Service quality contributes to customer satisfaction and is the most critical area of competitive advantage. It is difficult to measure whether a service is high-quality or not, but it is considered that users perceive the service as high-quality if it adapts to their expectations and wishes. Therefore, it is essential to differentiate your services in order to gain a competitive advantage. The seminar paper consists of six chapters. The concept of quality and quality management is described in the second chapter of the paper. The characteristics of the services are listed and explained. The third chapter deals with the description of the service quality management process. In addition, the method of strengthening the service company's brand identity and gaining clients' favour is described. In the fourth chapter, general information about the Hilton group, the organisational structure of the Hilton group and the competitors of the Hilton group are presented. The competition between Hilton, Marriott International and Airbnb is described in more detail below. In the fifth chapter, the challenges and problems of the Hilton group are listed, and each of them is explained in more detail. The challenges and problems faced by the Hilton group are the increase in the number of renters and intense competition, the question of how to retain quality human resources, ways of motivating employees at the Hilton hotel, and how to ensure data security on the Internet. The sixth chapter describes service quality management at the Hilton Hotel. The history of the founding of the Hilton Hotel is presented. The management of the total service in the Hilton hotel is described in the framework of service quality management at the Hilton hotel. Ways of differentiation as a segment of quality management are listed. The improvement of service quality by introducing innovations in the Hilton hotel is described. The ways in which the local culture of Canopy by Hilton is nurtured are shown. The prestigious awards received by Double by Hilton Zagreb are listed. At the end of the paper, it is described how client satisfaction with the overall service and its quality can affect the success of the Hilton company.