1. No category

Journal of Contemporary Management Sciences
Volume 3 (5) 31-41
JCMS Publication, 2014
Journal of
Contemporary
Management
Sciences
WEBSITE EVALUATION ANALYSIS OF SMALL-ANDMEDIUM-SIZED HOTELS IN MALAYSIA
Faizal Ayob
School of Business, University of Western Sydney, Australia
Building E.D.G.161, Parramatta Campus
Locked Bag 1797, Penrith 2750 NSW Australia
ABSTRACT
E-commerce is a strategic tool for growth in many business, especially small-and-medium-sized businesses
including small-and-medium-sized hotels. In Malaysia, the tourism sector is the second largest contributor to the
Malaysian economy after the manufacturing sector. Small-and-medium-sized hotels in Malaysia play an important
role in the industry to support the growth of tourist recipients in Malaysia every year visit the country. This study
develops a set of evaluation criteria for evaluating small-and-medium-sized hotel websites in Malaysia. The authors
evaluate the current status of small-and-medium-sized hotel websites to determine the level of e-commerce adoption
in Malaysian small-and-medium-sized-hotels.
KEYWORDS: Website evaluation, small-and-medium-sized hotels, Malaysia, e-commerce adoption
INTRODUCTION
Electronic commerce or “e-commerce” involves the buying, selling or exchanging of goods and services through
electronic networks. E-commerce has three basic forms: business-to- business transactions (B2B), business-toconsumers transactions (B2C), and consumer-to-consumer transactions (C2C). Since the internet has become a
powerful tool to the customers it brings many benefits including increased competition and lower prices, more
choice in product and services and the convenience of shopping goods and services from suppliers from anywhere
and anytime (Ayyappan, 2013).
Technology has become more effective and efficient since the greatest achievement of the application of information
communication technology (ICT). E-commerce has been successful in the growth of the business development,
improved productivity, reduced cost and saved time. Visible suppliers in market giving both advantages to the
suppliers and customers since customers are able to compare the best suppliers offer as well as suppliers can be
more competitive to offer the best to their customers and sustain in market (Asghar Afshar, Stephen, & Alexander,
2013).
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E-commerce adoption in a hotel involves various processes, which are with the inclusion of consideration of the
performance impacts of integration of e-commerce in the organization and some of the factors that influence
adoption of e-commerce in hotels. It is therefore important to understand that there are several internal and external
factors or determinants of e-commerce in business organizations, with more emphasis on the hotel industry in
Malaysia (Cloete, Courtney, & Fintz, 2002).
The hotel website is a virtual lobby as it creates the first impression of the customer about the hotel. From the online
visit, the customer will create their own opinion on the hotel based on what he or she has seen through the hotel
website. The website could be the determinant for the customers to book the room or find other hotels (Musante,
Bojanic, & Zhang, 2009). The research aims to evaluate the level of e-commerce adoption among small-andmedium-sized hotels in Malaysia. The impact of internet technology in the hotel industry forces hotel managers to
establish websites for their own properties. The web site is a strong marketing tool as well as attractive information
sources for the hotels products and services. Websites also are the platform of communication between hotels and
customers such as when customers have online inquiries with the hotel representative (Ham, 2005).
Many of the studies on hotel website evaluation that have been done by previous researchers have been concentrated
on chain hotels, luxury hotels and large hotels. (Díaz & Koutra, 2013; Ham, 2005; Hashim, Murphy, Purchase, &
O‟Connor, 2010; Law & Cheung, 2006; Law, Qi, & Buhalis, 2010; Salavati & Hashim, 2014; Schmidt, Cantallops,
& dos Santos, 2008; Ting, Wang, Bau, & Chiang, 2013) . However, there is a lack of research on hotel website
evaluation focused on small-and-medium-sized hotels, especially in developing countries such as Malaysia.
BACKGROUND
E-COMMERCE IN MALAYSIA
The rapid growth of e-commerce in Malaysia is determined by the information and communication technologies
(ICT) that is an initiative by the Malaysian government for online businesses in the country. The key drivers for ecommerce development in Malaysia are the increasing rate of internet users, online purchases and adoption of new
technologies. Furthermore the impact of internet usage, internet disclosure, internet experience and the improvement
of ICT have positive implications on development of e-commerce in this country (Muhammad, Dominic,
Naseebullah, & Alamgir, 2011).
According to an International Data Corporation (IDC) survey in 2007 the overall E-Commerce spending in Malaysia
was US$22.3 billion, which is expected to double in the year 2012. As per the survey, the number of internet users
in Malaysia increased to 18.5 million and the number of online shoppers will increase to 10.5 million by 2012.
Malaysia has ranked 10th in internet usage among top countries in the world. Malaysia participated in the Asia
Pacific Economic Cooperation‟s (APEC) to collaborate in devising e-commerce laws, regulations and policies. With
all these policies and initiatives, e-commerce in Malaysia will soon be one of the highest growing industries.
