Solving the Lost Airline Luggage Problem for $20 a Bag- and Change Management
Have you lost luggage on a flight?
NPR reports that airlines lose 2 million suitcase- a year.
A YEAR!
It’s happened to me three times. Twice I got the luggage back, once I didn’t. I filed an insurance claim and State Farm- fortunately- reimbursed us for the full value when the luggage never arrived.
I think about that bag everyday…
As fate would have it, the two other times I lost luggage was when I was traveling to record training videos- and all the clothes I needed were lost for several days. In each case, I had to buy new clothes before the luggage showed up.
This post is about customer service and change management.
It’s not 1985, is it?
My calendar says it’s 2023, so I think we can use technology to solve this problem.
Ready?
Put an Apple Airtag into every piece of luggage. If you search online, the good folks at WalMart sell a 4-pack for about $80- or $20 per Airtag.
Let’s take it further.
Airlines will need millions of these tags- let’s assume that they can negotiate the price down to $10 from $20 per unit.
Now, there’s more to it than just putting the tag in the bag.
Passenger data: Each passenger needs the code- just text it to them when they check in.
Airline staff: You need a system for flight attendants, customer service reps, and baggage handlers to get access to each Airtag location by customer. It could be an app on a phone for internal airline use only.
Add it all up and spread the cost across millions of travelers. Let’s assume that cost is $20 per bag.
It is worth it?
To decide, consider my experience traveling to Italy in Summer of ’22.
The current system… is awful
A group of 40 went to a friend’s wedding in Italy- and the trip was amazing. One person, however, lost his luggage and didn’t get it until a week into the trip. By that time, he had purchased everything he needed.
Sadly, his bag was actually shipped to the address where he was staying for a week just a few days after he arrived.
Why didn’t he receive it?
The airline dropped the luggage off at an Airbnb- but placed it on the second floor- where the Airbnb owner lived. My friend was staying on the first floor.
His bag was 12 feet above him, and he didn’t find out for a week.
How did this happen?
Poor communication to the traveler- and no tracking device.
Another thing: We flew into Naples, Italy from New York. It was peak tourist season, and there were unclaimed bags all over the airport. The system was completely overwhelmed.
Fortunately, we had Airtags on our bags and always knew where they were.
So why doesn’t this problem get fixed tomorrow?
Well, it can’t be a cost issue.
The revenue earned per customer is far higher than the additional variable cost of using Airtags, writing some software code, and training staff.
If you assume that the average traveler is paying $1,000 for a New York to Naples, Italy flight, the $20 Airtag program is 2% of total revenue.
I think the problem is change management.
Change management: no one wants change
Generally speaking, none of us want to diet, exercise, or learn a new password for a streaming service.
And we really don’t want changes at work.
Change management is a system used to deal with change. It’s a playbook that a business uses to implement change, train employees, and to help workers adapt to new processes.
The key to change management is communication.
Managers need to explain to the staff why the change is important, and how the company will benefit from making the change. Without a clear explanation, employees may not buy into the change, and the process will be much more difficult.
So what has to happen to implement my brilliant plan for lost luggage?
Many people: Customer service reps, baggage handlers, the IT department, the marketing staff- ALL have to be convinced that new system is worth the pain and effort required to implement it.
The CEO says: “We’ll have far less lost luggage, fewer upset passengers- and we won’t waste time and energy searching for so many lost bags.”
Sounds good, right?
Change- even when it’s a great idea (which this is)- is really, really hard.