Berlitz Corporation

Berlitz Corporation

Company type	Subsidiary
Industry	Leadership training, language services Franchising
Founded	Providence, Rhode Island July 1878 (1878-07)
Founder	Maximilian Berlitz
Headquarters	Princeton, New Jersey
Number of locations	500+
Area served	70 countries
Key people	Till Groẞmaß (CEO)
Products	Face-to-face language courses and cultural training Online language courses and cultural training Self-paced language courses Testing and assessment
Parent	ILSC Holdings LP
Website	berlitz.com

Berlitz Corporation is a language education and leadership training company which is based in Princeton, New Jersey. The company was founded in 1878 by Maximilian Berlitz in Providence, Rhode Island in the United States. Berlitz Corporation is owned by Berlitz Holdings, a company established through a 100% investment by ILSC Holdings LP (which owns ILSC Education Group, a company engaged in language education businesses such as study abroad), with more than 547 company-owned and franchised locations in more than 70 countries.

History

The first Berlitz Language School in Providence, Rhode Island (1878)

1878: The First Berlitz Language School

Maximilian Berlitz, born in Germany in 1852 to a family of educators and mathematicians, emigrated to the United States in 1870 and settled in Westerly, Rhode Island. By 1877, he had moved to Providence, where he taught languages at Bryant and Stratton National Business College, later known as Warner’s Polytechnic Business College. In 1878, Berlitz founded the first Berlitz School of Languages in Providence. Fluent in several languages, he sought alternatives to the traditional grammar-translation method and began developing a more interactive, immersion-based approach to language instruction.

1880s: The Berlitz Method

In the early days of the school, Maximilian Berlitz pioneered the Berlitz Method, emphasizing conversational learning and active student participation. He hired a French-speaking assistant, which revealed that immersion techniques were more effective than traditional grammar translation methods. This approach revolutionized language learning by focusing on immersion from the first day of instruction.

1880s-1900s: Expansion to Europe and Beyond

As demand soared, new locations soon appeared across the United States, and by the late 1880s, Berlitz had taken its first steps abroad, opening schools in Berlin, Paris, and London. By the end of the 19th century, the company was running close to 100 schools worldwide.In the 1950s, Berlitz opened its first Latin American language center in Mexico, followed by locations in Brazil, Venezuela, Argentina, Colombia, Chile, and Peru. In 1966, Berlitz reached Asia, starting with a language center in Tokyo.

World War I & II: Women’s Leadership

During both World Wars, Berlitz faced challenges, including the loss of male leadership due to military service. As a result, many of the schools were managed by women, who played a critical role in maintaining operations and ensuring that lessons continued despite the global turmoil.

1960s: The Golden Era of Expansion

In the 1960s, Berlitz entered a new phase of growth, driven by increased international travel and the rising demand for English language learning, particularly due to the political and cultural influence of the United States. During this period, Charles Berlitz, the grandson of Maximilian Berlitz, developed the Berlitz Travel Guides, which became highly popular and helped further establish the company’s global brand.

1964: Introduction of Berlitz Total Immersion

Berlitz launched its most intensive language learning program, Berlitz Total Immersion, in 1964. This program was designed to offer complete linguistic and cultural immersion through customized lessons that took place in real-life settings, such as lunch with a teacher or participation in parallel sessions with two instructors.

1980s: The Berlitz Foundation and Children’s Language Learning

In the 1980s, Berlitz expanded its offerings to include language education for children, launching Berlitz Kids in 1982. Berlitz also began supporting social causes, with the Berlitz Foundation established in 2006 to support children’s education and rights, particularly in the Sahel region of Africa.

2000s: Adapting to the Digital Age

With the advent of personal computers, Berlitz embraced digital education by introducing online courses in the early 2000s. These courses mirrored traditional classroom lessons but offered the convenience of remote learning. Berlitz also allowed students to record lessons for easy revision.

Berlitz Today

As of today, Berlitz operates in over 70 countries, offering language instruction for various audiences, including professionals, children, and travelers. The company integrates its traditional immersion-based teaching approach with digital technologies to adapt to evolving educational needs.

The Berlitz Method

"The Berlitz Method" uses the direct method and focuses on using language as a tool for communication. The direct method, as opposed to the traditional grammar translation method, advocates teaching through the target language only, the rationale being that students will be able to work out grammatical rules from the input language provided, without necessarily being able to explain the rules overtly. Today, there are a variety of derivative methods and theories that found their beginnings in the natural and communicative elements that were pioneered by Berlitz.

Corporate Ownership and Transitions

Macmillan, Inc. ownership era

In 1966, Berlitz became a subsidiary of Macmillan, Inc. Robert Strumpen-Darrie continued as president until his retirement in 1970, Raphael Alberola became CEO for about 4 or 5 years and then Elio Boccitto led the company through most of the 1980s. In November 1988, Maxwell Communication Corporation took over Macmillan, and just a year later, Berlitz was made public.

