Dayang Sandrawati Abang Josmani MFAB2007 TTT

STUDY ON THE SELECTION CRITERIA FOR CHOOSING DOMESTIC
PACKAGE TOURS IN MALAYSIA
DAYANG SANDRAWATI BINTI ABANG JOSMANI
UNIVERSITI TEKNOLOGI MALAYSIA

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To My Husband and My Children

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ACKNOWLEDGEMENT
In the Name of Allah, Most Gracious, Most Merciful.
Alhamdulillah, with His Blessings I have successfully completed this thesis.
I wish to express my sincere gratitude to a number of people for their

contribution in assisting and guiding me to complete this thesis. In particular, to my
thesis supervisor, Professor Dr. Zainab Binti Khalifah, for her encouragement, guidance
and motivation. I am also very appreciative to my lecturers Professor Dr. Amran
Hamzah, Encik Ahmad Tajuddin Bin Kechik and Dr. Hairul Nizam Bin Ismail for their
guidance and advices as well.
I would also like to extend my heartfelt thanks to all my colleagues and the
TPRG researchers for their valuable advice, assistance and friendship.
Finally, my deepest gratitude goes to my husband and my children for his never-
ending support and to my family for their encouragement.
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ABSTRAK
Kajian ini bertujuan untuk mengenalpasti kriteria-kriteria penting yang

mempengaruhi pelancong memilih pakej pelancongan domestik di Malaysia. Sejumlah
21 kriteria telah dikenalpasti, dimana ianya telah mengambil contoh dari sebuah kajian
yang hampir sama di Hong Kong yang telah dilakukan oleh Chak-Keung Simon Wong
dan Wai Yan pada tahun 2003. Daripada kajian ini, telah didapati bahawa harga
merupakan kriteria yang paling penting mempengaruhi pelancong di Malaysia untuk
membeli pakej pelancongan domestik, diikuti pula dengan kriteria-kriteria lain seperti
keselamatan, kualiti servis yang ditawarkan oleh agensi pelancongan, pemandu
pelancong yang berkualiti dan berpengalaman, pengangkutan yang selesa and makanan
yang disediakan semasa lawatan. Ini menunjukkan bahawa pelancong tempatan sangat
mementingkan harga pakej pelancongan bila merancang untuk melancong. Pelancong
Malaysia juga amat mengambil berat tentang kualiti servis yang diberi oleh agensi
pelancongan terutamanya servis daripada pemandu pelancong dan juga pengurus
lawatan sepanjang perjalanan lawatan. Pelancong domestik juga amat suka sekiraya
perjalanan tersebut menggunakan pengangkutan yang selesa dan bagi yang muslim akan
memilih makanan halal. Untuk menjadikan pakej pelancongan lebih menarik dan
mampu bersaing, beberapa cadangan telah dicadangkan untuk agensi pelancongan
termasuk dari segi harga dan keselamatan lawatan, latihan untuk pemandu pelancong,
itinerari dan servis perkhidmatan pelanggan.
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ABSTRACT
This study was designed to identify important selection factors for domestic
package tours in Malaysia. A total of 21 selection criteria were identified in this study,
which is applied from a similar but outbound research in Hong Kong done by Chak-
Keung Simon Wong and Wai Yan, 2003. From the study, it shows that price is the most
important criteria for Malaysian in choosing their domestic package tour, followed by
the safety of the tour, service quality offered by the travel agency, escorts, tour guides
quality and experience, comfortable transportation and meals provided. All of these
criteria were viewed as important with mean score greater than 4. This conclude that
Malaysian people are very particular about the price of the tour package when they
planning to travel. Malaysian also would consider on the service quality provided the
travel agency which will of course goes to the experienced tour guide and tour leader or
manager during the tour. As we know, Malaysian is very keen in having a comfort
journey which will reflect to the comfortable transportation provided and also meals
during the tour especially muslim which will prefer halal food. Recommendations for
travel agencies, included price and safety of tour, training for escorts and tour-guides,
itinerary and customer care services, will, it is argued, enhance the attractiveness of
package tours and their competitiveness.
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TABLE OF CONTENTS
CHAPTER TITLE
PAGE
1 INTRODUCTION 1
1.1 Background of the Problem 8
1.2 Problem Statement 9
1.3 Research Questions 9
1.4 Purpose of Study 10
1.5 Scopes of Research 10
1.5.1 Literature review 10
1.5.1.1 Evaluation of domestic tourists selection criteria
of purchasing tour package 10
1.5.1.2 Evaluation of domestic tourists profile and trip
characteristics 11
1.5.1.3 Recommendation of strategies in planning and
design a domestic travel package 11
1.6 Study Approach 11
1.6.1 Stage 1 Desk Study 12
1.6.2 Stage 2 Pilot Study 12
1.6.3 Stage 3 Data Collection 12
1.6.4 Stage 4 Analysis and Synthesis 13
1.6.5 Stage 5 - Recommendations 13
2 LITERATURE REVIEW 15
2.1 Introduction 15
2.2 Definition 15
2.2.1 Domestic Tourism 15
2.2.2 Tour Package 16
2.3 Reasons for Tour Package 16
2.4 Domestic Travel in Malaysia 18
2.5 Travel Product Preference 26
2.6 Travel-related Behaviours and Tour Package 30
3 RESEARCH METHODOLOGY
3.1 Techniques of Analysis 35
3.1.1 Research Method 35
3.1.2 Survey Instrument 36
3.1.3 Population and Sampling 37
3.2 Study Area 38
3.3 Significance of the Study 38
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4 DATA ANALYSIS 40
4.1 Introduction 40
4.2 Analysis of Tourist Demand 41
4.2.1 Profile of Tourists 41
4.2.1.1 State of Residence 41
4.4.1.2 Demographics 42
4.3 Analysis of Travel Related Behavior 48
4.4 Analysis of Tour Package Selection Criteria 55
4.5 Conclusion 61
5 DISCUSSION AND RECOMMENDATION 62

5.1 Introduction 62
5.2 Discussion of Results 62
5.2.1 Selection Criteria for Choosing Domestic Tour
Package 62
5.3 Recommendation for Travel Agents in Malysia 63
5.4 Limitation of the Study and Recommendation for Future
Research 65
5.5 Conclusion 66
REFERENCES 67
APPENDICES A 69
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LIST OF TABLES
TABLE NO. TITLE PAGE

1.1 Tourists Arrivals and Receipts to Malaysia(2002-2006) 2
1.2 Domestic and International Hotel Guests by Locality in 2005 3
1.3 Selection Criteria for Package Tours 7
2.1 VMY 2007 Domestic Holiday Package 20
2.2 Travel Agency Involved in Visit Malaysia Year 2007 Domestic
Holiday Packages Tours 24
2.3 Development Allocation For Tourism, 2001-2010 (RM million) 26
2.4 Selection Criteria for Package Tours 32
4.1 Analysis of the Selection Criteria for Choosing Domestic
Package Tours 55
4.2 The Importance of Domestic Tour Package Selection Criteria
by Race 57
by Level of Education 59
by Income 60
LIST OF FIGURES
FIGURE NO. TITLE PAGE

1.1 Study Flow Chart 14
2.1 The Sectors of Group Package Tour 29
4.1 State of Residence 41
4.2 Gender 42
4.3 Age Group 43
4.4 Race 44
4.5 Marital Status 45
4.6 Education Background 45
4.7 Occupation 46
4.8 Average Income Per Month 47
4.9 Frequency of Joining Package Tour 48
4.10 Next Destination Tour Package 49
4.11 Preferable of Theme Package Traveling 50
4.12 Preferable Number of Days Traveling 51
4.13 Information on Tour Package 52
4.14 Traveling Partners 53
4.15 Number of Traveling Partners 53
4.16 Traveling with Children 54
4.17 Main Purpose of taking Tour Package 54
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LIST OF APPENDICES
APPENDIX TITLE PAGE

A Tourist Questionnaire 69
1
CHAPTER 1
INTRODUCTION
Malaysian economic performance is expected to provide positive consistent

growth in Gross Domestic Product from 2002 onwards after an economic downturn
in 2001. Coming from the strong economic drivers, disposable incomes, leisure
expenditure and the balance of tourism payments will continue to see a healthy
growth trend. This will further be compounded by the strong Asia Pacific economic
forecast, especially for selected countries within the South East Asian region.
Tourists are usually driven by value for money when they plan to travel.
With the birth of low cost carriers within the region, and the improving economic
position, Malaysia has a record breaking 17.54 million tourists in 2006, which
slightly surpassed Tourism Malaysias target of 17.5 million, marking an overall
6.8% increase from 2005. The revenue from tourists also increases by 13% with
receipts of RM36.2 billion in 2006 (Ministry of Tourism Malaysia, 2007). Refer to
Table 1.1.
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Table 1.1 Tourist Arrivals and Receipts to Malaysia

Year Arrivals Receipts
2002 13.29 million 25,781.1 million
Source: Ministry of Tourism Malaysia, 2007
Correlating to all previous trends of incoming and outgoing tourism

characteristics, Singaporeans remains as the top ten market in 2006 (9.6 million
visitors ), as Singapore can be seen by many as just another interstate trip. This is
followed by Thailand (1.8 million visitors) and Indonesia (1.2 million visitors) (The
Star, 1 March 2007). Tourism has become a significant source for income
generations for many countries. With strong integrated linkages, tourism promotes
external economies by promoting and improving local and regional infrastructure.
The Visit Malaysia Year (VMY) 2007 campaign was launched on 31st
December 2005 in conjunction with the golden jubilee of the nations
independence. It is designed to make Malaysia a top-of-mind destination; the
yearlong campaign comprises various promotions and marketing strategies. The
calendar of events, detailing major events in Malaysia and other related activities
for VMY 2007 include the installation of the new king in January 2007 and the
countrys much anticipated 50th Independence Day celebrations in late August
2007. The VMY 2007 campaign is the third following two previous ones that were
successfully held in 1990 and 1994. It is expected to increase the number of foreign
arrivals to the country to 20 million in 2007.
Ministry of Tourism and Tourism Malaysias is hoping the VMY 2007

campaign can stimulate the growth of domestic tourism and eventually instill a
domestic travel culture among Malaysians. It is about time for Malaysians to develop
greater appreciation and deeper affiliation towards their homeland especially when
Malaysia is going to celebrate it 50th anniversary of the Independence Day in 2007.
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A marketing and promotion programme has been introduced to highlight

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VMY 2007 which coincides with Malaysias 50 year of independence. The two-
pronged international and domestic campaign aims to make Malaysia a top-of-mind
tourist destination and increase foreign tourist arrivals to the country.
International tourism has been the main emphasis among developing

countries for its impact on the balance of payment and foreign exchange rates.
Domestic tourism has been downplayed in favor of international arrivals. With the
recent economic slow down and health scare incidences at the international level as a
result of SARS, domestic tourism is seen as another alternative to generate revenue
within the country. As for domestic market, there was no statistic on the number of
tourists but based on the hotel guests by locality data, there was about 30 million
domestic tourists has check in to all the hotels in Malaysia in 2005 (Ministry of
Tourism Malaysia, 2006). See Table 1.2.
Table 1.2 Domestic and International Hotel Guest By Locality in 2005

BY LOCALITY DOMESTIC FOREIGNER TOTAL
Kuala Lumpur 7,242,972 7,891,917 15,134,889
Putrajaya 45,665 35,661 81,826
Selangor 1,633,080 1,586,772 3,219,852
Penang 2,267,532 2,084,377 4,351,909
Perak 1,445,149 523,365 1,968,514
Kedah 2,734,189 1,323,806 4,057,994
Perlis 76,917 13,230 90,147
Negeri Sembilan 1,107,716 285,461 1,393,177
Melaka 1,423,762 1,288,652 2,712,414
Johor 1,930,763 898,118 2,828,881
Pahang 3,371,705 2,323,723 5,695,428
Terengganu 820,941 129,326 950,267
Kelantan 614,539 74,981 689,521
PENINSULAR 24,714,929 18,459,389 43,174,318
MALAYSIA
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SABAH 2,637,761 2,174,558 4,812,318

