Analysis of Radisson Hotels
Professor Stuart Childers
Radisson Hotels were founded in 1938 by Curtis L. Carlson, Carlson Companies Inc. (Schroeder, 2008, p 454). Radisson Hotels are world wide and are committed to the customer, employee, and community. Radisson strives to provide warm and engaging hospitality at every point of customer contact. They are dedicated to responsible business initiatives that focus on ethics, culture, community and the environment (2009). In the beginning years Radisson held with the strategy to grow at any cost. In 1997 and 1998 Brian Stage, Radisson’s president, and Maureen O’Hanlon, Radisson’s executive vice president, took several initiatives to direct and drive Radisson towards becoming a more customer-focused brand. They made these initiatives based on the realization that Radisson was left with a tremendous diversity of hotel quality and an unfocused brand image due to their strategy. They decided to focus the goals of the organization away from growth at any cost and towards the most trusted and respected brand worldwide (Schroeder, 2008, p 454). In an effort to do so, Radisson developed five strategies. These strategies are focus on the customer, provide individualized marketing and services, develop hotels in key locations, leverage the Carlson Companies Advantage, and strengthen global brand presence. With these goals in mind they developed “The 100% Guest Satisfaction Guarantee Program” (Schroeder, 2008, p 455). How should Radisson define and implement their service guarantee? In order to become a customer driven learning organization Radisson should create a meaningful vision that communicates to employees and customers their focus on customers in three ways. Radisson should focus on employee training and development in order to further increase customer service quality and consistency. Radisson should focus on the commitment to service quality by integrating it into its strategic plans, generating leadership support, and infusing it into the organizational culture. Radisson should focus on its quality management system. This Commitment to SERVICE QUALITY through franchise and organization should be linked to the business’s vision and its organizational culture and values Radisson Hotel should focus on its quality management system and this recommendation includes the following key components: 1. Implement the service guarantee in order to create the right services and unique experience to the target market. The 3Ds model is Define – Identify the target market and define demographic characteristics, and preference Design – Address what the customers’ needs in the service Delivery – Training employees, especially front line employees to assist customers 2. Develop and Utilize ‘Fully Integrated Guest Information System’ by tracking, organizing logbook (reservation) information and collecting data for process improvement, such as; Organization - Benchmark employee performance
Customers – Identify problem trends within each hotel
3. Initiate ‘SATISFY OUR GUESTS BEFORE THEY LEAVE’ program that provide outline issues for employees to follow up to resolve problems 4. Perform market research. This phase includes studying customer behavior and pre-test for potential new services to collect the feedback before launching. 5. Initiate integrated marketing campaigns such as
a. Radisson Hotels club
b. Radisson membership benefits (Swanson et al., 199)
What role should information technology play in accelerating the drive to improve service quality?
Use of information technology can improve service in many ways. Information technology will enable customers to make reservations quickly and easily. The system can also measure customer and employee satisfaction. In addition Radisson can use information technology to keep an accurate record of prior visits of their repeat...