PHILADELPHIA -- Rosenbluth's International's purchase of
Amsterdam-based Philips Electronics N.V.'s in-house travel agency
furthers Rosenbluth's global expansion plans and generates some
$200 million in new business.
As part of the agreement, Rosenbluth will take over all of
Philips' travel business for the next four years, as well as some
$25 million of non-Philips-based corporate business in the
Netherlands. That volume makes Eindhoven-based Philips Reisbureau
B.V. the fourth largest travel agency in the Netherlands.
"This agreement fits in well with our overall pan for expansion
and we're in the process of globalizing our current business," Bob
McGurk, vice president, business development for Rosenbluth, said.
"It's an exciting and strategic piece of business, and it's an area
of the world that we've been targeting for a long time."
In addition, Philips brings with it a small leisure component of
about 5%, McGurk said. "The leisure side is very small," he said.
"Handling Philips corporate business around the world was the main
component for us."
Financial terms of the agreement were not disclosed, but
Rosenbluth said it will take over operations of Reisbureau some
time in the first half of 1998.
"We view this as a major win for Rosenbluth," McGurk said.
"Philips is an extremely recognizable brand name with a major
presence in worldwide arena."
Rosenbluth has provided consolidated travel management to
Philips in the U.S. since 1989, and the "service we provided over
that time was a key factor for us in securing this business,"
according to McGurk. Rosenbluth also will be instrumental in
assisting Philips cut cost and reduce suppliers as part of its
Other Costs of Organization initiative.
"Philips' OCOO initiative is geared to take a minimum of 12.5%
out of its global travel program in the future," McGurk said. "We
hope we can help Philips meet and exceed its goals on that
front."
As part of the agreement, most members of the Reisbureau's staff
of 100 will transfer to Rosenbluth, McGurk said.
A small corporate travel management team will remain with
Philips, Rosenbluth said.