Use of Modern Technologies at Baggage Tracking and Its Impact on Airline Revenue

Abstract

Baggage recovery expenses are making significant cost in the airline industry. Therefore International Air Transport Association implemented Resolution 753 for its members who help reducing the number of mishandled baggage as well as reducing the cost for the airlines and increasing customer service. Several technologies are used for implementation which on different levels are able to minimize the number of mishandled baggage. This results in direct economic benefits for the airlines as well as indirect benefits resulting from advanced baggage tracking and more correct information available for the airline. Therefore, use of innovative technologies at baggage tracking and sorting is highly recommended as it offers heavy benefits compared to long-term costs they create. Together with baggage tracking airlines realized the need for offering ancillary services. Airlines use ancillary services to generate additional revenue in order to remain competitive in the market. Case study shows that the importance of ancillary revenue generation has a very positive influence on the airlines.