Whether e-commerce in Malaysia does grow rapidly, the trend of purchasing online is not a habit among Malaysian
people compared to people in developed countries such as the USA, Australia, UK and Canada.Malaysia is one of
the developing countries that have begun to utilise e-commerce in both domestic and international businesses. The
Ministry of Communication and Multimedia is the ministry that is responsible for the growth of Information
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Communication Technology (ICT) with the support of several agencies such as the Malaysian Communications and
Multimedia Commission (MCMC) and the Multimedia Development Corporation (MDEC). These agencies play an
important role to develop the plan for the growth of e-commerce development in Malaysia. “Knowledge-based
economy” has been introduced by the Malaysian government as a national agenda to ensure the country as a
preferred ICT destination (Ahmad, Abu Bakar, Faziharudean, & Mohamad Zaki, 2014).
HOTEL WEBSITE
Hotels have developed their own websites in order to promote their products and services online. The Internet serves
as a good platform and the cheapest cost of distribution channel (W.G Kim, Ma, & Kim, 2006; Rob & Cathy, 2005).
For most customers, e-reservation is the most efficient way to perform booking via the Internet as it provides real
time information as well as offering a lower rate compared to offline methods (Woo Gon Kim & Kim, 2004).
According to (Baloglu & Pekcan, 2006), hotel websites are important promotional and selling tools for the room as
well as internet distribution channel (Gabriel, Woo Gon, & Radesh, 2008) besides online travel agents (OTAs) and
social media becoming trends and challenging in the hospitality industry (Chan & Law, 2006).
Hotel managers should engage in social media in order to establish communication with the customer (Alessandro &
Lorenzo, 2014). Hotels realise in order to increase the hotel room sales, they need to sell the room through online
means since it is more convenient for customers to purchase via the internet (Filieri & McLeay, 2014).
Hotel managers should understand the current customer‟s needs and wants and understand the current trend of the
market so that they can transfer to the hotel website and that will be the key success of their hotel website. Managers
should know the content of their website and keep up to date the product and services offers, such as promotions or
packages, of the hotel via online (Rob & Cathy, 2005).
WEBSITE EVALUATION
Most of the study of website evaluation is using content analysis technique. This technique evaluated by the features
and the description while the design is examined by the appearance, exploration structure, searching function (Ting
et al., 2013).
Different types of hotels have different emphasis on the design characteristic (i.e., interactivity, navigation, and
functionality) and site marketing practices had a study done of four and five star hotels in Turkey (Baloglu &
Pekcan, 2006).
The extended model of internet commerce adoption study done by Ting et al. (2013) is adapted from the basic
concept of Burgess and Cooper‟s (1999) and identifies three stages of website interfaces which are promotion,
provision, and processing. The extended model of internet commerce model has been developed to consider hotels
on different continents may not mature on three stages model of internet commerce adoption (MICA) (Burgess &
Cooper, 1999). The new model has three dimensions that can be divided into sub dimension as layers. So, promotion
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is divided into basic information and rich information layers, while the provision stage is divided by low
interactivity, medium interactivity, and high interactivity.
Chung and Law (2003) applied five dimensions to measure efficiency of Hong Kong hotel websites through content
analysis (namely, facility information, customer contact information, reservation information, surrounding area
information, and website management).
Ham (2005) study on context analysis, evaluation approach for the limited-service lodging properties. Seven
evaluation criteria have been highlighted in this study including impression, content, usefulness, accuracy,
navigation, accessibility, online reservation, and timeliness of information.
A study done by Hashim et al. (2010) founded that large, high rated and affiliated hotels had a higher email and
website presence and adopted technologies significantly earlier than the small, low rated and non-affiliated hotels.
The study also found hotel size has an insignificant relationship with Malaysian hotel‟s Internet adoption.
Schmidt, Cantallops & dos Santos (2008) had focused on three categories of website evaluation: (i) evaluation by
phases, (ii) evaluation by characteristic and (iii) evaluation by characteristic and effectiveness. While content
analysis technique been employed to evaluate the hotel websites performance among Iranian Hotel (Salavati &
Hashim, 2014).
METHODOLOGY
To begin, for the survey, a list of hotels was obtained from the Malaysian Association Hotel website
(www.hotel.org.my). The purpose of this survey is to evaluate the level of e-commerce adoption amongst small-andmedium-sized hotels in Malaysia by using website evaluation techniques. Besides that, from the website survey, the
researcher will identify the use of social media amongst small-and-medium-sized hotels in Malaysia.
For this purpose of study, a researcher has drawn a sample criteria of small-and-medium-sized hotels from the hotel
listings in Malaysia Association Hotel website:

