LAS VEGAS - Radisson Hotels & Resorts this week announced at its Annual Business Conference a series of changes in its vision and business model designed to position the company to excel in the new environment of the hotel industry. New strategies and structures were announced in key areas of the business operation including system development, franchising, operational support, sales, marketing and technology designed to support a customer focused vision and provide a platform for future growth and success.

"To embrace change is to embrace success," said Jay Witzel, president of Radisson Hotels & Resorts, in a keynote address at the Annual Business Conference which included Radisson owners, franchisees, managers, vendors and partners from the company's 430 locations in 60 countries. "In today's new environment, it is imperative that we align everything we do against a clear vision that fosters success at all levels of the Radisson organization," he added.

Witzel noted that this new vision, which has been titled "The New Deal at Radisson," has been under development for nearly a year and pre-dated the terrorist attacks on America. It is a broad-ranging series of initiatives similar to the "New Deal" which was created by U.S. President Franklin Roosevelt during a changing time in America's history. "We are not reacting to the downturn caused by September 11, but rather building a platform to insure success and results in the long term," Witzel said.

A centerpiece of the strategy is the new vision which states that Radisson is a global hotel company that will be distinguished by:

  • Great Places in Great Places---Having the right hotels in the right markets with a dedicated new division to develop owned and managed hotels, supplementing growth through high quality franchise locations
  • A recognized and trusted brandBuilding valuable relationships with the guests it serves
  • Providing superior financial returns for owners and investors

Witzel outlined changes Radisson has made (or are underway) to create a new deal in the areas of its growth strategy, franchising, sales and marketing, operations and technology, to operate more efficiently and effectively in the new business environment.

New Deal in Growth Strategy

Radisson's new growth strategy is focused on increasing capital investment to acquire great hotels in the right markets where there is high customer demand and the company can lead by example and set high standards for the brand. Since January 2001, Radisson has acquired 12 new management agreements – bringing the number of hotels managed by Radisson to 34. Radisson has added many of these hotels through conversion and intelligent renovation, such as the Radisson Plaza hotels in Philadelphia, Baltimore and Dallas (Richardson) and major newly-built hotels such as the Radisson Resort Hill County in San Antonio (opened in late January). Radisson is also managing a Radisson Plaza convention hotel under construction in Myrtle Beach, South Carolina (opening in 2003).

The company's new development strategy will enable Radisson to build a presence in the top U.S. markets and destinations, where it may be difficult to franchise, and will help it further develop service and product excellence for the system that will build long-term guest loyalty and attract new customers to the brand. The company has created a new 22-person division of investment, financial and operational executives and staff to drive this new strategy.

New Deal in Operations

In order to achieve operational excellence and a consistent, exceptional guest experience, Radisson has re-examined and re-aligned its field support structure, and changed the way it delivers services to its hotels.

"We've created a centralized hub of hotel-focused services at the heart of our global reservations and information 'nerve center' in Omaha," said Witzel. "This Hotel Services team provides consulting services strategically and can leverage new e-capabilities, and phone and personal support. The team has extensive knowledge to promptly provide real-time solutions, guiding our hotels on maximizing our extensive business delivery systems and support programs."

Radisson's Directors of Hotel Services are the primary contacts for all business delivery and support services offered by the Radisson organization. These services include information technology, customer service, distribution, reservations, sales and marketing; as well as training and education initiatives, including Web-based training from the Educational Institute of the American Hotel & Lodging Association (AH&LA) and Signature's new streamlined guest service training.

The directors offer consultation to hotels on opportunities to maximize revenues and improve guest satisfaction, provide support on the opening and converting of new hotels joining the system, and consult on product, service and performance improvement. They also educate hotels on key brand communications and initiatives. The Hotel Services Directors work in support of Radisson's three regional vice presidents of operations.

New Deal in Franchising

This week, Radisson presented a landmark New Deal in franchising, unique in the industry and the franchising business, which encompasses a new franchisee-friendly Uniform Franchise Offering Circular (UFOC) featuring a streamlined, simplified fee structure and added flexibility. The New Deal at full fees offers franchisees the opportunity to leave the system without penalty. Current franchisees will also have the opportunity to convert their agreement into one with simpler, streamlined fees and easier administration.

"We decided that in the new business environment, there was a need in the marketplace for a new type of franchisee-friendly agreement that allows franchisees the ability to control their own destiny," said Witzel. "This "free-out" clause for franchisees paying full fees is unique to our industry, especially at a time when many major hotel companies are downscaling their franchise development efforts."

Other changes include a new regional "cluster marketing" process for North America which now aligns hotels into clusters based on target market similarity and not strictly based on geographic lines. The new regional structure will include bi-annual meetings with Radisson's regional vice presidents of operations to focus on building operational excellence. Radisson is also in the process of establishing a board of advisors that will focus on key business issues, such as sales, marketing, operations and technology, which will include leading franchisees and outside industry and business experts.

In addition, Radisson has further tightened its standards for existing hotels removing hotels which do not meet customer expectations and adding franchisees representing new hotels that share its values and commitment to a consistent guest experience.

New Deal in Sales & Marketing

As part of the New Deal, Radisson is enhancing the multitude of "levers" to help its hotels pull more business through its extensive tool kit of resources. These business channel levers include e-commerce and customer relationship management tools and programs that leverage the strength across the entire enterprise of the Carlson Consumer Group (which includes Carlson's hotel, restaurant, cruise operations and retail travel agencies).

Radisson has created a new marketing structure to focus its professionals on brand management, regional marketing and new revenue generating national marketing programs that can also be applied at the regional level. The sales team has been realigned to target new account development, maintenance and account growth. Other major levers include the Radisson Gold Rewards guest relationship program that works to build long-term guest loyalty and attract new customers to the brand; and Look To Book, the industry's premier loyalty program for travel agents. A new 19-person division has been created focused on customer relationship management practices through the use of analytics, e-commerce and program management, in addition to cross-brand activities, to drive new business to Carlson's brands through the company's customer relationships.

New Deal in Technology

As part of a hospitality division and parent company known for its industry-leading technology and customer relationship management systems, Radisson is focused on guiding its hotels to aggressively leverage those systems to further build relationships and loyalty with the brand's best guests, maximize overall guest satisfaction, and increase crossover of customers from the entire Carlson enterprise. Radisson is also focused on attracting new customers using its existing marketing channels and new channels, such as third-party Web sites.

The company has developed new systems to empower individual hotels to drive more success utilizing KnowledgeNet, Carlson Hospitality Worldwide's intranet, available 24/7. KnowledgeNet now offers e-Learning, and key business reports on revenue generation, market share and customer engagement and retention. KnowledgeNet also includes Radisson's Operating Standards and links to The Radisson Source, where hotel staff can access marketing materials as well as preferred companies and suppliers online.

"This is a pivotal point in Radisson's history," said Witzel. "Our new business model can rapidly adapt to changing times and our new strategies are focused on adding value for the customer based on their expressed needs. During the next five years we will solidify our position as a leading global brand with a strong core of high quality hotels in key locations, distinguished by personalized, genuine hospitality services, that will be on target with the needs of individual customers."

Radisson Hotels & Resorts currently has more than 430 locations in 60 countries. Radisson is a division of Carlson Hospitality Worldwide, a global leader in hospitality services encompassing more than 1,530 hotel, resort, restaurant and cruise ship operations in 80 countries. Reservations can be made online at www.radisson.com, through a travel agent or by phone at 800-333-3333.

Joan M. Cronson
Director of Public Relations
763-212-1418
Radisson Hotel Group