Towels are either woven in normal terry or have a velour finish.
Normal terry gives you the plush feeling of a soft towel and absorbs moisture really fast. Obviously, the heavier the weight/m.sq. that the towel is woven, the higher the quality. click here for example
The velour finish is a specialty on its own. The loops are cut on one side and a special and unique procedure results in an ultra-soft finish and imparts greater definition to colours and patterns. Only selected top-manufacturers master this production process. Velour is commonly used for golfing and beach towels, but is in fact entirely suitable for all other products as well. click here for example