Types of hotel : City and Business Hotel

Number of rooms: 30 to 400 rooms

Star Rating: 2 star and 3 star

Affiliation: Independent and chain
This research develops a set of evaluation criteria in this study to evaluate the level of e-commerce adoption of the
small-and-medium-sized hotels websites in Malaysia. Table 1 shows the evaluation criteria for evaluating smalland-medium-sized hotels in Malaysia.
Table 1: Evaluation Criteria for the Small-and-Medium-Sized Hotels Website
Dimensions
Features
Interactivity
Online availability, offline reservation, phone number, fax, email, online
information request form, general description and history, map,
newsletter, press release, awards, careers, mobile hotel reservation, FAQ,
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privacy policy
Navigation
Link to other sites, sitemap, consistent navigation, ease of navigation
Functionality
Important organization contacts, currency converter, flash animation,
membership system, download facilities.
Marketing
Room rates, Packages and Promotions, Dining, Photos, Photo album,
video, e-brochure, Web 2.0 tools
Service
Check in and check out time, information on hotel rooms, activities,
conference and meeting facilities,itinerary information.
Innovation
Online reservation, View or Cancel Reservation, Online payment
A schema was then established covering the website dimension and features. By using a Likert Scale, the website
dimension and features have been analyzed and ranked according to the points setting. After the points have been
given to each of the hotels websites, this study will determine the level of e-commerce adoption of the small-andmedium-sized hotels in Malaysia website as below (Chaffey, 2011):

Level 0: No website presence on web

Level 1: Basic web presence. The company places an entry in a website listing company name. There is no
website at this stage.

Level 2: Simple static informational website. Contains basic company and product information, sometimes
referred to as „brochureware‟.

Level 3: Simple interactive website. Users are able to search the site and make queries to retrieve
information. Queries by email may be supported.

Level 4: Interactive site supporting transaction with users. The functions offered will vary according to the
company, but they will usually be limited to online booking.

