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Continual quality improvement is crucial to competitive success. A systems approach is vital in encompassing every segment of the hospitality organization in striving for service quality. The focus of this article is on employees as internal customers and the critical role this group plays in the delivery of quality results. The article will discuss the theoretical foundations for the concept of`i nternal customers.'' Research will be reviewed that has linked service quality between internal and external customers. The necessity of integrating service tò`i nternal customers'' into an organization's culture is also explained. Examples from leading hospitality companies are presented that reinforce the concept of``internal customer'' from the pre-hire stage to other career stages.

The hospitality industry tends to be cyclical as well as seasonal. Therefore, hotels, restaurants, and other travel firms must be prepared to compete during periods of low demand. One of the potential areas for obtaining a competitive advantage is to offer better service than the competition. This study examines the reasons given by hotel and restaurant customers for their "excellent service" experiences and their perceptions regarding service bias. This study found that most of the reasons were tangible and the majority of the respondents believe that hospitality service is biased toward certain customers.

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