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Focuses on core needs (clean rooms, bed, and sometimes breakfast) while omitting luxuries like spas or pools.

Characterized by low start-up and operating costs, leading to high occupancy rates and quick returns on investment. Factors Influencing Guest Satisfaction

Budget hotels: not just minor hospitality products - ScienceDirect cheap hotels

Research published in Bisma (2021) and Cogent Business & Management (2025) identifies the primary drivers of satisfaction for budget hotel guests:

According to a study on Malaysian budget hotels , this segment is typically defined by five key similarities: Focuses on core needs (clean rooms, bed, and

Often cited as the most critical expectation for low-cost travelers.

The perceived balance between the price paid and the service received. Focuses on core needs (clean rooms

Lower room rates compared to full-service hotels.