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THE Baggage Report

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THE Baggage Report 2013 AIR TRANSPORT INDUSTRY INSIGHTS THE Baggage report In association with PREFACE SITA’s ninth annual Baggage Report shows a continued There is already a strong momentum to reduce mishandling improvement in the baggage mishandling rates of the further. As an industry, we are collaboratively addressing the industry. The headline figure has now dropped to 8.83 issues and developing the solutions. IATA’s InBag program mishandled bags per 1,000 passengers, down from 8.99 has set a target to reduce the global baggage mishandling in 2011 and represents a drop of 44.5% in the number of rate to 4.5 mishandled bags per thousand passengers. It is mishandled bags in the last six years. Remarkably, given a figure that is nearly half of where we are today, so there is the nearly three billion passengers using the air transport still much work to do. While it is challenging, SITA is working system last year, it means that for every hundred passengers with its industry partners, including IATA and the ACI, to make traveling fewer than one bag was reported as mishandled. it happen. For the industry it translates into an annual cost saving of US$2.1 billion for 2012. We are now seeing the rewards of a concerted collaborative effort to improve the baggage handling operations of the industry and in so doing reducing a major cause of passenger Francesco Violante dissatisfaction. Delayed baggage, which was responsible for Chief Executive Officer, SITA 82.9% of mishandling, fell 2.4% in 2012 to 5.67 per thousand passengers. The major cause of delayed bags is the transfer between flights which historically has proved to be a critical pinch point in the process. The good news is that we are moving in the right direction with mishandled transfer baggage falling to 48% of delayed baggage from 53% in 2011. For the first time we have taken a look at baggage performance across the world’s top 100 airports by region. Asia, in particular, stands out as performing very well with 1.93 mishandled bags per 1,000 passengers. Looking at the long term trend of airline baggage performance, the improvement is significant across regions, with a mishandling bag rate reduced by 43% in Asia, 56% in North America and 43% in Europe over the last six years. Looking forward, there will be no let up in the pressure on 2012 Baggage facts-at-A GLance baggage handling operations. Passenger numbers continue to grow, even in these times of reduced economic activity. ENPLANED There will also be no let up in industry efforts to reduce the 2.95 PASSENGERS mishandling rates. At SITA we are investing in new baggage BILLION (UP FROM 2.82BN IN 2011) solutions to ensure the industry has the best tools, based on the latest technologies, to do the job. One such product, MISHANDLED BagSmart, provides a predictive warning of missed bags 26.04 BAGS (DOWN FROM 46.9M IN 2007) which initial trials indicate could reduce mishandling of MILLION transfer bags by up to 60%, as well as help prevent MISHANDLED BAGS baggage-related flight delays. 8.83 PER 1,000 PASSENGERS (DOWN FROM 8.99 IN 2011) 2 THE BAGGAGE REPORT | © SITA 2013 CONTENTS Highlights 4 2011 versus 2012 4 The six year trend 4 Key statistics 5 Taking control of transfer bags 6 Regional overviews 7 The airport perspective 7 The airline perspective 8 Improving the passenger experience 10 Passenger demand 10 Air transport industry investment 10 Customer-facing innovations 11 Home bag tag printing to speed up bag drop 11 Airport-airline collaboration behind the scenes 12 Scaling for expansion 12 The right bag at the right time 13 Shaping the future 14 InBag: reducing mishandling, improving efficiency and enabling innovation 14 Baggage continues to be a top priority for airport operators 15 The impact of self-service on baggage handling systems 16 Enabling smarter transfer bag decision making 16 Appendix 17 THE BAGGAGE REPORT | © SITA 2013 3 HighLights 2011 Versus 2012 The SIX Year Trend In 2012 the total number of mishandled bags increased • Total scheduled passengers carried up 18.9% slightly to 26.04 million. However this 2.84% increase is • Total bags mishandled down 44.5% against the backdrop of a 4.5% rise in passenger numbers to 2.95 billion. The rate of mishandled bags per thousand • Total mishandled bags per thousand passengers down 53.2% passengers continues to diminish, down by 1.78% in 2011, with • Total cost to the