3.What is the problem these baggage handling systems are trying to solve? Discuss the business impact of this problem. Are today’s baggage handling systems a solution to this problem? Explain. The problem baggage handling systems are trying to solve is customer dissatisfaction and to promote customer goodwill as well as reduce costs.
Business impact:Overall the airline industry rate for lost luggage has improved by 38 percent over similar figures from two years ago when nearly 2.5 million bags were lost or delayed. Lost and mishandled baggage is a major expense for airlines. Reducing the problem creates significant yearly savings. The global airline industry price tag for mishandled baggage is $2.5 billion per year. Today’s baggage handling systems do appear to be a solution to the problem. US Airways lost nine bags for every 1,000 travelers in 2007. After implementing a new system, that number dropped to three bags for every 1,000 travelers. Even though the company spent $16 million on the system, the airline saved $25 million a year and boosted customer satisfaction. Between 2008 and 2010, Delta Airlines installed optical scanners to read baggage tag bar codes, widened and extended its system of baggage conveyor belts, and installed a central control room to monitor conveyor belts and baggage carousels in Atlanta and most of its other airport terminals. The airline recorded a top-notch baggage handling record of just 2.93 mishandled bags per 1,000 passengers. Bags now take less than 10 minutes to travel from terminal to terminal. The process used to take as long as 30 minutes with the older system.
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- Fall '12
- bar code, Avianca, Delta Airlines, baggage handling systems