This report discusses the challenges of service quality in the hospitality industry, with a focus on Holiday Inn hotel. It covers topics such as ineffective operations management, lack of supervision and control, safety and liability, communication and coordination, performance management, and conflict management. The report also critically applies these challenges to trends within the hospitality industry, such as increasing consumer awareness and the use of advanced computer systems and software. Finally, the report discusses the application of business models and theories for long-term development of a business entity.