Strategies for Optimizing Baggage Handling to Increase Customer Loyalty

May 27, 2015

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AUTHOR(s)

A WNS Perspective

Key Points

Baggage issues are a major cause of strain in airline-customer relations, and can negatively impact airline profitability and brand perception
Airlines are investing in leading-edge technology like RFID to better manage baggage handling processes
RFID and luggage tracking are point solutions -- devoid of true power until they are leveraged in an integrated manner to better manage customer relationships
Many airlines are now using outsourced models for data management to attain organizational goals such as improving customer relationships and loyalty and increasing operational efficiency

Customer service solutions to minimize the risk of mishandled baggage and increase customer loyalty

In an environment of tight margins, mishandled baggage poses a strategic threat to airlines. While airlines share responsibility with airports for ensuring effective baggage handling, the market ultimately penalizes carriers when things go wrong.

The good news is that new technologies and automated systems have emerged to help minimize the risk of mishandled luggage. However, a true comprehensive solution demands far more than the effective application of technology. A strategic response to the challenge requires airlines to manage the data gleaned from a variety of information sources to anticipate, prevent and quickly communicate with customers.

Improved baggage management strategies that are integrated with programs that elevate the customer experience can make a big difference in carriers' bottom lines.

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