Level 5: Fully interactive site supporting website the whole buying process. Provides relationship
marketing with individual customers and facilitating the full range of marketing exchange.
Table 2: Description of the Five-Point Likert Scale
Points
Description
0
No available information
1
Very basic information and application
2
Low interactivity and application
3
Medium interactivity and application
4
High interactivity and application
5
Advanced interactivity and application
FINDINGS AND ANALYSIS
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WEBSITE ADOPTION
From the 194 small and medium sized hotels in Malaysia, 181 have a (Uniform Resource Locator) URL address.
Visits to the 181 URLs, found only 177 websites working, 5 websites were under construction and 38 hotels used a
shared website. The researcher visited the website twice to ensure the validity and reliability of the database.
Table 3: Website adoption by small-and-medium-sized hotels
Star Rating
Number
Web site
Yes (%)
No (%)
Two
55
45(81.8%)
10(18.2%)
Three
139
132(95%)
7(5%)
Total
194
177(91.2%)
17(8.8%)
Level of e-commerce adoption
Table 4: Level of e-commerce adoption by small-and-medium-sized hotels
Star Rating
Number
Level of E-Commerce Adoption
0
1
2
3
4
5
Two
55
10
16
13
10
4
3
Three
139
11
7
18
30
42
31
Total
194
21
23
31
40
44
34
The analysis shows that three star hotel websites are more established and performed more reliably than compared to
two star hotel websites. Overall, from the website evaluation, analysis, the highest level of e-commerce adoption
amongst small-and-medium-sized hotels in Malaysia are at level 4 (22.7%) and level 3 (20.6%).
The vast majority of small-and-medium-sized hotels are still at the initial web site stage, having developed a web
site. The vast majority of the hotels had outsourced their website development to web designers to develop their
websites. The layout of websites was unsophisticated, with limited content, information about the property and a low
quality interface. Few of the hotels, linked the online reservation by electronic travel agencies because the website
was not fully interactive. From the analysis, researchers found that a few of the hotel websites are static pages.
Content has been usually poor and frequently there were significant elements of information missing, such as
location and arrival information, maps and in-room facilities. Due to this misleading information in the website, it
makes it difficult for the consumer to make a decision to purchase the hotel room. Consumers need to make a phone
call to the hotel which is not convenient and is an additional cost. The researcher also used a mobile phone to do this
website evaluation analysis. Only a few of the hotels have a mobile version website would be more convenient for
the consumers to view the website using a mobile compared to a desktop. The majority of small-and-medium-sized
hotels in Malaysia have not adapted to the Mobile Hotel Reservation (MHR) application. MHR is more popular for
larger hotels and chain hotels. Although size and category determine potential revenue and one would expect that
larger hotels and chain hotels would have a good quality website, this was not always the case as often smaller
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properties had invested time and effort in offering a comprehensive web presence. The challenges of small-andmedium-sized hotels are to optimize their website and were consistently achieving higher rankings on search
engines.
Email and online comment forms were the most common forms of interactivity whilst reservation forms were
emailed to hotels for confirmation as the hotels did not have online reservation facilities or real time reservation.
Due to advanced technology, consumers can make online reservations and online payments such as debit or credit
card, direct debit and charge card, also can modify and cancel a reservation online without contacting the hotel
personnel. Consumers also can check hotel rates online and availability of the hotel rooms on a particular date. A
few of the hotels offer Best Rate Guarantee on their websites as a way to attract customers to book directly on their
website compared to other channels of booking. By booking online a hotel can offer a 10% deposit to the customers
and it will attract customers to proceed with the booking directly to the hotel website.
Few websites offered hyperlinks with tourism service providers such as tourism information centers, travel agencies,
airport transfers and taxis) or other related service providers, such as currency converters, weather reports, travel
guides and others. Some of the hotel websites provide information about local attractions, local transport
information and guide to the hotels. The map is linked to google maps and easy for the consumer to find the hotel.
All of the hotel websites were in English. Only a few of the websites are Multilingual such as Chinese and Arabic.
Some of the hotels linked with Google Translate to interpret the website language.
Few of the hotel websites implement electronic customer relationship management (e-CRM). The hotel introduces a
customer loyalty program to the consumers. Consumers can sign up online as members of the hotel. Hotels also will
update the special promotions and offers on the special website. Besides, consumers can subscribe to an e-newsletter
for the hotel via mail and can write a review of the hotel online.
As the main purpose of the hotel website is for a marketing tool. Consumers can find product information such as a
room description and rates, photo gallery, virtual tools and FAQs of the hotel are common in the hotel website.
Several of the hotels are connected with social media such as Facebook, Trip Advisor and Twitter. Hotel websites
also provide the hotel information such as hotel overview, financial reports and news.
Besides having their own website and online booking, the hotels mostly connected to a third party booking website
or online travel agent (OTA), such as agoda.com, booking.com, hotelscombined.com, tripadvisor.com,
ehotelsasia.com, hotelclub.com and others.
CONCLUSION
With a 91.2% adoption rate, the study concludes that website adoption amongst small-and-medium-sized hotels in
Malaysia under category two and three star rating are under a high stage of website adoption. The impact of tourism
and ICT growth in Malaysia support the small-and-medium-sized business including hotels to take the opportunity
to expand their business.
Whether or not a high adoption rate, the level of e-commerce adoption amongst small-and-medium-sized hotels is
still average. An average number of hotel website categories are under level 0 to level 3 which is not a high level of
e-commerce adoption.
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The advantages of using web sites in tourism are discussed in much tourism literature (Bai, Hu, & Jang, 2007; Rong,
Li, & Law, 2009; Wong & Law, 2005). Thus, the hotel should pay attention to develop their hotel website. In order
to encourage customers to book the room from the website, the hotel should investigate factors of customers
selection for online booking (Liu & Zhang, 2014). Hotels also faced competition with Online Travel Agents (OTAs)
as a medium of online booking channels for customers (Christodoulidou, Brewer, Feinstein, & Bai, 2007; Gabriel et
al., 2008).
There are also a few issues concerning customers to make purchases online which are privacy and security.
Customers want to know how secure it is to make online transaction in terms of fraud and misuse of their personal
details (Nepomuceno, Laroche, & Richard, 2014).
This study recommends that the small-and-medium-sized hotels in Malaysia evolve their websites to capitalize on
the potential internet market.
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