Most baggage tags today are as previously stated....read by electronic reader.... with a decreased chance of a routing error. It is good practice to glance at the tag to ensure the destination on the tag is correct.....although it is all tied into the Booking Reference # on your itinerary.
What I will do is... inside the Bag....place a label/note to inform baggage personnel of the address at our destination on the outbound and home address on the return. This is done in the unlikely event the tracking tag is ripped off the bag and there is no identifying info to guide them.