A hotel industry whose primary task is to satisfy and pamper a wide range of wishes and needs of each individual should be emphasized as a fundamental tourist receptive. Therefore the services offered should be of high quality because in its very center are constant new expectations, needs and wishes of the guests. The quality of hotel services implies impeccable people, products and services, elimination of guests' troubles and problems, polite behavior, trust in hotel staff, guests' security, respect of terms, real price/quality ratio of hotel services, prevention of personnel mistakes and good informing of the guests. In seeking new ways of competitiveness and creating greater value for guests a new quality management approach – TQM - has been established. TQM is based on the concept of continuous improvement of the process, on durable quality and team work, which results in constant improvement. A purpose of this final work is to show the quality of hotel services in hotel industry and how it affects on hotel business as well as standard appreciation and application which are indispensable for the proper use of quality in hotel industry, satisfying needs and wishes of our guests and for encouraging employees.