LABUAN F.T 180,562 66,194 246,755
SARAWAK 2,393,166 738,319 3,131,485
GRAND TOTAL 29,926,418 21,438,460 51,364,878
Source: Ministry of Tourism Malaysia, 2006
Leave entitlement days remain the same in each calendar year. The key
consideration is that domestic tourists usually capitalize on long holidays where the
holiday falls on a weekend, and interstate tourists tend to target these long weekends
that result from the overlapping national and state-specific holidays. This is
motivated further by a tray of competitive domestic holiday packages over these
periods, designed to shift the planned holiday habit to a more spontaneous lifestyle.
With the development of AirAsia, Malaysia can expect to see a shift from the
norm of land travel to air travel. Aside from domestic tourists taking advantage of
long weekends, this will also boost interstate business to grow further. In the medium
to long term, Malaysia can see this as another catalyst to enhance disposable incomes
with value-for-money air travel.
The key driver to this success was the encouragement by the government to
travel within Malaysia to preserve the exchange rate a few years ago, supported by a
very competitive tray of domestic travel packages. This was further reinforced by
AirAsia's "Everybody Can Fly" campaign. There are differing views on how long
this tag line can increase and sustain domestic travel, and in particular air travel.
Land remains the primary mode of transport for domestic tourists, accounting
for over 90% of trips made (Euromonitor Report, 2005). Air travel was the second
favorite option, and is expected to increase further once competitive integrated
packages with cheap air travel and economical car rental options are available, as
these options will give domestic tourists access to a vehicle at the destination,
removing the need to drive. The trends for domestic destinations have remained
relatively stable and within expectations.
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The differentiation now is how much value a domestic tourist can optimize,
given a more or less level amount of spending. Despite the decline in receipts in
2003 of RM21 billion, compared to the 2002 figure of RM25 billion, the aggressive
programmes by Malaysia Tourism have proved to be effective by bouncing receipts
back to RM29 billion 2004 and has increase again to almost RM32 billion in 2005
(Euromonitor Report, 2005). This will position tourism as the second biggest revenue
earner in the Malaysian economy. Most importantly, to enhance further all other
related industries supporting tourism, such as food, shopping, entertainment, and
local travel, a more creative package must be created to enhance spending in the
related industries, and not have the major spending focused on accommodation. This
attempt to balance the spending portfolio of tourists will probably be the major
challenge over the next few years.
With the government's objective of putting tourism as the second biggest

revenue earner for the country's wealth, and the landscape of a healthy GDP,
disposable income, and leisure expenditure to stimulate demand, reinforced by the
various travel ministry and industry collaboration travel programmes to attract both
domestic and incoming tourists, travel retail offers a promising picture.
The tourism industry in Malaysia has progressively shown the transformation

from the low yield to the high yield tourism. In order to achieve utmost
transformation, the industry that plays an important role needs to be more innovative
and competitive. As tourists continue to seek a better quality tourist experience from
their visits, tour operators should be innovative in designing tour packages. If we
look at current developments in this industry, quality improvement must be seriously
considered as a useful instrument in achieving competitive advantage. Instead of
specialized, bespoke and designed tour packages, they should improve and offer
various inventive itineraries, especially in urban tourism packages in order to
improve the quality of tourist experience, which in turn, will ensure tourist
satisfaction.
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With Internet and online culture growing at a fast rate worldwide, and the
Asia Pacific region following this pattern, it is expected that travel agents will look at
this channel in a more serious manner. Even though many people now feel more
comfortable visiting a travel agent's office to make travel arrangements, eventually
travel agents must allow themselves to become virtual online offices, with an easy to
use online reservation channel where travellers can simulate different travel packages
at different budgets themselves, perhaps also viewing selected video clips of the
selected destinations.
Travelling in groups in package tours dominates as the primary revenue

earner for travel agents, despite being known to be very tiring, with tight travelling
schedules to allow tourists to cover as much ground as possible. Package tours
contributed over 78% of total agency value sales by service over the review period.
Selling air tickets or accommodation were equal second best choice for tourists, with
9% each of percentage value sales in 2004(Euromonitor Report, 2005). These sales
are aimed at the free and easy types, who are either on a budget travel option or have
been to the country before. Airlines, both traditional and low cost, are becoming very
competitive, and sales for flights only may see an increasing trend.
Although there is no primary data for the months in which holidays are taken,
the key drivers and holiday taking trend remains very similar every year. The
dominant motivators are the long school holidays towards end of the year, and the
major festive celebrations, which are Hari Raya Puasa, Chinese New Year and
Deepavali. A slight increase will also incur during the mid-year and third quarter
break, for people who take their quarterly time away from work, and also in line with
the shorter school holidays. (Euromonitor Report, 2005).
Travelling in groups in package tours dominates as the primary revenue

earner for travel agents, despite being known to be very tiring, with tight travelling
schedules to allow tourists to cover as much ground as possible. Package tours
contributed over 78% of total agency value sales by service over the review period
(1999-2004) and with the popularity of package tours, potential profits accrue for
travel agencies. ( Euromonitor Report, 2005)
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To gain profits, travel agencies need to carefully design and promote package
tours. Based on the similar research in Hong Kong by Chak-keung Simon Wong and
Wai-Yan Kwong, 2003, they have identified 30 selection criteria in selecting tour
packages (refer to Table 1.3). This study will use the same criteria during the pilot
study and will modify if the criteria is not suitable for Malaysian.
Table 1.3: Selection criteria for package tours
1. Safety of the tour

2. Guaranteed departure
3. Service quality of travel agency
4. Relaxing itinerary
5. Air-conditioned coach
6. Reputation of travel agency
7. Hotels quality & grading
8. Escorts, tour-guides quality &experiences
9. Sightseeing points included
10. Flight schedule
11. Time for traveling
12. Choice of destination
13. Items included in the tour price
14. Price of the tour
15. Non-repeated routing
16. Airlines used
17. Visiting natural environment
18. Freedom to join or not join self-paid activities
19. Number of days of the tour
20. Visiting cultural characteristics
21. Weather of the destination
22. Number of meals included
23. Traveling partners opinions &interests
24. Personal interests
25. Season of traveling
26. Familys &friends word-of-mouth recommendations
27. Hotels facilities
28. Allowance of special request for room or bed
29. Visiting a theme park & amusement park
30. TV advertisements & travel programs
(Source: Chak-keung Simon Wong and Wai-Yan Kwong, 2003)
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1.1 Background of the Problem
From 1999 to 2004, tour operators and travel agents in Malaysia grew from
1,214 and 927 to 1,240 and 1,015. As we know, all the package tours presented to the
market are very similar. Itineraries offered by travel agencies possess high degrees of
similarity with reference to entertainment and food. Besides, travel agencies are not
only competing with other travel agencies in the market, but also their products are
competing with products in the same product line or for the same destination.
Undoubtedly, how people select their tour is an important issue for travel agencies.
A good tour packages becomes the major drivers to bring urban tourism
cluster as dynamic economic sector in Malaysia especially our main destination such
as Pulau Langkawi, Pulau Tioman, Sabah, Sarawak and big cities like Kuala
Lumpur. It is considered as a product or service provided to the tourists to get more
information and experience pertaining to attractions and places of interest. At the
same time, tour package also has given a direct impact as a marketing medium in
product development and tourists attractions which comprised of various economic
scales.
Economic theory presumes that consumers have special preferences

consistent with their choice among alternatives. Economists also assume that
consumers are interested in value maximization by making choices best suited to
their goals, budget constraints and earning power (Roberston, Zielinski, & Ward,
1984). Thus, it is proposed that people would have a set of criteria or attributes for
the selection of consuming package tours.
However, many travel agencies believe the market simply accepts whatever
they supply. This may reduce operational costs as people have to take the product
because no alternative exists as most tour packages are very similar in Malaysia but
it might also mean that other opportunities for sales were being missed. Effective
tourism marketing strategies and development plans require marketers to not only
understand what people do on vacation, but also how they make their travel decisions
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(Fodness, 1992; Josiam & Hobson, 1995; Lang, O Leary, Morrison,1997). In

addition, satisfied customers are likely to return and make positive word-of-mouth
recommendations about the company (Duke &Persia, 1996).
Berry (1995) suggested that the cost of retaining current customers is much
lower than the cost of acquiring new customers in the service industry. By
understanding the selection criteria by which customers select their package tours,
tour operators could retain existing customers and save the higher cost of acquiring
new customers. Thus, the purposes of this study are to identify selection criteria that
are frequently used by tourists to select domestic package tours. Recommendations
for tour operators will help to enhance the attractiveness of domestic package tours
and their competitiveness.
1.2 Problem Statement
By understanding the selection criteria by which customers select their

package tours, travel agencies could retain existing customers and save the higher
cost of acquiring new customers.
1.3 Research Questions
1. What are the important criteria that tourists use to select domestic package
tours when they travel?
2. Is there any significant differences among the demographic groups?
3. What is the best suggestion that we can give to travel agencies about tailor-
making package tours for domestic tourists?
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1.4 Purpose of the Study
The specific objectives of this study are:

1. To identify the important criteria that tourists use to select domestic package tours.
2. To discover any significant differences among the demographic groups.
3. To make suggestions to travel agencies about tailor- making package tours for
domestic tourists.
1.5 Scopes of Research
The scope of the study is divided into five main areas. The following are the
areas covered in the study:
1.5.1 Literature review
The literature review focuses on the theoretical perspectives of the following

elements:
1.5.1.1 Evaluation of domestic tourists selection criteria of purchasing tour

package
The above assessment is intended to identify the attributes that helps

domestic tourists in choosing their travel package in Malaysia. This is the major part
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of the evaluation, as it not only examines the tourists selection attributes of

purchasing travel package but also how they rate the attributes based on the
importance of the attributes.
1.5.1.2 Evaluation of domestic tourists profile and trip characteristics
The profiling is intended to determine the typology and common traits of the
tourists in terms of their residencies; age; gender; educational attainment;
occupation; purpose of visit; party composition.
1.5.1.3 Recommendation of strategies in planning and design a domestic travel

package
The findings of this study may contribute significantly to the tour operator to
learn the profile of its domestic tourist and therefore planning and implement
effective positioning through its market segmentation strategies.
1.6 Study Approach
The study approach is divided into five stages. All the stages are described
briefly under several headings below (see Figure 1.1):
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1.6.1 Stage 1 Desk Study
The desk study involved a review of literature related to domestic tourists and
domestic tour packages. This stage also to identify and determine the selection
criteria in choosing domestic tour packages. Most of the data were based in
secondary sources such as journals, internet and publications.
1.6.2 Stage 2 Pilot Study
The pilot study was carried out in the second stage to understand and to
obtain general overview for tour packages offered to the tourists by the travel agents.
The general questions were set up and asked to the tourists who travel with domestic
tour packages. This pilot survey was to identify the selection criteria in choosing
domestic tour packages that is applicable to domestic tourists.
A pilot test was conducted to assess the reliability of the 30 attributes.

