Technology-Driven Innovations in Room Reservations: A Study of Malaysia’s Midscale Hotels in the Post-COVID-19 Era

Malaysia's midscale hotel industry, classified within the 3–4-star category, plays a crucial role in the country’s tourism sector by offering a balance between affordability and comfort. However, the COVID-19 pandemic significantly disrupted hotel operations, necessitating rapid adaptations in distribution strategies and technology adoption. Despite existing studies on the impact of COVID-19 on the hotel industry, there remains a gap in understanding how midscale hotels in Malaysia have transformed their booking systems and distribution channels in the post-pandemic era. This study investigates how technology-driven innovations (independent variable) influence operational efficiency, guest satisfaction, and competitive advantage (dependent variables) through the use of OTAs and direct booking platforms (mediators). Using a qualitative research approach, semi-structured interviews were conducted with 15 industry stakeholders, including midscale hotel managers, intermediaries, and technology providers. Participants were selected through purposive and snowball sampling techniques. Findings revealed that digital transformation significantly enhanced operational efficiency, guest satisfaction, and competitive advantage. Online travel agencies (OTAs) and direct booking platforms played a crucial role in improving occupancy rates and revenue generation. Technological innovations such as artificial intelligence-driven booking systems, dynamic pricing models, and automated customer service tools emerged as key contributors to market resilience. This study contributes to the growing body of knowledge on hotel distribution strategies by demonstrating the importance of continuous technological investment. A key recommendation is for midscale hotels to strengthen direct booking channels while maintaining strategic partnerships with OTAs to optimize revenue and customer engagement in the evolving digital hospitality landscape.