In The Big Chair - Kurt Ekert of CWT

Kurt Ekert, President and CEO

Kurt Ekert took the reins of CWT in April 2016. He has spent many years in the travel technology and distribution industry including a number of senior roles at Travelport.

In addition to Ekert's role as president and CEO, he was recently appointed to the board of directors at CWT. He is also active across the wider industry as vice chairman of the U.S. Department of Commerce Travel and Tourism Advisory Board.

It has been about 2.5 years since the launch of CWT 3.0. What would you say have been the major successes in positioning the company as a digital TMC, and where is work still required?

The major and most obvious difference is that our customers’ travelers now experience a more smooth experience on mobile, tablet, PC and phone – using one, or a combination of these, to search and book their trip.

We transferred our portal to a new, more powerful base at the end of 2017, created a simpler, more intuitive interface and rebranded both the portal and our app as myCWT to focus on that one, single experience. 

I am very excited about what we have brought to market with RoomIt, the leading hotel distribution offering in business travel. It brings together traditional and alternative sources of accommodation content into a seamless and intelligent display and extends this content through all channels.

This includes the integration of RoomIt’s content and algorithms into all of our key online booking tool partner companies, which improves corporate program compliance and savings and enhances traveler experience.

We have also introduced data analytics services, AI-powered chatbots and multiple behind-the-scenes innovations to ensure travelers not only get the optimum service, but also the most relevant prices and options.

The world moves fast, and the pace of innovation is accelerating, so it is our job to maintain our prominence in providing a simple, effective and secure experience for our customers – now and in the future.

In the interim, a number of travel management startups have come in and captured investor attention. What is your view on these startups and their ability to gain traction?

Business travel is a huge global sector (circa $1.6 trillion annually) with strong growth dynamics, and is being impacted by many of the technology forces we see in e-commerce and consumer travel.  This presents challenges but also great opportunity, as we constantly focus on upping our value proposition. 

We work closely with a few early stage technology incubators and in doing so get an early and close look at lots of new ideas coming into the industry. With this positioning, we have successfully brought many of these capabilities to our clients efficiently and at scale, where there is benefit to the client.

For us, a good idea is always a good idea, and I am reminded of the quote by Victor Hugo: “Nothing is as powerful as an idea whose time has come.” 

Rather than comment on any startup in particular, let me say that the market will ultimately determine winners and losers, and our market is highly fragmented, so there is ample opportunity for parties who can deliver unique value. 

Bottom line, it is great to see capital and attention coming into our sector. 

Does it surprise you that these new entrants are attracting such huge funding rounds?

Perhaps the rich valuations we are seeing with new entrants speaks to the fact that the industry leaders in business travel have traditionally been undervalued. 

Travel will continue to play an instrumental role in corporate and political life, as face-to-face engagement is hard to beat for cementing relationships and building businesses. Being able to deliver platform technology solutions coupled with great service at scale is a recipe for winning in this industry. 

At CWT, we welcome all comers to the market, as I believe our B2B4E (business-to-business-for-employees) approach is setting the pace – but it will be interesting to see whether expectations and reality will meet when some of these investors look to realize their positions. 

If you were starting a TMC from scratch, what strategies would you retain and what would you scrap from those that major players currently deploy?

Now that is a leading question!

With the benefits of advances in technology, AI, blockchain and the rest, the potential for businesses like ours has moved dramatically away from the traditional TMC model – much as we have evolved into a travel management platform, with value-added services for our customers and their travelers.

Thankfully we are already well on our way there. 

About a year ago, CWT simplified its distribution by renewing with two of the three global distribution companies. Has the move led to the promised experience improvements for travelers and the personalization?

Yes it has, and ahead of schedule – although we prefer to think if this in terms of search relevance, rather than personalization. 

We have made great progress on our core GDS partnerships in one of the travel industry’s most ambitious technology projects to date, involving customers, partners, suppliers and technology providers, globally.

This undertaking was really about simplifying our operating and technology infrastructure to enable improvements in innovation and efficiency, as well as enabling us to seamlessly distribute and operationalize new content sources.

