[dcx]

I agree in the abstract, but people and companies operate under bounded rationality. Customers can't easily price the expectation of lost luggage. Companies are made of subunits with independent budgets, each optimizing for incentives with short time horizons.

McDonald's is actually a good example, they did exactly this. IMO one reason their brand has been devalued is death by a thousand cost cuts. Each cut is imperceptible and seems like a win. But over several decades the net effect is a disaster. (IIRC Fast Food Nation documented some ideas about this process)