Do you know where your towel is?

  For some reason, if a non-hitch hiker discovers that a hitch hiker
  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.  The non-hitch hiker will think 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.  Hence a
  phrase which has passed into hitch hiking slang, as in "There's a
  guy who really knows where his towel is."

(Paraphrased from Chapter 3 of The Hitch Hiker's Guide to the Galaxy.)

Unfortunately, in this game, we are all hitch hikers who have lost our
towels, and are trying to find them.  All of our towels were lost in
different places, but by an extraordinary coincidence, each of us
happens to have lost his or her respective towel in a place that has
exactly five letters.  Your task is to find out where yours is.

So, each person will have a sticker on his or her back which
identifies the location of his or her towel.  DO NOT LOOK AT THE
STICKER THAT GOES ONTO YOUR BACK.

Now, the way that you will endeavor to figure out where your towel is,
is as follows.  You will approach a fellow hitch hiker, and name a
five-letter word.  They will then tell you how many letters your guess
has in common with your towel's location -- how many of those letters
are correct and in the correct position in the word, and how many
letters are correct but in the wrong position.  They then name a word
and you tell them how many correct letters they have in the right
place and how many correct letters in the wrong place.  Then you go on
to someone else.

So for example, suppose my sticker says that my towel is in "PARIS".
Of course, I don't know that that's what it says.  So I approach
someone, and I name a five-letter word -- let's say, "GRAIN".  They
would then tell me that "GRAIN" has one correct letter that is in the
right position, and two other letters that are correct but in the
wrong position.  They DO NOT tell me which letters in particular are
the right ones, they only say how many.

The answer words are all place names (cities, states, countries, etc).
Your guesses do NOT have to be place names, and in fact you should
probably avoid guessing place names, because you might be guessing the
word on someone else's card, and they might hear you.  On the other
hand, your guesses DO have to be five letters.

DO NOT LOOK AT YOUR STICKER.