On August 19, 1992, Berlitz International Inc. announced it had signed a definitive agreement to sell a 67 percent stake to the Fukutake Publishing Company, with the merger to be completed by the end of the year. On January 28, 1993, Berlitz International Inc. announced a court order disengaging the language services company from the bankrupt Maxwell Communication Corporation had cleared the way for Berlitz's pending merger, while shareholders approved the merger at a stockholder meeting in New York held on the same day, with merger to be closed on February 8, 1993.

Benesse Corporation ownership era

In 2001, Berlitz became a wholly owned subsidiary of the Benesse Corporation. In 2002, Berlitz publishing was sold to Langenscheidt. Today, Berlitz Publishing is owned by APA Publications, led by René Frey, the sale of Berlitz Publishing and Insight Guides by Langenscheidt having occurred in early 2014.

On November 1, 2010, Berlitz International, Inc. announced its renaming from Berlitz International, Inc. to Berlitz Corporation, effective in the same day.

In February 2022, all shares of Berlitz Corporation held by Benesse Holdings were transferred to Berlitz Holdings, a company established through a 100% investment by ILSC Holdings LP (which owns ILSC Education Group, a company engaged in language education businesses such as study abroad). At the same time, the Board of Directors of Benesse Holdings transferred all shares of Berlitz Japan (15.75% of all shares held by Benesse) to Berlitz.

Subsidiaries

• Berlitz Japan, Inc. (ベルリッツ・ジャパン株式会社): Berlitz's first branch in Japan, established in Akasaka in 1966.
• ELS Educational Services, Inc.: In 1988, Berlitz International, Inc. acquired Language Institute for English (L.I.F.E.), which later became ELS Language Centers.
• Second Language Testing, Inc.: Specializes in the development of second language proficiency tests and the translation and adaptation of standardized achievement tests to students' native languages and cultures. In 2011-03-07, Berlitz Corporation announced the acquisition of Second Language Testing, Inc. (SLTI).
• Telelangue SA: In 2011-08-11, Berlitz Corporation announced the acquisition of Telelangue SA.

Former subsidiaries

• Phoenix Associates Co., Ltd. (フェニックス アソシエイツ株式会社): In 2009, Berlitz acquired Phoenix Associates Co., Ltd. On 2012-10-31, Berlitz Corporation announced merging Phoenix Associates Co., Ltd. into Berlitz Japan, Inc., effective 2013-01-01.
• Berlitz Publishing (Apa Publications (UK) Ltd): Berlitz's publishing brand, owned by Langenscheidt 2002-2014, then sold and led by René Frey.

Unions

In Japan, Berlitz teachers are represented by several unions. In the Kansai region they are represented by the General Union, and in the Kanto region they are represented by Begunto, the Berlitz Tokyo General Union, part of Tozen, and the Berlitz Union at NUGW which belongs to the National Trade Union Council.

In Germany, teachers and office staff are represented by GEW. In November 2010, management attempted for the first time to claw back the employee gains of the past 30 years in order to substantially reduce the conditions guaranteed in the collective bargaining agreement, threatening to lay off up to half of the contract teachers if the givebacks were not agreed to.

Financial results

For the fiscal years 2004 to 2010 (in millions of US dollars):

• 2004: 395.2
• 2005: 423.4
• 2006: 464.9
• 2007: 529.7
• 2008: 607.9
• 2009: 527.3
• 2010: 563.4

The total number of language lessons given during the year 2011 was 6,506 thousand. The number of language centers was 563 as of December 31, 2011. As of early 2013, 75% of its revenue was from English language lessons.

Industrial action

Union members and supporters hear the details of the Tokyo District Court ruling on February 27, 2012.

While the situation at Berlitz is different from country to country, in Japan there has been substantial industrial action, including the 2007–2008 Berlitz Japan strike organised by Begunto, which grew into the longest and largest sustained strike among language teachers in Japan. Berlitz filed suit against the union for damages it says it suffered during the strike, but the claim was rejected by the Tokyo District Court on February 27, 2012. Within a week Berlitz appealed the ruling to the high court, with the first court date being on May 28, 2012. The final hearing was held on December 27, 2012, when an agreement was struck between Berlitz and the union. Berlitz withdrew their high court lawsuit and new rules for collective bargaining were also established. They will again be conducted in English, after the language was changed to Japanese previously. Berlitz also promised to disclose more financial information to the union. The company also agreed to pay a base-up raise to current union members plus a lump sum bonus to the union.

In 2010, employees of Berlitz language centers in Germany experienced a major labor conflict, as management planned to lay off nearly 70 contract teachers in order to economize with a staff of freelancers.

See also

• Language education

External links

• Second Language Testing, Inc. Homepage
• Corporations: The Language Merchants, June. 21, 1963, TIME