The market is increasingly saturated with numerous products and services offered by a large number of rivals. Businesses need to find ways to fight competition. A satisfied customer is what every company strives for. Quality is one of the most important weapons in the fight against competition today. Successful quality goals must meet certain conditions. It is believed that the Japanese succeeded in the business world solely because of the improvement of quality, thanks to W. Edwards Deming who in 1950 introduced a new philosophy of quality. Achieving complete quality management is impossible without applying the philosophy known as the Japanese name kaizen. Kai means change, and zen means good. The user should be provided with all possible benefits, because he pays for the service. Each service has its own specifics, but the common features of all services are: intangibility, perishability, heterogeneity, absence of ownership and simultaneity of production and consumption processes. The dimensions of service quality are reliability, responsibility, security, empathy and tangible elements. Total quality management (TQM) is a management approach that implies a long-term orientation towards continuous quality improvement that will meet and exceed customer expectations. It is actually effective management that requires the full participation of all employees at all organizational levels and is considered a way of organizational life. Many companies have succeeded in their business, outperformed the competition and continued to operate successfully thanks to TQM. In this paper, the author conducted research on quality management in service companies on the example of Valamar Hotel Zagreb in Poreč