The application of the TQM represents a great challenge for the hoteliers and it is more dificult than in other fields due to the intangible components of supply, the occurrence of “production” and heterogenity of consumers – guests. Managing a hotels business is made more complex by the characterization of service, and makes the establishing of quality standards difficult. For this reason the paper analyzed how to develop and maintain quality in hotel industry as the key factor to market survival, competitive advantage and profitability.