Knowing where your towel is has been taken directly out of the book, The Hitchhikers Guide to the Galaxy by Douglas Adams. It means to be prepared to adapt rapidly to a new environment or situation. Someone who travels with a towel shows that they are an experienced traveler as towels can be used for many purposes. Dry off, clean up sweat, wrap up breakable objects, or warm yourself with it, towel is infinitely useful. Do you know where your towel is?