Airlines could reduce the number of lost bags by employing a simple radio frequency identification (RFID) technology, costing less than $0.10 per passenger and saving the industry $3 billion over the next seven years. So what’s slowing them down?

RFIDs could allow airlines to successfully track luggage 99 percent of the time, according to a report from Switzerland-based SITA and the International Air Transport Association, subsequently reducing the rates of lost luggage by 25 percent.

Most airlines currently print bar codes on luggage tags, which handlers must scan with a reader to ensure the bags are sorted onto the correct plane. An RFID tag emits radio waves, which are read by passing near an RFID scanner. Conveyor belts outfitted with RFID scanners will stop if a bag is directed toward the wrong flight.

“The airline industry is at the brink of a revolution in baggage tracking. Deploying RFID globally will increase accuracy and reduce mishandling rates,” Jim Peters, SITA’s chief technology officer, said in a statement. “This is a win-win situation – passengers will be happier, operations will run smoother and airlines will save billions of dollars.”

Read more at the Denver Business Journal:

(© 2016 American City Business Journals. All rights reserved.)