Escalations are developments in the script that make things scarier and more difficult for the protagonist. An “Oh, shit.” moment.
It is important because it is the only thing that sustains interest in the story. Escalations give second acts form and momentum.
Escalations aren’t near misses. They happen, and they become the protagonist’s immediate problem – an obstacle – in pursuit of the larger story goal.
So, for instance, this guy’s story goal is to finally propose to the girlfriend he loves on the last day of her ultimatum. He figured he had plenty of time to go fishing with his buddies anyway. Because his flaw is that he doesn’t know how to prioritize his relationships.
Escalation one in this sequence is that a salmon swallowed his car keys, stranding them 500 miles from home. Luckily, he is able to catch it.
Escalation two is the bear.