Twenty consumers were interviewed outside the four major travel agencies in the
commercial district in Kuala Lumpur. Some wordings were rephrased after the pilot
test to ensure that they were made to be more specific to travel services.
1.6.3 Stage 3 Data Collection
This study used a primary collecting data approach, which involved

distributing questionnaire forms to the tourists, and collecting the forms back from
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them. Besides, it also used secondary data to support some information in forming
the survey questions. In this stage, the survey question was thoroughly designed.
Questionnaire design is divided into four (4) aspects:

a) Section 1: Personal information state of residence, gender, age, race, marital
status, education level, occupation and average income per month.
b) Section 2: Travel Related Behaviours frequency of travel, choice of destination,
theme interest, preferable number of days traveling, tour information, traveling
partners, and main purpose of traveling.
c) Section 3: Selection Criteria for Travel (modification from Chak-keung Simon
Wong and Wai-Yan Kwong, 2003)
1.6.4 Stage 4 Analysis and Synthesis
The analysis will be using the independent sample t-test and one-way
ANOVA use to see the relationship between demographic groups to the choice of
domestic package tours.
1.6.5 Stage 5 - Recommendations
This final stage consists of the formulation of recommendations to improve

the design of package by travel agents. Besides, it also consist of recommendations
to develop the best practice in marketing, pricing, human resources, partnerships, and
networking to support the implementations of new design package.
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Figure 1.1 Study Flow Chart
Research Literature
Develop
Objectives review Questionnaire
a) Design a pilot study

question to see the
applicable of 30 selection
criteria to Malaysian tourists
b) After pilot study, design a
final questionnaire for the
survey.
Output Data Synthesis

Sampling
Collecting Data
Based on structured questionnaires for
tourists MATTA Fair
Recommendation
Data Analysis
SPSS (T-test and ANOVA)
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CHAPTER 2
LITERATURE REVIEW
2.1. Introduction
This chapter discusses the theoretical perspectives of domestic tourism, tour

package, reasons for package tour, domestic travel in Malaysia, travel product
preference, travel-related behaviours and package tours, all of which are important
concepts that build the framework of this research.
2.2 Definitions
2.2.1 Domestic Tourism
United Nations classified domestic tourism in 1994 in its Recommendations

on Tourism Statistics as follows; involving residents of the given country traveling
only within this country;
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2.2.2 Definition of Tour Package
The classification of the types of package tours depends on the degree of

prearranged travel services (Yamamoto& Gill,1999). There are several definition of
package tours:
A basic package tour typically only includes transportation and

accommodation (Mok &Armstrong,1995).
A tour package is an opportunity to purchase two of more different travel

components that otherwise would be purchased separately from different suppliers.
(Purzycki, 2000)
A package tour is a package trip consisting of two or more components such

as airfare, accommodations, a car rental, or other services; any type of travel that
includes sightseeing (Dennis L., 1994)
An all-inclusive package tour is designed as a trip planned and paid for a

single price in advance, which covers commercial transportation and
accommodation, meals and sightseeing, and sometimes with an escort or guide
(Sheldon & Mak, 1987; Morrison, 1989).
2.3 Reasons for package tour
Touche Ross (1975) has stated that overall convenience and tour economies
are the most frequently cited reasons for travelers purchasing a package tour.
Travelers normally expect package tours to be the best method of seeing as much as
possible combined with comfort, scenery and experienced tour guides (Duke &
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Persia, 1993). Enoch (1996) indicated that a package tour is a rational and effective
way for tourists to visit the largest number of sites on a trip in a given period, to
travel in a relatively safe way to faraway countries with strange cultures, to avoid
unreliable transportation and doubtful standards of hygiene, while being usually less
expensive than taking an individual trip to the same destination. With convenience in
planning and departure dates, economic pricing, friends recommendations, and the
desire for specialized activities and experience, tourists can literally sit back and
enjoy their trips by taking package tours (Cohen,1972; Middleton,1991; Hsieh,O
Leary, & Morrison, 1992, 1994; Liberson, 1994).
Studies on peoples choice of package have shown that the reasons for
choosing the type of package are the itinerary offered, the price, friends
recommendations, and the convenience of the departure dates (Quiroga 1990). Duke
and Persia (1993) stated that travelers expect the tour to be the best method of seeing
as much as possible in a congenial atmosphere, along with comfort, scenery, and
experienced tour guides. Hsieh, OLeary, and Morrison (1993-94) mentioned that
both package and non package travelers want to see as much as possible and to
experience new and different lifestyles while traveling overseas.
Package travelers prefer to leave their arrangements to travel agents and

cotravelers. Most of them take trips because they want to learn new things, increase
their knowledge, and enjoy high-quality restaurants, first-class hotels, resort areas,
well-developed entertainment, and guided tours that enable them to see all the sights.
Apart from the above, Philips and Webster (1983) stated that travelers joining an all-
inclusive tour by paying a lump-sum in advance have a tendency to expect a good
experience and a high-quality product.
Personal safety is another major reason for taking package tours. Tourists
who participate in package tours can take advantages of having a feeling of safety,
and the ease of getting to know each other (Quiroga, 1990).Mok and Armstrong
(1995),Wong and Lau (2001) claimed Hong Kong tourists like to travel in groups
because this creates feeling of security and familiarity, and serves as a means to
reduce perceived risk.
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2.4 Domestic travel in Malaysia
Previous studies clearly report that people from different cultures have
different preferences, expectations, and so travel consumption patterns (Reimer,
1990;Mok & DeFranco, 1999). The population of Malaysia is more than 26 million
of which Malays who make up about 57% of the population are the predominant
group with Chinese, Indians and other ethnic groups making up the rest (Tourism
Malaysia Website, 2007). We have noted that a planned holiday culture among
Malaysians today is when more and more of Malaysian people travelling within the
country for their vacations. This is definitely a break-through, as previously when
Malaysians think of going for a holiday, they normally would go back to their
kampung or village and stay in the family houses. Nowadays, they have become
more sophisticated by staying in hotels and holidaying at resort areas throughout the
country.
There is quite a number of domestic surveys being done in Malaysia. But

from the point of view of travel agencies Malaysian travellers are becoming
increasingly price sensitive, driven by special deals in a market driven by airlines.
The market is also moving toward last minute purchasing patterns as consumers hold
out for better deals closer to actual travel dates. Consumers still prefer to book
through travel agents. However these are a noticeable trend with consumers going
direct especially for accommodation. When buying travel there are a number of
distribution channels available to consumers. They may research and book their trip
using a combination of traditional distribution partners and online options.
Deeply affected by Malaysian cultural values, the Malaysian are group

oriented. Compared with Western tourists, Malaysian tourists are more willing to
travel in groups, and therefore take more all-inclusive package tours especially when
they go for overseas. But in the case of domestic travel especially those who are
staying in Peninsular Malaysia, they prefer to go to the destination themselves and
book for the hotels through agent or just walk in. They only buy package with
transportation if the destination is far out reach for example Sabah and Sarawak or an
19
island. The culture of visit friends and relatives is still bear in their mind but the
tendency to have some vacation and travel with their family or friends also lead them
in buying and using some of the tourism components such as souvenirs and
accommodation. The profile of the Malaysian domestic travelers is almost the same
as Hong Kong tourists because of the similarity in cultural Asian value. Malaysian
travelers can be classified as near psychocentrics, who prefer comfort, a familiar
atmosphere and undertaking a low level of physical activities. In addition, the
Malaysian rely significantly on word-of mouth communication, and are easily
affected by opinion leaders. Family and friends recommendations also viewed as a
major consideration for Malaysian travelers selecting a vacation destination and

travel agency, especially for first-time travelers.
Domestic tourism expenditure has been flat in recent years and has lost share
against overseas travel as well as other ways consumers spend their money
(household goods, media, communications etc.) The issue is where the Malaysians
have low preference for domestic versus outbound. There has been a boom in
overseas travel by Malaysian in the past three years fueled by their high preference
for international travel matched by a strong currency and cheaper outbound fares and
packages offered by Air Asia which is began its regional flights in November 2003.
Preference for Malaysian holidays has not grown at the same rate and the perception
and the reality is that the cost of domestic travel has become less competitive
with overseas destinations.
Taking into cognizance the importance and vast potential in domestic

tourism, a number of measures were undertaken to enhance its development. In this
regard, aggressive promotional activities were carried out under the theme Cuti-cuti
Malaysia with the aim of encouraging domestic travel and reducing currency
outflows. The tourism promotions at the state level such as the Visit Perak Year and
the Visit Selangor Year further boosted domestic tourism. In addition, the declaration
of holidays for the public service for the first Saturday of the month effective 1
January 1999 and also the third Saturday of the month effective 1 February 2000, had
a positive effect on domestic tourism. The number of domestic tourism trips
20
increased by 89.9 per cent at 15.8 million trips in 1999 compared with 8.32 million
trips for the period August 1997 to July 1998. The number of domestic hotel guests
also increased by 46 per cent to 1.02 million in March 2000 compared with 698,000
in March 1998. The rapid improvements in the transportation system during the
Eight Malaysia Plan period provided faster and easier access to tourist destinations,
which facilitated the increase in domestic tourism (Ninth Malaysia Plan, 2006).
In order to stimulate the domestic travel among Malaysian, Tourism

Malaysia, with the cooperation of Malaysian Association of Travel and Tour Agents
(MATTA), Malaysia Airlines (MAS), AirAsia, Keretapi Tanah Melayu Berhad
(KTMB), Bumitra and Malayan Banking Berhad (Maybank), produced the holiday
packages to increase the publicity on Visit Malaysia Year 2007 campaign and
encourage a planned holiday culture among Malaysians. The VMY 2007 Domestic
Holiday Packages brochures, published in Malay and English, contain 100 selected
holiday packages with prices as low as RM5. They comprise various unique theme
holidays such as VMY 2007 events, islands & beaches, nature/eco, adventures,
wedding/honeymoon, snorkelling/diving, city/theme parks/shopping, golfing/spa,
heritage trails and homestay (refer to Table 2.1). The holiday packages are offered to
all Malaysians permanent residents of the country. They are valid from 1 January till
30 June 2007 (Tourism Malaysia, 2007). There are 43 travel agencies and tour
operator involved in this Visit Malaysia Year 2007 Domestic Holiday Packages
(refer Table 2.2). Those who are involved in the program were specialised in
domestic travel (Tourism Malaysia, 2007).
Table 2.1 VMY 2007 Domestic Holiday Packages

No. Package Theme Package
1 Islands and Beaches Pulau Pangkor Island Hopping Packages 3 Days/2 Nights
Pulau Pangkor Island Hopping Packages 2 Days/1 Nights
Pulau Sembilan Fishing Adventures 2 Day/1Night
Langkawi 3 Days/2 Nights
Tioman Island Ala Kampung (Budget Package) 3 Days/2
Nights
Chandat Sotong at Kapas Island 3 Days/2Nights
Kelong Fishing Package Endau, Johor 3 days/2 Nights
Romancing The Beach Port Dickson 2 Days/1 Nights
Cherating, Pahang 2 Days/1Night
Pangkor Escapade Teluk Dalam 3 Days/2 Nights
Sunset Escapade Kota Kinabalu Sabah 3 days/2 Nights
Borneo Island Paradise 3 Days 2 Nights
D-coconut Island Resort Pilau Besar Mersing 3D/2N
21
No. Package Theme Package

2 Nature/Eco Sandakan 3 Days/2 Nights
Tawau 3 Days/2 Nights
Miri 3 Days/2 Nights
Pulau Perhentian 3 Days/2 Nights
Pulau Redang 3 Days/2 Nights
Sarawak Wildlife and Longhouse Experience Day Trip
Tasik Kenyir Terengganu 3 days/2 Nights
Eco Treasures of sabah 6 Days/5 Nights
Organic and Kluang City Tours 2 Days/1 Night
Sandakan 4 Days/3 Nights
Mountain High to Ocean Deep Package 4 Days 3 Nights
The Land of culture and Nature Cameroon Highlands 3
days/2 Nights
The Glowing Fascination-Fire Flies Kuala Selangor Day
Trip
Special Student Packages (KL Tower/Bukit Nanas Forest
Reservation/National Telecommunication Museum)
Bukit Nanas Day Trip
Musim Buahan di Tekam Resort Bersama Keluarga 3
days 2 Nights
Tanhung Jara Escapade 3 days 2 Nights
Educational Programma Lower Kinabatangan Sabah 5
days/4 Nights
Experience Eco Lifestyle In Perlis 4 Days/3 Nights
Longhouse Experience in Sarawak 4 Days /3 Nights
3 Adventures Taman Negara 3 Days 2 Nights

Jeram Besu Kuala Lipis 2 days/1 Night
Gua Tempurung Explore Packages
Endau rompin Adventure Package 3 days/2 Nights
Taman Negara Sungai relau 3 Days/2 Nights
Taman Rimba Kenong Kuala Lipis 2 Days/1 Night
G-FORCE X Anty Gravity Machine
Taman Negara Plus Muatiara Taman Negara
3 Days/2 Nights and 4 Days/3 Nights
Mount Kinabalu Challenge 3 Days/2 Nights
Magis of Mulu Tour 4 Days 3 Nights
Taman negara Nature Package ex Kuala Tahan 3 days/2
Nights
Explore the Adventure in Gua Musang, Kelantan 5
Days/4 Nights
Spa and Adventure Package-Pulau Jerejak Resort and
Spa Penang 3 Days/2 Nights
Mulu Adventure 3 Days/2 Nights
22
No. Theme Package

