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3rd Aviation IT Conference
SELF-SERVICE BAG DROPS AND TAGS
Dublin, Nov 25th 2014
Alfonso Razzi
IATA estimates that the cost of baggage systems, staff, and mishandles
exceeds $25bn a year but revenues made from baggage fees total little
more than $6bn a year. Can self-service bag drops, home printed tags and
other emerging bag tagging systems and standards ever cut that operational
overhead whilst simultaneously improving the passenger experience?
How can mobile bag tracking applications integrate with existing baggage
management systems and how are airports, airlines and baggage handlers
collaborating in the use of new technology such as NFC and RFID to replace
paper tags?
Checking-in bags didn’t change so much since the early days of
the airline industry....
....and the today’s challenges are more or less the same...
..no matter what’s the region of the world..
The gap is still huge, is there room for improvement ?
$25bnyear
Cost for the
airline industry
to deal with
baggage's
$31bnyear
$6bnyear
Revenue accrued
in the airline industry
for baggage related
services
$10bnyear
...which means having the airline safely taking almost
full care of the passenger’s bags...
How the industry is addressing the passengers happiness
when travelling with bags....is only the technology needed
Where we are in term of adoption of the self tag concept...
Actually the human presence still makes the difference..
...people attract people...
225
139
48
64
128
100
19
62 68
57
44
106
68
6
29
119
13
65
77
109
14
33
42
49
68
58
107
0
47 50 50 50
131
120
29
57
166
86
58
0
50
100
150
200
250
31-Aug
1-Sep
2-Sep
3-Sep
4-Sep
5-Sep
6-Sep
7-Sep
8-Sep
9-Sep
10-Sep
11-Sep
12-Sep
13-Sep
14-Sep
15-Sep
16-Sep
17-Sep
18-Sep
19-Sep
20-Sep
21-Sep
22-Sep
23-Sep
24-Sep
25-Sep
26-Sep
27-Sep
28-Sep
29-Sep
30-Sep
1-Oct
2-Oct
3-Oct
4-Oct
5-Oct
6-Oct
7-Oct
8-Oct
Self tag kiosks usage statistics
Is there a perfect recipe to cook these
ingredients ?
Is only the technology needed to fill the gap
between revenue and cost for baggage's ?
Process
Integrate self tag kiosks with other on-line
check-in services for passengers
Educate the passengers to check-in
before they get into the airport
Consider to review the processes to load
and handle baggage's (mainly for
connecting passengers)
Promote the processes integration across
all the stakeholders (airports, airlines,
handlers, service providers)
Technology
The early adopter will be likely required to
change in the medium-term
There are currently different options to support
the baggage check-in but not yet a common
standard de-facto
Embark in new technology trials only if you have
a clear vision and resources to support the
evolution of the trial (to likely become a project)
Consider to adopt technology in all phases
dealing with baggage's (i.e. BRS). It will only offer
more options to improve and differentiate the
customer experience
As for the processes, don’t forget to involve the
other stakeholders in the adoption (airport,
airlines, handlers)
People
Promote technology through people. Not
all the passengers & employees are geeks
Have the people (passengers &
employees again) clearly understanding the
advantages when using the technology
...as always the right recipe is to avoid complexity...
CHECK-IN PROCEDURE IN 2030

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3rd_IT_Aviation_Conference_SelfBag_v1.0

  • 1. 3rd Aviation IT Conference SELF-SERVICE BAG DROPS AND TAGS Dublin, Nov 25th 2014 Alfonso Razzi IATA estimates that the cost of baggage systems, staff, and mishandles exceeds $25bn a year but revenues made from baggage fees total little more than $6bn a year. Can self-service bag drops, home printed tags and other emerging bag tagging systems and standards ever cut that operational overhead whilst simultaneously improving the passenger experience? How can mobile bag tracking applications integrate with existing baggage management systems and how are airports, airlines and baggage handlers collaborating in the use of new technology such as NFC and RFID to replace paper tags?
  • 2. Checking-in bags didn’t change so much since the early days of the airline industry....
  • 3. ....and the today’s challenges are more or less the same...
  • 4. ..no matter what’s the region of the world..
  • 5. The gap is still huge, is there room for improvement ? $25bnyear Cost for the airline industry to deal with baggage's $31bnyear $6bnyear Revenue accrued in the airline industry for baggage related services $10bnyear
  • 6. ...which means having the airline safely taking almost full care of the passenger’s bags...
  • 7. How the industry is addressing the passengers happiness when travelling with bags....is only the technology needed
  • 8. Where we are in term of adoption of the self tag concept...
  • 9.
  • 10.
  • 11. Actually the human presence still makes the difference.. ...people attract people... 225 139 48 64 128 100 19 62 68 57 44 106 68 6 29 119 13 65 77 109 14 33 42 49 68 58 107 0 47 50 50 50 131 120 29 57 166 86 58 0 50 100 150 200 250 31-Aug 1-Sep 2-Sep 3-Sep 4-Sep 5-Sep 6-Sep 7-Sep 8-Sep 9-Sep 10-Sep 11-Sep 12-Sep 13-Sep 14-Sep 15-Sep 16-Sep 17-Sep 18-Sep 19-Sep 20-Sep 21-Sep 22-Sep 23-Sep 24-Sep 25-Sep 26-Sep 27-Sep 28-Sep 29-Sep 30-Sep 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct 6-Oct 7-Oct 8-Oct Self tag kiosks usage statistics
  • 12. Is there a perfect recipe to cook these ingredients ? Is only the technology needed to fill the gap between revenue and cost for baggage's ?
  • 13. Process Integrate self tag kiosks with other on-line check-in services for passengers Educate the passengers to check-in before they get into the airport Consider to review the processes to load and handle baggage's (mainly for connecting passengers) Promote the processes integration across all the stakeholders (airports, airlines, handlers, service providers)
  • 14. Technology The early adopter will be likely required to change in the medium-term There are currently different options to support the baggage check-in but not yet a common standard de-facto Embark in new technology trials only if you have a clear vision and resources to support the evolution of the trial (to likely become a project) Consider to adopt technology in all phases dealing with baggage's (i.e. BRS). It will only offer more options to improve and differentiate the customer experience As for the processes, don’t forget to involve the other stakeholders in the adoption (airport, airlines, handlers)
  • 15. People Promote technology through people. Not all the passengers & employees are geeks Have the people (passengers & employees again) clearly understanding the advantages when using the technology
  • 16. ...as always the right recipe is to avoid complexity... CHECK-IN PROCEDURE IN 2030