INSIGHTS

Irrational Hospitality: How to Stop Being a Commodity in Services

By Felipe Ribeiro
TWE Insights • 7 min read

In many service markets, purchasing decisions often end up being reduced to a single variable: price.

When this happens, companies begin to be perceived as commodities — seemingly identical deliveries with little distinction between providers. Accommodation, airline tickets, transportation, and many other services face exactly this challenge.

In the world of events, this happens frequently as well. Fundamental resources for running an operation start to be evaluated as if they were all the same, and in that context the lowest price appears, at first glance, to be the most logical choice. But that logic almost always carries a cost later.

In complex operations, the consequences of choosing based solely on cost usually appear only once the event has already begun — often with a sense of urgency.

The question organizers and producers should ask when selecting their suppliers is not whether they are buying the lowest price, but whether they are buying operational peace of mind. 

When Services Become Commodities

The word commodity originally referred to basic goods, raw materials, and products produced on a large scale with little distinction between suppliers.

Although the term is not formally used for services, it is clear that many of them have started to be perceived this way.

When a client believes everything is “more or less the same,” the only remaining variable is price. And when that happens, service providers fall into a difficult trap: they stop being evaluated based on the quality of their delivery and start being compared only by the price they charge.

This commoditization is especially dangerous in markets that depend on precision, anticipation, and the ability to respond quickly — exactly the case in the world of events.

The Risk of Buying Price Instead of Peace

Producing a major event is, by nature, a complex, risky, and financially sensitive activity.

Returns are often unpredictable, costs are high, and the pressure for budget control is constant. For this reason, it is understandable that organizers try to reduce expenses as much as possible.

The problem is that the cheapest supplier is not always the most economical by the end of the operation.

In critical environments, the cost of error is almost always higher than the difference between proposals. A delay, a communication failure, or a disruption in operational flow can generate consequences far more expensive than any initial savings.

Breaking away from the commodity mindset therefore requires a shift in perception: the client must understand that they are not simply buying a service, but a result.

And often that result can be summarized in a simple and powerful expression: Peace of mind.

The Difficult Task of De-Commoditizing

For a service provider, ceasing to be perceived as a commodity requires building value.

But that value does not come from speech — it comes from delivery.

The first step is to be absolutely efficient at what you promise to do. The promise must be fulfilled.

In large operations, this means deeply understanding risks, anticipating variables, maintaining control over details, and always operating with a margin of safety greater than what the client can see.

Experience, proactivity, and an almost obsessive attention to detail are what sustain this level of performance.

But even when this standard of excellence is achieved, there is still a limit. Being technically impeccable generates respect and trust — but it does not necessarily turn clients into fans.

That transformation happens when delivery goes beyond efficiency and enters the territory of delight.

“The difference between service and hospitality is that service is black and white, while hospitality is color.”

The Concept of Irrational Hospitality

This concept was popularized by Will Guidara and is based on a simple but powerful premise: the human desire to be well treated never goes out of style.

Irrational hospitality happens when care for people becomes so intentional and personalized that it exceeds expectations and goes beyond the limits of reason.

It is called irrational precisely because it moves beyond the cold logic of obligation and enters the realm of generosity and human connection.

But this type of culture cannot be merely performative. It needs to grow from the inside out.

That is why, before delighting clients, it is necessary to create within the team itself a culture of belonging, respect, and purpose.

When the people who work with you feel seen and valued, they naturally reproduce that same quality in their relationships with those on the other side.

How We Apply This at TWE

After coming into contact with this concept, we began revisiting more deeply how we think about the experience of our clients at TWE Brasil.

We work with mobility for major events. This means dealing daily with professionals who live under pressure, spend hours in airports, sleep in hotels far from home, and cross the city between meetings while running complex operations.

On the surface, the need seems simple: move that person from point A to point B at the right time.

That is the commodity being purchased.

If we do that well, we are delivering exactly what was bought.

But we decided to go further.

If, for a few hours of the day, that client is inside an environment completely controlled by us, then we have an opportunity to transform that time into something greater than just a transfer.

That is how we began introducing experiential elements into the TWE journey.

We developed our own signature fragrance, designed as a sensory stimulus capable of impacting memory, emotion, and well-being.

We standardized our vehicles with a curated soundtrack — TWE Music Ride on Spotify — focused on relaxation, inspiration, and intellectual development.

And upon arriving at the hotel, the client may find a small wellness kit designed to help them slow down, relax, and recover energy for the next day.

None of this was requested. But often it was exactly what that person needed.

More Than Luxury — Intentional Care

The goal of these actions was never to impress with luxury or excess.

What we seek is something more difficult and more valuable: genuine care.

Delight does not mean doing something grand. It means showing that there is attention and intention in every detail of the experience.

That is what transforms a technically efficient delivery into something memorable.

And that is what allows a service to stop being perceived as a commodity.

Conclusion

The journey of irrational hospitality never ends.

It is not a campaign, nor a one-time action. It is a continuous process of learning, refinement, and evolution.

The deeper you go down this path, the clearer it becomes that technical excellence alone is no longer enough. The real differentiator lies in how people feel throughout the experience.

In the end, that is what creates connection.
That is what creates memory.
That is what builds value.

And when this level of care becomes a genuine part of a company's culture, what once seemed like just a service begins to transform into something much greater.

Because, deep down, perhaps the greatest luxury of all is still the same: being genuinely well treated.

Warm regards,

Felipe Ribeiro
Founder — TWE Brasil