4 Snorkelling/Diving Perhentian Island Back to Nature Package @ jungle Bay
3 days/2 Nights
Underwater Treasure Pulau Perhentian 3 Days/2 nights
Kapas Island 3 Days/2 Nights
Islands and Fun Bubu Long Beach resort 3 days 2 Nights
Discover Beautiful Tioman Island Package 3 Days/2
Nights
Gem Islan Package Terengganu 2 Days/1 Night and 3
Days/2 Nights
Tenggol Island Experience The Beauty of South China
Sea 3 Days 2 Nighs
Redang Lang Tengah Island Snorkelling Package 3 days
2 Nights
Be a Survivor! Pulau Tiga Sabah 3 Days/2 Nights
Pulau redang Terengganu 3 days 2 Nights
5 City/Theme Parks/Shopping Penang and Ipoh Tambun Hot Spring and Lost World 4
Days/3 Nights
Penang 3 Days/2 nights
Kuala Lumpur3 Days/2 nights
Johor Bahru 3 Days/2 nights
Kuching 3 Days/2 nights
Kota Kinabalu 3 Days/2 nights
Pearl of The Orient Penang Island 4 days 3 nights
Kota Bharu City and Country Tour Package 3 Days 2
Nights
Kuching Shopping Spree 3 days 2 Nights
Enjoy With Your Family at Genting Highland 3 Days/2
Nights
Enjoy With Your Family at sunway lagoon Theme Park
N Shopping 3 Days 2 Nights
Ipoh City Tour, Theme Park and Gua Tempurung 3 Days
2 Nights
Sunset Cruise Danga Bay Johor Bahru 2 Days/ 1 Night
Penang Fre and Easy 3 Days a2 Nights
Kuching Free and Easy 3 Days 2 Nights
Labuan Free and Easy 3 Days 2 Nights
Langkawi Super Deals Package 3 Days 2 Nights
Langkawi Family Best Value Package 3 days 2 Nights
Langkawi Family Great Value Package 3 Days 2 Nights
Penang Discovery Package ex Penang 3 days 2 Nights
A Famosa Crnival 3 Days 2 Nights
Genting-City if Fun 3 Days 2 Nights
Ladies Special Package Langkawi Cik Kiah Shopping
Spree 3 Days 1 Night
Ladies Special Package Kelantan Cik Kiah Shoppping
Spree 3 Days 2 Night
Jom Pi Shopping Kat Perlis 3 Days 2 Nights
Visit The Garden City of Putrajaya
23
No. Theme Package

6 Wedding/Honeymoon Penang Island Romance 3 Days 2 Nights
Honeymoon Retreat Perhentian Island 3 days 2 Nights
Honeymoon Kota Kinabalu Sabah 5 Days 4 Nights
Dreams Beyond Expectations at Gayana Island Kota
Kinabalu 4 days 3 Nights
Romancing Honeymoon in Borneo Rainforest 3 days 2
Nights
Romantic Escapade at Teluk Dalam resort, Pangkor
Ialand 3 Days 2 Nights
Silver Package Menara Kuala Lumpur
Langkawi Island Honeymoon Package 3 days 2 nights
The Lovers Escapade 3 Days 2 Nights (Awana porto
Malai Langkawi)
7 Golfing/Spa Relax Your Mind With Nusantara Spa 3 Days 2 nights

(The Aryani Boutique Resort)
The Pulai Golf and Spa Package 2 Days 1 Night
Rasai Cabaran Golf Langkawi 2 Days 1 Night
Explore Nexus Karambunai Package Kota Kinabalu 2
Days 1 Night
Sabah Golfing Package Kota kinabalu 3 Days 2 nights
Melaka Golf Getaway 2 Days 1 Night
Unlimited Golf Package at Hornbill Golf and Jungle
Club 2 Days 1 Night
Swing Like Tiger 2 days 1 Night (Bukit Tinggi Golf and
Country Club Suites
Glof Experience 5 Days 4 Nights
Pedu Lake Break Away Kedah Self Drive Vacation 3
Days 2 Nights
8 Heritage Trails Living Heritage and Culture by Trishaw, Penang 3 Days

2 Nights
Historical Melaka Tour Day Trip
Melaka Heritage and City Tour 3 days 2 Nights
9 Homestay Penang-Kampung Mengkuang Titi Homestay 3 days 2

Nights
Penang-Kampung Relau Homestay 3 days 2 Nights
Lonek Homestay Jempol Negeri Sembilan 3 Days 2
Nights
Sri Menanti Senaling Homestay Negeri Sembilan 3 days
2 Nights
Sarawak Salako Homestay and Eco Tourism 3 days 2
Nights
Banghuris Homestay Sepang Daytrip and 2 Days 1 Night
Kampung Pelegong Homestay Negeri Sembilan 3 Days 2
Nights
Source: VMY Domestic Holiday Packages Booklet

24
Table 2.2 Travel Agency Involved in Visit Malaysia Year 2007 Domestic
Holiday Packages
No. Travel Agency
1. Admiral Tours and Travel Sdn Bhd
2. Air Asia Go Holidays
3. Asia Experience Tours Sdn Bhd
4. Bonus Tours and Travels Sdn Bhd
5. Borneo Inbound Tours and Travel
6. Colossus Travel and Tours Sdn Bhd
7. Diethelm Travel Management Sdn Bhd
8. Discovery Overland Holidays
9. Energy Holidays Sdn Bhd
10. FB Travels Sdn Bhd
11. Gemala Travel and Tours Sdn Bhd
12. Global Holidays Sdn Bhd
13. Grace Holidays (M) Sdn Bhd
14. Housecoff Travel and Tours Sdn Bhd
15. Hydramas Travel and Tours
16. Inter Borneo Tours Sdn Bhd
17. Jaznal Travel Group
18. JETT Holidays and Travel Sdn Bhd
19. Keretapi Tanah Melayu Berhad
20. MAS Golden Holiday
21. Masenang Tours and Travel Sdn Bhd
22. Meizen Travel and Tours Sdn Bhd
23. Menara Kuala Lumpur Sdn Bhd
24. NZ Holidays Travel and Tours
25. Olympik Holidays Sdn Bhd
26. Pangsajaya Holidays Sdn Bhd
27. Ping Anchorage Travel and Tours Sdn Bhd
28. Real Holidays
29. Red Ape Encounters and Adventures Sdn Bhd
25
No. Travel Agency

30. Sahaj Vacation Network
31. Sebagus Travel and Tours Sdn Bhd
32. Sri Comm Travel Services Sdn Bhd
33. Sri Kedawang Travel and Tours (W) sdn Bhd
34. Sri Sutra Travel
35. SRT Travel and Tours
36. Stadthuys Tours and Travel
37. Summer Cruise Holiday (S) Sdn Bhd
38. Tahan Holidays Sdn Bhd
39. TM Tours and Travel Sdn Bhd
40. Topaz Travel and Tours Sdn Bhd
41. Triways Travel Network
42. Way Travel and Tours
43. YHA Travel and Tours (M) Sdn Bhd
Source: VMY Domestic Holiday Packages Booklet
In order to encourage domestic tourism, Malaysian government also has

given incentive to the tour operator in Malaysia by extending income tax exemption
for tour operators on income derived from the business of operating domestic tour
packages participated in by at least 500 inbound tourists per year or 1,200 local
tourists per year for another 5 years until year of assessment 2011. For this purpose, a
domestic tour package means any tour package within Malaysia participated by a
local tourist inclusive of transportation by air, land or sea, and with at least one
nights accommodation. Tour operators also be given 50% excise duty exemption on
locally assembled 4 wheel-drive vehicles.
During the Ninth Plan period, the development allocation for tourism will be
RM18 billion, as shown in Table 2.3. The allocation focuses on a combination of
programmes that will maximize returns to the industry and economy. The major
programmes that will be implemented include the tourism-related infrastructure
facilities, preservation and conservation of national historical sites, beautification and
environment protection, tourism product development as well as the provision of
26
medium budget accommodation. The tourism industry will be a major contributor to

the growth of the economy during the Ninth Malaysia Plan period.
Table 2.3 Development Allocation For Tourism, 2001-2010 (RM million)

Programme 8MP 9MP
Expenditure Allocation
Beautification/Cleanliness & Environmental 243.1 652.1
Protection
Facilities and Infrastructure 459.4 1,034.8
Accommodation 31.7 115.0
Others 49.4 46.0
Total 783.6 1,847.9
Sources: Ninth Malaysia Plan, 2006
2.5 Travel product preferences
Some writers like Boorstin (1964) and Ritzer (1993) are very critical of the
package tour as a phenomenon and claim that the package tourists, in effect, never
visit the places they travel to. Spending their days in the isolation of the tour bus and
their nights in the sterile environment of the hotel (as opposed to the local inn or bed-
and-breakfast accommodation), they hardly experience the real, authentic world in
the countries they travel through. At most they participate in specially organized
events (e.g., dances, exhibits, or dinner parties), which are supposed to present a
sample of local culture, but are in fact only illusions.
MacCannell (1976), on the other hand, claims that the package tourists seek,
and mostly find, authenticity away from their own everyday life. There is some
disagreement in the literature as to how much authenticity the tourist wants (Pearce
and Moscardo 1986) as well as to what, indeed, authenticity means to different
27
people in connection with the touristic experience. Gottlieb (1982) points out that the
liminal stage (i.e., the actual tourist experience) involves the inversion of the
everyday. Therefore, the middle-class tourist will seek to become a peasant for a
day by traveling rough, whereas the working-class tourist wishes to be pampered
and feel like a king/queen for a day. Indeed the package tour market offers tours to
accommodate this variety of requirements.
Goodrich (1977) identified scenic beauty, pleasant attitudes of local people,

suitable accommodation, rest and relaxation as the top four benefits that tourists seek
from their journey. Stevens (1992) pointed out that beautiful scenery, quality of
accommodation and different cultures are important at the initial stage of tourists
vacation destination selection. A survey conducted by Holiday Which (2001) showed
that accommodation, convenience of travel arrangements, value for money, brochure
description and services of a representative are the five important considerations for
consumers choosing their tour operators.
A number of studies have described the demographic characteristics of

travelers when they adopt the services of travel agencies. Persia and Gitelson (1993)
stated that women rate information search, physical aspects of the agency, and buyer
value as more important than do men. With regard to the age, Meidan (1979)
identified and compared determinant factors in influencing the selection of a travel
agency for a foreign package tour holiday by two groups of respondents. One group
comprised respondents younger than age 45, and the other comprised respondents
equal or older than age 45. Respondents younger than age 45 found that most
important to them were (1) the agencys communication ability, (2) in-flight and
hotel service quality, (3) convenience of access to the agency, (4) price, and (5)
variety of package tour content offered. For respondents equal or older than age 45,
most important were (1) in-flight and hotel service quality, (2) convenience of access
to the agency, (3) advertising, (4) price, and (5) booking service.
. Tourists older than age 45 appear most likely to choose a package holiday
(Quiroga 1990). Age tends to be inversely related to the amount of search time
(Newman 1977; Runyon and Stewart 1987). Looking into the educational level,
28
Woodside and Ronkainen (1980) concluded that upscale white-collar travelers and
those traveling by air tend to use travel agencies extensively. Andereck and Caldwell
(1993) mentioned that people with lower educational levels tended to rate the media
as more important in selecting travel agencies than did those with higher educational
levels. Finally, individual income level may influence consumer behavior in decision
making. People with higher incomes and education levels tended to search more for
product or service information (Runyon and Stewart 1987).
A number of features are characteristic of all package tours. One, a package

tour is a rational and efective way of accomplishing a goal: visiting the largest
number of sites on a trip of a given duration; traveling in relative safety to faraway
countries with strange cultures, unreliable transportation, and doubtful standards of
hygiene. Two, a package tour is usually less expensive than an individual trip to the
same places. The tour organizer, who buys in bulk, is able to offer hotel
accomodation, meals, and transportation at a lower price than that which is available
to the individual tourist. Three, the prospective tourists have no say in the
composition of the contents of the package they purchase. They buy a predesigned
itineray, albeit chosen from a large number of such itineraries offered by their travel
agent. Four, the package tour is not flexible: once chosen, the tour has to progress
exactly according to the specified plan in an entirely predictable way. The client
cannot alter the package en route; indeed, it is the contractual duty of the tour
operator to ensure that the tourist receives everything exactly as it was promised in
the printed material describing the tour.
Group or all-inclusive travel is likely to retain its popularity for many Asian
groups for some time to come, especially for international trips (Fuller, 1994;
Hooper, 1995). In many Asian countries, such as Taiwan, Japan, Korea, and China,
etc., the group package tour (hereafter abbreviated GPT) is one of the main modes of
outbound travel (Prideaux, 1998; Tourism Bureau, 1998; Wang & Sheldon, 1995;
Nozawa, 1992). Surprisingly little research has been directed toward improving our
understanding of the grounded service features of the GPT. In order to fill this gap
and thereby extend the theory of group travel, this study conducted qualitative
research to identify and explored the critical service features of the GPT.
29
Outbound travel can be essentially classified into two types: the GPT and the
foreign independent tour (hereafter abbreviated FIT). There are two main differences
between GPT and FIT. First, the buying process is different. In the GPT buying
process, the customer might buy the GPT product through third parties such as
friends, relatives, parents, companies, schools, churches, or through retail travel
agencies. On the contrary, FIT customers usually contact the travel agencies
personally in order to get travel information and counseling (Persia & Gitelson,
1993; Kent, Meyer & Reddam, 1987; Bitner & Booms, 1981). Second, the GPT
customer relationship is mediated almost entirely through a single `contact
employeea. That is, in the GPT, the travel agency would assign a tour guide to escort
the tour. In some countries or cities such as Singapore, Malaysia, Thailand, Korea,
Paris, Vienna, and London, etc., local guides are also provided, but this is not
necessary for FITs. The GPT itinerary was then divided into nine sectors; pre-tour
briefng, airport/plane, hotel, restaurant, coach, scenicspot, shopping, optional tour,
and others, as shown in Figure 2.1.
Figure 2.1 The Sectors of Group Package Tour
Sources: Kuo-Ching et.al, 2000

