Luggage and Totes: How To Resources
I have just begun my research into this topic of stenciling Luggage and Totes and wait until you see the many, many clever and creative options that abound!
MarkMyStuff.com will make a custom 1-line stencil from sturdy oilboard for $15. A visit to their website will net you some inexpensive ways to quickly identify your luggage from everyone else's on the conveyor belt at the airport.

The red stenciled suitcase, shown left, comes from the ehow blog, where you will find complete "How To" instructions. [Editor's Note: This tutorial no longer exists on the eHow website 12/2/2011.]
You can find the Luggage Identification System below over at It's My Bag. This kit includes an assortment of stencils, paint and applicators.
[Editor's Note: Sorry, but the It's My Bag website is no longer online. 12/2/2011.]
I found a great little book of travel poster and luggage label stencils. This book by Penny Vedrenne contains a series of multi-overlay stencils for you to cut and use.
Luggage & Totes…fun examples
Stenciled Suitcases