With the advent of the COVID-19 pandemic, stringent restrictions were imposed on tourism activities worldwide to curb the virus’ spread, resulting in disastrous consequences for the tourism sector. The Travel Bubble program was introduced in selected destinations in response to this crisis. Langkawi Island in Malaysia was chosen as the pilot location for the Travel Bubble initiative, beginning September 16, 2021. This study aims to investigate the impact of the Travel Bubble on Muslim-friendly budget hotels, both during its implementation and 18 months after its inception. This study employs a qualitative approach that entailed semi-structured interviews with seven managers of Muslim-friendly budget hotels. The findings demonstrate that while the Travel Bubble program initially boosted optimism by rejuvenating the tourism industry, it later became clear that the hotels did not equally reap its benefits. For the initial phase, only one theme emerged: Travel Bubble provides short-term benefits. Eighteen months after its launch, three themes were recognised: Langkawi is expensive, business-minded financial management, strategic location and loyal customers. From the findings, understanding and catering to customer needs and preferences is crucial for sustained success. Besides that, Langkawi must engage in sustainable innovations, which entails recognising and leveraging distinctive features to stand out in the market and sustain its competitiveness. Further, often addressing complex challenges requires collaboration and partnership among stakeholders. This study offers several practical implications for the operators of Muslim-friendly budget hotels, such as the importance of agility (adaptability to changing circumstances), resilience (resilience in the face of challenges) and customer focus (attentive to the needs and preferences of guests).
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