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Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia.

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ABSTRACT The primary objective of this paper is to identify tourists’ perception toward boutique hotel attractive attributes through the detection of those factors that drive guests to this special type of accommodation. Furthermore, this study attempts to find the underlying dimensions of attractive attributes of boutique hotel from tourist after actual experience of this type of accommodation. The empirical study is supported through data from a sample of 133 individuals who stayed in Penang Island boutique hotels. The findings show that hotel guests’ perceptions of boutique hotels characteristics have four dimensions, namely: special services, room features, convenient and hotel design. However, results revealed that boutique hotels attractive elements after the actual experience of tourists have four slightly different dimensions special services, hotel facilities, price and location, and hotel design and image. From findings of this research practical suggestions are made to help hotel operators and those wishing and willing to enter the market. Furthermore, this study can help marketers gain substantial insight in order to market and promote this particular segment of the accommodation industry. Keywords: Boutique Hotels, Key Attributes, Penang Island, Malaysia
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26
Sharareh Khosravi
Universiti Sains Malaysia, Malaysia
Anahita Malek
Research Unit on Governance, Competitiveness & Public Policies
Aveiro University, Portugal
Erdogan Ekiz
SolBridge International School of Business
Woosong Educational Foundation, Korea
ABSTRACT
e primary objective of this paper is to identify tourists’ perception toward
boutique hotel attractive attributes through the detection of those factors that drive
guests to this special type of accommodation. Furthermore, this study attempts
to nd the underlying dimensions of attractive attributes of boutique hotel from
tourist aer actual experience of this type of accommodation. e empirical study
is supported through data from a sample of 133 individuals who stayed in Penang
Island boutique hotels. e ndings show that hotel guests’ perceptions of boutique
hotels characteristics have four dimensions, namely: special services, room features,
convenient and hotel design. However, results revealed that boutique hotels
attractive elements aer the actual experience of tourists have four slightly dierent
dimensions special services, hotel facilities, price and location, and hotel design and
image. From ndings of this research practical suggestions are made to help hotel
operators and those wishing and willing to enter the market. Furthermore, this
study can help marketers gain substantial insight in order to market and promote
this particular segment of the accommodation industry.
Keywords: Boutique Hotels, Key Attributes, Penang Island, Malaysia
INTRODUCTION
During the past decade, the international accommodation sector witnessed the evolution of
dierent types of tourist lodging all over the world (Timothy and Teye, 2009). Scholars believe
that this signicant evolution in lodging industry is a direct reaction to changing markets and
the shiing production of accommodation (Freund de Klumbis and Munsters 2005; Aggett
2007). Other key factors include new consumer trends which reject the homogeneity which
characterizes the commercial accommodation sector (Rogerson, 2010; Timothy and Teye 2009).
is paper considers one aspect of this growing dierentiation of the hotel industry, namely
boutique hotel.
Why Tourists are Attracted to Boutique
Hotels: Case of Penang Island, Malaysia
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Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
Boutique hotel is a niche market started in North America and the United Kingdom to
describe the modern and luxurious design along with quirky hotel environments (Olga, 2009).
Boutique hotel dene as “a small hotel, with an intimate and individualistic atmosphere and
style” (e Chambers Dictionary, 2003, p. 175). ese hotels are contemporary, design-led
hotels with up to 100 bedrooms, which oer unique levels of personalized service and high-
tech facilities (Agget, 2007). ey were created to focus on the needs of travelers who were tired
of sleeping in the same room with the same furnishings in every city they visited (Freund de
Klumbis, 2005; Freund de Klumbis and Munsters, 2005; Pine and Gilmore, 1999; McIntosh and
Siggs, 2005; Van Hartesvelt, 2006). is futuristic type of accommodation is now a sub kind
of those hotels that are becoming a destination in themselves. Horner and Swarbrooke (2005)
identied “the emergence of boutique hotels as one of the most interesting developments in the
hospitality sector of the leisure industry” (p. 369).
e growth of the boutique hotel sector internationally is widely reported (Caterer Search,
2005). A recent Key Note Market Report on hotels (Drewer, 2005, p. 6) relates this growth to
consumers searching for a more unique or special hotel, and reports “rather than simply viewing
the hotel as accommodation, clients are looking at the hotel to provide an experience in itself.
