A BLE tag advertises periodically. Gateways or receivers within range hear it, measure signal strength, and the platform infers which zone the tag is in. It is not precise positioning, and for most operational questions it does not need to be — knowing which building, which floor or which area answers the question that was actually being asked.
The advantage is everything else. Tags cost little, run one to five years on a coin cell depending on advertising interval and temperature, need only receivers rather than a surveyed anchor network, and can be attached to almost anything.
The two things that catch people out are mounting and reporting policy. Metal, liquid and curvature all detune a small antenna, so a tag that works on a cardboard box may not work on a steel cage. And advertising interval, not cell chemistry, is what actually determines battery life.