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Case studies

Quality performance analysis in the hotel industry

Carlson Rezidor Hotel Group client spotlight

Carlson Rezidor Hotel Group is one of the world’s largest hotel companies. It has a portfolio of approximately 1,300 hotels in operation and under development, a global footprint covering more than 100 countries and territories, and a powerful set of global brands: Quorvus Collection, Radisson Blu, Radisson, Radisson Red, Park Plaza, Park Inn by Radisson, and Country Inns & Suites By Carlson.

Quality analysis (QA) during growth

We started working with the Radisson brand in 2000 on examination projects and were later engaged to use the examinations and the QA program to advise Radisson as it undertook to provide consistent guest experiences at all Radisson hotels in North America. As Carlson Rezidor Hotel Group expanded its portfolio, there was growing concern about brand dilution and the difference in standards between its hotels.

One of the Radisson initiatives to address this was the property improvement plans, which were launched in July of 2009 and designed to bring the Radisson portfolio up to a consistent product standard. Once that was reached, Radisson concluded that its ongoing guest satisfaction survey program alone was not adequate in upholding quality standards and consistency across a growing portfolio.

The current iteration of the program—the quality performance analysis (QPA) evolved in June 2010 and is leveraged by Radisson, as it seeks to maintain brand quality across North America and the highest standards at flagship locations. In fact, we advised on a national program to emphasize environmental conditions and proper maintenance.

The next phase: Integration across brand and continents

Our examinations and inspections of Radisson hotels in North America gave feedback on each location. As the QPA gained currency in the organization, the project grew.

Having worked separately with The Rezidor Group since September 2010, it made it easier with the integration of the different geographic regions—Carlson Rezidor hotels in the United States and Asia Pacific; Rezidor’s hotels in Europe, Middle East, and Africa; and Park Plaza hotels in Europe under PPHE Hotel Group.

This also resulted in the inclusion of the other brands in Carlson Rezidor’s portfolio such as Radisson Blu, Park Plaza, Park Inn by Radisson, and Country Inns and Suites by Carlson in the program. It becomes even more pertinent to provide brand integrity as many hotels share the brand name but upheld varying standards and performance thresholds. The program continued to mature, ultimately expanding beyond improvement plans.

This meant adapting the QPA to a new level of sophistication. Instead of asking specialists to focus solely on “hardware” such as products and facilities, Carlson Rezidor expanded the scope to include “software” such as service and people, as well.

Result: Innovation in quality performance

The QPA is recognized throughout the organization by senior Carlson Rezidor executives, as well as employees at the hotel level. It has been recognized as a factor in widespread improvement to the guest experience, which is the cornerstone of Carlson Rezidor’s success.

Confidence in the adaptability of the program and its application to new initiatives has accelerated innovation in the area of guest experience. It has impacted the service standards of Carlson Rezidor Hotel Group's loyalty program, Club Carlson, and Radisson Re-Imagined, Radisson’s brand refresh program.

The effectiveness of the program was shown when data was presented to show a strong correlation between the QPA examination program and Carlson Rezidor’s Medallia guest satisfaction survey program. Further analysis of the data also noted the correlation between quality examination performance and the key hotel industry financial metric, RevPAR (Revenue Per Available Room). Properties that passed all three sections of the QPA recognized nearly $11 more in RevPAR than others.

Impact

  • Carlson Rezidor had a fresh take on QPA, extending its focus from the expected products and facilities to include service and people
  • Agility of QPA has accelerated guest experience innovation and consistency across brands globally
  • Data shows strong correlation between QPA program and Carlson’s guest satisfaction index and its industry-recognized RevPAR score of nearly $11 more than other hotels

Outcome

At the request of Carlson Rezidor, we beta-tested our emotional examination in 2013. The outputs were used to advise the Radisson Re-Imagined initiative and resulted in Carlson Rezidor adding targeted service standards to the 2014 QPA in the Americas as a result.

The LRA by Deloitte field consultants utilize property visits and the LRA by Deloitte self-examination tool to communicate changes and provide insights on whether the properties are keeping pace with the changes. Founded on hard data, these efforts will continue to advise Carlson Rezidor as it seeks to deliver an exceptional guest experience in their hotels as it grows its global footprint and brand offerings.

cityscape

The adaptability of the program and its application to new initiatives has accelerated innovation in the area of guest experience. It has impacted the service standards of Carlson Rezidor Hotel Group's loyalty program, Club Carlson, and Radisson re-imagined, Radisson’s brand refresh program.

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