As we step off the ferry boat a porter from the Punta Tragara hotel is there to take our bags. He hands us tickets for the funicular railway and gives us a dubious set of directions for getting to the hotel. Our bags will meet us later. We are free to wander the winding streets of Capri. We could of course have taken a taxi or arranged a hotel car but wandering through the tiny streets unencumbered by bags is a much nicer way to arrive.

We take the rickety railway up to Capri town and walk past its cream coloured designer shops, glittering with stylish merchandise. The day trippers follow their tour guide's flags but we follow our instincts, dipping in and out of cobbled laneways until we have left the crowds behind and can meander quietly along the high walled Via Tragara, with its luxurious villas, cascading flowers and views of the azure sea.

The original villa that became Punta Tragara was designed by the architect Le Corbusier. Although it has to be said his trademark sleek lines are not immediately obvious in the sun-warmed peach coloured walls of the hotel. It is however a beautiful place to stay, perched on the very tip of island as if it has been wrapped around the rock.

No two rooms are the same; winding steps lead to shady courtyards or unexpected balconies, terraces covered with vine leaves or beach umbrellas offer secret places to relax. Bougainvillea tumbles down the terraces, palms fronds are silhouetted against the blue sky and cactus in pots stand to attention.

The balcony of our room  at this luxury boutique hotel has arched columns which frame the views of the cobalt blue sea and the legendary Faraglioni rocks below. A little speed boat like a white insect darts through the arch at the base of the rocks and leaves a straight white trail of foam behind it as if someone had sliced through the silk of the sea with a knife.

The Monzù Restaurant has a wide terrace with nothing but the blue water beneath. There is also another side terrace where we eat breakfast while an early morning swimmer (rare in Italy where the natives tend to keep more civilised hours) exercises in the pool beside us. A second pool on a higher terrace, shaped like a tear drop with warm Jacuzzi jets and the La Pergola Pool Bar for Jacuzzi-side cocktails.

The Luxury Travel Bible readers will love the mad, futuristic penthouse with its white leather and Jetson-style lamps and terraces open to the blue Mediterranean sky and views of the rock, the little white town of Marina Piccola and the Castiglione hill. Although our favourite bathtub might be the one in the Art Suite, on a raised wooden dais, crowned by an arched window through which you can see nothing but blue and the rocks below.

Check in: Punta Tragara Via Tragara 57, Capri, Italy

Ultimate Luxury:  The Penthouse (natch...)

Most Indulgent Moment: Hot Basalt Stone massage in the spa

Insider Secrets: Capri has the best bejewelled handmade leather sandals - indulge

The Little Things: Around every corner art, sculpture - design surprises

Junior Luxies: Welcomed as long as they don't run riot in the restaurant-side pool

Dress code:  Casual but stylish

Dent in the platinum:

Luxury Hotels Link: www.slh.com www.hoteltragara.com/en/