You may have wondered why Radisson pushed out an updated app last week (reader dropped us a note), and a new website RadissonHotelsAmericas.com popped up.
For a long time, Radisson was essentially two separate companies; one in the Americas run by Carlson and another one for the rest of the world run by Rezidor that was separately listed in Europe. These two were combined in the late 2010s.
I had an idea of the reason for this change and dropped a note to the Radisson spokesperson.
Here’s the statement from the spokesperson:
Following a request from the U.S. Administration, Radisson Hotel Group and its shareholders are – like many other foreign-owned businesses operating in the US – taking measures to ensure that U.S. operations and data security are managed independently of the global Radisson Hotel Group entity. We are responding to requirements set out by the U.S. Administration.
Our operations and data security standards have always been at the forefront of guest and owner data protection, and this focus will continue and be further enhanced. These changes protect our data and are the right thing to do for our guests, owners and talent.
Carlson sold the Carlson Rezidor hotel group to Chinese HNA that later collapsed. HNA sold Radisson to Jin Jiang International, a huge Chinese hospitality company owned by the Chinese Government (state-owned enterprise).
This creates issues. Chinese-owned companies are requried by law to comply with the “requests,” and Radisson may have had problems trying to attract business from select sectors in the Americas, especially in the United States.
How is Radisson able to separate data of Radisson Rewards members who are in the Americas from the rest of the world? How can there be a “firewall” in between them?
A reader noted that the updated app could not deal with the reservations outside of the Americas and was just told to use the website.
This separation of the Americas-region and the rest of the world must be a headache and a rather costly endeavor for the hotel company.
Theoretically, it would also require separation of the Radisson Rewards for these two regions or running it in entirely from the Americas.