industry down 44.5% the cost per passenger showing a 1.61% improvement over the previous year. Looking at the 2012 detail, delayed bags make up 82.9% of the total mishandled bags, slightly down from 2011. Damaged or pilfered bags account for 12.9% of mishandled bags and 4.2% were declared stolen or lost. Transfer bag performance improved in 2012 and while it is too soon to suggest an industry step change, initiatives are underway to take control of the issue. Long term trends for mishandled bags ShorShortt termterm trendstrends for for mishandled mishandled bags bags LLongong term term trends trends for fo rmishandled mishandled bags bags Short term trends for mishandled bags 2007 Trends 2012 2011 YoY Trends 2012 2007 Trends 2012 2011-2012 change in reasons for delayed bags 2011 YoY Trends 2012 The reasons for delayed bags 2011-2012 change in reasons for delayed bags The reasons for delayed bags + TOTAL 18.9% + + – PASSENGERS TOTAL 4.5% TOTAL 18.9% + – PASSENGERS TOTAL (BILLIONS) 2.48 2.95 PASSENGERS 9% TRANSFER MISHANDLING 4.5% (BILLIONS) 2.81 2.95 (BILLIONS) 2.48 2.95 PASSENGERS 9% (BILLIONS) 2.81 2.95 TRANSFER MISHANDLING – – + 44.5% + + TOTAL BAGS 44.5% 14% FAILURE TO LOAD + TOTAL BAGS 2.84% TOTAL BAGS 14% FAILURE TO LOAD MISHANDLED TOTAL BAGS 2.84% (MILLIONS) 46.9 26.04 MISHANDLED MISHANDLED 17% (MILLIONS) 25.8 26.04 (MILLIONS) 46.9 26.04 MISHANDLED 48% 17% + (MILLIONS) 25.8 26.04 48% LOADING ERROR + – 30% LOADING ERROR MISHANDLED 53.2% – – 30% 18.88 8.83 MISHANDLED 1.78% MISHANDLED – BAGS PER 1,000 53.2% MISHANDLED PASSENGERS BAGS PER 1,000 8.99 8.83 BAGS PER 1,000 18.88 8.83 1.78% PASSENGERS PASSENGERS BAGS PER 1,000 8.99 8.83 PASSENGERS 7% 7% 4% 13% 7% 4% 4% 13% 7% 4% Transfer mishandling Transfer mishandling Failure to load Failure to load Loading error Loading error Investment plan for self service by the industry Arrival mishandling Investment plan for self service by the industry Arrival mishandling Airport/Customs/Weather/ Space-weight restriction 79% Airport/Customs/Weather/ Space-weight restriction BAG TAG 79% Ticketing error/Bag switch/ Security/Other BAG TAG PRINTING Ticketing error/Bag switch/ Security/Other 4 THE BAGGAGE REPORT | © SITA 2013 80% PRINTING Tagging error 80% Tagging error 83% BAG DROP 83% ASSISTED BAG DROP 76% ASSISTED 76% 60% BAG DROP 60% (FULL SELF BAG DROP MISHANDLED BAGS PER 1000 airports (FULL SELF SERVICE) MISHANDLED BAGS PER 1000 74% SERVICE) airports airlines 74% airlines AVERAGE PASSENGERS PER AIRPORT (MILLIONS) AVERAGE PASSENGERS PER AIRPORT (MILLIONS) PASSENGERS PASSENGERS Long term trends for mishandled bags in the air transport industry Long term trends for mishandled bags in the air transport industry 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 TOTAL 2.48 2.51 2.48 2.68 2.82 2.95 TOTAL PASSENGERS +0.88% -1.11% +8.15% +4.8% +4.5% 2.48 2.51 2.48 2.68 2.82 2.95 (BILLIONS) PASSENGERS +0.88% -1.11% +8.15% +4.8% +4.5% (BILLIONS) 2012 2012 2012 2012 2012 2012 TOTAL BAGS 46.9 36.8 28.232.325.32 26.04 12.9% 46.9 36.8 28.232.325.32 26.04 + 7.7% MISHANDLED -21.47%-23.36% +14.57% -21% +212.84%.9% TOTAL BAGS 2.7% (MILLIONS) + 7.7% MISHANDLED -21.47%-23.36% +14.57% -21% +2.84% 2.7% (MILLIONS) 2011 2011 2011 2011 2011 2011 MISHANDLED BAGS PER MISHANDLED 1,000 18.8814.70 11.3912.07 8.99 8.83 BAGS PER 2010 2010 2010 PASSENGERS 1,000 18.8814.70 11.3912.07 8.99 8.83 2010 -22.16%-2010 22.5% +5.94% -25.522010% -1.78% PASSENGERS -22.16%-22.5% +5.94% -25.52% -1.78% 42.9% 56.1% 43.3% TOTAL COST 4.69 3.32 2.82 3.23 2.53 2.60 TOTAL COST 2009 2009 2009 TO THE 42.9% -29.33%-14.84%56.1% +14.57% -21.6% +243.92%.3% 4.69 3.32 2.82 3.23 2.53 2.60 INDU2009STRY 2009 2009 TO THE -29.33%-14.84% +14.57% -21.6% +2.92% (BILLION US$) INDUSTRY (BILLION US$) COST OF 1.89 1.32 1.14 1.21 0.89 0.88 2008 2008 2008 MISHANDLED -29.94%-13.89% +5.94% -26.4% -1.61% COST OF 1.89 1.32 1.14 1.21 0.89 0.88 BAGS2008 PER 2008 2008 MISHANDLED -29.94%-13.89% +5.94% -26.4% -1.61% PASSENGER BAGS PER (US$) PASSENGER (US$) 2007 2007 2007 2007 2007 2007 ASIA ASIA NORTH AMERICA NORTH AMERICA EUROPE EUROPE SSENGERS SSENGERS PA PA ERAGE MISHANDLED BAGS PER THOUSAND ERAGE MISHANDLED BAGS PER THOUSAND AV AV AVERAGE AIRPORT SIZE (MILLION PASSENGERS) AVERAGE AIRPORT SIZE (MILLION PASSENGERS) Key statistics Investigating the reasons for delayed luggage, failure to load and loading errors have increased slightly to 17% (15% The air transport industry ended 2012 on a note of guarded in 2011) and 7% (5% in 2011) respectively.
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