Hotels in general have managed to gain a higher prole as destinations (Drewer, 2005) and
there appears to be scope for further development of boutique hotels, with the sector currently
outperforming general UK hotel trading (Caterer Search, 2005). Freund de Klumbis and
Munsters (2005) conclude that one of the main forces driving the growth of the boutique sector
is an increased interest in art, culture and history (typical models of the concept behind boutique
or design hotels).
Even though, Malaysia is a relatively new entrant into developing boutique hotels as
compared to other players in this sector in recent years, particularly in Penang Island, due to the
inux of global tourists. Chang and Teo (2008) states that Penang oers a comparative base to
understand the advantage of architectural values in developing cities. Since in Malaysia generally
and particularly Penang Island, the Chinese shop-house represent the typical Malaysian urban
form, in contrast to mega projects that are seen as an anonymous international form common to
every city in the world. In Georgetown (Penang), the restoration of a Chinese courtyard house as
an international hotel was awarded the Malaysian National Architectural Award (1995) and the
UNESCO Asia-Pacic Award for Culture Heritage Conservation (2000). Later in 2007, George
Town (historic city centre of Penang Island) was ocially recognized as a UNESCO World
Heritage Site because of its rich living heritage, culture and history.
Soon aer, Penang Island became a well-known destination for international travelers
and according to statistics released by the ocial website of the Tourism Ministry of Malaysia
(2010), in 2009, Penang Island received around 6 million hotel guests, counting domestic
and international tourists. Ling and Shaw (2009) states that the recent rapid development of
the Penang Island in terms of theme and industrial parks, hotels and beach resorts, has been
disruptive to this Island’s rich cultural legacy. Besides places of worship like the temples,
mosques, synagogues and churches, one of the signicant heritage characteristics of George
Town is reected in the predominant prewar buildings, especially the two storey shop-houses
that are found in the inner city of George Town. e unique structure of these shop-houses
which now can function as boutique hotels in many cases shows the inuences and the merging
of diverse cultures (Fels, 2002).
28
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
Dolnicar and Otter (2003) states that due to the high costs that are typically involved with
investments in the hotel industry, it makes a lot of sense to study which product components
travelers appreciate. In addition to their statement, this study also believes that an inclusive
understanding of driving factors aecting tourists’ accommodation selection is essential for
determining hotel guest satisfaction.
Indeed the idea of a study about Boutique hotels in Malaysia is rather new. e Ministry
of Tourism in Malaysia in the Guidelines for Tourist Accommodation Premises Classication
(2009) mentioned that there is no complete and actual information on Boutique hotels due
to the diculty of coming to terms with an apt denition of this accommodation segment.
Consequently this research may be very useful and helpful for those who are working in the
accommodation industry to better understand the concept of boutique hotel through the
identication of attractive attributes for guests of these hotels. Furthermore the identication of
attributes of boutique hotels will allow related associations to create grading systems.
is study attempts to dene the factors attracting guests to boutique hotels, fullling
their special inclinations and desires hence the major goal of this study is to provide enough
information regarding the specic attributes of boutique hotels. Consequently, this research
may unearth attributes that drive the consumer’s decision making towards boutique hotels. e
ndings will help enabling trade bodies and relevant associations to design their marketing
strategies, and better serving the hotel industry and setting specic quality boundaries in the
hotel industry for all those establishments wishing and willing to call themselves “boutique
hotels”.
Another important contribution of this study is to attempt to reach an understanding of
guests’ perception regarding this kind of accommodation, especially focusing on the tourist
destination of Pinang Island. erefore, the primary objective of this research is to better
understand the concept of boutique hotel through the identication of attractive attributes of
these hotels for their guests. Moreover the identication of important attributes from hotel
guests’ point of view will allow related associations to create eective marketing strategies and
policies to attract and satisfy more consumers.
LITERATURE REVIEW
Knowing important attributes that determine accommodation choice or those boutique hotels
attributes which guest care about is crucial for boutique hotel operators to make best possible
hotel development decision. Hotel attributes are those characters playing a big role in guests’
minds upon determining to choose accommodation options. ere are some special elements
in products that will inuence customers to purchase in accord to their needs and preferences.
ese attributes or elements are divided into two main parts, namely tangible and intangible
(Chang and Wong, 2005). Tangible characteristics or physical attributes are those elements that
can be seen such as price, the form of facilities, the location, the existence of choices, word
of mouth communication, and advertising, a familiar name and past experience. Intangible
characteristics are security, dependability, service quality, reputation and sta behavior.
