Today there is an increased number of cheap hotels in Malaysia. Customer who only needs a room with bed and shower has become an alternative budget hotel that offers simple rooms and meals at cheaper cost. Despite study, the link between the SERVQUAL model and satisfaction of customers in the hotel business in Malaysia is examined. However, studies seldom check consumer satisfaction at cheap hotels. The aim of this research is therefore to identify the elements that impact the happiness of customers at Budget Hotel Malaysia. The SERVQUAL methodology is utilised in this research in order to determine the five variables affecting customer satisfaction in budget hotels. In addition, another element - pricing, to check customer happiness at budget hotel - will be added to this study. Moreover, this study will make a major contribution to the hospitality sector as a consequence of which the services of budget hotels in Malaysia may be improved.