World Applied Sciences Journal 35 (Service Experience and Innovation in Hospitality & Tourism): 127-132, 2017 ISSN 1818-4952 © IDOSI Publications, 2017 DOI: 10.5829/idosi/wasj.seiht.2017.127.132 Corresponding Author: Norfezah Md Nor, Universiti Teknologi MARACawangan Pulau Pinang, Malaysia. Tel: +604-3823800. 127 Measuring the Factors Affecting Hotel Online Reservation: A Structural Equation Modeling Approach Farah Adiba Mohd Radzi, Wan Rusni Wan Ismail, Norfezah Md Nor, Hasniza Abdullah, Hashim Fadzil Arifin, Anderson Ngelambong and Mohd Salehuddin Mohd Zahari Faculty of Tourism and Hotel Management, Universiti Teknologi MARA Cawangan Pulau Pinang, 13500 PermatangPauh, Pulau Pinang, Malaysia Abstract: The emergence of hotel online booking websites allows customers to have direct access to guests’ reviews, best price and the overall information related to hotels. Customers can even make a comparison between hotels before making a decision. This has made the online booking another popular platforms for the public to book a hotel room at their convenience. Fair reviews by previous guests in another way help to promote hotels indirectly. However, some reviews did give adverse impact to the hotels in so many ways which will influence the customer buying intention. This study examines the structural relationships of price, hotel brand, positive reviews and negative reviews to customer hotel online reservation intention. Questionnaires that consist of price, hotel brand, positive reviews, negative reviews and customer hotel online reservation intention were distributed to 200 respondents who had experienced using online hotel booking. Findings showed that the significant relationships between price, hotel brand, positive and negative reviews to customer hotel online reservation intention are confirmed in Structural Equation Modeling (SEM). Implications and suggestions for future research are also provided. Key words: e-WOM Online booking Brand image Customer hotel online reservation intention INTRODUCTION most of the customers make a reservation through online Nowadays Internet development has improved, property personally. where people using the internet to get information and According to Ladhari and Michaud [4], the Internet communicate with people all around the world without provides countless advantages compare with traditional any limitation and it has driven people to the Knowledge WOM (Word-of-Mouth) include speed and ease of Era which the Internet helps them to capture information access to information, it is available for a long time and and knowledge creation [1]. Online hotel reservation without involving face-to-face human pressure. become easier because customers can book a hotel Nowadays, a hospitality industry uses Internet as their room through the website without going to hotel site or platform to advertise products and service. It can help the make a phone call to make a room reservation. In the company to understand more in-depth from a customer PhoCusWright online travel website survey, 38% of the perspective about the product and service. online global market has contributed to the gross travel E-WOM (Electronic Words of Mouth) also known as booking that exceeding $150 billion in 2013 [2]. The comment in the website has become popular, where examples of the website are expedia.com and hotel.com. people comment about something that may attract the Agreeing to Statistic Brain [3], it stated that 148.3 interest of people to give an opinion or likes the million number of booking made on Internet each year, the comments and sometimes it becomes one of the reasons percentages of people booking through the website is people using the comments as the solution to make a 57% and 65% on the same day hotel reservation made decision when buying something through an online from a smart phone for each year. From it, we can know website. Furthermore, a study stated that the use of mass websites rather than a visit to a travel agent and hotel