The pattern comes with instructions for both styles of hats. The Santa Hat and the Christmas Tree Hat. There are only a few changes in the decorations on the hats other wise they are basically the same hat. The hat is a really quick knit, I made 32 hats for my whole family in one month. At my peak speed I could knit 1 and a half hats in one day. You could use Patons classic wool for a warmer hat than the acrylic yarn.The bottom picture is of a heavily modified Christmas tree hat Tree Hat with Rufflesmade with ruffling yarn instead of variegated yarn.
There is a small chart in the pattern PDF for the decorations on the Christmas Tree Hat, to help clarify the decorations.