Post by Airportr Technologies

For decades, airlines have treated the airport as the starting line of the air travel journey. That boundary is finally moving, thanks to the increasing acceptance of #offairport #baggagehandling as a strategic capability rather than another ancillary line item. The revenue and efficiency advantages of models like #BaggageasaService, which transforms baggage from a cost-centric function of the journey into a manageable and monetisable aspect of the passenger journey, are significant: • Around 10% to 12% of passengers using off-airport baggage add an extra bag, creating two revenue streams worth about $10 per order in service revenue and $5 per order in incremental baggage revenue • Embedding baggage services into the right fare products can support yield and load performance by around $6 per booking Similarly, moving the #checkedbaggage process upstream can significantly reduce costs: • Airlines spend around $1.80 to $2.00 to process each passenger at the airport, factoring in staffing, systems and time • IATA reports that airlines mishandled 33.4M bags in 2024 at a cost of around $5B a year, with SITA showing that failure to load alone drives 16% of mishandling at about $150 per bag to recover Altogether, our modelling puts the total value of an off-airport baggage transaction at around $42 per order once cost savings, incremental revenue, yield uplift, reduced mishandling, and loyalty impact are stacked. This is a flywheel of commercial effect- much more than a generic ancillary offering could ever generate. Read our latest analysis on why airlines in the U.S. and around the world are redrawing the airport boundary: 𝐁𝐚𝐠𝐠𝐚𝐠𝐞, 𝐔𝐧𝐛𝐮𝐧𝐝𝐥𝐞𝐝: 𝐖𝐡𝐲 𝐔.𝐒. 𝐀𝐢𝐫𝐥𝐢𝐧𝐞𝐬 𝐀𝐫𝐞 𝐑𝐞𝐝𝐫𝐚𝐰𝐢𝐧𝐠 𝐭𝐡𝐞 𝐀𝐢𝐫𝐩𝐨𝐫𝐭 𝐁𝐨𝐮𝐧𝐝𝐚𝐫𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐁𝐞𝐭𝐭𝐞𝐫 https://lnkd.in/eaiRZbC5 #airlinestrategy #baggagehandling #airlineancillaryrevenue #aviationoperations #USairlines #baggageasaservice