30
2.6 Travel-related behaviours and package tours
A survey by Touche Ross and Company (1978) revealed that travel expertise
was ranked as the most important reason for agency usage. Bitner and Booms (1982),
and Bellur, McNamara, and Prokop (1988) mentioned that knowledgeable travel
agents are important in peoples selection of a travel agency. Hruschka and Mazanec
(1990) commented that the quality of counseling provided by travel agents is an
important factor of differentiation among competing agencies.
Service quality is a determinant in selection of travel agency, particularly in

relation to the interaction of travel agents and customers in the service delivery
system (LeBlanc 1992). Solomon et al. (1985) commented that service quality is
determined mostly by the customer-personnel interactions that take place during the
service encounter. Improving service quality is the key to retaining customers (Berry
1995; Poon 1993). LeBlanc (1992) identified nine factors that categorized travelers
perceptions of the service quality of travel agencies. His findings revealed that the
corporate image of a travel agency appears as the most determinant factor in
affecting travelers evaluation of the service quality of the agency.
Persia and Gitelson (1993) suggested that consumers evaluate travel agency
performance based on five general service aspects: information search, technical
booking skill, physical quality, corporate quality, and interactive quality. Some
studies have shown that the provision of a nice extra can be a competitive tool.
According to Holloway and Plant (1992), the tourism product can comprise a place, a
service, and on occasion, certain tangible products such as free flight bags or a
complimentary bottle of duty-free spirits to encourage booking. A popular belief is
that customers can be seduced from a competitor if an attractive enough list of free
extras is offered (Persia and Gitelson 1993). Purchasing a travel product is the same
as purchasing other goods; consumers tend to buy things that they consider to be the
value for money.
31
In addition of travel product preferences, travel related behaviors also play an

important role in the package tours selection. Quiroga (1990) stated that the
necessities and interests of people who travel alone are very different from those who
travel with relatives or friends. In fact, most package travelers are accompanied by
their spouses, family members or friends. It is suggested that this is probably because
package tours permit them to avoid family clashes and compatibility problems
(Smith,1979; Crompton,1979; Pearce,1982). Besides, people who are traveling with
family members tend to place more emphasis on facilities and safety, and symbolic
accessibility factors than those who are traveling alone (Lai &Graefe,2000).
It is also suggested that people are more willing to take a package tour for
their first-time international pleasure travel, and normally place a higher value on
word-of-mouth communication than more experienced repeat travelers (Sheldon
&Mak,1987;Enoch,1996; Andereck &Caldwell,1993;Lai &Graefe,2000).
Based on the similar study of this research, Chak-keung Simon Wong and
Wai-Yan Kwong (2003), have identified the most important criterion tour package
selection. Among the 30 selection criteria given, the safety of the tour was rated as
the most important criterion for package tours selection. Guaranteed Departure
came second, followed by service quality of travel agency,relaxing tour
itinerary, and air-conditioned coach. TV advertisements and travel programs,
visiting a theme park and amusement park were viewed as not important for
choosing a tour. (Refer to the Table 2.4 the list of the selection criteria is arranged
accordingly by its number)
32
Table 2.4 Selection criteria for package tours

No. Criteria
1. Safety of the tour
2. Guaranteed departure
3. Service quality of travel agency
4. Relaxing itinerary
5. Air-conditioned coach
6. Reputation of travel agency
7. Hotels quality & grading
8. Escorts, tour-guides quality &experiences
9. Sightseeing points included
10.Flight schedule
11.Time for traveling
12.Choice of destination
13.Items included in the tour price
14.Price of the tour
15.Non-repeated routing
16.Airlines used
17.Visiting natural environment
18.Freedom to join or not join self-paid activities
19.Number of days of the tour
20.Visiting cultural characteristics
21.Weather of the destination
22.Number of meals included
23.Traveling partners opinions &interests
24.Personal interests
25.Season of traveling
26.Familys &friends word-of-mouth
recommendations
27. Hotels facilities
28. Allowance of special request for room or bed
29. Visiting a theme park & amusement park
30. TV advertisements & travel programs
(Source: Chak-keung Simon Wong and Wai-Yan Kwong, 2003)
Lai & Graefe(2000) and Wong & Lau(2001) in their previous research also
found that safety was the most important package tours selection criterion. Due to the
September 11th incident and frequent car crashes of tours in China (Oriental Daily
2001ac), the demand for safety in package tours is easily understood.
33
Chak-keung and Wai-Yan (2003) also found that Guaranteed departure as

the second most important selection criterion for Hong Kong people choosing
package tours. This is quite specific for Hong Kong package travelers because not all
tours are guaranteed departure even though full payment has been made in advance.
Most tours will depart only if the number of travelers reaches a certain level. It is
quite common in Hong Kong to see that many travel agents transfer their
customers to another similar package, but depart on a different date, when the
number of travelers cannot reach a minimum level. Therefore, it reflects clearly from
this study that customers dislike this arrangement although travel agents may argue it
is necessary for survival. On the other hand, customers may cancel the tour. In
addition, Hong Kong residents tend to have a tight schedule for holiday
time. Therefore, adhering to the original itinerary is important while at the same time
the case of canceling the tour is rare from the customer side in Hong Kong.
Tour arrangements, service quality and routing were the important factors for
Hong Kong residents in selecting their package tours (Chak-keung and Wai-Yan,
2003). It could be explained by the market being experienced consumers of package
tours. The more experience one has, the more requirements and values one demand.
Additionally, human want is arguably unlimited, so clients who are satisfied at one
time may well desire more the next time. Time was found to be the third most
important selection factor. Under the culture of feeling rushed, Hong Kong
residents, especially those in work, normally bear in mind that time is money.
Thus, time has become one of the major considerations for Hong Kong people
traveling abroad.
Based on Chak-keung and Wai-Yan (2003) research also found people with
more package traveling experience were found to pay more attention to tour
arrangements and service quality, implying that people become more discerning
through experience of past experiences of ill-conceived schedules and poor service
quality. The results also indicate that Hong Kong people generally pay higher
attention and impose higher requirements on tour selection when they plan to travel
with their family, relatives and with children. Since the needs of children were
different from adults, some special services and facilities might be needed for
34
children, especially for children less than three years of age. Besides, package tours
are priced on a per person basis (Sheldon & Mak, 1987). Although the price of
package tours for children is lower than that for adult, children are still required to
pay separately. Therefore, it was rational for people traveling with children to be
more concerned with tour arrangements and the value of tours.
The least important criterion in tour selection by Chak-keung and Wai-Yan

(2003) research resulted that TV advertisements and travel programs. Many
respondents reported that TV advertisements and travel programs were viewed as
entertainment only which did not affect their choices of package tours.
35
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Techniques of Analysis
This chapter discusses the research methodology that has been used in this
study.
3.1.1 Research Method
This research undertakes an approach that considers the relative importance of

itemized components listed upon a questionnaire. The first part is asking about the
demographic background of the respondent. The second part consists of a set of
questions asking respondents to indicate the their travel behaviour pattern. The third
part of the questionnaire is to know the importance level of the selection criteria in
choosing their domestic travel package. The selection criteria (Chak-keung Simon
Wong and Wai-Yan Kwong, 2003) are presented in the questionnaire to be
36
evaluated by the respondents. A five-point Likert-type scale ranging from very

important to very unimportant is used. Researcher will be using the independent
sample t-test and one-way ANOVA use to see the relationship between travel-related
behaviours to the choice of all-inclusive package tours.
3.1.2 Survey Instrument
The survey instrument that is utilized in this study is a tourist survey, through
questionnaires and researchers observation.
3.1.2.1 Questionnaire Development

The questionnaire instrument consisted of three sections.
Section 1: Personal information

The first section dealt with the demographic background of the respondents.
Seven fixed alternative questions, in nominal and interval scales, were asked
about the respondents residencies, gender, age, marital status, education,
occupation and income levels. Data from this section were linked to the third
section for studying relationships between these factors and the criteria used
for selecting domestic package tours.
Section 2: Travel Related Behaviors

The second section designed to gather general information relating to travel-
related behaviors, such as frequency of joining package tours, travel
destination for their next package traveling, the size of the travel party and so
on.
37
Section 3: Selection Criteria For Travel (modification from Chak-keung

Simon Wong and Wai-Yan Yan Kwong, 2003)
The third part, travelers were asked to rate the importance of the each of the
attributes affecting their choice of domestic travel package. These 21
attributes covered various aspects of the tour package offered by travel agent
including product and service features, price and attraction. The 21 attributes
were rated on a 5-point Likert-type scale, ranging from 1 (very unimportant)
to 5 (very important).
3.1.2.2 Observation
An observation on tourist activities and behaviours on site is also conducted

to support the data collected. Informal activities engaged by the tourists can be used
to further elaborate the rationale of their evaluations. The tourist questionnaire is
prepared in English using simple words that is straight forward and can be
understood easily. A pilot test has also been conducted prior to the actual survey to
refine the wording of the instructions and questions so that the respondents have
better understanding in completing the questionnaire.
3.1.3 Population and Sampling
The researcher will be applying the convenience sampling due to the limited of
time. The survey will be conducted during the MATTA Fair at Putra World Trade
Center in Kuala Lumpur. The Fair will be held on 16th until 18th March 2007 and
200 respondent outside the Domestic Hall will be selected randomly to fill in the
questionnaires.
38
Respondents were selected only when they fulfilled the following three conditions:
1. Respondents must be a Malaysian.
2. Their ages must not be less than 18; and
3. They indicated that they planned to travel within 1 year from the date of the
survey.
3.2 Study Area
Kuala Lumpur City Centre is selected as the study site to conduct this study,
as it is one of the highest population city in Malaysia. The survey will be conducted
during the MATTA Fair at Putra World Trade Center in Kuala Lumpur. The Fair will
be held on 16th until 18th March 2007 and 200 respondent outside the Domestic Hall
will be selected randomly to fill in the questionnaires.
3.3 Significance of the Study
Research on domestic tourism in Malaysia is still at its infancy stage. The

findings of this study may contribute significantly to the tour operator to learn the
profile of its domestic tourist and therefore planning and implement effective
positioning and market segmentation strategies.
Domestic tourists are like international tourists who are consumers that
purchase a number of diverse travel and tourism products and services. It is
important to recognize that not all domestic tourists want for the same need and
travel motivations. Range of products and experiences need to be created and target
39
to meet the needs of the most appropriate market segment. This allows the domestic
tourism providers have a clear understanding of how their products to be in demand.
Not only their products will meet the needs of the domestic tourists but also to know
whether to advertise and to select the sales messages to inform and persuade
consumers to purchase the products.
This study is necessary to tour operator in determining the most suitable