Lewis (1984) explained that the base of hotel selection is related to the attributes of hotels
and dierent kinds of attributes can simply dierentiate between dierent kinds of hotels.
erefore, the type of attributes is signicant and determinant when guests choose and stay in
29
Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
a hotel (Ryan et al., 2004). Various studies have investigated boutique hotels attributes driving
travelers’ attentions. Among these attributes communalities can be identied within the areas
of individualized services, friendly sta, homely environment, high-tech facilities, location, size,
aesthetic, unique architecture and interior design and style. Other factors appear in individual
studies only and are thus cannot be generalized. A review of boutique hotel attributes have
suggested a variety of factors inuencing consumer selection, developing ideas from Aggett, 2006
and McIntosh & Siggs, 2005 studies. Table 1 shows the comprehensive review of the literature
related to the major attributes attracting boutique hotel guests to this type of accommodation.
Table 1: Boutique hotel elements in literature from 1997 to present
Author(s) Boutique hotel attributes Author(s) Boutique hotel attributes
Callan
&
Fearon
(1997)
•  Size
•  Ownership
•  Service
•  Decoration
•  Provision of restaurant or
leisure facilities
•  Design feature
•  High skilled and friendly
sta
Teo et al.
(1998)
•  Mutual characters
•  Small size
•  Low sta
•  High level of personalizes
services
Nobles
&
ompson
(2001)
•  Size
•  Design
•  Service
Anhar
(2001)
•  Size
•  Ownership
•  Service
•  Decoration
•  Provision of restaurant or leisure
•  Facilities
•  Design feature
•  Quirky
•  Cozy place
Sangster
(2002)
•  Great locations
•  Unique architectural designs
•  Abounding amenities
•  Personalized service
•  High-tech development
•  Stress-free/ relaxing
environment
•  Well-known luxury brand
Rowe
(2003)
•  Design
•  Location
•  History
•  Size
•  Old modernization buildings
•  Places of historical importance
Albazzaz
et al.
(2003)
Distinctive architecture and
design
oering warmth and intimacy
Victorino
et al.
(2005)
•  Oering dierent lifestyle
amenities
•  Contemporary or very simple
furnishing
Caterer
Search
(2005)
•  Size
•  Design
•  Location
•  Stylish
McDonnell
(2005)
•  Old modernization buildings
•  Places of historical importance
•  Style
•  Distinction warmth and intimacy
30
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
Freund de
Klumbis
(2005)
•  Individual design
•  Particular style
•  Personalized service
•  Modern technology
McIntosh
&
Siggs
(2005)
•  Unique characteristics
•  Personalized service
•  Homely
•  Quality
•  Value added Location
Price water
house
Coopers
(2005)
•  Size
•  Personal service
•  Individuality
•  Design and style
•  Type of building
•  Technology
Onstott
(2006)
•  History of the building
Price water
house
Coopers
(2006)
•  Size
•  Location
•  Quirky
•  Contemporary and
specialized de´cor
•  Being able to make the guest
feel special
Aggett
(2007)
•  Distinctiveness of buildings
•  Design feature
•  Personalized service
•  Uniqueness and design elements
Olga
(2009)
•  Entertainment
•  Personalized services
•  Style
•  Dissimilarity
•  Intimacy
•  Unique architecture
•  Distinctive interior design
Forsgren
&
franchetti
(2004)
•  Highly modern
•  Having contemporary design
•  High-tech facilities
•  High level of personalized
services
•  Less than 100 rooms per hotel
Even though the denition of boutique hotel may vary especially among primary players
in the hotel industries, as Anhar (2001) explained, the majority of boutique hotel operators,
creators and owners agreed on the identication of some common Boutique hotel features such
as; size, ownership, service, decorating and on-side restaurant or leisure facilities. Callan and
Fearon (1997) also used these features to describe boutique hotels characteristics. Furthermore,
McIntosh and Siggs (2005) studied the UK’s boutique hotel attributes and discovered that
location, quality, uniqueness, services provided and the personalized levels of service oered are
the top ve attributes attracting respondents to Boutique hotels. Lim and Endean (2009) explain
that in fact, the combination of service quality characteristics, individual design, location and
facilities could help describe characteristics of a boutique hotel.
