ENHANCED MODEL OF CUSTOMER SATISFACTION AMONG LOCAL TOURISTS TOWARD BUDGET HOTELS IN MALAYSIA: INTEGRATING SERVQUAL AND DIGITAL EXPERIENCE DIMENSIONS
The rise in domestic tourism in Malaysia has amplified the relevance of budget hotels as key accommodation providers. While traditional SERVQUAL dimensions have been extensively used to assess service quality, evolving consumer expectations—driven by digital transformation and post-pandemic sensitivities—necessitate a more comprehensive framework. This study aims to upgrade the traditional SERVQUAL model by integrating price perception and digital experience factors, particularly responsiveness through digital channels and contactless service options. Based on a quantitative methodology and structural equation modeling (SEM), the study examines the influence of seven determinants (Reliability, Assurance, Tangibles, Empathy, Responsiveness, Price, and Digital Convenience) on customer satisfaction among Malaysian budget hotel guests. Results reveal that while tangible elements and reliability remain critical, digital responsiveness and perceived value through mobile services significantly shape satisfaction. Findings offer practical recommendations for hotel managers and policy-makers in adapting service delivery to evolving customer expectations.
Customer Satisfaction, SERVQUAL, Budget Hotels, Digital Experience, Malaysia Tourism, Structural Equation Modeling.