Why in some localizations this is more than necessary to stay in luxury hotel

I travel often. I travel a lot. In consequence, I believe that I can say that I know much about travelling. I usually look for the cheapest accommodation possible. I usually don’t mind tiny and gloomy place, often with no private bathroom. In such situations I keep convincing myself that that is not important how my hotel looks like as I will visit the city during the whole day anyway. But there are various places where this just doesn’t work like this. And one of those places in Santorini.