$799 seems like a good price for both Flight & Hotels included.
Shake off the winter blues with this ultimate escape, which takes you directly to a tropical Malaysian paradise. For just $799, you'll receive flights to and from Penang and four nights' accommodation in the gorgeous Flamingo Hotel by The Beach for one person (usually $1,619). This deal includes:
• Jetstar/AirAsia return flights for one person to Penang from Sydney, Melbourne or Perth
• Five days and four nights in the four-star Flamingo Hotel by The Beach in Penang
• A deluxe hillview room with breakfast every day
• Free Wi-Fi access, flat screen LCD TV, complimentary daily newspaper
• Beach, water sports, pool, spa, poolside bar, cafe, restaurant, fitness room, all seconds away from your room
Considering you're flying on a budget airline and the hotel is fairly cheap anyway, you really must wonder how they derive those "usual" prices.