Revenue Management at the Hong Kong Grand: The Dine in Grandeur Dilemma

Abstract

This case provides an interesting example of the trade-offs between revenue management, brand image, loyalty programs, and employee satisfaction. The Dine In Grandeur Program (DIG) is financially successful (see the discussion below), but might be causing displacement of regular, full-paying customers and could have a negative effect on the Hong Kong Grand’s image. Furthermore, many employees and managers are unhappy with the program and find it difficult to implement. This case has been successfully used in a revenue management class, but could also be used in any service operations or service management class that includes revenue management as a topic. In addition, it could be used in a marketing strategy or services marketing class to illustrate the tradeoffs between revenue and brand image.