It refers to the "area" of WDW you are going to. We get "EC" Epcot Center when staying at CBR or BCV. I would imagine there are "AK" and "MK" for the other areas, maybe a fourth? Hope that helps. BTW what are your letters?
My guess is that there are different luggage truck routes serving different parts of WDW. In that case, the 2-letter code (AK, MK, EC, DD) would allow quick, visual sorting into four groups.
The yellow luggage tags also have the resort name and a unique bar code that links each bag to the guest's reservation.
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