HP's Iwamoto Sees Opportunity To Recalibrate NBTA

By BTN / July 29, 2001

HP's Iwamoto Sees Opportunity To Recalibrate NBTA

Just ahead of his expected election as president of the National Business Travel Association, Kevin Iwamoto discussed with BTN editor David Jonas the challenges facing the organization and his vision for the future. Iwamoto, who is global air and car supplier manager for Hewlett-Packard, also served as NBTA's vice president and chair of the airline committee. He will take the baton from Cyndi Perper, global travel manager for Invensys, who this week ends her two-year term.

BTN: First off, what are some of the ongoing initiatives that have been left for you as you assume the presidency?

Kevin Iwamoto: A lot of the initiatives that Cyndi was working on are wrapping up, so there is not a lot that she left behind. Cyndi was very focused and got done what she needed to get done. It is nice for me because it leaves me with a clean slate. That will enable me to focus on the future of travel and what it will look like. As a service to our industry, we really need to take a hard look at that. It is something we owe our membership, both the allied and direct members.

BTN: What new challenges do you expect to face?

Iwamoto: I'd like to get away from this "them versus us" environment that seems to exist. We are one membership body. While we are slanted more toward corporate--and I don't expect that should change--we need to be a bit more inclusionary. The challenge is overcoming that perception. At the end of the day, if you look at the common objectives, we all have far more in common than we have differences. The way the industry is changing will be a constant challenge to all members: distribution changes, global contracting, etc. We will stay on top of those things. Also, we are facing a reorganization in the industry with more procurement- and purchasing-type reporting structures than ever before. But we are unique in the sense that we do source commodities in terms of travel suppliers and also have a service delivery piece that does not exist for our procurement brethren. We will have to navigate that minefield. From my own perspective at HP, they have us looking at all these best practices, etc. Process mapping, for example, is written by Ph.D.s, so these are very difficult and challenging elements.

BTN: What items will be at the top of your priority list from day one?

Iwamoto: Recalibrating the association is a top priority. With every administration change there is change in committee heads and members, etc. My priority is to encourage change and get the right people in the right positions. Also, I want to determine how to, in such a large organization, do a better job in communicating between chapter presidents and new and existing committee chairs. I want to be more inclusionary of them and listen to what is high on their priority lists. I believe in clear-cut objectives. They all need to be focused and held accountable by the directors and the organization, but of course it is two-way street.

BTN: Are there certain issues in the industry that you expect NBTA to take a stance on in the next six to 12 months?

Iwamoto: For any kind of International Air Transport Association-driven initiative, for example, we need a place at that table. IATA runs in an old paradigm that since has changed. Many more corporations drive the distribution of the business now, so we need to be involved. We also need a place at the table for other government issues. We are involved already, of course, but a majority of members don't understand what we are doing. We should partner with the government on air traffic control, for example. That goes back to some of the things we all have in common. Then there are legislative issues, such as taxation. Also, I'd like to see us be more of a driver in terms of dealing with these auxiliary charges that suppliers love to hit us with. With these air and hotel surcharges, we need to ask suppliers, "What are you doing? What is your intent?" There was justified criticism when these charges were first slapped on, asking, "When there is no energy crunch, will you rescind this?" That skepticism is now proven true. So we could officially ask our supplier members for an answer, and I think they would like the opportunity to clear the air. We are in a shifting paradigm market in that the economic downturn has caused lots of heartburn and causing direct and allied members to miss financial targets. Today, you are seeing companies saying they no longer can afford this kind of pricing, which is forcing us to do business in a different way.

BTN: NBTA has been working on the hotel RFP, we understand an airline RFP also may be in the works. Any updates?

Iwamoto: The membership looks at those as the industry standard and that is a responsibility we need to shoulder. We have to provide those value-added services so members don't need to recreate the wheel. That is one of the valuable parts of being a member of NBTA. The hotel RFP is still a work in progress. The hotel committee is in a discovery mode, seeing the membership reaction and determining what works and what doesn't. As far as the airline RFP, it was last done, I believe, when I was chair of the airline committee. The industry obviously has changed since, so the RFP certainly warrants some changes.

BTN: One issue we have been hearing about is the apparent dilution of travel managers involved in NBTA, as many more suppliers join. Is that a point of concern?

Iwamoto: It is on the radar screen, but not critical. When you look at our organization versus others, the majority of the members are corporate members.

BTN: I understand the Canadian BTA asks suppliers to bring in a buyer if they want membership. What do you think of that idea?

Iwamoto: Some chapters already do that, but I don't foresee doing that on a national level right now.

BTN: Last year, NBTA was focused on its travel management exchange forums. Will you continue that sort of direct, focused interaction for buyers who are looking for more advanced discussion?

Iwamoto: We're still evaluating that.

BTN: The foundation seems to have amassed quite a war chest. We know some studies have come out of it, but what sort of educational value can buyers expect to come from the foundation in the year ahead?

Iwamoto: Having not been a member of the board, I am not really privy to that. It remains to be seen, but I don't anticipate any deviation from the goal of education.

BTN: Some NBTA presidents try to get out on the road a lot, while others seem to have picked their spots. What will your strategy be and what sort of support have you been getting from HP?

Iwamoto: If I am needed somewhere, I will go. I'll do what needs to be done, but I am not a fan of unnecessary travel. I am pleased and proud to say that HP has given me absolute support and understands the long term.

BTN: Are there any other accomplishments you hope will come from your tenure?

Iwamoto: I am known for being pretty straightforward and inclusionary. At the end of my tenure, I want to look back and say that I brought suppliers and direct members together in the spirit of partnership rather than in an adversarial relationship. If I can bring about that trust, then I feel I will have accomplished quite a bit.

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