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 is closely tied to the Experience Economy, an economic concept where businesses focus on creating memorable experiences for customers rather than just selling products or services. In this model, the value comes from the unique and personal experience a customer has, which can lead to emotional connections, loyalty, and a willingness to pay more.

For example, instead of just selling coffee, a café might focus on the ambiance, interaction, and atmosphere, turning the simple act of buying coffee into a meaningful experience.

This concept was popularized by Pine and Gilmore in their seminal book "The Experience Economy", where they argued that businesses must evolve from selling commodities, goods, and services to offering experiences to stay competitive.

THE TRANSFORMATION ECONOMY

Beyond experiences, in a 2020 update, Pine and Gilmore introduced the Transformation Economy, where the experience changes the customer in a meaningful way. LBEs that inspire behavioural change, such as modern zoos educating visitors on conservation and promoting actions like reducing palm oil consumption, fall into this category. This transformation reflects LBE’s highest potential - moving beyond entertainment and education to inspire long-term, beneficial personal change.

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 LBX - 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.

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. Understanding this evolution provides a unique opportunity to shape the next generation of meaningful, memorable destinations.

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