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Suggests that the implementation of TQM systems in the tourist industry is still a recent phenomenon to which little research has been dedicated. Examines problems in initiating total quality management systems in Valencian hotel firms according to the evaluation criteria of the European Quality Award, comparing results with both customers’ and management’s perspective. Shows that a serious gap exists between the quality perceived by the customer and the self‐assessment of quality by the management team. The empirical evidence presented typifies a firm hardly oriented to the market and whose TQM systems need important improvements to increase the satisfaction of the customer, to reduce service variability and to improve the management of customer‐employee interactions.

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