Introduction

The Middle East's entertainment industry is undergoing significant transformation. Over the last decade, there has been significant development in the UAE regarding theme parks, family entertainment, and the amusement industry. Brought to Dubai by the Al Habtoor Group, the LaPerle show by Dragone is the region’s first permanent based show, located in the heart of Dubai at Al Habtoor City. It was produced by Franco Dragone, who is best known as the creative director of Cirque du Soleil and theatres in Las Vegas and France. The aquatic-themed theatre was "purpose" built for the LaPerle show.

LaPerle is a unique, innovative, and exciting production utilizing the most recent technology in the industry. Cirque du Soleil is, in a way, an enhanced version or replica of Cirque du Solein (Cirque is a theatrical, character-driven approach, and the absence of performing animals helped define Cirque du Soleil as the contemporary circus). Cirque came to Dubai a decade ago, creating a thirst for circus experiences but not quenching it. La Perle took inspiration and came up with a unique proposition that offers a larger-than-life experience to the audience. It offers a unique experience by being indoors, having a better sitting arrangement, and a theatre-like atmosphere with no use of animals. LaPerle’s engaging corporate branding helped the company become a prominent leader in live shows. However, in the B2C market, currently, visitors look for convenience in terms of ease of purchase, access to location and service. Additionally, the other existing focus is on including an element of thrill and danger to keep audiences on the edge of their seats.

Certain pain points in terms of difficulty in navigation through the venue, inability to decipher the king/clown’s introduction, and crowding bottlenecks at the venue's entry and exit have been identified. According to the Google review, customers find it difficult to connect with the story and lose interest. The Dubai Opera House is a direct threat, as it could host a variety of entertainment at the same or lower cost. Management has decided to do self-introspection and see how it can revamp its value proposition to sustain and to increase revenue and generate profits.

Tourist attraction in UAE

The rise in globalization practices has led the communities to evolve with a mixture of cultures in the UAE. The UAE is home to the world’s highest number of immigrants (Refer to Exhibit 1). Dubai’s event industry has bounced back strongly post pandemic. People are engaged with the latest technology in all aspects, leading them to be a society with high tech and internet penetration. The usage of social media has seen a tremendous uptick in recent years, with a penetration of 44%.

Dubai is considered to be the focal point for tourist inflow and outflow in the Middle East. In 1989, the Dubai Commerce and Tourism Promotion Board was established to further advance and promote Dubai as a tourist and luxurious destination. Later on, the DTCM, Dubai Tourism Commerce and Marketing, was formed in the place of the Dubai Commerce and Tourism Promotion Board to manage the tourism industry and also manage the marketing activities for Dubai tourism. Dubai Tourism, Commerce and Marketing has 18 international offices as of now, located in all the major tourist continents. Dubai is developing rapidly and is establishing itself as a luxury destination. Kelly Tang (2017)

Since 2011, Dubai has seen an increase in tourists and visitors from all around the world. Data from the DTCM suggests that of around 5.08%, which equals 16.73 million tourists in 2019. Most of them were from India in 2019. In the past 10-15 years, Dubai has already made plans to move from a luxury travel market to a mass travel market. They also have plans to shift to the family tourism market. Dubai aims to attract 25 million visitors or tourists per year by the year 2025. If this strategy works out well for Dubai, it will make it the most visited city in the world, surpassing Bangkok, which currently stands in the first place. Amna Puri (2019) (Refer to Exhibit 4)

There have been many disruptions to the tourism industry in the past, but nothing as highly impactful as the novel coronavirus. Before the pandemic, Dubai was considered to be the focal point of tourist inflow and outflow in the Middle East. Dubai has been open again to visitors since August 2020, though all arrivals must have valid health insurance and a negative COVID test. Tourism in Dubai is back on track as the Emirate received more than 6 million visitors in the first 11 months of 2021. In 2020, Dubai received 5.5 million overseas visitors as compared to 16.7 million in the previous year due to the outbreak of the COVID-19 pandemic because of the highest standards of hygiene and safety across tourism touchpoints.

In the past few years, Dubai has seen an increase in tourists and visitors from all around the world. The tourism industry in Dubai contributes almost 12% to the GDP, and just like any other industry, tourism is also highly impacted in terms of both travel supply and demand because of the ongoing pandemic.

