-room coffee makers, 24 room service, butlers, etc.) is viewed as overabundance and wastefulness by others. So, if there aren’t enough folks wanting what you’re selling, it’s going to be a long and difficult road. For the most part, you can’t change their mind about what they want. So, it’s imperative you speak to the correct audience.

So, you need to ask yourself, where in the game of needs and wants are we playing? What side of the equation are we on? And, how many choices are there?

If a person needs to attend a meeting in Austin, Texas which requires him to stay overnight, he needs a hotel room (in Austin). When I lived there in the late 90’s, that gave you about 1,600 choices. You could even argue that he needs a hotel room in a certain part of town, preferably near the meeting, let’s say downtown. Now, you’re down to about 200. But, beyond that, needs don’t count anymore, wants do. If he’s a bootstrapping entrepreneur who doesn’t care about hoofing it a few blocks, any budget or mid-level property will probably do. But, the budget hotel that connects with him somehow (through design, caring and story) wins.

Typically, here’s how it goes: There’s far less differentiation at the lower segment levels because we (as developers and operators) believe price is what matters the most. However, the memorable elements become extremely important (I would say critical) as you move along the price path toward luxury. At that point, the experience is expected to be meaningful in some other way than simply “a good value”.

The great news for those operating in the mid and lower price segments is that it gives all of you a “huge” opportunity to do a few things differently and win the game. Small doses of story, design and care go a long way. On the contrary, the place where it’s the most difficult to play is in the leisure, luxury segment. Your guests don’t “need” to be there and their “wants” are extremely difficult to ascertain. So, as a marketer, designer and operator, you better get it right.