TQM practices and their impact on performance in hotel companies

Abstract

Globalization and rising customer demands drive market competition, compelling product and service providers to integrate customer requirements, needs and expectations in their business segments, by implementing TQM. TQM was primarily developed in manufacturing companies and based on their good results it has also found its application in the service sector. Although the TQM principles are the same for both production and service companies, when implementing TQM practices service companies should take into consideration the specifics of their activity. The aim of this study is to provide a comprehensive literature review that examines TQM practices in hotel companies and their impact on performance. The paper uses a systematic approach to review the literature by summarising recent and relevant research in the field. Secondary data sources were used to illustrate the dissemination of international standard ISO 9001 as one of the frameworks for implementing TQM practices, its dissemination in the world, in Europe and in the Republic of Croatia in general and in the hotels and restaurants in particular is also presented. The results of the analysed studies have shown that TQM practices positively influence various aspects of hotel performance including financial and non- financial results. In relation to the ISO 9001 implementation the results indicate the need to foster its implementation in hotels and restaurants. The contribution of this study is to identify TQM practices specific to the hotel industry and to contribute to a deeper understanding of their importance in enhancing overall business performance.