It's a simple truth that dance & traditional folk Music are close relatives.
Don't get that wrong - Hotel Palindrone hugely enjoy playing concerts for an enthusiastic crowd, stomping, cheering and enjoying themselves, who quite often do not know or do not care what particular tradition a tune or song belongs to. Or playing acoustically and intensely, with the audience listening with their eyes closed. After all, music has to do a lot with personal emotions.
Still, it can be extremely satisfactory for a band playing mostly trad. music, to play for dancers, who know (or are just learning) traditional steps or choreographies to those tunes. If they treat the tradition in a slightly unorthodox way sometimes, even the better: this band's members do it the same way, and: they also enjoy being surprised sometimes.
About the repertoire: to the core of western European bal folk repertoire, Hotel Palindrone add some tunes from the Alpine regions, from Scandinavia and somewhere else. They choose their favourite tunes for dancing, tend to compose quite a lot of new ones... after all, a tradition stays alive by contributing to it!