Well, the reasoning behind this is that it's more likely that they just lost the bag/sent it to the wrong airport, not that it was stolen. In that case, I believe it would be quite helpful to tell them "the bag in Iceland" instead of asking multiple times if they have any idea about the position of the bag.
In which case, you were doing the job of the airport personnel. I suppose that if they came across a bag that is clearly labelled to go to another airport, they'd say "what is this thing doing here?" and send it on its way.
In the (admittedly probable) case that the staff does not give a f. about a single suitcase being lost, calling the airport and telling them "a bag of mine is at your airport" will probably not induce much action anyways.
But to each their own. I can just tell from my own experience that with GPS tracking its not only about the GPS-tracker itself, but the Operations aspect of it all: battery lifetime, signal reception (inside the airport?), connectivity (global roaming SIM-card?), actual tracking infrastructure (always on, cloud service?) - and then *what*? Helping non-caring airport personnel do their job? Going after the crooks yourself?
At that point a lot of time and money is wasted that would have been better spent for adequate insurance coverage from the insurance company of your choice. It's frustrating, I know.
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