What is LBE?

LOCATION-BASED ENTERTAINMENT DEFINED:

For millennia, entertainment was inherently location-based - whether through fireside storytelling, ancient theatres, or public performances. With the invention of the printing press, followed by the gramophone and radio, entertainment shifted toward anywhere, anytime consumption. As digital media, smartphones, and social media blurred these boundaries further, the need for the term Location-Based Entertainment (LBE) emerged to differentiate physical, on-site experiences from those enjoyed remotely. LBE spans traditional venues like zoos, aquariums, theme parks, and cinemas to new concepts such as immersive art and competitive socialising.

Image credit Tim Ayers / Alamy

THE EXPERIENCE ECONOMY

LBE sits at the heart of what Pine and Gilmore described in their seminal book The Experience Economy — a shift from selling products and services to creating memorable, differentiated experiences. In this model, value is generated not by the thing itself, but by the emotion and connection it evokes. A café, for example, no longer competes on coffee alone but on the ambience, interaction, and sense of belonging it creates.

According to the Mastercard Economics Institute (2023), global experiential spending has grown by 65 % since 2019, compared with 35 % for goods – clear evidence that the experience economy is not niche but structural.

As we approach peak stuff, fulfilment is emerging as the new status. Across the world, billions of people in a growing middle class are choosing to spend on experiences over possessions. In a world saturated by screens and scarcity of time, LBE offers something tangible: presence, participation, and connection. That’s why it’s growing up to ten times faster than the global economy.

As explored in our essay Homo Experientialis, this shift reflects a deeper human transition – from Homo Economicus (Economic Man), defined by ownership and consumption, to Homo Experientialis (Experiential Man), defined by meaning and participation.

THE TRANSFORMATION ECONOMY

Pine and Gilmore first hinted at the coming “Transformation Economy” in their 2020 update to The Experience Economy. Joe Pine is now expanding this idea in his forthcoming book The Transformation Economy, which explores how the next economic frontier lies in experiences that change the customer in a meaningful way.

LBE sits at the intersection of this evolution – where guests don’t just attend an experience but emerge altered by it. A modern zoo that inspires lasting conservation, an immersive exhibition that deepens empathy, or a cultural destination that reawakens civic pride – each exemplifies this shift.

We explore the enormous potential of this move for the industry in our forthcoming white paper, Immersive Influence™. Register here to be the first to receive it.

FROM LBE TO LBX

As the boundaries of entertainment and experience continue to evolve, Location-Based Experience (LBX) has emerged as a broader, more inclusive category. While LBE traditionally focuses on venues built for entertainment, LBX encompasses any experience anchored in place—from placemaking and branded environments to immersive cultural districts, co-located leisure, and heritage interpretation.

Not all LBX is designed to entertain. A gallery is more LBX than LBE. A Holocaust exhibition, for example, is a profound Location-Based Experience - it is anchored in place and deeply impactful, yet not designed for leisure. These experiences may inform, move, or even transform us, without ever being “fun.”

This framing helps articulate the shift from entertainment to meaning. As explored in our article From Fun to Fulfilment, guests are increasingly seeking experiences that connect to higher human needs—purpose, belonging, reflection.

OPPORTUNITIES

LBE and LBX offer rich opportunities in the growing experience economy. By engaging multiple senses and anchoring people in powerful, place-based stories, they drive deeper emotional engagement, encourage repeat visits, and support a wide range of revenue streams—from ticketing and F&B to retail and sponsorship.

The economics are compelling. Global LBE is projected to grow from $4.5 billion in 2023 to over $73 billion by 2034 – a compound annual growth rate between 23% and 30%, according to Precedence Research, Polaris Market Research, Grand View Research, and Markets & Markets. That’s up to ten times faster than the global economy’s 2–3% annual rate.

While much of the sector’s expansion is being driven by growth across the Global South, Europe and North America are entering a phase of maturity – where optimisation, reinvestment, and new IP rollouts from global operators are redefining expectations.

At Kay Elliott, in addition to our design services, we’re helping clients navigate this landscape through a suite of emerging advisory tools created specifically for the Experience Economy:

Destination Flywheel™ – reframes masterplanning as a living system aligning guest experience, commercial performance, and environmental thresholds
Guest Flow Optimisation™ – uses data, digital twins, and behavioural insight to increase emotional and financial yield without additional footprint.
Immersive Influence™ – a design framework for enabling values-led, voluntary shifts in behaviour through emotionally resonant, place-based experiences.

Together, these frameworks turn the growth of LBE from trend into strategy – helping operators create places where profit, purpose, and experience compound rather than compete.

CONCLUSION: Why LBE & LBX are More Relevant Than Ever

From traditional venues like zoos and theme parks to immersive exhibitions and co-located leisure, LBE is evolving into transformational, place-based experiences that not only entertain but also change how people interact with the world. And as this shift continues, LBX captures an even broader landscape – uniting entertainment, culture, heritage, and commerce around the power of presence.

Growth isn’t the problem; meaningless growth is.
Understanding this evolution – and applying the right tools to harness it – provides a unique opportunity to shape the next generation of meaningful, memorable destinations.

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