Every year, SITA's Baggage IT Insights report provides one of the most comprehensive snapshots of the global baggage industry. The 2026 edition highlights a clear direction for aviation: baggage handling is becoming more connected, more data-driven and increasingly focused on real-time visibility.
According to SITA, baggage operations do not lack data - they lack visibility across the ecosystem and the ability to turn that information into timely operational decisions.
Proactive baggage handling
Although baggage mishandling continues to decline, every mishandled bag still costs airlines an average of $260, contributing to a total annual industry cost of $6.3 billion. Delayed baggage alone accounts for around 70% of total costs.
For decades, baggage handling has largely been reactive. A bag is delayed; an investigation begins. A passenger reports missing baggage, and recovery starts.
The industry is now moving towards a different model.
Artificial intelligence, automation and real-time data are enabling airlines and airports to predict disruptions before they happen, automatically reroute baggage and provide passengers with timely updates throughout their journey. According to SITA, this marks a shift from labor-intensive, reactive operations to proactive decision-making that improves reliability, scalability and passenger trust.
Better visibility benefits everyone
Visibility is often associated with passenger convenience, but its value extends much further.
Passengers gain greater confidence when they know where their baggage is and receive updates if something changes. Airports and airlines gain clearer operational insight, enabling faster decisions, more efficient baggage recovery and better use of resources.
SITA points out that airlines are now prioritizing investments in real-time baggage status updates, automated bag drop, AI and data-driven decision-making to strengthen both operational performance and the passenger experience. By the end of 2027, half of airlines plan to provide passengers with real-time baggage updates, while 40% will extend the same visibility to operational staff.
Visibility is no longer just about knowing where a bag is.
It is becoming a foundation for better decision-making across the entire baggage journey.
Collaboration is becoming a competitive advantage
One of the strongest messages throughout the report is that no single organization can solve baggage handling alone.
Airlines, airports, ground handlers and technology partners all contribute different pieces of information throughout a bag's journey. When those data sources are connected, baggage operations become more transparent, resilient and efficient.
Looking ahead
At BagID, we believe the findings in SITA's 2026 report reinforce a direction the industry has been moving towards for several years: baggage handling is becoming more connected, more visible and increasingly data driven.
The future of baggage handling is not defined by one technology alone. It will be built through better data, stronger collaboration and greater visibility across every stage of the journey.
For passengers, that means fewer unknowns and more confidence.
For airports and airlines, it means better operational decisions, more efficient processes and a baggage journey that is increasingly predictable from check-in to arrival.
This is where we see the role of the Electronic Baggage Tag (EBT). Since BagID was founded, the vision has been about more than simply replacing the traditional paper baggage tag. The EBT can become a connected part of the wider baggage ecosystem - giving passengers a digital interface to their baggage journey while creating opportunities for richer data collection, improved baggage handling and more efficient processes across the airport.
As the industry moves towards greater real-time visibility and more proactive baggage operations, the EBT can serve as an important link between the passenger, the bag and the systems that manage its journey. In that sense, digital baggage tags are not just a replacement for paper. They are one of the building blocks of a more connected, efficient and ultimately more predictable baggage journey.