Recently visited the Kutch region along with my family, specially for the Rann Utsav, and we had a very good unique experience and holiday. The best way to reach Bhuj is by train, and from there, one can hire a car and see the local attractions like Aina Mahal, Prag Mahal, Kutch Museum, Hamirsar Lake, Swaminarayan Mandir, and of course eat the delicious Kutchi Dabeli :)
In and around Bhuj, one can visit the famous beach location of Mandvi. Nice clean beach and the Vijay Vilas Palace is also an upmarket property to stay at.
For the Rann Utsav, it's best to stay at Dhordo, from where you can not only enjoy the Great White Desert, but also visit neighbouring villages of Gandhi nu Gaam, Khavda, Ludia, Hodka, Bhirandiyara, and Sumrasar....all dotted along the Banni grasslands. Interact with the Meghwal and Rabari communities and you will be fascinated with the way they display their craftsmenship. Poverty stricken yet rich in colour and tradition! :)
97 kms north of Bhuj; close to the Indo-Pak border; rising 462 m above sea level, is Kalo Dungar (Black Hill), the highest hill in Kutch. This is probably the only place in Kutch from where a panoramic view of the Great Rann is possible.
Another small village is Jura, which has been rehabilitated post the devastating earthquake. Very very poor, but rich in wooden craftsmanship.
I also had the privilege of meeting Mr Abdul Gafoor Khatri and his family in Nirona village. They are the last of the families specialising in Rogan Art. Rogan Art involves using a Metal Stick and Castor-Oil based colors to create a work of genius. Viewing a demonstration of the craft is sure to leave you in awe.
Many people are also not aware of the smally Fossil Park, in Nakhatrana near Bhuj. This place is belongs to Mr. Mohan Singh Soda near village Vithal Goundiyari at Nakhatrana Taluka. Is a small treasure trove of fossils where Mr Soda has studied and collected fossils from Kutch as old as 150 million years!!