For the longest time, hotels have been the main centers of gravity in the hospitality industry. Everything is changing nowadays as people invest more and more in experiences instead of places. This whole concept of Experience Economy is making the last generations, like Millennials and Gen Z, spend more on unique and tailored attractions, often engulfed in local communities. A hotel is no longer an ultimate goal, but rather the gateway into a broader ecosystem of impressions. This redefines the role of hoteliers and developers: from constructing buildings to shaping experiences.
Today’s traveler makes decisions based on a combination of factors: cultural events, gastronomy, nature, education, and opportunities to connect. A hotel can look spectacular, be modern and comfortable, but if it’s not surrounded by life and attractions, it will not be able to keep guests. That’s why hotels nowadays are partnering with local businesses to offer unique packages, investing in event and experiential tourism, and building whole ecosystems to satisfy guests’ needs.
What guest satisfaction depends on— Source: Deloitte
From hotels to ecosystems
Now, how does the ecosystem look, and what are the minimum and the maximum levels that meet (or exceed) travelers’ expectations?
The minimum level, of course, is comfortable accommodation, dining, and accessibility. A hotel must act as a cornerstone that connects accommodation, services, and experiences. If you want your guests to stay longer than a few days, it’s essential to build a seamless service chain and guest journey. Think about what a guest will do in the morning, during the day, and in the evening — how they can expand their experience and, most importantly, what lasting impression you want them to take away.
In other words, a hotel should not only be embedded in tourist and entertainment infrastructure, but also in the guest’s journey. The must-haves vary with the concept: for some hotels, it means integration with local culture and nature, for others — like all-inclusive resorts — a self-contained ecosystem of high-quality services.
And there are also nice-to-haves — additional formats that aren’t mandatory but can surprise the guests, thus prompting them to visit local attractions like art installations, creative spaces, and tailored programs for different types of guests.
For example, in Dilijan (Armenia), we are developing Multifunctional complex Scana — an ecosystem that combines a hotel, concert hall, hospitality school, restaurants, co-working and cultural venues, as well as the online platform Meet Dilijan, which serves as a hub connecting experiences with the operators who provide them. So at any point of the day, our visitors have choices ranging from essentials to unique experiences: a luxury spa, children’s areas, or a cinema; concerts and festivals in the evening; park walks or open-air yoga during the day; and master classes, culinary discoveries, or meet-and-greet with the local community.
Economics of the Prolonged Stay
Speaking in financial terms, both for the business and the local economy, tourism economics highly depends on the length of stay. If a person spends one day in a region, they leave behind roughly $100–200 (depending on the country, for example, from €70 to €250 in Europe). If they stay for three days, that’s already $300–600 — plus additional expenses on transport, food, souvenirs, and event tickets. Multiply this by thousands of visitors, and you can see the multiplier effect on the local economy.
A well-designed hotel on its own can extend a guest’s stay — for example, from a single night to two or three. But to reach a full week or more, it needs the support of a broader ecosystem of experiences and infrastructure. During short visits, people tend to concentrate on spending on “must-see” sites and large operators. This not only brings less profit for the destination, but it can even create sustainability challenges, from higher transport demand to increased greenhouse gas emissions. But if it is surrounded by cultural events, gastronomy, parks, and educational formats, travelers stay longer. This benefits both the hotel and the community, as well as the entire region.
Tourists staying several days diversify their activities, visit smaller businesses, and further locations rather than concentrating only on iconic sites. This means revenue flows more evenly into the local economy — supporting restaurants, shops, guides, and artisans. Longer visits also reduce pressure on transport infrastructure and distribute environmental impacts more sustainably, as the carbon footprint of travel is spread across more guest nights.
Risks of Ignoring the Ecosystem Approach
While it’s clear that developing infrastructure and building a comprehensive ecosystem of activities is beneficial, the risks of ignoring this approach may not be as clear. Without a supporting ecosystem, a hotel becomes an isolated asset — disconnected from the surroundings, with limited ability to attract and retain guests. The lack of additional experiences makes it harder to generate long-term value for both investors and the destination itself.
The most obvious risks include:
- Low occupancy rates, since guests won’t travel just to “stay in a room.”
- No repeat visitors, as there are no reasons to come back.
- Lack of community involvement leads to the hotel being viewed as a closed bubble, not a part of the city’s life.
The last one might not seem that important from the financial point of view; however, if the local community is not involved, the project fails to become part of the city. This can create tension and the perception that the business is external and temporary. Case studies illustrate this too: luxury tourism projects in Africa often fail to benefit local communities because they remain isolated and disconnected from the regional economy. An ecosystem approach, on the other hand, allows the hotel to integrate into the local life and become an organic part of the region’s development.
This is what we are doing in Dilijan: developing the Scana complex not only as a hotel, but as an ecosystem that combines hospitality, culture, education, and public space. Dilijan itself has a rich cultural tradition, a strong educational base, and the potential to become a regional hub for sustainable tourism. We are utilizing these innate qualities to further enhance the guests’ experience in the city.
The Ever-Changing Role of Hoteliers and Developers
In the past, a developer’s work often ended once the building was complete. Today, that is no longer enough. A hotelier is becoming a cultural mediator and producer of guest experiences. They should think about the occupancy rates, but also about the meanings and impressions that will fill the space and satisfy the customers.
In new projects, we see that successful developers are those who can create ecosystems: from infrastructure to events, from partnerships with local businesses to integration into the cultural life of the region. This requires new responsibilities and new competencies — but it is precisely what makes a project sustainable and attractive for guests.
Another important skill for hoteliers would be strengthening the ties with the local community. When hotels collaborate with local businesses, cultural institutions, and residents, they can create truly authentic experiences. Reports from the Organization for Economic Co-operation and Development stress the importance of integrated strategies where the business and local communities work together for sustainable growth.
Equally essential is sustainability leadership — not just introducing “green practices” like energy efficiency, waste management, or environmental conservation, but building a business model where sustainability becomes a competitive advantage. Guests increasingly value destinations where responsibility and authenticity go hand in hand.
The future of hospitality lies in projects that are built in synergy with the region around them. The hotel as an entry point sets the rhythm of travel, but long-term success comes from creating ecosystems of experiences. This is both a challenge and an opportunity — to move from building properties to creating unforgettable experiences that guests want to return to.
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