Budget hotels are booming in Europe - wether there is just the artless room for a few bucks or the design budget experience some hotel chains like Dutch brand 'CitizenM' or German 'Motel One' or 'Prizotel' do market.

"This is certainly a success story", says Ursula Schelle, Marketing Director for Motel One Hotel Group that is about to expand its concept beyond the borders. "We think the design budget idea attracts many people regardless of their location", the marketing expert adds.

The ITB Berlin is assisting literally: There is a whole hall on the fairground reserved only for budget hotel chains. The trend followed the fashionable city trips over weekends which became popular among Europeans within the last decade.

But budget is not limited to private public: About 65 per cent of the Motel One guests, marketing official Ursula Schelle says, are on business travel.

However, the word "budget" is not standardized at all; budget starts with an ordinary hostel accomodation for 10 Dollars and can end with the design sensation at CitizenM for at least 100 Euros.

The current study "budget-hotels in Germany" from the market research agency PKF Hotelexperts has pointed out: "The term 'budget' is frequently used, but rarely specified."

The study has found out that the budget market usually ranges over 1 and 2 stars. In contrast, the number of 3 stars hotels declined recently. So, the market ist split increasingly into budget on one side and luxury on the other.

Meanwhile, below the 1 star category there seems to be a new segment of low budget hotels to develop: The former hostels attack the revently positioned segment from below.

"German hotel market is an adequate laboratory for competition, because there is the fiercest crowding out", the study concludes. Budget hotel groups are attentively observing the scene: In Berlin there is the STAY WYSE travel corporation with 108 members in 18 countries.

In an own report the group found out that 40 per cent of young travelers would prefer staying in budget hotels than in hostels. An attractive target group. What suggests engagement in this segment even more is the fact that "young" travelers are getting older by and by: "Adjacent to youth and students there are increasingly adults and even seniors finding their way into budget hotels", the international hostel's portal hostelsclub.com reports.

These examples show that obviously there is great potential in budget hotels. Whereas budget not neccessarily must be equivalent with low quality: For example at hostels there is a signifant decrease of beds per room.

And step by step, some hostels turn themselves into hotels in order to attract new customers and finally raise prices. The Meininger Hotels from Berlin started as hostels and swiftly converted themselves into hotels.

French budget pionier Accor Hotels with eco brands Ibis and Etap lost image because of the unalluring location properties of that kind traditionally do have. Against the Motel One concept to set up inspiring design at attractive locations in the very city center's Accor had no way.

InterContinental Hotels Group is another candidate to take part in the competition: Their brand "Holiday Inn Express" has been revised and now is offering good service for reasonable prices.

The discovery of the budget segment is not limited to Europe: Also in America and Middle East have budget hotels recently opened.