For us, we would choose the 1-BDRM. You have a place for the kiddos to sleep separate from yourselves for a little privacy. In a studio, everyone is together in the same room so everyone goes to sleep at the same time. If you want to stay up and watch some TV you can do that in the 1BDRM because you have a TV in your room. You also have a much larger bathroom with a whirlpool tub (heavenly at the end of the day!) Another perk is you get a full kitchen, AND... wait for it.... a WASHER and DRYER in the room! Your children are still small though, so a Deluxe Studio would still work, and hey... saving $500 is nothing to sneeze at! Enjoy your trip.... you will have fun either way!