Radisson Hotel

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Introduction Radisson hotels were in 1938 founded in by Curtis L. Carlson. The majority of Radisson branded hotels are located in the United States. The company’s headquarters is located in Minneapolis, Minnesota, where the first Radisson Hotel was built. This city is also headquarters to the parent company, Carlson Companies. Carlson Companies, Inc. is one of America’s largest privately owned corporations with total system sales of $13. 4 billion in 1996 and $20 billion in 1997. Carlson Companies employs about 130,000 people worldwide, including those who work in franchised and managed operations. There are 359 Radisson Hotels in the United States. Radisson includes more than 400 locations in 72 countries. It is part of Carlson Hotels Worldwide, a leading global hotel company with more than 1,050 locations in 76 countries under the brands of Regent Hotels & Resorts; Radisson Hotels & Resorts. Other Carlson Hospitality Worldwide operations include Regent Worldwide Hotel Radisson Seven Seas Cruises, Country Inns & Suites By Carlson, T. G. I. Friday’s, Italianni’s, Friday’s American Bar, Friday’s Front Row Sports Grill, and the Carlson Hospitality Worldwide Procurement Division (Services, n. d, para 3&4) By 1997, Radisson’s “growth at any cost” strategy left Radisson with a significant diversity in hotel quality and an “unfocused” brand image. Alignment with hotel owners (more than hotel guests) also seemed to cause Radisson’s customer service and hotel management expertise to atrophy. In 1997 and 1998, Mr. Brian Stage, Radisson’s President, and Ms. Maureen O’Hanlon, Radisson’s Executive Vice President, took several initiatives to drive the organization towards becoming a more customer-focused brand. In their words, they “re-discovered that their primary customers should be the guests — not the owners. ” (a) How should Radisson define and implement their service guarantee? Radisson Hotels may define and implement the service guarantee by using the 3Ds model – define, design, and delivery. This model will help Radisson create the right services and unique experience to the target market. It also builds in a continuous quality improvement component into its service model. This type of model will lead to improved program performance; 100% guest satisfaction program, which Radisson has initiated since 1997. Identifying the target market and defining its tastes, preferences, demographic characteristics, average income, and willingness to pay is an important step to implementing the service guarantee. This approach supports Radisson’s new “champion of the guest” model and will provide valuable information to define service guarantee.

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