You can basically prevent your luggage from being lost. If you really want to ensure that everything is with you from your point of origin to your point of destination then if possible you should carry on your luggage. However, with the arising travel security concerns, this is no longer possible unless you will not be bringing along with you any liquids or gels for that matter.

It is of utmost importance that you label your luggage both outside as well as inside. Labeling inside is essential in case your luggage's outside tag gets accidentally removed or detached from your luggage. Do not lose the stub that you get after checking your bags in.

Give your bag an identification mark for easy recognition as it rolls on the baggage carousel, when it is on pile with other similar looking luggage or when someone else happens to pick it up by mistake. In case you lose you luggage, you can always list your luggage's identifying mark.

Take a picture of your luggage and store it on your phone or digital camera. Having a hard copy and keeping it with your other important valuables like passport, etc. inside your carry on would also come in handy in case you happen to lose your luggage. You can always show the airline's personnel the picture and leave a hard copy with them in case you won't be around to wait for it.

Before checking in your luggage, remove old airline and baggage tags that may contain old flight information. Secure your luggage with a lock to safeguard its contents.

In case you do lose your luggage, the first thing that you should do is to locate the airline's baggage office located at the airport. Report it at once and provide all the necessary information required as well as show your luggage stub. There is no room for panic here, for your luggage could probably be on another flight that has been delayed or just accidentally misplaced. Usually, they will find your luggage if not on that very same day, maybe the following day or after a day or two. Rare are the cases when they do not find your luggage unless someone stole it or took it from the carousel before you had the chance to see it.

The airline will most likely replace you with the closest similar luggage if all means have been exhausted and they have lost your luggage through their fault and negligence. With regards to your luggage's contents the limit amounts actually varies for your various airlines.