Horner and Swarbrooke (2004) cited that the criteria set by BHRI (Boutique Hotels and
Resorts International) to dene Boutique hotels are great locations, unique architectural designs,
abounding amenities not found at chain hotels, and most importantly personalized service that
is second to none. PricewaterhouseCoopers (2005) reported the dening characteristics of a
boutique hotel include size, personal service, individuality, design and style. However, in 2006
they added further characteristics, including:, contemporary and specialized decor and being
able to make the guests feel special and more comfortable, as if they were in their own house.
Search (2005) used the terms size, design and location in his denition of boutique hotels.
Rowe (2003) applied characteristics including design, location, history and size, while Nobles
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Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
and ompson (2001) specied size, design and service. Moreover, Swig (2002) suggested that
boutique no longer means small and personal, but individual and unique.
An analysis of the literature reveals several classications that help determining a useful
conceptual framework for this study. is study therefore proposes the following driving attributes
of boutique hotels, which are also summarized in Table 2 and are discussed below as well.
Table 2. Summary of underlying elements of boutique hotels from existing literature
Authors Individu-
alized/
person-
alized
services
Friendly
sta
Homely
environ-
ment
High-
tech
facilities
Small/
Cozy
place
Loca-
tion
Size Aes-
thetic
Unique
architec-
ture
Uniquely
interior
design
Style
Callan &
Fearon (1997)
× × × × ×
Teo et al.
(1998)
× × ×
Anhar (2001) × × × ×
Nobles &
ompso
(2001)
× × ×
Sangster
(2002)
× × ×
Rowe (2003) × × × × ×
Albazzaz et al
(2003)
× × × × ×
Forsgren &
franchetti
(2004)
× × × × ×
Freund de
Klumbis
(2005)
× ×
Search (2005) × × ×
McDonnell
(2005)
× × × ×
McIntsh &
Siggs (2005)
× × ×
victorino et al
(2005)
Price water
house Coopers
(2005, 2006)
× × × × × × × ×
Onstott (2006) × × × ×
Aggett (2007) × × ×
Olga (2009) × × × × × × ×
32
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
Location
Location of a boutique hotel is one of the key factors in attracting guests (PricewaterhouseCoopers,
2006). ose Boutique hotels located in the city center are very popular among the business
travelers (Teo, Chia & Khoo, 1998). As Anhar (2001) cited the location is one of the most
signicant factors and a priority in Boutique hotels’ guests’ lists. Moreover, Olga (2009)
explained that the location is not only matter of convenience, but also of “trendiness” and “chic-
ness” of the respective neighborhoods.
High-tech facilities
Modernization and the elucidation of the 21st Century technology are also those characteristics
that Boutique hotels use to attract their guests. Forsgren and Franchetti (2004) believe that
boutique hotels are a type of accommodation which is highly modern and spiced up with
contemporary design and high-tech facilities. In some Boutique hotels, the nonexistence of
technological devices in the guestrooms such as DVD players, computers with fast internet
connection are dierent to what it is possible to experience in other type of accommodation. On
the other hand guest rooms and suites may be tted with the all high tech facilities, but equally
may have none of those, focusing on quiet and comfort rather than gadgetry (Olga, 2009).
Being in small and cozy places
As Anhar (2008) illustrates, boutique hotels in resort destinations are quirky, small and warm.
Boutique hotels try to give their guests a good chance to explore the local feeling without using
only luxury design and other stu. Olga (2009) also believes that style, dissimilarity, warmness
and intimacy are key words that dierentiate boutique hotels from all other kinds of hotels and
make them unique and special.
Individualized and personalized services
One of the mutual characteristics that boutique hotels are likely to share is the provision of
personalizes services (Teo et al. 1998). According to Olga (2009) few examples of boutique
facilities oered in resort destinations are traditional spa, rose petal baths, private individual
plunge pools, honeymoon packages, and art and painting sessions. In addition Agget (2007)
states that boutique hotel is considered as modern and very stylish hotels which propose
exceptional personalized services and high-tech facilities. McIntosh and Siggs (2005) found
personalized services as one of the major characteristics of boutique hotels in his study. Finally,
Horner and Swarbrooke (2004) explain that personalized service that is second to none is one of
the most important criteria set by BHRI on boutique hotel characteristics.
