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SITA: Tracking airline passenger bags drives 66% improvement in baggage delivery

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Airlines that are adding tracking at more points of the baggage journey are enjoying a huge improvement in bag delivery globally. The SITA 2019 Baggage IT Insights – officially launched at an event in Abu Dhabi International Airport today – shows that where tracking is done at check-in and loading onto the aircraft, the rate of improvement is as high as 66%.

These results come as the record drop in the baggage mishandling rate achieved globally over the past decade plateaus, with the rate steady at around 5.7 bags per thousand passengers over the past three years. In 2018, the rate was 5.69 per thousand passengers.

Over the past year, an increasing number of airlines and airports have started to introduce tracking at key points in the journey – check-in, loading onto the aircraft, transfers and arrival – to improve baggage management and further reduce the chances of a bag being mishandled. SITA’s research provides the first glimpse of the success of this tracking. It reveals that where bags were being tracked when loaded onto the aircraft, the rate of improvement ranged between 38% and 66% depending on the level of tracking introduced.

Peter Drummond, Director of Baggage at SITA, said: “While the mishandling rate has started to plateau over the past few years, this comes against a continued growth in passenger numbers and their bags. In 2018, 4.36 billion travelers checked in more than 4.27 billion bags. More bags makes things more challenging. Everyone across the industry needs to look beyond the process and technology improvements made in the past decade and adopt the latest technology such as tracking to make the next big cut in the rate of mishandled bags.”

Ahmed Juma Al Shamsi, Acting Chief Operations Officer at Abu Dhabi Airports, said: “For our passengers the timely delivery of baggage is key to ensuring a seamless passenger experience and therefore an area in which we continue to make further improvements. Looking forward, baggage tracking is fundamental to driving more accurate bag delivery not only at Abu Dhabi International Airport but across the entire passenger journey. We have led the way with the introduction of tracking on arrival and we have already seen significant improvements.”

Transferring baggage from one aircraft, or airline, to another remains a pinch point in the journey and in 2018 it was again the main reason for bags being mishandled. Transfer bags accounted for 46% of all mishandled bags.
Drummond added: “Transfer is by far the most difficult stage to track a bag as there are multiple airlines and airports involved. However, data from this year’s report shows that tracking at key points in the journey, such as transfers, will go a long way to eliminating mishandling and will allow airlines and their passengers to keep tabs on where their bags are at every step of the way.”

Over the past decade, total number of mishandled bags per annum has plummeted 47% from 46.9 million in 2007 to 24.8 million in 2018, while the annual bill footed by the industry has shrunk 43% to $2.4 billion, down from $4.22 billion in 2007.

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The Development and Promotion of MICE in Thailand