According to a Dubai Media Office release, the inbound tourist numbers for Dubai grew 5.08 percent in the year 2019, i.e., 16.73 million. Tourism in the year 2019 accounts for 11.5 percent of Dubai's GDP. In addition to that, in the 2019 Cities Study of the World Travel & Tourism Council, Dubai has been named the third-best city for direct foreign inbound tourism. Amna Puri (2019)

While the global economy remains unpredictable, we can clearly see an exciting opportunity to further expand the dominance of Dubai in the tourism sector by 2020. Despite a strong performance in boosting the numbers of Chinese, Omani, and Filipino visitors recently, Dubai has not achieved its target of attracting 20 million visitors by 2020. Full year statistics imply that Nigeria was the fastest-growing source market for Dubai, with the nation's 246,000 tourists indicating a 33 percent year-on-year surge. According to the Euromonitor report, domestic tourism is also expected to continue to register strong growth, and in-destination spending is expected to increase.

Most tourists tend to believe that Dubai’s revenue comes mainly from oil, but that is not the case as more than 95% of Dubai’s revenue is non-oil-based. So far, oil has contributed to less than 1% of Dubai’s GDP. Tourism contributes around 20% of the GDP.

The tourism industry has proved itself to be one of the major contributors to the economy in Dubai. It has been projected that the travel and tourism industries together will contribute about 312.4 billion AED (United Arab Emirati Dirhams) to the GDP of the UAE by the end of 2027. (Government of Dubai, 2019) Because of the current ongoing pandemic situation, the tourism industry is one of the most highly impacted sectors, not only in Dubai but across the world. As Dubai’s tourism industry increases its efforts to bring the tourism industry back on its feet, several top attractions and tourist destinations have opened to the world to provide an unforgettable experience once again to tourists and local visitors, further enhancing the city’s position as one of the top tourist destinations in the world.

Under strict health and safety protocols imposed to ensure the safety of tourists during the pandemic, popular family entertainment destinations and attractions have reopened as the rebirth of Dubai's tourism industry progresses and everyday life starts to recover across all sectors and communities. The successful management of the pandemic in the city has helped to restore faith in society, generating an increase in domestic tourism demand and motivating global travelers to make Dubai their first-choice place to visit. To further enhance their operational guidance and resources around colleague and tourist safety, these destinations are making sure that they are cleaning all their surfaces and high-touch areas frequently with the use of sanitizers and cleaning agents. Touch-free hand sanitizing dispensers are available in all the public areas.

The UAE has a very high GDP and a low inflation rate, which has increased the per capita income, which in turn has led to the growth of very high disposable income. At the same time, it has strict labor laws and health insurance policies that are mandated to set foot in the UAE.

The live media entertainment industry is expected to grow at a CAGR of 7.4% till the year 2026. The country hosts a variety of special events such as business conferences, fashion shows, graduations, boxing matches, etc.

About La Perle

La Perle by Dragone – Aqua Theatre started its journey in Dubai in August 2017 and entered the Global Live entertainment market. Though Dubai is known for its spectacular achievements, there were only a few players in the live performance sector. Therefore, La Perle was launched to capitalize on this opportunity.

It has a permanent venue at Al Habtoor City, which consists of three five-star hotels and three luxurious residential towers. This stunning La Perle show was developed by Franco Dragone, who is a founding father of the iconic Cirque du Soleil brand and partnered with Al Habtoor Group.

The 270-degree seating offers a magnificent view of the show. It has a seating capacity of 1,300 with 14 rows. It has an iconic 860 square meter ‘Aqua Stage’. The show features 3-D projections, and during the show, the stage is flooded with 2.7 million liters of water, where aquatic performers entertain the audience with exhilarating stunts. The technology dries up the stage in just 90 seconds. It has a 5-meter-deep pool. The visuals are combined with high-definition speakers that are embedded in the walls behind the seats. The La Perle show lasts for 90 minutes. The story line is about a young girl who falls into a dream-like state and travels through the UAE in search of a lost pearl. During her journey, she comes across different worlds and cultures. They have artists performing from many different countries.

La Perle is influenced by Dubai’s rich culture, vibrant present and aspirational future. La Perle features a breathtaking fusion of immersive artistic performances, imagery, and technology.