Size
A further boutique hotel attribute which has been widely conrmed is size. As Lea (2009)
reported a boutique hotel has a maximum of 400 rooms. According to Nobles (2006), there
is no high limit on how many rooms a boutique hotel should have. Olga (2009) also adds that
boutique hotels are small and the range of their rooms is from 3 to 50, and can sometimes reach
200 guests rooms (Olga, 2009).
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Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
Aesthetic, unique architecture and interior design
One of boutique hotels attributes that appears to be in little dispute is the nature of beauty and
artistic characteristics of this type of accommodations including aesthetic, unique architecture
and unique interior design. While conrming the uniqueness attribute of boutique hotels,
Nobles (2006) believes that boutique hotels are so special and dierent because of the way
they are furnished and themed. Hotel design and selection of the architecture type are those
factors dierentiating boutique hotels from other type of hotels available on the market. Style,
distinction, warmth, and intimacy are the best key words used to describe the architecture and
the design of Boutique hotels (Olga, 2009). Boutique hotels are attractive to their guests because
of the dramatic impression they create by means of the architecture, design, colors, lighting, art,
and music. ey are also connected with more small scale properties (PricewaterhouseCoopers,
2005). Most of well known and famous boutique hotels usually try to come out with new, unique
and dierent products (Lea, 2002).
Friendly sta and homely environment
Researchers, marketers and hoteliers believe in enhancing the positive connection between
the guest and the hotel sta members. Boutique hotels in particular have amiable friendly,
hardworking, multitasking sta who can deal with customers in a very warm and friendly way
(Lea, 2002; Van Hartesvelt, 2006). Most of boutique hotels enforce the recognition of guest names
by all hotel sta members, an experience that is clearly dicult to achieve in a large-scale hotel
(Olga, 2009). According to Callan and Fearon (1997), the turnover stas in boutique hotels are
very low because boutique hotels always recruit sta with charm and personality. Consequently,
sta has to be comprised of highly skilled and motivated people who help to create a very homely
and nice environment in the hotels, making guests feel comfortable and happy.
METHODOLOY
Elicitation Study
In summation, previous research of boutique hotels areas emphasized on many tangible and
intangible aspects of the boutique hotel rooms and facilities. However, there has been no
attempt in literature to conduct an elicitation study to develop a reliable framework of driving
attributes of a boutique hotel. is study therefore sought to obtain additional evidence of prime
characteristics for further analysis, via an interview with boutique hotel managers and tourists.
Interviews with fourteen tourists, ve boutique hotel sales and marketing manager and ve
hospitality experts from hotel associations specied a couple of additional attributes, such as
quality, food and beverage, reputation, price and variety of entertainment and activities oered
by the hotel. Based on the literature indicated above, and the input came from interview with
tourists and professionals, this study included 17 items in order to survey the key attributes of
boutique hotels from guests’ point of view.
34
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
The Questionnaire
Aer an extensive literature review, this study was further expanded by conducting a survey on
boutique hotel guests to clarify and identify what are the most attractive attributes of boutique
hotels through the detection of those factors that drive guests toward this special type of
accommodation. To accomplish the objective of this study a quantitative research method was
used as an academic approach. Moreover a survey questionnaire has been used as an instrument
to collect and analyze data.
e rst part of the questionnaire includes eight factors connected to the personal
characteristics employed as demographics. e second part of the questionnaire includes
two questions related to the traveling purposes of the respondents, and how respondents got
particular travel information. e third part of the questionnaire included 17 specic elements
identied as the attributes of boutique hotels perceived by tourists. ese elements have been
adopted from previous studies (Dolnicar and Otter, 2003; McIntosh and Siggs, 2005; Aggett,
2007; Olga, 2009). Moreover, in the fourth part of the questionnaire the same elements utilized
to investigate the exceptional attributes of Penang boutique hotels aer the actual experience of
tourists. is section was designed based on 5-points Likert scales in order to let the respondents
rate their level of agreement. e ve points rate from “strongly disagree” (1) to “strongly agree”
(5).
