Carlson cruise operations and hotel brands are expected to host over six million room nights across Europe and the Middle East in the year 2000. In conjunction with its European partners, an additional $1 billion of assets are expected to be added to Carlson hotel, restaurant and cruise brands in the year 2000 across the continent.
 

Nelson Notes "New Focus"

Nelson said the company has a "new focus" on increasing its presence in Europe in the year 2000 and beyond.

"The importance of the U.K. and the European market have been evident ever since we partnered with Edwardian Hotels in 1991 to enter the hotel market here. We see the U.K., and indeed all of Europe, as vital to our ongoing global growth," Nelson said. She noted that only a few years ago, only 5% of Carlson brand sales came from sources outside the U.S. Today that number is approaching 50%.

Nelson and group are in London on a fact-finding tour and review of Carlson related operations there. The group will be briefed on Carlson European business by European-based executives and will hear an address on U.K. economic and social trends by Raymond Seitz, former U.S. Ambassador to Great Britain and Co-Managing Director of investment group Lehman Bros. The group will complete the tour on Friday in Paris.

Carlson Companies, founded in 1938 on a borrowed $55 by Nelson's father, Curtis L. Carlson, is one of America's largest private companies. Its businesses include one of the top marketing companies in the world (Carlson Marketing Group); the U.S.' largest travel agency franchise network (Carlson Wagonlit Travel); the world's most widespread business travel agency brand in (Carlson Wagonlit Travel); a fleet of five luxury cruise ships (Radisson Seven Seas Cruises); three hotel brands (Regent International Hotels, Radisson Hotels Worldwide, and Country Inns Suites By Carlson); and restaurants (TGI Friday's and affiliated brands). In 1998, the company reported annual worldwide sales of $22 billion under it brands. More than 160,000 people are employed under Carlson brands worldwide, and by the year 2000, they will provide more than 45,000 jobs in Europe.

Confirms Future Option to Increase Stake in Thomas Cook

Nelson announced today that as part of the merger of Carlson Leisure Group-U.K. and Thomas Cook announced in January 1999, Carlson has been granted the option to acquire a 49% shareholding in Thomas Cook Holdings at the end of 2002.

In the U.K., Carlson brands generate almost $2.5 billion in annual sales and include 750 Thomas Cook retail travel shops; Thomas Cook foreign exchange bureaus (U.K. and worldwide); its Carlson Wagonlit business travel brand; more than 2,400 Radisson hotel rooms through partnerships with Edwardian Hotels and SAS hotels; and 30 TGI Friday's restaurants.

European Advisor to Carlson Board Announced

Nelson also announced that the company will appoint a special "Advisor to the Board for European Affairs," and that Harald Einsmann, the German-born former President of Procter  Gamble-Europe has accepted the appointment and will advise the board of Carlson on further expansion into European markets. Einsmann's vision and expertise will be useful to Carlson as it continues to develop European partnerships and markets.

Carlson School of Management MBA Program to be Launched in Vienna

Also announced today, the University of Minnesota's prestigious Carlson School of Management will launch an Executive MBA program in partnership with the Vienna University of Economics and Business. The new program will be aimed at experienced managers and executives. The partnership between the Carlson and Vienna schools will offer the prestigious and meaningful, internationally recognized Masters of Business Administration degree beginning in March 2000. 

The new program will bring top faculty from both sides of the Atlantic together with senior executives as classroom guest speakers. The program will be taught in English, and will be delivered in a 14-month modular format, relying heavily on Internet technology to allow students to complete coursework with minimal disruption of their jobs.

Carlson Companies founder Curtis L. Carlson attended the University of Minnesota before launching his business in 1938, and has been called "the modern father of the University." Currently one of the fastest-rising business schools in the United States, the Carlson School is focusing on becoming a "mecca for entrepreneurs" from around the world.

Expansion of Territory Agreement for Radisson SAS Hotels Worldwide, Radisson Edwardian Hotels

Radisson Hotels Worldwide has announced new expanded territory agreements with its European partners, building on the success of growth of Radisson in Europe. Previously confined to the London metropolitan area, Radisson Edwardian has now reached an agreement with the company to develop new Radisson Edwardian hotels in the U.K. as well as other parts of the world. With currently 10 premier hotels in London, Radisson Edwardian is now looking at opportunities outside of this area.

"We are currently in the final phases of negotiation for management agreements under which we would operate new Radisson Edwardian Hotels in the city centers of both Manchester and Birmingham,"said David Batts, managing director,

A memorandum of understanding has also been signed with Radisson SAS Hotels Worldwide, which will allow for expansion outside the company's development area of Europe and the Middle East. For example, Radisson SAS is actively seeking expansion opportunities for Radisson in South Africa.

Since joining the Radisson system in 1994, Radisson SAS has become the fastest growing upscale hotel company in Europe, from 29 hotels in Scandinavian countries to nearly 100 locations and another 20 locations under development.