Business Model of La Perle

It is the region’s first permanent show that combines breathtaking choreography with daring stunts. The story of La Perle pays homage to the UAE’s pearl diving history in spectacular style. In this uniquely designed theatre, gushing waterfalls and torrents of rain flood the stage and then drain away in seconds. La Perle Dragone is the mastermind behind The House of Dancing Water in Macau and La Reve in Las Vegas. Their key partners are Al Habtoor Group, who started their journey in 1970 as a small engineering firm to become one of the region's most respected conglomerates with interests in hospitality, automotive, real estate, education, and publishing sectors. The main activity of La Perle is to entertain customers with live stunning performances by highly talented artists from various nationalities. Some of the value offerings of La Perle are:

They also have some live shows in Arabic to cater to the Emirati population. They offer a VIP package with a backstage tour. Their relationship with channel partners is good. Customers have rated La Perle 4.6 on a scale of 5 (3217 Google reviews), which is very encouraging. Customer loyalty and repeat business is something that they need to work on in the future. Their customer segmentation is focused on children and adults of all ages. The main focus is on tourists. They also rent stages for company conferences and seminars. Their cost structure is mostly from the salaries of employees. It takes around 308k AED per day to run the show. They have around 466 shows a year. The marketing spend is 440k AED, mostly for social media marketing and promo sales. Key resources are channel partners, capital, technology, professional artists, technicians, and employees. Their revenue streams are La Perle shows, tie-ups with restaurants and hotels, business conferences, and tie-ups with travel agents.

Competition

The Middle East media and entertainment market was valued at $30 billion in 2020 and is expected to reach $47 billion by 2026, with a CAGR of 7.4% from 2021–26. (Mordonintelligence, pg. 1) The UAE is set to play a critical role in the global billion-dollar industry’s future. Dubai welcomes 3.23 million overnight visitors from January to August 2021, with the highest number of international guests arriving from India, with 435K visitors. Highly innovative and creative theme parks and FEC concepts are key factors that will drive millions of tourists and local residents to these entertainment destinations. The 1.5 million square feet of IMG Worlds of Adventure theme park, Legoland, Motiongate, and Bollywood are all reshaping the Leisure & Entertainment Industry in the UAE. Some of the direct and indirect competitors of La Perle are given below.

Opera

4.7 out of 5 scale rating by customer reviews on Google, it has a seating capacity of 2000, which offers a variety of performances and events, like theatre, opera, ballet, concerts, conferences, exhibitions, etc. It was opened on August 31st, 2016 in a tie-up with Emaar Properties. It is in downtown Dubai. It hosts the finest, authentic, creative, and engaging performing arts experiences from Dubai and the world. It’s an iconic dhow-shaped building that pays stylish tribute to Dubai’s trading, fishing, and pearl diving heritage. The cost of a ticket could range from 250 AED to 7000 AED and over for VIP box seats. They have a variety of events scheduled and the price and length of every event are different. It generally caters to millennials and Gen X.

Desert Safari

Dubai Safari is a 5- to 6-hour entertainment experience for both residents and tourists. Belly Dancing, Dune Bashing, Tanura Dance, Sand Boarding, Quad Biking, Camel Riding, and Horse Riding are all part of a trip to Dubai Safari. They also serve BBQ dinners. Ticket prices range from 40 AED to 199 AED and above, depending on the package and offerings. It’s a family and group entertainment spot and is a must for every tourist visiting Dubai. It caters to all sections of the population.

IMG World

It is Dubai’s largest indoor theme park. It has various rides, movies, cuisines, shopping etc. It is built on an area of over 1.5 million square feet. The cost of a ticket could range between 120 AED and 350 AED depending on the ticket choice. However, they continue to offer discounts and promotions. It was opened on the 15th of August 2016. It can welcome over 20,000 guests per day. It also has the 12-screen Novo cinema complex. IMG World can be visited for 5 to 6 hours.

Motiongate

Ticket prices for Motion Gate range from 175 AED for residents and 245 AED and above for non-residents. It caters to kids and adults. It was opened in December 2016 and is open 365 days a year. One can easily spend over 5-6 hours at Motiongate. It has a variety of roller coaster rides and, in total, around 30 rides. It is spread over 1.9 million square feet. There are other theme parks in Dubai which are also in direct competition with La Perle.

Movie Theatres

Many movie theatres, like Vox Cinema, Roxy Cinema, and Novo Cinemas, are very popular for family entertainment. The ticket price ranges from 55 AED to 75 AED plus. Each of these theaters offers various promotions and plays various kinds of movies. This is cheaper than La Perle and offers 90 to 150 minutes of entertainment for all age groups.

Dubai Aquarium & Underwater Zoo

The ticket price ranges from 100 AED and upwards, depending on the promotion and package. It provides a wide range of programs for school, guest, and community education. It is the first of its kind of regional initiative that enhances awareness of marine animals and habitats while raising conservation awareness. One can have diving experience, cage snorkeling, and animal encounters. It takes around 2-3 hours to have a good experience at this venue.

