They put a paper tag on your luggage that has a barcode on it. As your bag goes through various conveyor belts and bins the barcode gets scanned which lets the airline’s computers know where your bag is at all times. This also tells them what plane to put your bag on.
When your bag comes off the plane the barcode gets scanned again. Then the computer will tell the baggage handler whether your luggage needs to go on another plane or out to baggage pickup.
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