"With a base of 100 hotels, we are now accelerating our development efforts into the new millennium and have set a goal for the year 2000 of 200 hotels in the Radisson SAS system," said Kurt Ritter, president and CEO of Radisson SAS Hotels Worldwide.

From a U.K. perspective, Radisson SAS is currently under negotiation for two new properties in Glasgow and Leeds. Contracts for both hotels are expected to be signed in the next few weeks.

Review of Carlson's U.K. and Europe Activities to Date

In 1990, the company acquired the FKB Group, which included the leading sales promotion agency FKB, and direct marketing agency MHA, and joined them with its existing loyalty and performance improvement divisions in the U.K. These acquisitions were followed in 1996 and 1997 with the purchases of direct marketing agency, Smith Bundy Carlson, and performance improvement agency, Aegis Marketing, based in Daventry, England.  All these brands have been consolidated under the umbrella brand of Carlson Marketing Group U.K., the nation's largest sales promotion agency, the third ranked direct marketing agency and the largest loyalty marketing agency. CMG U.K. serves such clients as British Airways, British Telecommunications and Citroen.

In 1991, Carlson entered the U.K. hotel market through a partnership with Edwardian Hotels, creating the Radisson Edwardian brand. In 1994, Carlson joined with ACCOR to create Carlson Wagonlit Travel, the most widespread business travel agency in the world.

The move put the company's brand on more than 1,200 agencies across Europe.

In December 1998, the company partnered with French investors and the government to launch its fourth luxury cruise ship, Radisson Seven Seas' m/s Paul Gauguin, which flies the French flag and sails the South Pacific. A fifth luxury ship, the Radisson Seven Seas' m/s Navigator, is expected to sail from her Italian shipyard soon, and the company is currently building a sixth luxury ship, the 720-guest m/s Seven Seas Mariner in France.

Also in 1998, Carlson's Destination Marketing Services, a division of the company which works through its travel agency network to market destinations to travelers, signed an agreement with the government of Sweden to market that country to U.S. travelers.

In 1999, Carlson purchased a large minority stake in U.K.-based Thomas Cook, partnering with Cook's German owners (Preussag, West LB) to create a new, expanded enterprise. The company brought into the new group its Scotland-based AT Mays Travel company, which it acquired in 1989. As a result, Carlson now is minority owner of the new Cook group, which includes 750 retail travel shops, $3 billion in annual traveler check sales and currency exchange, and 33 charter tour aircraft flying under the Caledonian and Flying Colours brands.

Why a New Focus?

"Our focus on Europe is important to our future," said Nelson.  "We see world markets as being increasingly interconnected, and the U.K. and Europe are leading indicators for our global business.  We believe our growth here will be of critical importance to our future."

Nelson, who is serving as the Travel Industry of America's Millenium President and is on the board of the World Travel and Tourism Council (WTTC), sees the growth created by travel and tourism as an economic boon to Europe.

Effects of Increased Tourism

"Using conservative estimates, a 1% increase in European Travel  Tourism creates 264,500 new jobs and $3.0 billion in new investment," said Geoffrey Lipman, President of the World Travel  Tourism Council.

According to WTTC estimates, the Travel Tourism industry will underpin a massive 14.1% of GDP in the EU in 1999 and this is set to grow at 2.5% year on year.

Spending by international visitors will total 8% of EU exports and the industry will support 22 million jobs -- 8 million in the industry and the remainder in the broader economy via a very strong flow-through effect into other sectors, such as retail and construction.

Lipman added, "Travel Tourism is poised to become one of the major drivers for the European economy, and this fact has already been recognized by leading companies, such as Carlson, and enlightened governments. The challenge now is to reflect this potential in public policies and implement coherent programs to achieve the immense potential for jobs and growth."

According to the WTTC, The Travel Tourism Economy will account for 11.7% of world GDP in 1999. The WTTC estimates that leisure tourism expected to grow by 4.7% in 1999 and business travel by 4.4%; and spending by international visitors will amount to 8% of world exports in 1999, with further impact by the export of Travel Tourism related goods.

Nelson Recognized as a Top U.S. Business Leader

Nelson is widely considered the top person in U.S. travel and hospitality and one of the top executives in the United States.  In 1998, she was named by Business Week magazine as one of "The Top 25 Executives of 1998"; and was named by Fortune Magazine Number 8 on the "Most Powerful Women in Business" list. Travel Agent Magazine also named her "Person of the Year."

Carlson Companies, Inc., founded in 1938 and based in Minneapolis, Minn., USA, is an international leader in providing hospitality, travel and marketing services and solutions to corporate and consumer clients. Among the names in the Carlson family of brands: Thomas Cook travel and financial services, Carlson Wagonlit Travel, Regent International Hotels, Radisson Hotels Worldwide, Radisson Seven Seas Cruises, Country Inns Suites By Carlson, T.G.I. Friday's restaurants, and Carlson Marketing Group (one of the largest relationship marketing services companies in the world). Ranked among America's largest privately held corporations, in 1998 Carlson's brands generated more than $22 billion in revenues systemwide and currently employ 160,000 people in more than 140 countries.