You sass that hoopy Douglas Adams? Now there’s a frood who knew where his towel was. You are invited to join your fellow hitchhikers in mourning the loss of the late great one. Join in on towel day to show your appreciation for the humor and insight that Douglas Adams brought to all our lives. 
What do I do? Carry your towel with you throughout the day to show your participation and mourning.
When do I do it? May 25th.
Where do I do it? Everywhere.
“The Hitchhiker’s Guide to the Galaxy has a few things to say on the subject of towels. A towel, it says, is about the most massively useful thing an interstellar hitchhiker 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 Santraginus V, inhaling the heady sea vapours; you can sleep under it beneath the stars which shine so redly on the desert world of Kakrafoon; use it to sail a mini raft 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 to avoid the gaze of the Ravenous Bugblatter Beast of Traal (a mindboggingly 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. More importantly, a towel has immense psychological value. For some reason, if a strag [non-hitch hiker] discovers that a hitchhiker has his towel with him, he will automatically assume that he is also in possession of a toothbrush, face flannel, soap, tin of biscuits, flask, compass, map, ball of string, gnat spray, wet weather gear, space suit etc., etc. Furthermore, the strag will then happily lend the hitchhiker any of these or a dozen other items that the hitchhiker might accidentally have ‘lost’. What the strag will think is that any man who can hitch the length and breadth of the galaxy, rough it, slum it, struggle against terrible odds, win through, and still knows where his towel is, is clearly a man to be reckoned with.”
(The Hitchhiker’s Guide to the Galaxy, Chapter Three)