Raya Hotel on Panarea, Italy

Not everyone’s idea of luxury is gold taps and pink Cristal Champagne. Many  instead head for the simple rustic charm of the Aeolian Islands, off the north coast of Sicily. The seven volcanic islands are all spectacular, but the one to head for is Panarea, which has no cars and is home to the stylish Raya Hotel. Created in the 1960s by two travellers, Paolo Tilche and Myriam Beltrami, the hotel received a Marco Polo Award in 2004. It has 30 rooms which are built in a traditional village style and individually decorated. Many guests return year after year.