Small prices are beautiful: In fact the most rapid market growth in the German hotel industry derives from the low budget sector. No wonder then that the demand for cheap accommodation grows.

In addition to young people an increasing number of 30 to 49 year olds are booking in at hostels or budget hotels. 

Meanwhile, the definition is object to changes: Budget no longer is identical with "cheap", but similar to low fares airlines may mean "no frills".

One star usually is a low budget, two stars mean a budget hotel. Today there is luxury budget as well as ordinary accommodation, and even within just one brand: Since the launch of CitizenM people can stay in four star comfort but for one star rates.

Mixing cost-cutting economy with modern design standards like Philip Starck furniture in the German group Motel One or orange plastic bathtubs at easyHotels in Britain makes the difference – even to the actual "low" budget hotels, and the rate at those stylish budget properties of course is a little higher.

There are more niches like the mentioned one, which gives the whole market an appearance of great diversity. But on the other hand budget is a code word frequently used but rarely defined, scientists found out.

There is many hoteliers acting as free riders re-naming their products in the hope to increase bookings and occupancy. A few years before a comparable phenomenon was to be watched with the word "wellness".

Taking notice the term was "fashionable" many hoteliers turned their old pool and spa into a "wellness area", hired a masseur and believed the bucks were just bouncing in. On the long run the trend is leading down – to hostels. Already in 1999 the German group Meininger Hotels founded their own hostel group and do feel now good with it.

They noticed a strong, increasing demand for cheap accommodation, but not for less quality. With Meininger this led to a backshift from hostel to hotel again. They established a new claim: "The urban traveller's home", which implies that Meininger does welcome anybody, explicitly not only backpackers.

Hotel manager underlines important conditions for success: "It is the combination of reasonable pricing, maximum room and bed flexibility and a clearly organised range of services." The story of Accor significantly tells how a budget-focused business can lead back to the roots: In the first years Accor built news houses along the motorways.

Hoteliers observed the enterprise sceptically by hoteliers, but soon learned it works just vice versa. Today Accor can afford to have hotels righn in the center.