Radisson Case Study
Radisson Hotels, owned by the Carlson Company, was acquired in 1962 and grew at a rapid pace. Between 1978 and 1997 they went from 10 hotels to 360 locations in 47 countries. However, this huge growth came at a cost to their customer service. Realizing that changes were needed, the Radisson President and Executive Vice President, Brian Stage & Maureen O’Hanlon, worked actively to refocus the strategy of “growth at any cost” to a customer-focused strategy: “Champion of the guest.” This case study examines the steps they have taken and looks at ideas for how they can continue to improve services. Specifically, Radisson’s service agreement, the role of information technology, employee and customer satisfaction, commitment to service quality and goal alignment are discussed.
How should Radisson define and implement their service guarantee?
The service guarantee will benefit both the customers and the Radisson hotel owners, but careful thought must be taken to the intent of the guarantee and the wording that is communicated to customers. One proposed guarantee was “If you have a problem, please let us know and we’ll make it right or you won’t pay” (Schroeder, 2007). This is a great starting point. It puts the burden on Radisson but only after customers communicate concerns. The customer can rest at ease that any concerns will be dealt with adequately or their obligation to pay is erased. Radisson is smart to offer the guarantee this way, because a promise of service without complaint would be absolute, and customers may use minor annoyances to attempt to get a free stay. Customer concerns must be of high priority to the hotel manager or person in charge, and they must decide on the appropriate action. Sometimes an ongoing complaint may be due to specific equipment failure or room issue. Other times, the customer just has a particular expectation that is not being met. Either way, once managers learn of the complaint, they can delegate to employees the
How should Radisson define and implement their service guarantee?
The service guarantee will benefit both the customers and the Radisson hotel owners, but careful thought must be taken to the intent of the guarantee and the wording that is communicated to customers. One proposed guarantee was “If you have a problem, please let us know and we’ll make it right or you won’t pay” (Schroeder, 2007). This is a great starting point. It puts the burden on Radisson but only after customers communicate concerns. The customer can rest at ease that any concerns will be dealt with adequately or their obligation to pay is erased. Radisson is smart to offer the guarantee this way, because a promise of service without complaint would be absolute, and customers may use minor annoyances to attempt to get a free stay. Customer concerns must be of high priority to the hotel manager or person in charge, and they must decide on the appropriate action. Sometimes an ongoing complaint may be due to specific equipment failure or room issue. Other times, the customer just has a particular expectation that is not being met. Either way, once managers learn of the complaint, they can delegate to employees the
References: Schroeder, R. G. (2007, June 11). Case Study: Customer-Driven Learning at Radisson Hotels Worldwide. Eden Prairie, MN.