Radisson

Company BackgroundCorporate founded in 1938, Carlson

Companies, Inc.Organized into four operating groups

Carlson Hospitality Worldwide Carlson Wagonlit Travel Carlson Marketing Group Carlson Leisure Group

First Radisson hotel was built in 1909 in Minneapolis

In 1962 Carlson purchased Radisson HotelCurrently there are 420 locations in 73

countries

Time Line

1960sIn 1962, Curt Carlson acquired total ownership of the Radisson® Hotel in downtown Minneapolis, marking the official entrance of Carlson Companies into the hotel business.

1970s•Carlson began expanding its Radisson® hotel. Early Radisson® locations included Denver, Colo.; Bloomington, Plymouth, Grand Portage, St. Paul, Alexandria and Duluth, Minn.; Omaha, Neb.; Kansas City and Wichita, Kan.; Cypress Gardens, Fla.; Charlotte, N.C.; Scottsdale, Ariz.; Chicago, Ill.; Danvers, Mass.; Wilmington, Del.; and Nashville, Tenn.

1980s•In 1987, the new Radisson® Plaza Hotel opened in downtown Minneapolis on the site of the original Radisson® Hotel.

•The first Country Inns & Suites By CarlsonSM opened in Burnsville, Minn.

1990s•The global hotel portfolio surpassed the 500-location landmark, ending the year with 556 locations.

2008•Carlson Hotels celebrated the opening of its 1,000th location, the Radisson® St. Martin Resort, Marina and Spa.

ChallengesDiverse hotel purchases were at about a rate

of one hotel every seven days. Multiple owners meant each property was run

differentlyUnfocused Brand Image:

No real uniform brand across the many properties, resulting in multiple hotels with low quality management and customer service.

Alignment with hotel owners more than hotel guests

Grow at any cost model

StrategiesFocus on customerProvide Individualized marketing and

servicesDevelop hotels in key locations – Maintain

customer loyalty, not just grow at any costLeverage the Carlson companies advantage –

synergy with the other operating groupsStrengthen global brand presence

Program Initiatives100% guest satisfaction program.Fully integrated guest information system.Guest satisfaction measurement program and

employee satisfaction measurement program.Guest recognition and rewards program.Genuine hospitality program.

100% Guest Satisfaction“Yes I Can” training that focused on service quality

and service recovery. http://www.youtube.com/watch?v=5cbgetAWbZI

“Second Effort Program” - attempts to recover customers who called to complain. Leads to the most loyal customers.

Financial justification – defection is costlyPilot program: Selected 30 hotels for pilot.

Measure before and after for the pilot. (Willingness to return, % advocates, % defectors, % complaints).

How much money spent on “invocations”The pilot needed strong training program.

Integrated Information SystemThe Curtis-C system worldwide distribution reservation

systemThe CustomerKARE system (Customer database). Used

by marketing, customer service, expedite reservationsNew feature – compliant management system

Harmony property management system. Support general manager in:staff productivity evaluationsales patternsemployee turnoverbalanced score card

Harmony to become available online – allow all managers assess the health of the hotel quickly

Measure Customer SatisfactionMainly measured using the complaints New measurements:

Willingness to return % advocates % defectors % complaints

Measure customer loyalty. Frequent guest program

Measure Employee SatisfactionEmployee satisfaction is directly related to

customer satisfactionEmployee surveysEmployee performance measure

Employee goal alignment with organizational goal

Performance based rewardsEmployee productivityTraining programs

Guest Recognition and RewardsFrequent guest program

Silver Status comes with 15 nights or 10 stays per year.

Gold Status comes with 35 nights or 20 stays per year.

Concierge status comes with 75 nights or 30 stays per year.

Solution- LeanWhat is Lean?

Five Elements: Focus on value to the customer Creation of value stream map and elimination of

waste Flow of service through the system created Pulling service from the customer Striving for perfection

Lean for the Radisson BrandFocusing on Value to the Customer

Radisson would analyze which benefits and actions have great value to their guests and implement these values into the core of their service structure. This will help improve customer retention

Lean for the Radisson BrandEliminating Waste & Creating Flow Through

HotelsRadisson would break down the various processes

used by employees and owners, when serving their customers and eliminating the time consuming or unnecessary activities.

They would document the flow of service, sharing best practices and policies with all properties

This would streamline the hotels so that guests receive the same service at each property and foster employee teamwork by standardizing function and cooperation.

Lean for the Radisson BrandPulling Service from the Customer

As flow is introduced, Radisson will learn customer demand; Radisson will pull service from the customer, controlling the flow of production and supply to perfectly match customer need. They will give service the customer demands and do it smoothly

Striving Radisson will strive for perfection by

introducing Lean and giving a service guarantee throughout all properties linking all hotels to one consistent brand.

Radisson Today…• Radisson Worldwide boasts over 420 hotels including properties

in New York, Los Angeles, London, Tokyo, Istanbul, Sydney, Tel Aviv, and here in DC.

• According to the Carlson Group Web site, they plan to grow the Radisson portfolio domestically and globally by at least 600 hotels by 2015

Radisson Today…Continuation of “Yes I Can!”Tiered Branding

Radisson Today…Club Carlson Loyalty Program

Move from Gold Points Plus program to new Club Carlson in 2011 “A key pillar of our Ambition 2015 growth strategy is

to help our hotels grow their revenues,” said Hubert Joly, president and chief executive officer, Carlson. “In 2010, we announced a plan to double the size of our loyalty program to 10 million members by 2013, and the membership grew by 24 percent to 6.3 million members during 2010. We have designed Club Carlson’s very attractive value proposition to help drive further growth and results.”http://carlson.com/news-and-media/news-releases.do;jsessionid=QjBNPFwLzc9LQTvpvHSvzMc6rQ9Dxv0jLmvvyypjDNVVrcgWxJm2!904930257?article=4408023

QUESTIONS?