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POM 651

Case Study

Background

The parent company of Radisson Hotels Worldwide is Carlson Hospitality Worldwide, which is one of the four operating groups of Carlson Companies, Inc. The corporation is headquartered in a suburb of Minneapolis, Minnesota and is one of America’s largest privately owned corporations. Carlson Companies, Inc. had total system sales of $13.4 billion in 1996 and $20 billion in 1997.

Curtis Carlson, the founder, chairman of the board and CEO of Carlson Companies, purchased the Radisson Hotel in 1962. In 1983 Radisson was a regional hotel chain to the Midwest. By 1998, the Radisson had grown to a global brand with more than 360 hotels in 47 countries.

To achieve this growth rate, The Radisson partnered with existing hotel companies. From 1997 to 2000, Carlson Hospitality Worldwide plans to grow from 1,000 locations to over 2,000 locations. In 1988, Radisson developed a guest relations training programs called "Yes, I Can!". This program uses their service philosophy for hospitality excellence to train the front-line service employees in Radisson operations.

Industry Analysis (History & Trends)

The hotel industry began in the United States in 1794, when the 73 room City Hotel opened in New York City.  Similar businesses soon appeared in Baltimore, Boston and Philadelphia.                 

The opening of the 170 room Tremont House in Boston in 1829 began the era of style and service.  The hotel offered private single and double rooms with water pitchers and a washing bowl and free soap.  The Tremont House offered fine dining, French cuisine, and was the first hotel to employ a Bellboy.                

The opening of the Buffalo Statler in 1908 began the modern commercial hotel era.  Services and amenities introduced by the Statler included a light switch next to the door, private bath, ice water and a morning newspaper.  The Statler set the standard of the day by being clean, comfortable and affordable and...