Factors Shaping Budget Hotel Booking Intentions in Malaysia: Regional Implications for Indonesia

Budget hotels remain a vital segment in Malaysia’s hospitality industry, particularly in destinations such as Melaka, where both domestic and international arrivals continue to grow. This study examines the factors shaping travelers’ booking intentions toward budget hotels, focusing on price, location, electronic word-of-mouth (eWOM), and safety and security. Using a structured questionnaire, 150 valid responses were collected and analyzed through multiple regression. The findings reveal that eWOM is the strongest determinant of booking intention, followed by safety and security, while price shows only a marginal effect, and location is not significant. These results highlight a post-pandemic shift in traveler behavior, where digital trust and visible safety assurances outweigh traditional considerations such as affordability and geographical convenience. Although the data are limited to Malaysia, the study provides regional implications for Indonesia, where budget hotels similarly play a critical role in supporting mass tourism. Strengthening online reputation management and implementing transparent safety protocols are recommended strategies for budget hotels across both countries to enhance traveler confidence, satisfaction, and loyalty.