RFID technology can aid and assist in multiple areas to reduce costs and increase operating revenue through improved asset visibility, consumable inventory management, food and beverage delivery management, retail item inventory, sales management, and baggage handling efficiency. This white paper addresses baggage handling.
Estimates by the International Air Transport Association (IATA) in their Corporate Air Travel Survey (CATS) put mishandled baggage costs at approximately $US 3.8 billion for 2009 alone—equivalent to the cost of 50 Boeing 737-800s. For 2008, estimates came in at $US 3.3 billion. This industry problem spans cities, regions and continents. While many assume full participation by all parties is necessary to completely rectify the problem, RFID-enabled baggage tagging efforts already in place show that local or regional implementation of RFID on baggage can have significant benefit, resulting in improved service, substantial cost reductions or savings, and increased customer satisfaction.