Data Collection
is study employed simple random sampling. is is a method in which individuals are
randomly selected from a group or list (Israel, 2009). Consequently respondents were selected
among guests of boutique hotels in Penang Island. Only respondents who were experiencing
boutique hotels for the rst time were asked to answer the questionnaire. is research was
conducted on ve boutique hotels in Penang that ocially labeled themselves as “boutique
hotels”.
Aer the pilot study, a nalized and reviewed version of the questionnaire was sent to the
elected boutique hotels in Penang. e survey was conducted for duration of 25 days from 5th to
30th December 2012. Consequently, a total number of 390 questionnaires were sent to the front
oce of the ve boutique hotels. However, they only accepted a total of 300 questionnaires
for distribution due to lack of time during the busy New Year holiday seasons. Out of 300
questionnaires, a total number of 195 questionnaires were collected from the respondents, and
the return rate constitutes approximately a 65%. However, of the 195 returned questionnaires,
only 133 could be use in data analysis, because 62 questionnaires contained either incomplete or
improper answers. Data analysed by using SPSS version 17.0.
KEY FINDINGS
e collected data were analyzed using SPSS. A range of descriptive and inferential statistics
has been used to identify the key driving attributes of boutique hotels. An explanatory factor
analysis (EFA) was therefore used to assess the underlying dimensions of boutique hotel
attractive elements.
35
Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
Socio-demographic Variables and Purpose of Travel
e ndings indicate that majority of respondents were female (53.4 %), married (63.2%),
between the age of 25 to 34 years old and have a bachelor degree (39.8 %). Respondents were
mostly from Asia (48.3%) and Europe (29.5%). Moreover, in terms of income, most of respondents
earned less than 7500 USD per month. Analysis of the respondents travel motivation showed
that the main travel motivation of respondents to travel to Penang was rest and relaxation (35%),
followed by business purposes (24%). Ultimately, advertisement and internet was the main
source of information for boutique hotels’ guests.
Table 3. Frequency Table of Demographic and Travel Related Characteristics
Frequency Table
Gender
Male 46.6%
Female 53.4%
Age
18_24 9%
25_34 37.6%
35_44 30.8%
45_55 12%
Above 55 10.5%
Marital Status
Single 24.1%
Married 63.2%
Divorced 9%
Education
High School 21.1%
Bachelor’s degree 39.8%
Advance’s degree 39.1%
Nationality
Australian 14.3%
Asian 48.3%
Europe 29.5%
America 8.3%
Annual income
Less than $2500 11.3%
$2500 to $5000 24.8%
$5001 to $7500 36.1%
$7501 to $10000 15%
More than $10001 12.8%
Travel Motivation
Rest and Relaxation 35.3%
Visiting Friends And Relatives 18%
Business 24.1%
Education 9.8%
Culture 9%
Sports 2.3%
Others 1.5%
Information Source
Travel agency 9%
Friend/Family 26.3%
Advertisements & Internet 39.9%
Newspaper 10.5%
Media 8.3%
WOM 6%
Total 133 Total 133
Boutique Hotels Attractive Attributes Perceived by Hotel Guests
Upon collecting the data, analysis was overtaken for each one of the attributes. Factor analysis
was performed on 17 items to categorize the most attractive attributes of boutique hotels from
guests’ point of view. e results are shown in Table 4. e KMO was 0.81 and Bartlett’s test of
36
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
sphericity was signicant at less than 1%. e anti-image correlation matrix ranged from 0.89
to 0.74, so there were sucient correlations among the items. Four factors were extracted with
70.24% of the variance. Factors were labeled as Special services, Room features, Convenient, and
Hotel design. Out of 17 items, three items were deleted due to loading problems.
