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Restricting product assortment to consumers has a significant impact on demand and loyalty.
FMCG marketers know it well. If a product variety has been offered to consumers and it has a good traction, taking it off the shelves or converting it into a forced combo can have serious repercussions. Other industries often ignore this learning.
I recently travelled by the leading airline in India. They used to offer beverages and snacks on short flights, at a cost. Travellers could buy any beverage or any snack of their choice. Most people on short flights ended up buying just a beverage.
It seems they have changed their menu. Travellers can now buy only a combo of snacks + beverage. If a person wants to have just a cup of tea, she is forced to buy a snack item with it. Such a move is possibly to increase their revenue and profits. Will it?
Restricting consumer choice has never been a good idea. Forcing consumers from single item to a combo will likely have a significant impact not only on demand, but on consumer loyalty as well.
Will it bring down the airlines share of consumer traffic? Only time will tell.