Measure, mark with a pencil and cut a piece of felt 3 inches by 8 inches in size. Fold the piece of felt in half, width-wise, and press the crease with your fingers. Open the felt up again and lay it out on a clean work surface.
Make a three-sided flap on only one side of the folded felt. Mark a small rectangle on the inner side of the felt, smaller than the size of a business card, in the middle of the fabric. Unfold the felt and carefully cut the top and sides of the rectangle you just drew but not the bottom.
Glue your contact information inside so your name, address and phone number show through the window. Lay the felt flap over the backside of your information, once the glue has dried. Use card stock or an index card to write or type out your contact information.
Fold the luggage tag in half and punch a hole through both layers, at the end of the tag, using a hole punch.
String the yarn through both holes and knot the yarn pieces at the end. Place the bead on the end of the yarn, near the knot, then knot again on the outer side of the bead.