Baggage Report 2008

Mishandled baggage cost the air transport industry US$ 3.8 billion in 2007

Around 2.25 billion pieces of checked baggage are handled by the air transport industry annually. Barely one bag for every two thousand passengers fails to appear at all.

But for the passengers whose baggage is mishandled (defined as bags which are missing on arrival), the overall baggage management success rate is little comfort.

In 2007, mishandled baggage cost the air transport industry US$ 3.8 billion. That’s an average of US$ 90 per mishandled bag (International Air Transport Association estimate).

Baggage handling success rates aren’t going to improve on their own. And already, at many airports around the world, baggage handling is at saturation level, thanks to:

  • Increased passenger numbers
  • Increased airport congestion
  • Tight turnaround times
  • Cost pressures
  • Tough security regulations, making it hard to keep track of bags

Air transport industry initiatives

Increasingly, airlines and airports are working together to examine business processes and analyze baggage data. Initiatives and innovative solutions are being launched and implemented to reduce mishandled baggage and its associated problems.

The International Air Transport Association (IATA) has launched two baggage-related campaigns:

  • IATA Fast Travel, which addresses the standards requirements and relevant passenger and airport processes
  • IATA Baggage Improvement Programme (BIP), which aims to reduce mishandled baggage rates through systems integration, staff training, better barcoded labels, and passenger education (e.g., the benefits of checking in early)

Baggage Report 2008 findings

  • WorldTracer found that 42 million bags were mishandled worldwide in 2007
  • Only 0.57 bags per thousand passengers in 2007, or three per cent of the total number of bags mishandled, were lost completely (WorldTracer database 2007)
  • The percentage of bags mishandled in transit has been falling steadily (WorldTracer database 2007)
  • The biggest problem for baggage handlers is when bags are being transferred from one aircraft to another
  • 52 percent of airports in the 2007 Airport IT Trends Survey said that improving baggage processing and management was a high priority
  • There is increasing demand for common use bag drop – 18 percent of airports said common bag drop was already available
  • Remote bag drop is popular with passengers – 58 percent in SITA’s 2007 PSS survey said they would use the service if it was available

Likely future baggage trends

  • Widespread adoption of radio frequency identification (RFID) tags in bags is on the way – RFID speeds up bag tag read rates, and reduces read errors
  • Airlines will continue to push baggage reductions to improve delivery, save fuel and reduce the environmental impact
  • Off airport baggage check-in and courier services may expand – however there are logistics, security, scale, pricing and liability issues
  • End-to-end baggage management will grow – many airports have baggage management systems in place, but they have often been implemented in a piecemeal fashion

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About the Baggage Report

The Baggage Report is complied 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.