Baggage Report 2009

The ATI saved US$ 800 million last year due to nearly 10 million fewer mishandled bags

> Download the Baggage Report 2009 for free

2008 was a remarkable year for baggage, with the total number of bags mishandled dropping by over 20% from the previous year (42.4 million in 2007 to 32.8 million in 2008) after five years of constant increases.

Nonetheless, mishandled baggage continues to cost the industry billions of dollars per 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 associated a pleasant trip with having their check-in baggage arrive promptly and safely. This score ranked second only to flights being on time, and well ahead of short queues, friendly ground staff or well-equipped modern terminals.

When do bags go missing?

A mishandled bag is a report of a delayed, damaged and / or pilfered bag recorded by an airline, or its handling company, on behalf of a passenger, for handling as a claim.

The single biggest problem for baggage handlers is when bags are being transferred from one aircraft to another - though the percentage of bags mishandled in transit, as a percentage of all mishandled bags, has been falling steadily, from 61% in 2005, to 49% in 2008.

The other causes of mishandled baggage, as registered by WorldTracer, are:

• 'Failed to load' (16%)
• 'Ticketing error / bag switch / security / other' (13%)
• 'Arrival station mishandling' (8%)
• 'Airport / customs / weather / space-weight restriction' (6%)
• 'Loading / offloading error' (5%)
• 'Tagging error' (3%)

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IATA's Baggage Improvement Programme (BIP)

IATA's Baggage Improvement Programme (BIP) proposes solutions that aim to cut baggage mishandling in half by 2012 - generating annual savings to the industry of between US$ 1 and US$ 1.9 billion, depending on the number of issues each BIP participant decides to address.

The programme focuses on five key areas:

• People: staff and passengers taking the necessary steps to ensure bags can travel successfully
• Processes: simplifying baggage processes
• Systems: ensuring systems are linked together to facilitate processing
• Identification: knowing which bags need to be processed urgently
• Information: matching the intention of the passenger to the routing of the bag

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Baggage Trends

Door-to-door baggage handling

Door-to-door baggage handling, or at least remote baggage check-in, not only improves the passenger experience, but also provides a new revenue opportunity for those offering it, as well as easing time and security pressures faced by airports - at least in theory.

Off airport baggage check-in is already offered by some 15% of airlines, and another 18% plan to offer the service within two years. The idea is popular with passengers, with almost half of respondents saying they would use the service if it was available, and over 40% of those saying they would be willing to pay for it.

Remote bag check is easiest to offer in self-contained environments such as cruise ships, ports, hotels, convention centres and resorts, where local staff (hotel porters for example) can be leveraged and economies of scale quickly achieved.

End-to-end self-service

Passenger self-service is good for the industry and very popular with travellers, with 56% of passengers across all regions saying they wanted more self-service options.

Self-service and baggage are often perceived by passengers as being somewhat incompatible, however, and baggage was the number one reason why people did not use self-service check-in when they knew it was available in one survey, and 54% of respondents in another saying kiosks were difficult to use if you have luggage to check-in.

Integrated baggage management

Initiatives such as IATA's BIP and SITA's Integrated Baggage Management solution can deliver real improvements to baggage processing and management, benefiting airlines, airports and passengers alike.

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About the Baggage Report

The Baggage Report is compiled annually by SITA. Data and trending information is obtained from various surveys from around the world. SITA works closely with IATA to ensure completeness of facts, figures and analysis.

The SITA Baggage Report is available at no cost.

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