A towel is about the most massively useful thing an interstellar hitchiker can have. Partly it has great practical value. You can wrap it around you for warmth as you bound across the cold moons of Jaglan Beta; you can lie on it on the brilliant marble-sanded beaches of Santranginus V, inhaling the beady sea vapors; you can sleep under it beneath the stars which shine so redly on the desert world of Kakrafoon; use it to sail a miniraft down the slow heavy River Moth; wet it for use in hand-to-hand combat; wrap it round your head to ward off noxious fumes or avoid the Ravenouse Bugblatter Beast of Traal (a mind-bogglingly stupid animal, it assumes that if you can't see it, it can't see you--daft as a brush, but very very ravenous); you can wave your towel in emergencies as a distress signal, and of course dry yourself off with it if it still seems to be clean enough.
Often associated with hitchhikers. See hoopy
Now there's a frood who knew where his towel was.