I didn't actually have to "towel" Timber to get him back in the cage or in the carrier. I was afraid of the towel, so I held it to steer him in the direction I wanted him to go. When I first got him and he wouldn't go back in the cage when it was time, a few times I had to get the towel. I would just say "go on Timber" and hold the towel up and he would make a beeline for the age. I didn't like doing that because there are times he has to be toweled (like at the vets). However, I felt that it was either that or keep his cage door closed which I wasn't willing to do. After we developed a routine and he knew when cage time was coming (like when I have to leave for work, bedtime, etc.) I didn't need the towel any more. It's important to tell your bird what you are doing, because they learn what words mean. For instance, when I say "gotta go to work" Timber knows he goes in the cage and starts heading that way.
Ooops, didn't mean to be repetitive! Acappella's post didn't come up when I hit new and posted this.