Harvard student symposium highlights the experience economy

Opportunities in the experience economy stretch from cruising to space travel, as highlighted in a student club conference over the weekend at Harvard Business School.

The conference themes — explored by experts in cruising, space journeys, land experiences, hotels, restaurants and private equity — showed the 'power of human connection, the value of innovation and the importance of designing experiences that leave lasting impressions,' said Alex Iley, co-president of the Hospitality & Travel Club. 'In other words, the opportunity to create core memories for our loved ones and everyone on this planet and, if you’re [Blue Origin], beyond it.'

This Harvard Business School club's 'The Experience Economy Conference' in Boston attracted more than 200 registered attendees including professionals from a range of companies and students from more than 10 schools such as MIT, Cornell, Babson, Boston University, University of Pennsylvania and as far away as Florida's Lynn University.

Hospitality & Travel Club leaders, from left, CFO Michael Baldyga and Co-Presidents Beatriz Gorostiaga Zubizarreta and Alexander Iley PHOTO: HOSPITALITY & TRAVEL CLUB

'We’re delighted to have had such a fantastic turnout for the club’s first conference in five years,' Iley said. 'It was a testament to the monumental effort by the whole team to bring the conference to life and we’re immensely grateful to all the exceptional speakers who shared their valuable insights on the day.'

Related:Cruise sails to Harvard with student conference

Beatriz Gorostiaga Zubizarreta, co-president of the Hospitality & Travel Club, cited the 'growing preference of collecting moments rather than things,' with the conference delving into 'how companies are reshaping hospitality for an audience that expects more than just service.'

Held at Harvard Business School's Klarman Hall in Boston, the conference also shed light on the cruise industry thanks to speakers Douglas Prothero, CEO, Lucida Luxury Maritime and founder and former CEO, The Ritz-Carlton Yacht Collection, and Per Bjørnsen, CEO, V.Ships Leisure.

'I’m sure cruise ships were mentioned more times in Klarman Hall than ever before,' Iley said.

Panels were dedicated to innovating, investing, luxury and food.

KSL Capital Partners' Steven Siegel, center, makes a point. At right is cruise entrepreneur Douglas Prothero. At left, investment panel moderator Alexander Iley PHOTO: HOSPITALITY & TRAVEL CLUB

Investing in experiences

Prothero spoke on the investing panel together with Steven Siegel, partner & COO, KSL Capital Partners, whose portfolio of travel and leisure businesses has included Orion Expedition Cruises, and Gabe Schwartz, head of business development, Kent Hospitality Group (provider of 'unforgettable culinary experiences'). The moderator was Iley, an MBA candidate set to graduate in May 2025 who formerly headed business development at V.Ships Leisure.

Prothero noted most cruise lines have roared ahead of pre-pandemic 2019, a record year, with shipbuilding slots now difficult to come by. It's more costly per berth to build a super-yacht but small-ship luxury experiences 'allow us to charge double' the fares of other cruise concepts. For The Ritz-Carlton Yacht Collection, Prothero developed a unique concept with more passenger space.

Recounting how he nailed investment to launch, Prothero said 'two slides got conversation going: the image of a super-yacht and the brand's logo.' He made about 50 pitches, pointing out attributes like 'space is luxury' and 'scarcity is luxury,' adding 'The reason we get to play in this space is because of the brand so we have to be true to the brand.'

Investment criteria

Siegel, whose KSL Capital Partners invests across travel and leisure, said question No. 1 is: Do we think we can make money? No. 2: Does this fit within our mandate? (Travel and leisure.) No. 3: Can we manage it better?

'When you open a hotel, you never expect to close it,' Siegel said, but the COVID pandemic showed travel can be taken away. The biggest reason people don't travel within their target demographic is fear of losing their job.

Schwartz, who cited trends including higher spending per guest, said it's hard to know if this is because of inflation or greater demand. Lower inflation would be a 'huge win for business.' Another trend: People asking for non-alcoholic beverages. The restaurant world typically thinks about funding on a project by project basis, while Kent Hospitality Group is trying to build a large-scale hospitality platform, and 'opportunities in this space go quickly.'

V. Ships Leisure CEO Per Bjørnsen, far right, speaks on the luxury panel PHOTO: HOSPITALITY & TRAVEL CLUB

Luxury panel

V.Ships Leisure's Bjørnsen, with nearly 30 years of experience in luxury cruising, noted small and medium sized cruise lines are the primary customers for ship management companies. He highlighted the recent trend of hotel brands entering cruising — Ritz-Carlton, Four Seasons, Accor with Orient Express, Aman.

Luxury scale comes from having many ships rather than bigger ships, Bjørnsen said. He also emphasized the need for planning, with long time horizons in advance of launching to deliver a luxury experience.

Fellow luxury panel speaker Gonzalo Undurraga, CEO of Explora Hotels (focused on 'the most remote corners of South America') talked about the big opportunity for South America thanks to the adventure travel trend. 'Our cathedrals are the Andean mountains ... the glaciers of Patagonia ... We want to share it, show it,' and help travelers make deep connections,' Undurraga said.

People are key

People are key — a warm host, curious guides and guardians passionate about preserving unique places. Travelers want to reconnect with nature on a deeper level, Undurraga said, and 'luxury is about being conscious of the impact on the local community.'

Loisse Herger is founder and CEO, O:live Hotel Corp. (with three boutique hotels in Puerto Rico and one in Italy), which has an 'experience department' that asks guests why they're visiting and if they're celebrating something. Working with local chefs and artisans is very important and helps integrate travelers into the community.

People are 'one of the most important parts of hospitality, and we are in a war for talent,' Herger said. O:live is working on an AI pilot to help boost operational efficiency and better understand customers.

The luxury panel was moderated by Ryan Buell, C.D. Spangler professor of business administration, Harvard Business School.

Innovating

Another panel focused on innovating experiences and featured Sarah Phelps, director, astronaut & customer experience at Blue Origin; Jeff Voris, SVP innovation & experience design, Marriott International; and Tom Marchant, co-founder, Black Tomato ('creators of remarkable travel experiences'). The moderator was Rob Markey, senior lecturer of business administration, Harvard Business School and partner, Bain & Co.

Food as an experience

The symposium's food panel featured Marc Aust, VP operations services, Restaurant Brands International; Carmen Morrell, chief of operations, Museum of Ice Cream; Ryan Fiedler, head of business intelligence, Kent Hospitality Group; and Robyn Tse, director of strategy, Casamata (hospitality projects reflecting Mexican heritage). Kiernan Schmitt, CMO, Clover and co-host of of 'Out of Office,' a travel podcast, moderated.

Engagement, creativity, passion, potential

The entire conference was characterized by audience engagement with great questions, Iley said.

Summing up the event, his Hospitality & Travel Club Co-President Gorostiaga Zubizarreta added: 'From luxury travel to innovation, investing in experiences and food as a sensory journey, our panels were a true testament to the creativity, passion and potential within the experience economy.'