Marketing strategies of La Perle

Dnata is a strong back-up for La Perle. Using the latest technologies, La Perle gives a live feeling of theatre. It uses 32 projectors to give a live feeling of theatre, playback tech music, props & assets like a man playing drums, the biker sphere, and different artists such as acrobats, guitarists, zombies. The show lasts two hours with no intermissions or breaks. A few items in the show are very complex, which results in disconnect.

Its digital marketing continues to be the dominant vehicle to reach its domestic and international customers for La Perle. Prior to COVID, 78% of our customers were international travelers. Its primary markets were India, China, Russia, Saudi Arabia, and the UK. It has partnered with over 40 travel trade operators such as Rayna Tours, Platinum List, Expedia, etc. They also had berated package deals – hotel/restaurant/show – "all-in-one" package.

It has also partnered with DTCM for local activations such as

In 2020-2021

The show closed as a result of the COVID situation on March 14, 2020. La Perle reopened for performances on July 30, 2020. When reopened, La Perle was the only permanent show of this type open in the world until December 2020. As tourists were not coming, La Perle decided to target locals or residents. It brought a major shift in marketing strategy to market to a domestic audience. Even its digital media focus was on families, staycations, and package deals. With a paradigm shift to the domestic market, it created staycation packages targeted at children: friends and family offers; kids go free. It also started giving free popcorn and drinks to kids.

It enhanced the restaurant and show packages—guests were escorted to restaurants on the boulevard. We started Bentley service for high-end guests from Habtoor Polo, Waldorf Astoria, and Habtoor Grands. It also reduces its prices and offers great flash sales (99 AED tix) with local Partners-Emirates airlines and Virgin Megastore. It could manage to survive somehow, but its margin has been widely impacted.

The management is exploring the possibility of coming up with a winning proposition that is more relevant now to grow and bring more opportunities in the new normal.

Price

La Perle offers various packages to cater to a wider audience.

  1. Their ticket price starts from 99 AED as a Flash sale for Bronze, 149 AED for Silver, 199 AED for Gold. All these tickets are non-refundable and non-changeable.
  2. They have a special price for kids up to 12 years of age which starts from 209 AED for Bronze, 259 AED for Silver and 309 AED for Gold.
  3. They also have a Dinner & Show package that starts from 404 AED and guests can choose one out of seven restaurants serving different cuisines.
  4. They have a special offer for UAE residents, with ticket prices starting from 207 AED for Bronze, 247 AED for Silver and 288 AED for Gold.
  5. Friends & Family package, wherein, they offer 25% discounts when booked for a minimum of 4 people. The price starts from 195 AED for Bronze, 233 AED for Silver and 259 AED for Gold.
  6. Apart from the above, they also have a Cruise, Dinner and Show package.

All their shows are 90 minutes without intermission. For food & beverages they have tie-ups with the following restaurants:

Apart from the above, they serve aerated drinks and light snacks at their F&B counter.

Engagement

They are active on social media platforms. They have over 22k likes and over 31k people follow them on Facebook. They have over 90k followers on Instagram. They are also on Twitter, but not very active. They engage with their customers through social media, their own websites, travel agents, hotel and restaurant tie-ups, and corporate events.

In 2022 & way forward

La Perle is planning to add some additional new acts – i.e., fire in 2022, bring in some "drop-in" acts every 3 months – "new stuff". They are also planning to add additional shows, reviewing the concept of creating a different show to run on the theatre's dark days. However, they need to evaluate production and operating costs, staff requirements, equipment, etc. As of now, visitors are travelling more consciously, and are doing more research on their travel. Their holidays have become more special and they are seeking more local experiences. What should La Perle do? How can it attract tourists and visitors by assuring them that they’re in a safe and socially distant environment?

Exhibit 1: source exhibit reproduced from the case PDF
Exhibit 1
Exhibit 2: source exhibit reproduced from the case PDF
Exhibit 2
Exhibit 3: source exhibit reproduced from the case PDF
Exhibit 3
Exhibit 4: source exhibit reproduced from the case PDF
Exhibit 4
Exhibit 5: source exhibit reproduced from the case PDF
Exhibit 5
Exhibit 6: source exhibit reproduced from the case PDF
Exhibit 6
Exhibit 7: source exhibit reproduced from the case PDF
Exhibit 7

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