Not only has this approach highlighted the strength and depth of our own technological capabilities, but it reinforces our customer-centric commitment to simplify corporate travel … connect to unlock its possibilities … and move forward, together.

The latest assessment of IATA’s New Distribution Capability is that it still has a long way to go. Would you agree with that? And, will it ever tip the scales in terms of mass adoption?

To date the big question, based on the actions and rhetoric of some parties, is whether this is about technology, or rather the control of distribution. 

In my eyes, NDC is a euphemism for the desire by airlines to sell more dynamically in B2B as they do in B2C, presumably to promote their differentiated products and grow revenue.

It is a good idea in concept, and as we are now seeing better collaboration by many in the industry.

For example, CWT is partnered with technology partners such as Sabre and Amadeus, as well as a number of carriers in each region, on making NDC a reality without adversely impacting user experience, experience or transparency.

So long as we don’t see further unilateral actions that take content away from the most high yielding channel for airlines – namely corporate travel – or adversely impacting user experience, I think you will see adoption begin to really scale in the next three to four years, as the appetite for needed investment and cooperation is finally here. 

Opinions vary of the work that needs to be done, what in your view are the three most important steps to be taken right now?

For the avoidance of doubt, we wholly support IATA’s concept of NDC. But, and I think it’s quite a large "but," I think I can synthesize three into one here, if I may.

In my eyes, NDC is a euphemism for the desire by airlines to sell more dynamically in B2B as they do in B2C, presumably to promote their differentiated products and grow revenue.

Kurt Ekert - CWT

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We need to enable travelers to have a full, and fair, shopping experience – not one in which they have a restricted ability to compare fares, or have travel segments which require individual and time-consuming when itinerary changes happen.

And as you will know, business fares average two changes and three bookings.

Second, for business travel, this must not be a one-off change that is a step backward in terms of user experience or efficiency, otherwise it will increase cost to the corporation and reduce traveler happiness.

Third, there are commercial/business model changes that will need to be addressed, so key stakeholders should speak honestly (on a bilateral basis) with each other regarding what matters to them and how we can hopefully find a solution that stimulates adoption.

Project forward five years and tell us how the business travel experience will look in terms of seamless booking and travel…

Anywhere. Anyhow. Anytime. And by that I mean online, voice, text or AI-initiated.

“In God we trust. All others must bring data” is a phrase bandied about across the travel industry at the moment. How important is data for a) travel management b) CWT?

We have around 250 CWT data scientists at the moment, who have come to us from all over the world and many of the leading technology brands – so it is a key potential for us. When it comes to data, business travel is the new black.

As a travel management platform, our objective is to help our customers get the most from their employees when they are on the road, and we are already using data services to help travel managers manage their logistics more efficiently, HR teams to enhance their duty of care to their travelers, finance teams to identify and enhance their ROI and some even more exciting initiatives, which I am sure we will be announcing in due course.

Data is here to stay and we haven’t even scratched the surface of its potential benefits.

And, a few questions about you… What did you learn in your years at Travelport that has formed your leadership style at CWT? 

I had a wonderful professional and life experience at Travelport. I learned from so many folks there that innovation and performance are bred from clarity of vision, strategic focus and a talented, empowered and engaged team. 

I have so many great friendships from my years there, both from the company and the industry, and this makes me a very lucky person. 

I learned that I love working with people who are all-in and take business, but not themselves, seriously. 

At CWT I have in turn focused on purpose, alignment and trust, and on unleashing our diverse talent, which are all key ingredients for value creation. At the end of the day, we are here to compete, to win and to enjoy the ride.

If you weren’t heading up CWT, what company would you like to work for and why? 

I love creating and scaling new ideas, and doing so with people I deeply respect and trust.

Having those dynamics at play is what I value most. I’m far more interested in doing this with my colleagues at CWT than with anyone else.

What are your go to apps whilst traveling? 

MyCWT tops the list, of course, as well as our company intranet Buzz, which is actively used by over 90% of our entire team globally.

I am a consumer of social media on Facebook and LinkedIn, and an avid user of Google and multiple news and information apps to keep in touch with the industry and the world at large. 

And, as I’m a bit of a vagabond with my travel schedule, I’d be lost without my iPhone while on the road.