domestic tour package design. Thus, this study is to evaluate the level of importance
of the selection criteria in the quality of tour packages that have been practiced by
major tour operators in delivering benefits to increase domestic tourists satisfaction
and to assist in product development and tourist attractions in Malaysia.
40
CHAPTER 4
DATA ANALYSIS
4.1 Introduction
This chapter is divided into three sections. The first section presents the
analysis of tourist demands, which include the respondents profile. The second
section examines the travel related behaviour, while the third section discusses
results for selection criteria for travel in choosing the domestic tour packages. The
results and discussion are supported by table, chart and diagram formats. The survey
has been conducted at MATTA Fair on 16th, 17th and 18th March 2007 in Putra
World Trade Center, Kuala Lumpur. A total of 127 survey forms that have been
returned back are valid and fully completed, and thus can be used for analysis.
Among the difficulties faced is identification of tourists that are planning for travel
domestic. The pilot survey shows that the questionnaire is clear and all the data
needed is attainable. The following sections present the findings of the survey
conducted.
41
4.2 Analysis of Tourist Demand
4.2.1 Profile of Tourists
4.2.1.1 State of Residence
The tourist survey reveals the highest percentage of domestic tourists in the
study areas are from Federal Territory of Kuala Lumpur (43.3%), followed by
Selangor (26%). Tourists from other state that range between one to ten percent of
the demographic composition are Perak (6.3%), Kedah (4.7%), Negeri Sembilan
(4.7%), Melaka (3.9%), Penang (3.1%), Johor (3.1%), Sarawak (3.1%), and Pahang
(1.6). See Figure 4.1.
Figure 4.1: State of Residence
50%
43.3% Kedah
45%
40% Penang
35% Perak
Selangor
Percentage
30% 26.0%
Kuala Lumpur
25%
Negeri Sembilan
20%
Melaka
15%
Johor
10% 6.3% Pahang
4.7% 4.7% 3.9%
5% 3.1% 3.1% 3.1%
1.6% Saraw ak
0%
1
State of Residence
Sources : Field Survey, 2007

42
4.2.1.2 Demographics
The evidence from the survey samples shows that 57.5% male and 42.5%
female respondents. The survey has also found that majority of the respondent are
made up of those within the age range of 25 to 34 years old (50.4%), and closely
followed by respondents within the ages of 35 to 44 years old (26%). See Figures 4.2
and 4.3. The survey show that about 48% from the respondents are Malay and more
than half of the respondent were single (50.4%).See Figures 4.4 and 4.5. The survey
also shows that 44.9% of the respondents have attained their diploma or certificate
and another 44.9% have had their degree or higher levels of education. Refer to
Figure 4.6. The high number of tourists with degrees is perhaps due to their
affordability to buy a travel packages. In terms of occupation, the majority of the
respondents were executive or managerial (37.8%) and professional (22.8%). Mostly
of the respondents had personal income between RM1001-RM2000 per month
(29.1%) followed by 27.6% had personal income between RM2001-RM3000. Refer
Figures 4.7 and 4.8.
Figure 4.2: Gender
70%
57.5%
60%
50% 42.5%
Percentage
40%
30%
20%
10%
0%
1
Gender
Male Female

43
Gender
The male respondent indicated as the major respondent with 57.5% and female
respondent with 42.5%. From this percentage, it can be concluded that the
respondent gender for this survey considerably balance with ratio male to female as
1.15 : 1. See Figures 4.2
Figure 4.3: Age
3% 2% 19%
26%
50%
18-24 years 25-34 years 35-44 years 45-54 years 55-59 years
Age Group
Tourist group between 25-34 years old computed the biggest sample (50%).
Followed by tourist group 35-44 years old (26%) and tourists group between 18-24
years old (19%). The elderly group of respondent that is 45-54 years indicated the
segment with 3% meanwhile group 55-59 years old (2%). See Figures 4.3
44
Figure 4.4: Race
Race
5%
14%
Malay
48%
Chinese
Indian
Others
33%
Sources : Field Survey 2007
Race
Malay indicate the major segment by resulting 48%, followed by Chinese (33.1%),
Indian (14.2%) and others (4.7%). See Figures 4.4.
45
Figure 4.5: Marital Status
49.6%
Married
Marital Status
Single
Married
50.4%
Single
49.0% 49.5% 50.0% 50.5%
Percentage
Marital Status
Most of the respondent are married (50.4%) and the rest are single (49.6). See
Figures 4.5.
Figure 4.6: Education Background
44.9% 44.9%
50%
40%
30%
Percentage
20% 8.7%
10% 1.6%
0%
1
Education Backgound
Primary School Secondary School

Certificate/Diploma Degree or Higher
46
Education Background
The major segment for the survey revealed that respondents attained high education
level (degree and higher) and Certificate /Diploma share the same percentage
(44.9%) followed by secondary school (8.7%), and primary school (1.6%). See
Figures 4.6
Figure 4.7: Occupation
40% 37.8%
35%
Student
30%
Professional
22.8%
Percentage
25% Self Employed

20% Executive/Managerial
15.7%
15% Clerical/Supervisory
11.0%
9.4% Retired
10%
Others
5% 1.6% 1.6%
0%
1
Occupation
Occupation
Executive and Managerial group as the major respondent by occupation with 37.8%.
Followed by Professional group with 22.8 %, others (15.7%), clerical/supervisory
(11%), self employed (9.4%), retired(1.6%) and student group as 1.6%. See Figures
4.7.
47
Figure 4.8: Average Income Per Month
Average Income Per Month
21.4% 0.1% 17.4%
13.5% 26.2%
21.4%
RM1000 and below RM1001-RM2000 RM2001-RM3000

RM3001-RM4000 RM4001-RM5000 RM5001 and above
Average Income Per Month
RM2001-3000 is the average income per month, which represent 26.2% from the
respondent, followed by RM3001-4000 and RM5001 and above which has the same
percentage (21.4%), RM1001-2000 (17.4%), RM4001-RM5000 (13.4%) and
RM1001 and below (0.1%). See Figures 4.8.
48
4.3 Analysis of Travel Related Behaviour
Figure 4.9 until 4.17 summarize the travel-related behaviors of the

respondents. It shows that more than half of the respondents (67%) had experience of
joining a package tour. Exactly 19.7% indicated they would take a tour to Langkawi
within the next three months at the time the survey was conducted. Redang Island
was the second most popular destination for package traveling (14.2%). Nature was
the main attraction that the tourists wanted to visit most within Malaysia (33.1%) and
followed by adventure attractions (23.6%). 54.3% of the respondents would take a
tour of 2-3 days. 51.9% revealed that the information about package tours were given
by the travel agent, followed by 24.4% said that they received information from the
brochure. Only 3.1% would travel alone for the forthcoming package tour. Family
and relatives (33.1%) and friends (27.6%) were the two most important groups of
traveling companions. Among 127 respondents, 66.1% would travel with their
children. With regard to the number of traveling companions, the majority of the
respondents (53.3%) preferred to be accompanied by 1 partner only.
Figure 4.9: Frequency Of Joining Package Tour
40%
34.6%
35% 33.1%
30%
Never
Percentage
25%
21.3% 1 to 3
20% 4 to 6
15% 7 to 9
More than 9
10% 7.9%
5% 3.1%
0%
1
Frequency of Joining Tour Package

49
Frequency of Joining Package Tour
34.6% of total of respondents revealed that they have joined a package tour for 1-3
times. 33.1 % has indicated they have never use a tour package and 21.3% revealed
they have joined package tours for 4 to 6 times. See Figure 4.9.
Figure 4.10 Next Destination Tour Package
25%
19.7%
20%
15% 14.2%
11.0%
10% 9.4%
7.9%
6.3%
4.7% 4.7%
5%
3.1% 3.1% 3.1%
2.4%
1.6% 1.6% 1.6%1.6% 1.6%1.6%
0.1%
0%
1
Destination
Tioman Island Langkawi Kota Kinabalu

Kuching Pangkor Island Sipadan Island
Redang Island Perhentian Island M ulu Caves
Kapas Island Pahang National Park Bako National Park
Cameroon Highlands Bukit M erah Laketown Resort Sepilok Orang Utan Sanctuary
Penang Island Genting Highland Rawa Island
Sibu Island

50
Destination of Package Traveling
The percentage of the destination of package traveling are arranged as follows: See
Figure 4.10.
Langkawi(19.7%) Penang Island(2.4%)
Redang Island(14.2%) Kapas Island(1.6%)
Tioman Island(11%) Bako National Park(1.6%)
Kota Kinabalu(9.4%) Bukit Merah Laketown Resort(1.6%)
Pangkor Island(7.9%) Sepilok Orang Utan Sanctuary(1.6%)
Perhentian Island(6.3%) Gentang Highland(1.6%)
Kuching(4.7%) Rawa Island(1.6%)
Sipadan Island(4.7%) Sibu Island(0.08%)
Mulu Caves(3.1%)
Pahang National Park(3.1%)
Cameroon Highland(3.1%)
Figure 4.11 Preferable of Theme Package Traveling
33.1%
35%
Adventure
30% Culture
23.6% 11.0%
25% Education
Entertainment
20% 9.4% 1.6%
11.8% Nature
Shopping
15% Sports/Recreation
6.3%Nature
10% Shopping
Education Others
5% 3.1%
0% Adventure
1

51
Interest of Theme Package Traveling
Nature was the main attraction that the tourists wanted to visit most within Malaysia
(33.1%). It was followed by adventure attractions (23.6%) and culture attractions
(11.8%). This percentage was influenced by age level, gender and education level of
the respondents. See Figure 4.11.
Figure 4.12 Preferable Number of Days Traveling
Preferable Number of Days
5.5% 2.4%
37.8% 54.3%
2-3 days 4-6 days 7-9 days More than 9 days
Preferable Length Of Stay
54.3% of respondents indicated that they were preferred to stay from 2 to 3 days,
37.8% (4-6 days), 5.5% (7-9 days) and 2.4% (more than 9 days). See Figure 4.12.
52
Figure 4.13: Getting Information on Tour Package
Information on Tour Package
1.6% 7.9%
Local
Newspaper/Magazine
14.2%
Friends/Relatives
Brochure
51.9%
Travel Agent
24.4%
Hotel Staff
Information about Tour Package
51.9% revealed that the information about package tours were given by the travel
agent, followed by 24.4% said that they received information from the brochure, and
14.2% obtained the information about the package tour from friends and relatives.
Meanwhile 7.9%(local newspaper) and 1.6% (hotel staff).(see Figure 4.13)
53
Figure 4.14 Traveling Partners
1.6%
Travel Partners
33.1%
7.9%
1 26.8%
27.6%
3.1%
0% 5% 10% 15% 20% 25% 30% 35%
Percentage
Alone Family/Relatives
Family/Relatives and Friends Spouse
Friends Others
Traveling Partners
33.1% of the tourists traveled with family and relatives, followed by 27.6% traveled
with friends, and 26.8% traveled with family/relatives and friends. 7.9% travel with
spouse, 3.1% travel alone and 1.6% travel with others. See Figure 4.14.
Figure 4.15 Number of Traveling Partners
60% 53.3%
50%
Percentage
0
40% 31.5%
1
30%
2 to 4
20% 11.8% More than 4
10% 3.1%
0%
1
No. of Traveling Partners

54
Number of Traveling Partners

53.3% indicate that they travel with one companian only, 5% with 2 to 4 partners and
11.8% travel with more than 4 partner and 3.1% travel alone. See Figure 4.15.
Figure 4.16 Traveling with Children

h
Chi
ldr
en
66.1%
No
1
Yes
33.9%
0% 10% 20% 30% 40% 50% 60% 70%

Percentage
Traveling with Children
66.1% from respondents said that they travel with children and 33.9% travel with no
children. See Figure 4.16.
Figure 4.17 Main Purpose of Taking Tour Package
Main Purpose of Taking Tour Package
6.3% 7.9% 20.5%
26.8%
38.6%
To join friends and relatives

To gain knowledge and experience
To fulfill time
To get more information about the places of interest
Others

