Back to Air Transport IT Review - Issue 1, April 2009

Solving the baggage dilemma

Self-service and baggage are often perceived by passengers as incompatible. Kiosks are seen as difficult to use if luggage is to be checked-in. What makes baggage an obstacle to the adoption of self-check-in options by passengers?

Solving the baggage dilemma

More than a third of check-ins are now self-service, according to the 2008 Airline IT Trends Survey. This includes some airports where self-service represents almost two-thirds of check-in transactions.

Passengers with baggage used to be ineligible for self-service. This is generally no longer the case - but it takes longer to change passengers' behaviour than to change technology. However, even if people are persuaded to change their approach, as more people use self-service bag drops, new queues may form and the perceived value decreases.

Target: 80 percent self-service

On present trends, self-service check-in options will be made available to all passengers on every airline. If all passengers know about it, the key obstacles to adoption - availability and passenger awareness - are removed.

But based on the preference ratio for self-service in the 2008 SITA/ATW Passenger Self-Service Survey, the best case scenario is for no more than 60 percent adoption levels. So what can the industry do to achieve 80 percent?

Overcoming the "baggage" obstacles

One option is to direct passengers who, for whatever reason have not checked-in via the Web, to go to a check-in kiosk and then to the agent desk for bag drop. Some airlines, including British Airways, are already applying this process for passengers at some airports.

On the other hand, Ryanair will shortly move to 100 percent Web check-in. Passengers will have to print their own boarding cards and, if they have luggage, to present it at a Ryanair drop desk at the airport.

Not every airline will be willing to go the Ryanair way. Most will rely on new technologies and a set of process improvement best practices.

Among other initiatives, IATA's Fast Travel programme (part of the 'Simplifying the Business' initiative) specifically addresses baggage-related issues at the airport:

  • Bag ready-to-go enables passengers to deliver bags tagged and ready for acceptance by an airline check-in agent, speeding up the process for passengers with baggage. IATA has a target of 10 airlines capable for this programme by end 2009, with two in a shared environment.
  • Another option - remote baggage check-in - will also improve the passenger experience and, in some cases, offer the airline a new revenue opportunity.
  • Bag recovery allows passengers to report a missing bag at a kiosk. Surveys consistently show that passengers would use kiosks to report lost baggage claims if the service was available. Of airlines surveyed, 44 percent say they either offer the service already or plan to do so within two years. There is a similar IATA target in place for this programme - 10 airlines capable by end 2009, with two in a shared environment.

The only way to crack the baggage dilemma is improved end-to-end baggage processing. The good news is that real progress is being made and will continue to be made in the months and years ahead.

Dominique El Bez
Director, Portfolio Marketing, SITA

Sign up for our baggage Webcast on 22 April

SITA and ATW will present a Webcast exploring baggage management, 'Baggage: the past, the present and the future', on 22 April at 11:00 EDT/ 17:00 CEST.

Catherine Mayer, SITA VP Airport Services, will review the results for 2008 and cover today's baggage trends and initiatives.

Andrew Price, IATA's Baggage Improvement Programme Manager, will discuss progress of the Programme.

Nick Gates, SITA Baggage Portfolio Director, will look at the future, demonstrating the business challenges and how technology can help.

> More information on the Webcast

The Baggage Report 2009 - available for download

Just published, the fifth edition of SITA's Baggage Report explores the latest trends in baggage processing and management worldwide.

Here are some of the headlines:

  • 2008 was a remarkable year for baggage. The good news is that for the first time in the report's history, the amount of mishandled baggage globally has fallen - by over a fifth, from 42.4 million bags in 2007 to 32.8 million in 2008.
  • Only a tiny fraction of mishandled bags failed to show up at all with just 0.32 bags per thousand passengers being lost or stolen compared with 0.57 per thousand passengers in 2007.
  • With almost ten million fewer bags mishandled last year, the improvement represents an industry saving of over US$ 800 million.

But, says the report, even though the recorded 1.4% (down from 1.9% in 2007) is a "low failure rate for a process as complex as baggage management, it's still not good enough. Mishandled baggage continues to cost the industry billions of dollars a year. That's cash it can ill afford to lose, especially in a time of economic crisis."

Baggage is also a top priority for air travellers. Over 60% of passengers surveyed globally in SITA's Passenger Self-Service Survey 2008 associated a pleasant trip with having their "check-in baggage arrive promptly and safely" - a score second only to flights being on time, and well ahead of short queues, friendly ground staff or well-equipped modern terminals.

The improvement in the figure for mishandled baggage is partly due to initiatives to reduce the number of bags carried. Nevertheless, it also shows that industry baggage processing initiatives - such as IATA's Baggage Improvement Programme and SITA's own baggage management solutions - are delivering improvements to the industry and passengers alike.

According to the report, much more still needs to be done. Indeed, it says that in the current economic crisis, every possible step must be taken to reduce operating costs. That, it says, includes the cost of lost and mishandled baggage, so the industry must keep up the momentum and build on the success of 2008 in continuing to improve baggage management across the board.

SITA works industry-wide in preparing the report, and notably in close collaboration with IATA. The report provides valuable insights into any issue that affects the industry and passengers, and it will help the industry to work together in improving baggage management around the world.

>More information on the Baggage Report 2009

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