A system and method for item tracking and management. A marking tag is affixed to each item to be tracked, such as articles of commercial airline passenger luggage, so that it can be read as items enter and leave the system through which they are actively managed. The marking tag bears unique identifying information that in a central registration database is associated with the person to which the item (or items) belongs. The marking tag may also bear additional information about the owner or the about the article itself. Each time the owner checks the item, the time and place of checking is noted in the registration database. A historical record of places the item has been checked is kept and may be used for identifying passengers, baggage or situations that may require greater scrutiny by security personnel. A check-out station is provided to monitor the return of items to their respective owners, and a lost item return system aids in the recovery of lost items.