55
Main Purpose of Taking Tour Package
The respondents said that the main purpose of joining package tour was to gain new
knowledge and experience (38.6%), to fulfill time (26.8%), to join friends and
relatives (20.5%), others (7.9%) followed by to get more information about the
places of interest (6.3%). See Figure 4.17.
4.4 Analysis of Selection Criteria
The analysis of selection criteria is measured by using t-test and One Way
ANOVA as suggested by Chak-keung Simon Wong and Wai-Yan Yan Kwong
(2003). Table 4.1 indicates the important criteria in selecting domestic package tours
in Malaysia. Among the 21 selection criteria, price of the tour was rated as the
most important criteria for domestic package tours selection. safety of the tour
came second, followed by service quality of travel agency, escorts, tour guides
quality and experience, comfortable transportation and meals provided. All of
these criteria were viewed as important with mean score greater than 4. Range of
activities tourists can participate during the tour were viewed as lowest rate for
choosing a tour, with mean scores of 3.26.
Table 4.1. Analysis of the Selection Criteria for Choosing Domestic Package
Tours
Selection Criteria N Mean Std. Deviation
Price of the tour 127 4.24** .85
Safety of the tour 127 4.21 .96
Service quality of travel agency 127 4.09 .92
Escorts, tour guides quality and experience 127 4.04 .98
Comfortable transportation 127 4.04 .88
Meals provided 127 4.01 .91
Sightseeing points included 127 3.95 .88
Detailed itinerary program prior to the tour 127 3.91 .94
56
Hotels facilities 127 3.86 .93

Allocation of time provided for the 127 3.84 .95
destinations/attractions
Choice of destination/attraction 127 3.83 .94
Reputation of travel agency 127 3.83 1.04
Traveling partners opinion and interests 127 3.80 .80
Relaxing tour itinerary 127 3.69 1.14
Family's and friends' word of mouth 127 3.69 1.01
recommendations
Hotels quality and grading 127 3.68 .84
Personal interests 127 3.67 .98
Facilities and amenities provided at the 127 3.57 .94
stopover
Duration of the tour 127 3.39 1.18
Shopping facilities 127 3.31 1.19
Range of activities tourists can participate 127 3.26* .88
during the tour
Remark: 5-point Likert Scale was used for rating the importance for each
criterion, ranging from 1 (very unimportant) to 5 (very important).
* The lowest mean among the 21 criteria
** The highest mean among the 21 criteria
The first section of questionnaires dealt with the demographic background of

the respondents. Seven fixed alternative questions, in nominal and interval scales,
were asked about the respondents residencies, gender, age, marital status, education,
occupation and income levels. Data from this section were linked to the third section
for studying relationships between these factors and the criteria used for selecting
domestic package tours. For the purpose of this study, only three independent
variables have been chosen as which is race, education background and income level.
As we can see from the Table 4.2, other race beside from Malay, Chinese and
Indian has rated the most highest mean scores in choosing the domestic package by
its reputation, safety, detailed itinerary, sightseeing points, choice of destination,
hotels quality and grading, hotels facilities, meals, transportation, facilities at the
stopover, personal interest, traveling partners opinion, and time allocation of the tour.
57
The total of only 6 respondents represent other races might influence the
result below. Meanwhile Malay is very particular in price of the tour and shopping
facilities which they mean scores is 4.43 and 3.46.
Chinese has rated the quality of the travel agency and also tour guide as the
important factor in choosing their domestic package tours, which resulted the highest
mean scores (4.29). They are also very concern about the transportation (4.33),
activities (3.43) and will be very influenced by word of mouth recommendation
(3.86). Among the 21 criteria, safety (4.48) and price of the tour (4.33) also is the
main consideration when the Chinese planning to buy a domestic package.
Compared to other races, the criteria that marked the highest mean by the
Indian is relaxing tour itinerary (3.78).
Table 4.2 The Importance of Domestic Tour Package Selection Criteria By Race
Race
SELECTION
CRITERIA Malay Chinese Indian Others
Reputation of travel
agency 3.82 4.00 3.33 4.33
Service quality of travel
agency 4.23 4.29 3.33 3.67
Escorts, tour guides
quality and experience 4.15 4.29 3.22 3.67
Price of the tour 4.43 4.33 3.44 4.00
Safety of the tour 4.28 4.48 3.22 4.67
Relaxing tour itinerary 3.70 3.62 3.78 3.67
Detailed itinerary
program prior to the
tour 3.75 4.10 3.78 4.67
Sightseeing points
included 3.90 4.05 3.56 5.00
Choice of
destination/attraction 3.82 3.86 3.56 4.67
Hotels quality and
grading 3.69 3.76 3.22 4.33
Hotels facilities 3.87 4.00 3.22 4.67
Meals provided 4.05 4.19 3.22 4.67
Comfortable
transportation 4.08 4.33 3.11 4.33
58
Facilities and amenities

provided at the
stopover 3.38 3.90 3.11 4.67
Range of activities
tourists can participate
during the tour 3.28 3.43 2.89 3.00
Shopping facilities 3.46 3.10 3.33 3.33
Personal interests 3.57 3.76 3.33 5.00
Traveling partners
opinion and interests 3.79 3.86 3.67 4.00
Family's and friends'
word of mouth
recommendations 3.74 3.86 3.56 2.33
Allocation of time
provided for the
destinations/attractions 3.87 3.90 3.44 4.33
Duration of the tour 3.39 3.29 3.56 3.67
Refer to the Table 4.3, for those who are diploma and certificate holder has
rated the highest mean scores in choosing the domestic package by its reputation,
safety, hotels quality and facilities, meals, transportation, and own personal interest.
Meanwhile degree and higher education level holder is very particular in service and
tour guide quality, safety, relaxation and detailed of the tour itinerary, traveling
partners opinion and allocation of time at the destination. Compared to others, the
criteria that marked the highest mean by the secondary level were range of activities
and duration of travel.
We can see also that from the table 4.3, primary level has scored the highest
mean in price of the tour, choice of destination, facilities and amenities at the
stopover, shopping facilities and word of mouth recommendation. But, it should be
noted that the respondent represent primary level is two person only and we could
not accept the result as a representative of the whole primary level in Malaysia
because the sample is very small.
59
Table 4.3 The Importance of Domestic Tour Package Selection Criteria

By Level of Education
Level of Education
Degree
SELECTION or
CRITERIA Primary Secondary Certificate/Diploma Higher
agency 3.00 2.82 3.98 3.91
Service quality of
travel agency 4.00 3.36 4.16 4.18
quality and experience 3.00 3.73 3.91 4.26
Price of the tour 5.00 3.91 4.28 4.23
Safety of the tour 4.00 4.27 4.09 4.33
Relaxing tour itinerary 3.00 3.18 3.42 4.07
Detailed itinerary
program prior to the
tour 3.00 2.82 4.02 4.05
Sightseeing points
included 4.00 3.45 4.09 3.91
Choice of
destination/attraction 4.00 3.64 3.79 3.91
Hotels quality and
grading 3.00 3.45 3.84 3.58
Hotels facilities 2.00 3.55 4.05 3.79
Meals provided 3.00 3.45 4.12 4.04
Comfortable
transportation 4.00 3.91 4.09 4.02
provided at the
stopover 4.00 3.27 3.65 3.54
Range of activities
during the tour 3.00 3.36 3.32 3.19
Shopping facilities 5.00 3.45 3.18 3.37
Personal interests 3.00 3.18 3.78 3.72
Traveling partners
opinion and interests 4.00 3.64 3.60 4.04
word of mouth
recommendations 4.00 3.27 3.46 3.98
Allocation of time
provided for the
destinations/attractions 3.00 3.18 3.74 4.11
Duration of the tour 2.00 3.55 3.39 3.42
60
From the Table 4.4, the highest income level which is RM5001 and above has
become the most particular group that scores the highest mean on service quality of
travel agency and the tour guide, hotels facilities, transportation, facilities at the
stopover and shopping facilities. They were also influenced by their own interest in
selecting tour package and also depend on the travelers opinion and recommendation
by friends and relatives. Allocation of time at the destination also influenced them in
choosing their domestic tour package. Meanwhile for those income level RM3001-
RM4000 is also noted very concern on the reputation of travel agency, safety, choice
of destination and also the itinerary.
Table 4.4 The Importance of Domestic Tour Package Selection Criteria By

Level of Income
Level of Income
RM1000 RM1001 RM2001 RM3001 RM4001
and - - - - RM5001
SELECTION CRITERIA below RM2000 RM3000 RM4000 RM5000 and above
agency 2.00 3.95 3.27 4.15 4.00 4.07
Service quality of travel
agency 3.00 4.36 3.70 4.11 4.00 4.44
quality and experience 3.00 4.09 3.85 4.07 3.76 4.41
Price of the tour 3.00 4.27 4.24 4.26 3.88 4.44
Safety of the tour 4.00 4.32 3.85 4.37 4.35 4.33
Relaxing tour itinerary 2.00 3.00 3.42 4.00 4.29 3.93
Detailed itinerary
program prior to the tour 2.00 4.18 3.48 4.22 3.71 4.11
Sightseeing points
included 2.00 4.14 3.91 4.00 3.65 4.07
Choice of
destination/attraction 2.00 3.82 3.61 4.19 3.41 4.11
Hotels quality and
grading 2.00 3.50 3.64 3.81 3.71 3.78
Hotels facilities 4.00 3.86 3.73 3.93 3.71 4.04
Meals provided 3.00 4.32 3.82 4.04 3.82 4.11
Comfortable
transportation 4.00 4.14 4.09 3.93 3.71 4.22
provided at the stopover 4.00 3.64 3.42 3.44 3.24 4.04
Range of activities
during the tour 4.00 3.41 3.30 3.26 2.94 3.26
61
Shopping facilities 3.00 3.00 3.30 3.22 3.29 3.70

