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Mini microchips beat lost luggage

RFID technology could mean end of missing cases

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Lost bags could be a thing of the past.

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(CNN) -- It is every regular flyer's nightmare -- you arrive at your destination only to discover your luggage is somewhere else entirely.

But now a new tracking technology could spell the end of those agonizing waits at the luggage conveyor belt.

RFID -- radio frequency identification -- is currently the biggest buzzword in retailing. Within a few years, these tiny, full stop-sized microchips which broadcast a unique identification number, are set to replace bar codes in most major shops.

What many travelers don't realize is that the same system is already being tested at several airports to keep better track of luggage, and is going to be rolled out at dozens more in the coming years.

Unlike traditional bar codes, RFID chips don't have to be in direct view of a scanner to be read, only within a broadcast range of about 15 feet.

For retailers, this means that as well as providing a quicker, more efficient check out service for shoppers, RFID tags can automatically detect when items are moved from stock room to shop, are stolen, or even placed on the wrong shelf.

The same advantages are easily transferred to airports. Currently, around 15 percent of bar codes printed onto the labels placed on checked-in luggage are not properly read automatically, meaning either an expensive manual check or -- worse for travelers -- a suitcase heading down the wrong chute and onto the wrong plane.

According to estimates from the International Air Transport Association (IATA), the global aviation industry body which is helping to co-ordinate the introduction of the new technology, around 99 percent of RFID tags are read automatically.

"There are several trials under way around the world at the moment," said Andrew Price, who is managing RFID technology for the IATA.

"The trial results that we have so far indicate an excellent performance for RFID, reading baggage moving along conveyors without any problems."

Airport trials

A handful of airports are already using the tags for real. At the start of last year, Hong Kong's Chep Lak Kok airport started using RFID labels alongside existing bar code labels in an effort to speed up baggage handling at the major regional hub, where around 40 percent of bags are transferred to new flights.

Parts of McCarran International Airport in Las Vegas also use the tags to help track bags through security scanners. It has reported a success rate of 99.5 percent in reading the data.

Despite the improved efficiency, shifting to RFID requires a considerable investment. Although the scanners are relatively cheap, around $1,000 each, every bag needs a tag, currently costing just over 21 cents each, as against the virtually negligible price for a printed bar code label.

"RFID is certainly feasible. The issue at hand, though, is the business case," said the IATA's Price.

"Hong Kong made a case based on savings and increased capacity. Las Vegas based their developments on security and centralized services.

"Everyone has a different reason for looking at RFID, and therefore it is difficult to set dates for a roll-out of the technology on a global basis."

Some consumer groups have raised concerns about privacy when it comes to the use of RFID technology in shops. They have raised the prospect of a world where every consumer item contains a near-invisible chip, broadcasting information not only inside the shop but forever more.

However, this is not really an issue for airports. The RFID chips they will use will be among the most basic, capable of transmitting only a 12-digit identification number unique to that date and journey, of no use afterwards.

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