Hogg Robinson Adds Robustelli To U.S. TMC Holdings

Hogg Robinson last month announced its acquisition of Robustelli World Travel, a Stamford, Conn.-based travel management company, that it will integrate with Hogg's other U.S. holding, Sea Gate Travel Group, to form one operation. David Radcliffe, CEO of Hogg Robinson, said the acquisition complements Hogg's presence in the United States and alluded to the possibility of acquiring other regional travel management companies.

"We're looking at the most sensible acquisitions that fit our profile in the U.S.," Radcliffe said, noting that companies with a strong presence in corporate travel management, reputations of quality and similar people and corporate culture to its own appeal to Hogg. "We already have a good capability in the U.S. However, if the right acquisition comes along, we'll look at it, and you can expect further announcements."

Mark Walton, principal of Consulting Strategies in Deerfield, Ill., said the acquisition signals the United Kingdom-based company's interest in becoming a strong U.S. player, but said Hogg needs to expand its presence beyond the Northeast to accomplish that. "Should you look at Hogg Robinson more seriously now? The answer depends on if you have a multinational travel program," he said. "Where they are is significant. If your company is in a market in the Midwest where they don't have operations, it probably wouldn't be something you'd look at because they don't have account manager and operation support. They have to build more critical mass to broaden their appeal."

Radcliffe expected Robustelli's integration to be "very quick." He didn't anticipate employees losing jobs—in fact, he said the salesforce would grow. "I'd be foolish to say, alongside any company, that we don't look at sensible cost-saving measures," Radcliffe said, "but to us America is all about growth and expansion. We believe there is a very big opportunity to get out our message about commitment to value and not just low cost."

Robustelli brings such accounts as Arch Chemical and Conair Corp. to Hogg's client base. Robustelli CEO Paul Salvatore said clients have been positive about the new ability to consolidate travel on a worldwide basis.

Tom Gleason, COO of Sea Gate Travel, said Robustelli's senior management team will remain in place, as Salvatore becomes U.S. executive vice president of sales, Dan DeFrancesco becomes U.S. vice president of sales and Rick Robustelli becomes senior vice president of business development.

"Robustelli is a natural partner for us and we pick up some great people at the same time," Gleason said. Robustelli will retain its Stamford offices, though Sea Gate's New York office will serve as headquarters for the new company.

Radcliffe insisted buying Robustelli, a BCD/World Travel affiliate, had nothing to do with its previous partner. "Did we do this because of their affiliation with WorldTravel?" he asked. "No, we didn't. It's just a coincidence."