Final answer:
The major problem in the hotel industry discussed by Gilmore and Pine is commoditization, where hotels struggle to differentiate their services from competitors. They advocate for creating unique experiences to counter this challenge and stand out in the market.
Step-by-step explanation:
The major problem/concern highlighted in Gilmore and Pine's article, as well as Pine's video, related to the hotel industry is the challenge of commoditization. Commoditization occurs when products or services become indistinguishable from those offered by competitors, leading to fierce competition primarily on price. In the context of the hotel industry, this has been a significant issue as many hotels offer similar amenities and experiences, which pushes them to compete on price rather than on unique value propositions or guest experiences.
Both Gilmore and Pine emphasize the importance of creating unique experiences and offerings that can differentiate one hotel from another to counteract the effects of commoditization. This concept is known as the Experience Economy, where businesses must innovate and create memorable experiences to maintain competitiveness and customer loyalty. Hotels, therefore, are encouraged to provide personalized and distinctive experiences to their guests to stand out in the market and command higher prices.