The impact of quality management on productivity in the hospitality sector

Abstract

This paper attempts to determine the relationship between quality and productivity in the hospitality sector. Although both variables are crucial to the competitive and value creation processes in hotels, few empirical studies have explicitly analyzed the relationship between them. Thus, we estimated a production function for a hotel sample that shows how a set of determinants influences labour productivity. Among these determinants we included different quality variables, defined from the point of view of total quality. The estimation results show a direct and significant effect of quality on labour productivity. This suggests that the implementation of total quality management (TQM) systems, or the adoption of the TQM principles, have a positive impact on hotel labour productivity.