While it seems prevalent, the actual incidence of correctly tagged bags which go amiss from major hubs such as LHR is minimal. Simply put, the cost of eliminating that miniscule percentage of bags which go amiss is so enormous as compared to the cost of retirieving the bad and its associated costs, that the system functions quite well.

You will not see many posts on FT or articles in the media which report on the 99.9% of bags which arrive at the correct location in a timely manner.

Over time, as the volume of checked bags continues to drop as passengers take advantage of generous cabin baggage allowances and learn to pack more efficiently, the system will function as is.