Two news items caught my attention.
1. Indian
carriers, both low-cost and full-service, are revising their in-flight menus to
offer passengers a differentiated fare, as competition is heating up amid the
boom in air travel with the waning of Covid 19. The need has been felt by such
carriers, to differentiate in services like meals, enhance ancillary revenue,
and create a distinct space in flyer’s minds, and
2. Theatre chains
typically get 50-60% of their revenue from ticket sales, and the rest from
F&B and advertising. There may be months when no film works. Globally then,
F&B and advertising helps de-risk the business. With this in mind, most of
the biggies in cinema exhibition business have been investing in food variety
long before the pandemic. Further, the need for premium experience for the movie
goers at Multiplexes has also created a need for an upward push on F&B
spends, which have shown a rise of 20 to 50% across the business. For almost
three years now, the 702 screen Inox has had a tie-up with ITC’s ready-to-eat,
gourmet brand, “Kitchens of India”. Since the pandemic began, PVR and Inox
among others have been retailing their food on Swiggy and Zomato. And over the
last eight months Inox has been doing a lot of culinary sessions with expert
chefs in their properties. The idea is to convince people that multiplexes can
do gourmet food. This in turn has helped F&B revenues.
Clearly, these two
news items indicate the possibility of a promising strategic alliance between
airlines, leading hotel chains which boast of distinct F&B offerings, and
multiplexes, with each alliance partner leveraging its respective core
competencies, to provide a combined value proposition to their respective
target audiences.
Besides, exploiting
the tremendous opportunities for cross-selling, such alliance partners can also
leverage their respective analytics capabilities, and share with each other the
insights gained on the perceptions and expectations of their respective target
audiences. The attendant benefits would be obvious.
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