Table 4. Results of the Factor Analysis of Important Attributes s in Boutique Hotels
Variables Components
1 2 3 4
Special services
Individualize and personalize services .189 .206 .710 .295
Friendly sta .260 .191 .850 .002
Homely environment .086 .179 .778 .325
Service Quality .141 .173 .798 .089
Room features
High tech facilities in the room .405 .134 .351 .707
Being in small and cozy place .322 .087 .336 .758
Convenient
Entertainment (night life, bar, lounge etc) .734 .013 .147 .460
Variety of activities oer by the hotel (special tours, etc) .752 .108 .013 .302
Price of accommodation .671 .172 .316 .005
Convenient to down town .700 .250 .176 .155
Convenient to air port .781 .219 .139 .055
Hotel design
Aesthetic .165 .760 .257 .024
Unique architecture (façade, entrance) .173 .893 .185 .088
Uniquely interior design (lobby, room, facilities) .325 .623 .423 -.039
Eigenvalue 7.497 2.017 1.335 1.112
Variance Explained [%] – Total 70.24% 20.59 20.51 16.01 13.12
Furthermore Cronbachs alpha (α) was used to analyze the reliability of the instruments. e
results of this analysis are shown in Table 6. All variables are accepted and have good internal
consistency based on Cronbachs alpha above 0.70. In this study, Cronbach’s alpha ranges from
0.706 to 0.939 which means totally good (Sekaran, 2003). Items were only dropped if the
deletion of those items substantially improved the Cronbach’s coecient alpha for that factor.
However, since all constructs in this study had a Cronbach’s alpha above 0.7, there was no need
for deleting the items.
37
Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
Table 5: Reliability Statistics
Constructs No of Items Remain Cronbach Alpha n
Special Services 4 .706 133
Room features 2 .883 133
Convenient 5 .907 133
Hotel design 3 .914 133
The Exceptional Attributes in Penang’s Boutique Hotels
Similarly, factor analysis was conducted on 17 items of the exceptional attributes in Penang’s
Boutique Hotels. e results are presented in Table 6. e KMO was 0.82 and Bartlett’s test
of sphericity was signicant at less than 1%. e anti-image correlation matrix ranged from
0.87 to 0.86, so there were sucient correlations among the items. Four factors were extracted
with 72.55% of the variance. Factors were labeled as Special services, Hotel facilities, Price and
location, and Hotel design and image. Overall, out of 16 items, four components extracted, and
only one item was deleted due to loading problems.
Table 6. Result of the Factor Analysis of the Exceptional Attributes in Penang Boutique Hotels
Variables Components
1 2 3 4
Special services
Individualize and personal Services -.101 .391 .086 .656
Friendly sta .285 .200 .096 .721
Homely environment .336 -.010 .189 .800
Hotel facilities
High tech facilities in the room .151 .826 -.066 .269
Being in small and cozy place .125 .816 -.071 .284
Food and beverage (restaurant, bar, etc.) .220 .739 .099 .081
Entertainment (night life, bar, lounge etc.) -.022 .842 .295 -.066
Variety of hotel activities (special tours, etc.) .085 .748 .415 .072
Price & location
Price of accommodation .117 .086 .898 .183
Distance to down town .083 .142 .891 .049
Hotel Design & image
Size of hotel .594 .058 .328 .274
Aesthetic .766 -.013 .120 .169
Unique architecture of hotel(façade, entrance) .917 -.006 .014 .063
Uniquely interior design of Hotel .887 .073 .047 .125
Reputation .839 .231 .038 .025
Quality .840 .291 .103 .102
Eigenvalue 6.401 2.910 1.731 1.292
Variance Explained [%] – Total 72.55% 26.40 21.14 13.44 11.56
38
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
Cronbach’s alpha (α) was used to analyze the reliability of the instruments. e results of
this analysis are shown in Table 7. All variables are accepted and have good internal consistency
based on Cronbach’s alpha above 0.70. In this study, Cronbach’s alpha ranges from 0.706 to
0.939. However, since all constructs in this study had a Cronbach’s alpha above 0.7, there was no
need for deleting the items.
Table 7: Reliability Statistics
Constructs No of Items Remain Cronbach Alpha n
Special Services 3 .839 133
Hotel Facilities 5 .939 133
Price & location 2 .851 133
Hotel Design & Image 6 .876 133
Descriptive Statistics
Additionally descriptive statistics of all the variables in this study are illustrated in Table 8. e
means and standard deviations for each factor were computed to understand the variability of
the subscales derived from the factor analyses. Regarding the importance of factors involved
in a hotel choice, the results show that “Special services” (mean = 4.18) has the highest mean
compared to other factors. It means that hotel guests pay particular attention to the special
services when they want to choose their hotel anywhere and in Pulau Penang as well. On the
other hand, the descriptive statistics indicate that “convenient” has the lowest mean, which
signify that this factor is not that important for hotel guests. Moreover, the results shown that
hotel design and image (mean =4.08) are one of those factors that hotel guests highly care about
in their perception of boutique hotel and their actual experience.
