Competitiveness is the key to the company's success in the market environment. Therefore, among many tasks of enterprise management, an important place should be reserved to the analysis of the factors that determine its competitiveness. Methodologically this corresponds to the concept of Total Quality Management, which is the basis of quality management in various spheres of economic activity. Therefore, the purpose of the article is to justify the feasibility of using the TQM concept in management of the business processes of a service enterprise. Based on the semantic analysis of the definitions of “service” and “business process”, the influence of quality factors on the perception of the value of services by customers of service enterprises is determined. Taking into account the specifics of the service sector, authors suggest that an important aspect in assessing the value of a service for the client should be the differentiation between: a) the content (purpose of the service to meet certain needs and b) the quality of actions of the service provider. It is emphasized that the consumer value of services largely depends on the way the performer acts in the process of serving the client, and this is what determines the quality of service, which is perceived and evaluated by the client subjectively and cannot be characterized by quantitative parameters. At the same time, in many cases, it can be brought to certain standards described by a set of criteria that correspond to different levels of quality. This simplifies the management of business processes in the service sector by separating their standardized and individualized parts and makes it possible to develop programs for improving the organization of processes and personnel skills. In the context of the tasks of designing competitive BPs in the service sector and implementing the strategic goals of the service enterprise, the principles of TQM were specified and the «quality loop» for the hotel business was designed.
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