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"Do they have an inn?"

Inns aren't just a good place to find a bed for the night. They also serve as the local restaurant, bar, and meeting hall. So when you enter an inn you might find local peasants and tradesmen, travelling merchants, soldiers, and even politicians. 

Jammed into a corner somewhere you will often find a minstrel singing and playing their lute. These bards (aka merrymakers, musicians, harpers, storytellers, etc.) find their livings almost solely in inns and taverns. If travelling, they often get compensated with room and board, plus any tips. If local, they might get a silver or two from the keeper. The appropriate gratuity for a good bard is to buy them a drink.

A room in a typical inn is far from luxurious. There is a mattress filled with straw, a jug of water, and a chair or crate to sit on. Windows, which are not guaranteed, are more likely to be shuttered holes in the wall than glass panes. Glass was very heavy and very expensive, and not entirely transparent either.

Many inns are likely to have a common room or bunk room instead of individual rooms. What you give up in privacy, you make up with warmth since individual rooms won't have a fireplace.

The privy, or toilet, is in a separate little house out back. Unlike modern port-o-lets, out houses typically do not stink. Ashes from the hearth are regularly emptied into the hole, neutralizing the odors.