Aviation’s $2 Billion Problem: How Smart Luggage Scanning Can Improve Real-time Visibility

It’s every passenger’s nightmare: getting to their destination and finding out their bags haven’t made it.

While the aviation industry has gotten better at avoiding baggage mishandling in the last year (the number of incidents dropped from 7.6 to 6.9 bags per 1,000 passengers in 2023), there is still ample room for improvement.

That’s because the scale of lost luggage is still at higher levels than pre-pandemic.

But, with smart data capture, airlines and airports can improve passenger experiences by increasing luggage visibility and reducing errors with superior scanning throughout the airport, and speeding up baggage collection processes with AR-guided search and find.

And the best part? It can all be done with smart devices and integrated with your existing apps.

Baggage mishandling can be hugely detrimental to airline operations. Here’s why:

• It’s costly: The aviation industry incurs $2.2 billion in costs annually due to baggage mishandling, with each bag costing an average of $100 to reconcile and return to its rightful owner.
• It’s a reputational nightmare: Luggage mishandling is the second most common cause of passenger dissatisfaction (after flight irregularities), according to a study of Tripadvisor airline reviews.
• It causes inefficiency: Baggage diversion and reconciliation can cause delays to flights, as well as requiring additional labor and resource costs to return lost bags.
• It can cause compliance challenges: Lost or mishandled luggage can mean airlines risk non-compliance with Resolution 753, which requires member airlines to record baggage tracking data at a minimum of four core tracking points, (acceptance, transfer, loading, and arrival). As of 2023, only 44% of 155 surveyed airlines and 94 airports have met the baggage tracking requirements.

The leading causes of baggage mishandling incidents

According to SITA, the vast majority of mishandled baggage incidents (80%) can be attributed to delays, with the other 20% caused by bags that are damaged or pilfered (13%), lost or stolen (7%).

A deeper dive into that data uncovers scope for improvement in baggage handling workflows. The majority of those delays are caused by mishandling during flight transfers, while bags not being loaded at all, and bag switches or tagging errors also cause a high percentage of delays.

Better visibility of luggage across the journey could help to alleviate and reduce many of these issues.

Airlines that are not taking action to improve baggage handling – or have no plans to – are at risk of being left behind.

Why? Because passengers want (and are demanding) better luggage visibility for their journeys. According to the 2023 IATA global passenger survey, baggage tracking is a key enabler for positive passenger experiences.

Some air travel operators are already providing this data to customers. For example, in early 2024, Air Canada added real-time baggage tracking and push notifications to its customer mobile app, allowing passengers to monitor their luggage’s location throughout their journey.

Of those airlines that don’t currently provide this information for passengers, 67% aim to by 2025, according to SITA.

A key part of the business case will be to highlight the cost of misplaced, lost or stolen luggage, and identify the potential savings that can be attained through better processes – both financially and from a sustainability perspective (fewer reconciliations means a lesser impact on the environment). Baggage handling systems are now being designed with an environmental, social, and governance (ESG) angle in mind, with reductions in an airport’s carbon footprint of up to 15% among the key drivers.

There is also a productivity consideration. Building automation and efficiency into baggage handling workflows can have a positive impact on operational efficiency by helping to increase visibility, speed, and accuracy.

And that’s not to mention the increase in employee satisfaction, a common result of access to technology that increases productivity.

It’s essential that you are able to equip ground staff with the technology to do their jobs more effectively.

The requirements for, and benefits of, streamlined baggage management are clear. So, how can you achieve them?

With more scanning points (and thus data points), and the flexible use of any camera-enabled smart device, including smartphones, tablets and handheld computers, powered by Scandit Smart Data Capture.

With our data capture SDK, or the no-code Scandit Express app, you can easily build enterprise-grade scanning capabilities into your airline’s mobile apps, helping to increase visibility, accuracy and efficiency of luggage management.

Quickly scan luggage with any camera-enabled smart device

Luggage check-in has traditionally been done at a service desk, with a more recent trend of self-service kiosks enabling self check-in for passengers.

Ground handling staff can also face frustrations with sub-par technology which makes the scanning of baggage at loading and unloading difficult.

Scandit removes those frustrations and hindrances, allowing for fast and accurate scanning with any camera-enabled smart device, including scanning at the gate to check in hand luggage.

Here are some advantages of Scandit’s industry-leading barcode scanning technology:

• Read complex labels using a combination of barcode scanning and OCR (object character recognition)
• Scan in difficult conditions, such as low light or inclement weather
• Read partially damaged luggage tags, including those with ripped or obscured labels

Use AR to quickly find the right bag

Scandit’s advanced capabilities include augmented reality-powered search and find functionality, which is hugely beneficial in making baggage operations more efficient and less prone to human error.

• View flight information in an AR overlay for the specific bag to ensure it’s loaded on the right aircraft or baggage carousel
• Highlight the correct bag in a collection of many to quickly deliver to a passenger with MatrixScan Find (for example at a lost luggage)

Example: Scandinavian Airlines uses Scandit-powered app to improve baggage tracking

​​Scandinavian Airlines (SAS) upgraded its ground handling operations by implementing Scandit’s Barcode Scanner SDK into its employee smartphone app.

Part of the functionality provided by this solution has enabled quicker and more efficient scanning of luggage tags.

The system allows baggage handlers to easily scan and record the status and location of luggage using mobile devices, enhancing the overall tracking process. The app’s versatility extends to scanning oversized hand luggage at the gate, streamlining the process of transferring these items to the aircraft.

By adopting this mobile scanning technology, SAS has not only reduced costs but also improved its ability to manage baggage-related tasks more effectively, contributing to a smoother travel experience for passengers.

Our operating staff delivers superior customer service by scanning boarding passes, passports, luggage packages, and coupons with Scandit-powered mobile devices.

Sören Fredriksson, IT Project Manager, SAS

Baggage management is big business. Airlines and airports are constantly looking for ways to improve operations, and with that comes the need to innovate. For example, technologies such as RFID, AI automation, and robotics, are touted as potential solutions.

These advances are certain to help reduce the frequency, frustration and financial implications of lost and mishandled baggage.

There is, however, an investment consideration. These technologies require significant capital to implement, and the industry currently lacks standardization to deliver a uniform experience at all airports.

Scandit is easy to integrate into your existing employee app to enable swift and accurate data capture across the entire luggage journey – now, and in the future.

Whether used alone or in conjunction with wider technological investments as part of a digital transformation journey, Scandit helps airlines (including Lufthansa, Air France, and Cathay Pacific) and airports to future-proof their baggage management processes, enhance the passenger experience, and ensure smooth and efficient operations in years to come.

Looking for a no-code option to improve your baggage handling operations, including lightning-quick scanning and access to MatrixScan Find for easy luggage discovery? Scandit Express has you covered.