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October 02, 2006

Franchisor Focus: Radisson Hotels International

Franchisor Focus: Radisson Hotels International

As advisors to franchise systems both large and small, we take pride in the many great things that our clients accomplish in their respective industries. These great things, while not necessarily big in and of themselves, do have a big impact. In this issue we focus on one client's strategy to enhance its brand image.

Carlson Hotels Worldwide, Inc., a subsidiary of the prestigious Minnesota-based Carlson Companies, Inc., is an undisputed leader in the global hospitality industry. The many subsidiaries and affiliates of Carlson Hotels Worldwide own a vast network of brands, including the REGENT HOTELS & RESORTS®, RADISSON HOTELS & RESORTS®, PARK PLAZA HOTELS & RESORTS®, COUNTRY INNS & SUITES BY CARLSON®, and PARK INN® chains. As we were reminded in writing this piece, the key to continued success for the many Carlson Hotels brands is not only their knowledge of the hospitality industry, but their unmatched commitment and ability to develop new initiatives to attract customers and keep bringing them back.

One such initiative is the custom-designed SLEEP NUMBER® Bed by Select Comfort™ being offered by RADISSON hotels throughout the U.S., Canada and the Caribbean. The SLEEP NUMBER Bed and new upgraded bedding program is a key element of the STAY YOUR OWN WAY® initiative introduced by RADISSON last year. The STAY YOUR OWN WAY initiative sought to provide meaningful choices to guests at key touchpoints so they could have more control over their hotel experience. This initiative also included the introduction of the industry's first online check-in system called EXPRESS YOURSELF® and TASTEFUL CHOICES®, an expanded lifestyle menu program.

The RADISSON SLEEP NUMBER Bed program is the result of an exclusive branding collaboration between Select Comfort Corporation and Radisson Hotels & Resorts. This collaboration paved the way for the replacement of existing guest room mattresses at RADISSON hotels with upscale SLEEP NUMBER beds that can easily be adjusted for personalized comfort. Although RADISSON hotels already boast upscale service and amenities, adding the SLEEP NUMBER beds to the list of standard amenities has distinguished Radisson from its competitors. More importantly, by adding these beds to its guest rooms, Radisson is taking steps to ensure that its guests never walk away with less than a good night's sleep.

Franchisors everywhere can learn important lessons from the RADISSON SLEEP NUMBER bed program. The first lesson is that no matter how established or successful the franchised concept, franchisors must continuously find ways to stay ahead of the competition. For Radisson, this involved offering a revolutionary concept to its guests—allow the guests to personalize their experience by controlling their own sleep comfort levels. The second lesson is that sometimes exclusive branding collaborations can add significant value to a franchised system. Radisson recognized that if it was going to offer guests the ability to control their sleep comfort levels, it had to partner with a leader in the sleep industry. A collaboration between well-known brands can lead to positive brand exposure for both parties, higher guest satisfaction rates and increased revenue for the franchise system.

The final and most important lesson is also the simplest: success just isn't as sweet if it lacks passion and dedication as its driving force. Like Radisson and all the companies and brands affiliated with Carlson Hotels Worldwide, a franchisor should surround itself with employees and business partners who share a common drive to be the best at what they do and how they do it. As Radisson's Executive Vice President and Brand Leader, Nancy Johnson, notes: "The value of our human capital is priceless. The Carlson employees who share the creativity, dedication and leadership skills necessary to developing and implementing initiatives like the STAY YOUR OWN WAY program are what keep us one step ahead of the game and build guest loyalty."


The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.