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1.) They mask the scent of overpowering cleaners (or worse, but let's not go there).
2.) They provide a soothing, romantic ambiance.
3.) Some scents, like lavender, help you fall asleep easier in unfamiliar surroundings.
Several companies, including The Travel Tin Company, make portable travel candles that are clean burning (no wall smudges or waxy drips) and safer than regular candles since they're contained in a tin.
For under $10, travel candles go a long way in creating a comfortable atmosphere in your hotel home away from home.