Personal interests 3.00 3.59 3.36 3.93 3.76 3.81
Traveling partners
opinion and interests 3.00 3.64 3.58 4.04 3.71 4.07
word of mouth
recommendations 2.00 3.68 3.39 3.89 3.41 4.07
Allocation of time
provided for the
destinations/attractions 2.00 3.77 3.55 4.15 3.65 4.15
Duration of the tour 2.00 3.32 3.30 3.70 2.94 3.59
(Sources : Field Survey 2007)
4.5 Conclusion
The result of the study indicates the important criteria in selecting domestic
package tours in Malaysia. Among the 21 selection criteria, price of the tour was
rated as the most important criteria for domestic package tours selection. safety of
the tour came second, followed by service quality of travel agency, escorts,
tour guides quality and experience, comfortable transportation and meals
provided. All of these criteria were viewed as important with mean score greater
than 4. Range of activities tourists can participate during the tour were viewed as
lowest rate for choosing a tour, with mean scores of 3.26. This conclude that
Malaysian people are very particular about the price of the tour package when they
planning to travel. They would search for the best price when comparing the
packages but they would also consider about the safety of the tour which will also
influence them to choose a place for example, people who are with infant and
children will think twice to go to an island especially when it windy season.
Malaysian also would consider on the service quality provided the travel agency
which will of course goes to the experienced tour guide and tour leader or manager
during the tour. As we know, Malaysian is very keen in having a comfort journey
which will reflect to the comfortable transportation provided and also meals during
the tour especially muslim which will prefer halal food.
62
CHAPTER 5
DISCUSSION AND RECOMMENDATION
5.1 Introduction
This chapter is divided into three sections. The first section discusses the
summary of the selection criteria for choosing domestic tour package, supported by
the result of the analysis form the previous chapter. The second section presents
practical recommendations for the travel agent in order to capture the domestic
market based on the results. Finally, suggestions for future research are given at the
end of this chapter.
5.2 Discussion of Results
5.2.1 Selection Criteria for Choosing Domestic Tour Package
The study has revealed that price of the tour package was the most important
package tours selection criteria. Safety was considered as the second most important
63
criteria for Malaysian people choosing domestic package tours. Due to the
September 11th incident and frequent car accident in Malaysia, the demand for safety
in package tours is easily understood. Service quality of the travel agency was
considered as the third most important selection criterion for Malaysian. Service
quality of the travel agent. It could be explained by the market being experienced
consumers of package tours. The more experience one has, the more requirements
and values one demands. Additionally, human want is arguably unlimited, so clients
who are satisfied at one time may well desire more the next time.
5.3 Recommendation for Travel Agents in Malaysia
Price wars, adding exciting activities and new attractions into tours are the
general practice for Malaysians travel agencies operating in the markets state of
keen competition. Whenever a travel agency or operator makes small changes in its
package tours, others will follow immediately, with the result that almost all the
travel agencies are offering the same products. However, in order to meet tourist
demand a number of recommendations might be proposed.
Price and safety - Price and safety are the two most important criteria for Malaysian
package travelers in selecting tours. In order to compete with the others in the
market, travel agencies are strongly advised to pay more attention to these two areas
and improve the situation. To make the price are competitively fair, the government
should take a close observation in this matter especially in price war during the peak
season. This s the most important elements that ensure the value for money - worth
for the price paid with the duration of tour, quality customer services, surrounding,
facilities, and various attractions visited. To improve the safety issue of tours, travel
agencies could design safer itineraries, provide more first aid training to escorts and
tour-guides and employ experienced drivers for the tours.
64
Training for escorts and tour-guides - The quality and experience of escorts and
tour-guides is one of the major components for Malaysian residents choosing a
package tour. It is therefore suggested that comprehensive and professional training
that covers the knowledge of destinations, interaction skills and skills of handling
emergencies, should be provided to escorts and tour guides. Additionally, incentives
could also be applied as a motivator to encourage them to deliver high quality
services and thus, indirectly generate repeat business for the travel agency. They are
main human resource factor that comprised of credibility and capability to
disseminate and translate information about attractions and activities based on the
theme designed
Itinerary - Based on the survey done, it was revealed that Malaysia only buy a tour
package when the location of the attraction is far from their residence and not easy to
access such as an island and national park. Itinerary is an important element in the
tour package which relate closely with travel attraction. Therefore, the itinerary
should be designed based on the theme and segment of tourist market. This is to
create uniqueness of itinerary and to increase the novelty and other impacts to tourist
and the market segment. Theme serves as the main designing element to generate
variety of tour packages that are offered to various target segments. This principle
gives an opportunity to all the tourism attractions, which are potentially benefited by
the growing number of visits. Besides that, it is also ensures easy monitoring of the
quality of tour packages that are offered in the future.
Customer welfare services - Improving customer care services could be a way for
travel agency to increase their competitiveness. They are highly recommended to pay
attention to customer welfare, especially when they deal with odd numbers within
traveling groups and those traveling with children. Customer care services could be
enhanced by reducing the supplemental charge for room changing and catering for
the special needs of children traveling. Tour packages development also should focus
on the tourist needs and wants which comprised of itinerary packages, attractions,
facilities, tour guide, time allocation, activities, shopping, duration and
transportation.
65
5.4 Limitation of the Study and Recommendation for Future Research
In conducting this research, the following limitations are identified. First,

there is time, labour and funding limitation. The survey was conducted only during
the MATTA Fair, which is in 16th to 18th March 2007. Data results may only reflect
or represent a period in a year, and not all throughout a one year period. Secondly,
the distribution of the questionnaires were limited as the researcher only act alone.
The questionnaire used as survey instrument is limited to self-administered measures
and this will lead to a situation where the respondents may understand or interpret
the items asked in the questionnaire differently, as respondents have different
academic background.
Further research can be extended to investigate Malaysian preferences on

outbound travel or maybe can be focus on certain special interest package such as
umrah or adventure travel. Such research is to see any differences or similarities
between different races in the selection criteria would possess interest while
permitting tailor-made marketing strategies appropriate to each market segment.
This study had successfully identified the selection criteria in a macro sense,
that is, to show the overall preference of domestic tourists. All travel agents can
benefit by understanding holistically how their customers choose their products.
Having said that, any introduction of these policies would need to be carefully
considered within a wider schedule of product enhancement and market strategies.
Individual travel agents or operators should not just simply copy competitors new
initiatives. Each travel agent should have its own strengths and weakness. A direct
copy without taking self evaluation and product development may, on the contrary,
lose market share in the long run. Finally, the conventional limitation should be
observed that is the study is of 127 respondents out of a market of over 25 million,
thereby necessitating obvious caution in implementing the recommendations and
generalizing the findings; thereby re-iterating a familiar call for yet more research to
confirm these findings.
66
5.5 Conclusion
Identifying the important selection criteria for choosing domestic package

tours among Malaysian is the primary objective of this study. A total of 21 package
tours selection criteria were identified in the study. Among the 21 selection criteria,
safety of the tour was the most important criterion, followed by safety of the tour and
the service quality of travel agency. Range of activities tourists can participate during
the tour were found to be the least important criteria. With regard to the relationships
between demographic groups and package tours selection factors, times of joining
package tours, destination of the coming tour, traveling partners, traveling with
children and number of traveling partners were significantly related to package tours
selection factors. It was concluded that race, education level and income would affect
the choice of package tours for Malaysian residents. Finally, marketing suggestions
were made for Malaysian travel agencies in this study. Pricing and safety, training
for escorts and tour guides, and customer care services were the three areas to which
travel agencies should pay attention. By emphasizing these three areas, the
attractiveness of package tours and the competitiveness of travel agencies could be
improved.
67
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69
TOURIST SURVEY QUESTIONNAIRE
STUDY ON THE SELECTION CRITERIA FOR CHOOSING DOMESTIC PACKAGE TOURS IN
MALAYSIA
NOTE: This field survey is conducted by Universiti Teknologi Malaysia (Tourism Planning Research
Group). The main objective of this survey is to identify selection criteria for choosing domestic package
tours, and hence to help in improving the standard of the package tour if necessary. We do appreciate if
you could take a few minutes of your valuable time in completing this questionnaire. The information
gathered will be treated with strict confidentiality.
DATE : _______________________ TOUR OPERATOR: _______________________
A. TOURIST PROFILE
Please tick ; or write your answer.
1 State of residence
____________________________
2 Gender
Male Female
3 Age
18 -24 25-34 35-44 45-54 55-59 > 60
4 Race
Malay Chinese Indian Others ______________
5 Marital status
Single Married
6 Education background
No formal education Primary school Secondary school
Certificate / Diploma Degree or higher
7 Occupation
Student Professional Self-employed
Executive / Managerial Clerical/Supervisory Retired
Others (please specify) _____________________
8 Average income per month
RM1000 and below RM1001-RM2000 RM2001-3000 RM3001-4000
RM4001-5000 Above RM5000
B. INFORMATION ABOUT THE TOUR

Please tick ; or write your answer.
1 How many times have you join package tours?
Never 1-3 4-6 7-9 >9
2 Destination of the coming package traveling
_________________________________
3 For the following theme of tour package, which interests you most?
Adventure Culture Education Entertainment
Nature Sports/Recreation Shopping
Others (Please specify):___________
4 Preferable no. of days of package traveling
2-3 days 4-6 days 7-9 days >9 days
5 How did you find out about this tour package?
Local newspaper/magazine Friends/relatives Brochure
Direct Mail Travel agent Hotel staff
TV advertisement Others (Please specify):___________
6 With whom do you travel?
Alone Family/relatives Family/relatives and friends
Spouse Friends Others (Please specify): ______
7 No. of traveling partners
1 2-4 >4
8 Are your traveling with children?
Yes (If yes, please specify the number of children traveling with: ______)
No
9 What is the main purpose of taking this tour package?
To join friends/relatives To gain new knowledge and experience
To fulfill time To get more information about the places of interest
Others (Please specify): _______________________________________
70
C. SELECTION CRITERIA EVALUATION
Using the scale below, please circle the level of importance for the following selection
criteria in choosing a domestic tour package:
Rate of importance (scale):

(1) Very Unimportant (2) Unimportant (3) Neutral (4) Important (5) Very Important
i. Reputation of travel agency 1 2 3 4 5
ii. Service quality of travel agency 1 2 3 4 5
iii. Escorts, tour guides quality and experience 1 2 3 4 5
iv. Price of the tour 1 2 3 4 5
v. Safety of the tour 1 2 3 4 5
vi. Relaxing tour itinerary 1 2 3 4 5
vii. Detailed itinerary program prior to the tour 1 2 3 4 5
viii. Sightseeing points included 1 2 3 4 5
ix. Choice of destination/attraction 1 2 3 4 5
x. Hotels quality and grading 1 2 3 4 5
xi. Hotels facilities 1 2 3 4 5
xii. Meals provided 1 2 3 4 5
xiii. Comfortable transportation 1 2 3 4 5
xiv. Facilities and amenities provided at the stopover 1 2 3 4 5
xv. Range of activities tourists can participate during the tour 1 2 3 4 5
xvi. Shopping facilities 1 2 3 4 5
xvii. Personal interests 1 2 3 4 5
xviii. Traveling partners opinion and interests 1 2 3 4 5
xix. Familys and friends word of mouth recommendations 1 2 3 4 5
xx. Allocation of time provided for the destinations/attractions 1 2 3 4 5
xxi. Duration of the tour 1 2 3 4 5
D. FUTURE INFORMATION EVALUATION

Please give your comments or suggestion on how we can upgrade the quality of domestic
package tour.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
THANK YOU FOR YOUR COOPERATION
HAVE A NICE DAY

Dayang Sandrawati Abang Josmani MFAB2007 TTT

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STUDY ON THE SELECTION CRITERIA FOR CHOOSING DOMESTIC

PACKAGE TOURS IN MALAYSIA

DAYANG SANDRAWATI BINTI ABANG JOSMANI

UNIVERSITI TEKNOLOGI MALAYSIA

To My Husband and My Children

In the Name of Allah, Most Gracious, Most Merciful.

Alhamdulillah, with His Blessings I have successfully completed this thesis.

I wish to express my sincere gratitude to a number of people for their

Kajian ini bertujuan untuk mengenalpasti kriteria-kriteria penting yang

5 DISCUSSION AND RECOMMENDATION 62

TABLE NO. TITLE PAGE

FIGURE NO. TITLE PAGE

APPENDIX TITLE PAGE

Malaysian economic performance is expected to provide positive consistent

Table 1.1 Tourist Arrivals and Receipts to Malaysia

Source: Ministry of Tourism Malaysia, 2007

Correlating to all previous trends of incoming and outgoing tourism

Ministry of Tourism and Tourism Malaysias is hoping the VMY 2007

A marketing and promotion programme has been introduced to highlight

International tourism has been the main emphasis among developing

Table 1.2 Domestic and International Hotel Guest By Locality in 2005

SABAH 2,637,761 2,174,558 4,812,318

With the government's objective of putting tourism as the second biggest

The tourism industry in Malaysia has progressively shown the transformation

Travelling in groups in package tours dominates as the primary revenue

Travelling in groups in package tours dominates as the primary revenue

Table 1.3: Selection criteria for package tours

1. Safety of the tour

1.1 Background of the Problem

Economic theory presumes that consumers have special preferences

(Fodness, 1992; Josiam & Hobson, 1995; Lang, O Leary, Morrison,1997). In

1.2 Problem Statement

By understanding the selection criteria by which customers select their

1.3 Research Questions

1.4 Purpose of the Study

The specific objectives of this study are:

1.5 Scopes of Research

1.5.1 Literature review

The literature review focuses on the theoretical perspectives of the following

1.5.1.1 Evaluation of domestic tourists selection criteria of purchasing tour

The above assessment is intended to identify the attributes that helps

of the evaluation, as it not only examines the tourists selection attributes of

1.5.1.2 Evaluation of domestic tourists profile and trip characteristics

1.5.1.3 Recommendation of strategies in planning and design a domestic travel

1.6 Study Approach

1.6.1 Stage 1 Desk Study

1.6.2 Stage 2 Pilot Study

A pilot test was conducted to assess the reliability of the 30 attributes.

1.6.3 Stage 3 Data Collection

This study used a primary collecting data approach, which involved

Questionnaire design is divided into four (4) aspects:

1.6.4 Stage 4 Analysis and Synthesis

1.6.5 Stage 5 - Recommendations

This final stage consists of the formulation of recommendations to improve

Figure 1.1 Study Flow Chart

a) Design a pilot study

Output Data Synthesis

This chapter discusses the theoretical perspectives of domestic tourism, tour

2.2.1 Domestic Tourism

United Nations classified domestic tourism in 1994 in its Recommendations

2.2.2 Definition of Tour Package

The classification of the types of package tours depends on the degree of

A basic package tour typically only includes transportation and