It's a transformational and exciting time at Rezidor as we enter a new era for our company and continue positioning ourselves for the future. It's also a promising time for the global travel industry. 2017 was an exceptionally strong year for international travel, with Europe being the main growth driver as both a source market and a destination region.
Worldwide, the number of outbound trips has increased by 6.5%, reaching nearly 1.2bn international trips in 2017* - despite external risk factors such as security, natural disasters and volatile geo-politics. This growth is projected to continue in 2018 as travel continues to become even more accessible.
To meet the diverse needs of this growing consumer base, we need the larger sense of responsibility that comes with the changes in our industry and the environment around us. This is especially important as the digital revolution opens up unprecedented areas of opportunity and changes the nature of how we host and serve all our stakeholders.
At the heart of this change is Radisson Hotel Group, our new global corporate umbrella brand, with a new five-year plan to become one of the top three hotel companies in the world as well as the company of choice for guests, owners and talent. To reach this goal, we'll focus on being a True Host, the Best Partner and delivering on our signature promise, Every Moment Matters.
With this ambition guiding us, we set out to face the challenges of a business plan built around seven major areas that include all the deliverables to which the management team has committed. They are Brand & Product, Marketing, Sales & Revenue Management, Portfolio Management, Organizational Talent & Reputation, Best Systems, Cost Advantage and Scale. Each is supported by specific initiatives and rigorous methodologies which we're executing carefully.
We're focused on increasing revenue growth, and this needs a new value proposition - including an improved guest experience, relevance for our business partners and a portfolio of quality hotels that meet consumer expectations. We'll succeed by building trust and loyalty with our guests, owners and team members.
Radisson Hotel Group. This capitalizes on a strong partnership between Rezidor Hotel Group AB (publicly listed on Nasdaq Stockholm, Sweden, and headquartered in Brussels, Belgium), and Radisson Hospitality, Inc. (formerly called Carlson Hotels, Inc. and headquartered in Minneapolis, USA).
In conjunction with the alignment around the Radisson brand equity, the Radisson Hotel Group has restructured its brand architecture of eight hotel brands, while introducing an invigorated and newly named loyalty program called Radisson Rewards (formerly Club Carlson). Added to this, we're redefining the guest experience around four pillars: (1) Brilliant Basics (2) Memorable Moments (3) Local Experience (4) Feel at Ease.
We'll implement this across all eight brands:
WELCOME TO THE EXCEPTIONAL
Radisson Collection will replace the company's Quorvus Collection brand. The Radisson Collection will launch in June 2018 as a premium lifestyle collection designed for our exceptional hotels.
FEEL THE DIFFERENCE
Radisson Blu will continue delivering a personalized experience in stylish and contemporary spaces with continued expansion to major cities around the world.
Radisson will now be introduced in EMEA to serve the upscale segment. The brand will be refreshed in the Americas and Asia Pacific, with changes to its logo, visual identity, and product design - as well as the guest experience, which will focus on delivering Scandinavian inspired hospitality.
Radisson Red has rolled out a new product definition and updated logo with robust growth planned across EMEA and the Americas.
SMART, ENGAGING SERVICE
Park Plaza is a contemporary hotel brand that is being re-worked to make the brand clear and relevant for high-end international travelers.
PARK INN® BY RADISSON
Park Inn by Radisson will continue to expand its footprint around the world, providing contemporary, upbeat and colorful properties located in major cities and near airports.
COUNTRY INN & SUITES® BY RADISSON
I LOVE THIS COUNTRY
Country Inn & Suites, by Radisson recently announced a new naming convention adding "by Radisson" to align with the master brand, and will stay true to its brand essence of country warmth.
AFFORDABLE HIGH DESIGN
Prizeotel will continue to grow across EMEA to serve the modern economy segment.
The new brand architecture will also enable new customer-facing benefits and commercial drivers - including Radisson Rewards, a refreshed global loyalty program, where members enjoy member-only rates, have access to exclusive benefits and earn towards free nights. Radisson Rewards for Business will drive engagement with professional partners, including meeting and event planners, travel agents or executive assistants across all brands.
We have a newly named meeting and events offering, as well. Radisson Meetings is an enhanced meetings and events service designed to make every event unique, with fully equipped spaces, on-site contacts and carefully designed menus. Later this year, we'll also launch our new multi-brand digital platform - an industry-leading online booking experience - for use by guests and professional partners.
In terms of business development, we're embarking on a renewed Asset-Right growth strategy. Our focus is to rejuvenate mature markets, while continuing to accelerate in emerging ones.
Rezidor will return to signing more agreements in strategic European markets. The leases and contracts with commitments will strengthen the group's current business model to stimulate its growth in the markets where institutional investors are becoming increasingly prominent.
To accelerate growth and create scale, Rezidor will focus on both existing and new partners in eight key target markets across EMEA: four mature (UK, Germany, Poland and Italy) and four emerging (Turkey, Russia, South Africa and the United Arab Emirates). We aim to add 10-20 hotels to each market over the next five years.
In addition to the shifts in the business model and market focus, Radisson Hotel Group will provide extended stay solutions for core brands. We'll soon be launching service apartments under the Radisson Blu and Park Inn by Radisson brands - along with a renewed proposition for lifestyle brand Radisson RED.
Overall, Rezidor will reposition 30-35 of its hotels, with a total Capex of €140-150 million. The company will also invest €75-€80m in fixtures, furniture and equipment (FF&E) and key money in new hotels.
All of this development comes back to fulfilling our signature promise (and the heart of Radisson Hotel Group), Every Moment Matters. It's how we do business and who we are at the core. We ensure our success by aligning our 95,000 global team members around our cultural beliefs.
- We deliver memorable moments every day, everywhere, every time
- We enjoy serving with our "Yes I Can!" spirit
- We grow talent, talent grows us
- We are many minds, with one mindset
- We value open and direct interactions to build trust
- We believe anything is possible
- We have fun in all that we do
I couldn't be more excited about the strong future we have ahead of us, with an exciting new brand and strong plan to capture the full potential of our global portfolio. Our teams around the world are more aligned than ever around our core cultural beliefs that help us all reach our goals. I would like to thank everyone who has trusted in the new Radisson Hotel Group for their enthusiasm and support. Together, we're going to achieve great things!
* PK's World Travel Monitor, an annual survey analyzing the outbound travel behavior in more than 60 countries worldwide, covering over 90 per cent of the global outbound demand.