Table 8: Descriptive Statistics of all of the Study Factors
Important Boutique Hotels Attributes Perceived by Hotel Guests Mean Std. Deviation
Special Services 4.18 0.72
Room features 3.89 0.92
Convenient 3.78 0.80
Hotel design 4.03 0.76
Exceptional Attributes in Penang’s Boutique Hotels Mean Std. Deviation
Special Services 4.07 0.59
Hotel Facilities 3.83 0.72
Price & Location 3.56 0.84
Hotel Design & Image 4.08 0.71
39
Journal of Hospitality & Tourism, Vol. 12, No. 1, 2014
CONCLUSION AND IMPLICATION
e current study was undertaken to empirically examine attributes which attracted guests to
boutique hotels as their preferred accommodation type. Based on the ndings of this study, 1-
Special services, 2- Room features, 3- Convenient, and 4- Hotel design are indicated as the most
attractive attributes for guests of boutique hotels (See Figure 1). is research also examined
specically Penang’s boutique hotels attractive attributes to nd out the dierence between the
guests perception and the actual experience during their stay in this type of accommodation.
Results illustrated that exceptional attributes of Penang Island’s boutique hotels have four
dimensions_ special services, hotel facilities, price and location, and hotel design and image.
Furthermore, results revealed that there is not much dierence between guests perception of
boutique hotels attractive attributes with their idea aer their actual experience.
Findings of this study provide conrmation of the previous work conducted by Aggett
(2007) and McIntosh and Siggs (2005) which concluded that individual and personal services
Figure 1. Perception of Guests toward Boutique Hotel Attractive Elements
40
Why Tourists are Attracted to Boutique Hotels: Case of Penang Island, Malaysia
along with the attention from friendly sta in a homely environment with unique architecture
consider as the main reasons of boutique accommodation type selection. Figure 1 illustrated
the ndings of this study which identied during the literature review and conrmed with the
empirical data.
However it is worth mentioning that boutique hotel’ attractive elements which introduced
in Aggett (2007) and McIntosh and Siggs (2005) study and conrmed by this study as well,
are in contrast with the provision of traditional hotel accommodation and therefore it should
be considered that standard attributes and ordinary characteristics of traditional hotels are
not attractive for consumers seeking for alternative types of accommodation. In this study, the
uniqueness of boutique hotels as cozy places with specic architecture and special interior design
is recognized as an innovation dierentiation strategy. is allows boutique hotels to compete
with branded hotel chains, and consequently it is recommended that uniqueness became the
major driving force behind the consumer’s decision making toward boutique accommodation.
is research is of signicant importance to marketing and sales managers who are interested
to understand the consumers’ desires and the factors that attract them to boutique hotels. is
study’s results will suggest boutique hotels’ owners and managers how to improve the design of
their products and the level of provision of their services. e ndings will also help boutique
hotels’ owners and managers to develop strategies in order to optimize their resources more
eciently. By obtaining the imperative information of why guests choose to stay at boutique
hotels, hotel managers are able to recognize those attributes which drive guests’ purchasing
decisions. Understanding the guests’ needs and desires is very useful and helpful when creating
strategies for improving a company’s image. At the same time, ndings of this study could be
of particular interest to anyone willing to enter the market and also those landlords with small
properties or hotels in planning to convert them into boutique hotels.
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About the Authors
Sharareh Khosravi is PhD Candidate in Universiti Sains Malaysia, Malaysia. E-mail-shery.
khosravi@gmail.com
Dr. Anahita Malek is Postdoctoral Fellow in Research Unit on Governance, Competitiveness &
Public Policies, Aveiro University, Portugal. E-mail-anahita@ua.pt
Dr. Erdogan Ekiz is Associate Professor, SolBridge International School of Business
Woosong Educational Foundation, Korea. E-mail- erdogan.ekiz@gmail.com
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