The transformative role of internal marketing in the experience of employees and guests of small hotels

In the highly competitive hotel sector, smaller hotels face challenges in standing out and maintaining high service standards that ensure guest satisfaction. Internal marketing is a strategic approach that influences employee satisfaction levels. This relationship within the organization affects employee loyalty levels and how guests perceive the hotel. This paper examines the importance of internal marketing as a strategic approach. The analysis of internal marketing is conducted through the perspectives of communication, training, incentives, and employee engagement, highlighting its role as a link between organizational culture and service quality. Quantitative research methodologies, including surveys, descriptive and inferential statistics, and regression analysis, were used in an empirical study conducted on guests of small hotels in Croatia. This paper explores how internal marketing in small hotels can change the climate of the hotel organization. It investigates management practices aimed at providing guests with a unique and authentic hotel experience. An appropriate strategy in hotel operations not only improves service but also changes how guests perceive it, making them more loyal in the long term. The scientific contribution of the study enhances the understanding of the relationship between internal marketing, service quality, and guest experience. The practical guidelines of this paper are intended for managers of small hotels. They can establish rules that make staff satisfied and more engaged, and they can also develop strong connections with guests. This gives them an advantage over competitors in the ever-evolving tourism sector.