If all of your towels are the same color then determining which towel is which can be tricky for kids and guests alike.  And determining which kid left theirs on the floor is harder, haha.

So let's label them!  It makes it easy for everyone to tell at a glance whose is hung where (and whose is not hung up at all).

Create your names and pick your font.  Roughly 20mm wide fits easily onto the tag that I chose.  Depending on your tag this may vary.  

I find it makes it easiest to use a large chunky font so that it's immediately obvious which is which.  You can also make each one a different color.

I chose a Grandstander Bold font.

You can even make them more generic with Guest 1 and Guest 2 if you don't know who will be on each one.

Put your tag in the machine and align the laser.

Refresh your camera image and align the design you are engraving.

I used the Black Metal Business Card settings for my purple tag.  It took less than 5 seconds to engrave!

I suggest engraving both sides so if the tag gets turned you can still tell which is which.