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ABSTRACT
As organizations transition from a service to experience economy, they will need to reimagine their business performance “scorecards” to reflect practices that place the co-created guest experience at the heart of their innovation efforts. This article synthesizes innovation and experience economy literature to depict six theory-based propositions and a framework for measuring innovation in the hospitality and tourism industry. The propositions were investigated in 19 experience firms comprising lodging, dining, attractions, and events in Southern California. Data from executive interviews (n = 19) and follow up manager surveys (n = 202) showed strong support for front of the house innovation focused on guest offerings to enhance interactions, personalization and social spaces and back of the house innovation focused on connecting employees with the firm’s core purpose. Measures of memorable triggers and motivators of emotional value represent promising new frontiers. By identifying the current practices and measures of senior managers faced with leading innovation in their own business units, this study both informs this practice and presents a unique and updated perspective on experience innovation.