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Purpose

The development of tourism and the hospitality industry has facilitated the proliferation of many small and medium accommodation businesses in this region. These usually depend on the attractiveness of tourism products offered in each destination. The purpose of this paper is to focus on the entrepreneurial marketing aspect of accommodation businesses in three urban cities and islands in East Peninsular Malaysia.

Design/methodology/approach

Mixed‐method research was conducted on 64 urban hotels and 52 island chalet operators in East Peninsular Malaysia. The results indicate that urban operators are more entrepreneurial than island operators.

Findings

To ensure their continued existence in the industry, these operators have adopted different marketing practices. Each tourist destination attracts a different set of tourist profiles and features varying marketing practices. The significant differences in the types of entrepreneurial marketing practiced by urban and island operators are explored in detail in this study.

Originality/value

In implementing a new economic model towards being a high income‐generating country, the tourism sector has become a main driver contributing to the Malaysian economy. With the main objective of maximizing the advantages of a strategic location, together with the comparative advantages arising from its natural resources, the findings are rather fit to the tourism industry.

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