|
Take B.J. Nestler of Boston. He
needed to get a hard-sided case filled with documents
and signs delivered to Miami for a trade show last
month. Rather than lug it to the airport for his flight
and pay an excess-baggage fee, he called Luggage
Forward, one of the new delivery companies that's based
in Boston. (Chart:
How baggage services compare)
Two days
before his flight, Luggage Forward's agent picked up the
case from Nestler's home. It was waiting at his hotel in
Miami when he arrived. Costs for a round trip: about
$230. "It was a new concept for me. As a business owner,
it's worth my time" not to lug the case, Nestler says.
Practically
unknown before 2000, companies such as Luggage Forward
say times are ripe for their growth. Airports and
flights are growing more crowded, making travelers more
receptive to any service that will ease the hassles.
"The biggest
push for our business was, unfortunately, 9/11, and it
created longer lines for security and more scrutiny of
bags," says Randy Teffeteller, CEO of BaggageDirect.
Further,
U.S. airlines last year lost about 3.5 million bags on
domestic flights, the industry's worst performance since
1990, according to the Department of Transportation.
Says Luggage
Forward founder Zeke Adkins: "People are being creative
about the best way to travel. I'd be surprised if all of
the companies aren't experiencing some increase in
business."
Prices vary
depending on bags' weight, the number of days in advance
bags are picked up and destination. A recent test by USA
TODAY showed that shipping a 70-pound suitcase and
hard-sided golf bag from Washington, D.C., to Los
Angeles and back could cost as much $500.
The young
industry has relied heavily on high-end travelers
willing to pay for convenience.
A niche
market
Satish
Jindel, president of SJ Consulting, which works with
transportation logistics firms, estimates annual revenue
for the industry is only about $6.6 million. He says the
luggage-delivery industry is likely to remain a niche
service as long as airlines continue to permit
passengers to check two bags for free.
And Jindel
cites another impediment to growth: Business travelers
who work for large companies easily bypass
luggage-delivery companies because their employers
typically have discounted corporate accounts with FedEx,
UPS or DHL.
Luggage-delivery companies fall into two categories:
•Cargo
service resellers. Luggage Express, Sports Express,
Luggage Forward and Luggage Free are resellers. They
pick up customers' bags a few days in advance and ship
to destinations using cargo carriers, such as FedEx, DHL
and UPS.
Once the
bags arrive, company agents retrieve them and deliver
them to their destination — typically hotels, cruise
ships or convention centers.
Resellers
say they offer "premium services" beyond those offered
by the cargo shippers: frequent alerts via e-mail and
phone, less paperwork and greater care in delivering
bags to a precise location.
Resellers
work the same way when travelers return, with bags
delivered to their house a few days after the customer's
arrival.
•Remote
check-in services. A few companies — BaggageDirect
and Bags Inc. — rely on passenger airlines, not cargo
shippers. They're more like mobile skycaps. The
companies send agents to pick up customers' bags at
their homes or hotels and transport them to the airport.
They also issue boarding passes at the time of pickup.
They operate their own luggage-screening machines at the
airport.
They are
cheaper than cargo resellers because the bags fly on
passenger planes with the customer and don't require the
service of cargo planes.
For example,
Bags Inc. charges $10 a person — with two normal-size
bags — to deliver them from the hotel to the airport.
Passengers with heavy suitcases still have to pay
airlines' extra fees.
When
customers of BaggageDirect arrive at their destination,
they can claim the bags at the airport or have them
delivered to the hotel. Those returning home can have
BaggageDirect deliver the bags to the house.
Bags Inc.,
which offers its service at hotels, convention centers
and cruise ships in 16 cities, doesn't pick up or
deliver to individual homes.
Rich,
athletes, cruisers
Some of the
industry's typical customers include:
•The
luxury-oriented. The companies rely heavily on those
"with discretionary income or who like luxury services,"
Eric Mautner of Luggage Free says. Couples with children
as well as executives on multileg trips that include
golf outings have been frequent customers.
Hawaiian
Airlines offers BaggageDirect's service free for
first-class customers. The number of business jet
customers is also growing.
•Sports
enthusiasts. Many triathletes, golfers, kayakers and
skiers prefer to ship their equipment in advance, says
Jon Trevelise, CEO of Sports Express, a company that
started as a sports specialist and has branched out to
luggage.
•Cruise
passengers. Cruise passengers, who tend to pack
heavily, have been early adopters.
•Conventions.
Business owners are increasingly discovering the
service when shipping items to trade shows, says Adkins
of Luggage Forward.
Bags Inc.
recently signed agreements with five convention centers,
including Orange County Convention Center in Orlando, to
establish check-in podiums at their sites. |