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The Thailand Convention & Exhibition Bureau (TCEB) is leveraging the development of Thai MICE business in long haul markets in collaboration with foreign chambers of commerce representing Australia, UK, USA and Germany.
​Mr. Chiruit Isarangkun Na Ayuthaya, President of Thailand Convention & Exhibition Bureau (Public Organization) or TCEB, disclosed, “The signing of this MOU – The Development and Promotion of MICE –  between TCEB and Foreign Chamber Alliance (FCA), comprising 4 chambers of commerce representing our main target countries, which are Australia, UK, USA and Germany.
It’s considered another remarkable step of TCEB in altering our role to leverage MICE by serving as a business partner who joins hands with foreign organisations to promote the development of Thai MICE in international markets, as well as to penetrate into long haul MICE markets in Oceania, Europe and the USA, side by side with our main short haul target markets in Asia.
“Indeed, the collaboration is a new dimension of promoting Thai MICE business in long haul markets with concentration on Oceania, Europe and the USA. This is the very first time that the Foreign Chamber Alliance – FCA, which represents Australia, UK, USA and Germany, signed an MOU with a Thai government agency. Interestingly, FCA has more than 20,000 members that include businessmen, investors, entrepreneurs from business, industrial and service sectors, such as Minor Hotels Group, AccorHotels Group, Marriott Hotels Group, convention centres business, as well as oil, mining, pharmaceutical, automobile and other industries,” he added.
“These are considered high potential business groups for propelling the national economy and are included among the targeted industries that the Thai government is keen to encourage in line with the 4.0 Policy. For this reason, this is a lucrative opportunity for us to collaborate to develop and raise the competitiveness of Thai MICE. The 4 chambers of commerce have recognised the importance of using MICE as the gateway to the development of commerce and investment in Thailand and ASEAN,” he said.
With this MOU, the framework for the development of MICE business will embrace 5 dimensions of operation:
• The sharing of MICE statistics and events
• MICE business development
• MICE market promotion
• MICE business research
• MICE personnel development.
Mr. Chiruit further said, “The initial collaboration to mutually promote MICE business will mainly focus on hospitality service, because members of the FCA have long records of investment in Thailand, which have been running alongside their nationwide service businesses. Hence, they have eyed to extend collaboration with Thai government agencies, as they believe the endeavour will open a new door to operate MICE business in Thailand and ASEAN.
“This, in turn, will allow them to study about the dynamics and direction of the Thai MICE market. By joining with TCEB in formulating a marketing development scheme, the synergy will open a new door to connecting with other alliances who relate with the promotion of Thai MICE business in targeted countries. Moreover, there will be co-operation in drawing international events into Thailand, marketing promotion and provision of support for events previously held in Thailand,” he said.
“Target groups and alliances will be invited to participate to strengthen the potential of MICE events held here in Thailand. The FCA will join with us in the exchange of marketing information related to targeted industries held by allied chambers of commerce and TCEB will exchange information on Thai MICE business, including statistics and events, to fully bolster mutual MICE business development,” said the TCEB President.

​He went on to say, “Nevertheless, the FCA expects the Thai government to leverage the competitiveness of Thai MICE business in order to serve global competition. For example, facilitation of customs and immigration procedures; development of infrastructure and transportation; construction of convention centres; development of MICE personnel that meets international standards, and establishment of One-Stop-Service MICE centres. All of which will open a new door to the holding of MICE events in Thailand by efficiently offering enhanced convenience for MICE entrepreneurs and organisers,“ he declared.

Proposals to establish MICE service centres has been included in TCEB’s earlier strategic plan, and the Ease of Doing Business project as well  as the draft of a national strategy of NESDB (National Economic and Social Development Council).
​Mr. Chiruit went on to explain, “After the completion of MOU signing, TCEB is set to discuss with the FCA on the preparation of Phase I work plan, which lasts two years. Both parties will encourage practical co-operation in a rapid and consistent manner. Initially, we have planned to attract events and provide support to the holding of events that relate to targeted industries according to the government’s 4.0 Policy, particularly in the provinces governed by the administration of EEC (Eastern Economic Corridor),” he said.

​“TCEB expects that the collaboration will not only leverage the competitiveness of Thai MICE in long haul markets in Oceania, Europe and the USA, but will also help to attract international events into several regions in Thailand, especially those considered main markets in MICE City project, which are Bangkok, Pattaya, Phuket, Chiang Mai and Khon Kaen. Definitely, we believe the rapport will encourage transfers of technology and knowledge of each industry among one another, and thus will promote advancement in all regions and stimulate income distribution to communities nationwide,” concluded Mr. Chiruit.

Mr. Benjamin Krieg, Vice President, Austcham, explained, “The role of the Foreign Chamber Alliance (FCA) in Thailand and the purpose of signing the MOU combines key Foreign Chambers and their members through this important collaboration, we provide a common voice on advocacy to develop and grow opportunities that can benefit our members and the country of Thailand,” he said.

“The MICE industry is growing, and will also continue to grow in importance and contribution to the overall tourism sector within Thailand, and of course the greater Thai economy. Our primary aim is to continue to increase and grow the competitiveness of Thailand as a leading destination for MICE not only within Asia, but the world, further complimenting the amazing tourism industry that we already are so fortunate to be a part of,” concluded Mr. Krieg.

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