But there is no room in the inn.  
However the innkeeper allows them to stay in the stable.  
There the woman, who's name is Mary, has her baby, Jesus.

Soon after a bright star appears in the sky above Bethlehem.

Angles appear to shepherds in the countryside nearby.

The angles tell the shepherds to go to Bethlehem to find the baby Jesus.
The shepherds meet the traders who direct them to the inn and its stable.
They go off happily to find the baby.

...leaving the traders rather cross that the shepherds 
didn't buy anything from them - "Skin-flints!" they cry after them.