Experience Economy's Next Phase: Industry Leaders on LBE Touring Networks and Price Squeezes
The GXG experience economy forum takes place October 5-6 in Green Patio, Madrid. Ahead of the event, industry publication IQ spoke with several leaders in the location-based experience (LBE) sector — now a significant segment of live entertainment — about where the industry is headed next, touching on broader touring models, squeezed ticket prices, and rising consumer expectations.
From single destinations to touring networks
Austin Johnston, founder and CEO of AK Johnston Group, says experiential marketing already proved its value between 2010 and 2015 — but being accepted isn't the same as growing. He expects the real growth between 2026 and 2028 to come from "strategic evolution," citing retail's shift from stores and product launches toward immersive retail worlds, and IP rights holders moving into location-based experiences targeting niche audiences.
David Hutchinson, founder and CEO of The Path Entertainment Group — which has built experiences around Monopoly, Paddington Bear, Peppa Pig and Dungeons & Dragons — says IP holders increasingly treat LBE as a strategy for building a fan base. The opportunity, he says, is building a full franchise system around a single IP rather than just standing up one venue.
He believes the next step is expanding touring: experiences shifting from one-off destination trips toward genuine networks licensed and toured across multiple cities and regions, closer to how a hit musical tours than a venue that sits in one building for a decade. Monopoly Lifesized, already open in Mexico City, is one example. As these networks grow, Hutchinson expects such experiences to move from novelty status into everyday nightlife.
Rising quality bar, shrinking margins
Hutchinson says the word "immersive" alone no longer sells a ticket. Consumers are choosier about what they spend on, but once they commit, their quality expectations rise accordingly — and social sharing means word gets around within days rather than seasons, leaving little room for operators to "launch and fix later."
Johnston sees the same pressure from the brand side. Economic uncertainty and shifting sentiment are making brands more cautious and pushing decisions later, compressing production timelines, raising costs, and squeezing quality. With each project carrying its own KPIs, sustainable pricing models become nearly impossible to maintain — fueling a race to the bottom where operators may cut corners or underbid just to survive.
Policy: UK tax credits and Brazil's experience
Hutchinson says flexibility is what makes the economics work — capacity that scales with demand, and formats that can tour and replicate across markets. What doesn't work is real estate and policy: high fixed costs in prime locations and squeezed ticket prices both require an existing audience base to support them, and the UK's LBE sector lacks the fiscal support enjoyed by film and theatre. He argues for tax credits comparable to those industries as a key step toward strengthening the sector's economic case.
Brazil offers a case where policy support worked. Noemia Matsumoto, director of special and cultural projects at Opus Entretenimento, points to the emergency tax relief program PERSE and tax-deductible sponsorship under the Lei Rouanet act as measures that helped the industry stabilize during recovery. Cashless payment systems and the instant payment network Pix, she says, cut transaction friction and boosted on-site spending. What's unsustainable, in her view, are legacy models built on outdated ticketing systems or high fixed costs without clear value differentiation.
Mariano Otero, senior vice president at Fever, puts the responsibility back on operators: understanding who the target audience is, what they expect from a specific venue or experience, and using data to plan and develop IP. "Expectations are high," he says, "and our ambition needs to match that."
Event details
- Event: GXG (experience economy forum)
- Dates: October 5-6
- Location: Green Patio, Madrid, Spain
- Tickets: details not yet announced beyond the official website