I confirm, that my submitted final thesis “Problems and perspectives faced by small hotels (on an example of Sayyoh hotel) is:
1. Done independently by me and is not used or given to any other student.

2. Was never used in any other college, university or any other education institution in Lithuania or abroad.

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3. There is no text from other works unless it is clearly cited.

4. Provided full literature list used by me in this final thesis.

(Signature) (Student name, surname)
ANNOTATION ………………………………………………………………
ANOTACIJA …………………………………………………………………

1.1. Hotel Definition, Types and Classification ………………………………..

1.2. Small Hotels Features………………………………………………………
1.3. Organizational Structure and Functions of Small Hotels……………….….

1.4. Problems and Challenges of Small Hotels…………………………………
TASHKENT, UZBEKISTAN …………………….………………………..

2.1. Data collection methods. Research data instrument – Interview……………

2.2. Presentation of the “Sayyoh” Hotel………………………………………….

2.2.1 Analysis of the organizational structure of the hotel……………………….

2.2.2 Analysis of internal and external environment……………………………..

2.2.3 SWOT analysis of the “Sayyoh” hotel ……………………………………..

3. RECOMMENDATIONS FOR THE DEVELOPMENT OF SMALL HOTELS…………………………………………………………………..……..3.1 Practical recommendations for creating a system for regulating the activities of small hotels…………………………………………………………………….

3.2 Methodological recommendations for creating a mechanism for the operation of small hotels in Tashkent……………………………………………………….



Today hotel business enterprises in the Republic of Uzbekistan are still at the stage of development, lagging behind major hotel chains on average by 10-15 years. However, the gradual process of increasing the hotel fund, the active introduction of new technologies and guest services in the hotel market, gradually allows Uzbek accommodation facilities to form a competitive, profitable sector of service and economy. The relevance of the topic of my thesis work is determined by the fact that against the background of these trends an important role is played by the process of formation and development of such accommodation facilities segment as small hotels that are very popular among tourists abroad.
The thesis provides a detailed analysis of the state of the segment of small hotels, determines their share in the overall structure of city accommodation facilities, analyzes in detail the current situation with the classification of hotel companies in Tashkent, including small hotels. Significant interest is presented by the comparative characteristic of the share of small hotels in the means of accommodation in Tashkent and in major European cities. The imperfection problems of the regulatory framework governing the activities of these accommodation facilities are highlighted, as well as the most promising areas for the development of small hotels in the structure of hotel companies in Tashkent.

Šiandien viešbu?i? verslo ?mon?s Uzbekistane vis dar vystymosi stadijoje, atsilieka nuo pagrindini? viešbu?i? tinkl? vidutiniškai 10-15 met?. Ta?iau laipsniškas procesas padidinti viešbu?io fondas, aktyviai diegti naujas technologijas ir sve?i? paslaugoms viešbu?io rinkoje, palaipsniui leidžia uzbek? apgyvendinimo patalpas suformuoti konkurencing?, pelning? sektori? paslaug? ir ekonomikai. Iš mano diplominiame darbe temos aktualumas yra nustatomas pagal tai, kad prieš ši? tendencij? fone svarbus vaidmuo tenka formavimo ir pl?tros pavyzdžiui apgyvendinimo patalpas segmentas nedideli? viešbu?i? proces?, kuris yra labai populiarus tarp turist? užsienyje.
Darbe pateikiama išsami analiz? d?l maž? viešbu?i? segmente valstyb?s nustato savo dal? ? bendr? strukt?r? miesto gyvenam?sias patalpas, išsamiai analizuoja dabartin? situacij? su viešbu?i? verslo ?moni? klasifikavimo Taškente, ?skaitant maž? viešbu?i?. Reikšming? susidom?jim? ?gauna palyginamoji maž? viešbu?i? dalis taupymo priemon?mis Taškente ir didžiuosiuose Europos miestuose. Taip pat pabr?žiamos netobulos reguliavimo sistemos, reglamentuojan?ios ši? apgyvendinimo priemoni? veikl?, perspektyvos, taip pat perspektyviausios sritys maž? viešbu?i? pl?trai viešbu?i? kompanij? strukt?roje Taškente.

In the conditions of the modern market, the organization of business in the service sector requires an approach that is tailored to meet the specific needs of a particular consumer. Accounting for individual requirements, ensuring compliance with the exact requirements of the client, adapting the quality of the product to its individual needs nowadays are the basis for the strategy of many companies fully aware of the new market realities that globalization and scientific and technological progress bring.
Most of the conditions for clientele and the personification of the hotel business objectively exist in small hotels. There is the provision of basic services for the client at the level of hotels of the highest category is provided, with a shortened list of some additional ones, in connection with which this category falls into the price niche of “3-4 stars “. Then it is not competing with typical hotels of the middle price segment. Apparently, the development of this promising form of hotel business, despite the obvious strategic conclusions is constrained by the need for individualization of all aspects of hotel activities, including marketing, finance, operational management and personnel management.

The relevance of this work is determined by the need to find the best management solutions, improve management in the service sector to stay “alive” and continue working. Big hotel chains, which are coming to new places, displace small private hotels from the market. It is important for managers of hotels to improve constantly the quality of service management, pay attention to its expansion, reconstruction of premises, and introduction of new technologies. The development of market relations forms, the emergence of new tasks, which calls for improved management. You need to be unique to attract the audience.
The problem of the thesis. Competition of independent hotels with chains – this is the main problem.
*How to attract tourists to small independent hotels to make the consumer choose this hotel instead of chain hotel?
*What is the solution for best service providence?
If the only competitors for small hotels were other same level hotels, smart management strategies would suffice to safely pull them through to success. However, chain hotels are now posing as competition to small hotels and are seizing the market.

The object of research of this work is the functioning of small hotels and in particular the hotel “Sayyoh” in Uzbekistan.
The subject of the study is the development of recommendations for improving the operation of the hotel. Consideration of factors affecting the quality of hotel services is aimed at improving the level of service and the efficiency of production of hotel services.

Aim. The aim of the work is to consider the problems of the development of small hotels and on the basis of the proposed ways to solve problems, to identify the prospects for their development.
1) Identify requirements for the organization of small hotels and their problems;
2) Define the features of the organization and specificity of small hotels as the most promising in the development of small businesses;
3) Analyze the work of small hotels on the basis of “Sayyoh” hotel;
4) Provide with recommendations for improving the activities of the hotel.

Work consists of an introduction, three chapters, a conclusion, a list of used literature and appendixes:
In the first chapter of this paper, the introduction of small hotels presented. Specifics of the development of small hotels, the specifics and main problems of the development of small hotels are identified.
The Chapter II states the methods used by the author for the research work. Also, it outlined the strength, weakness, opportunity, and threat of particular hotel in Uzbekistan and it’s structure of management organization.
Chapter III provides the analysis of the interview and recommendations for improving the operation of small hotels according to the needs, which are defined in research.

1. THEORETICAL BACKGROUND OF HOTEL INDUSTRY.1.1. Hotel Definition, Types and Classification.When someone travels to a destination, either as a tourist or a mere visitor, the person will need a place to stay and relax. Accommodation provides a base where one can engage in the process of staying at a destination. Over the years, accommodation has become the center of focus when hosting guests. It is an important element to be considered during the planning of a journey, because it comprises of the biggest element of tourist spending during a trip. Hotel is a part of the hospitality industry, which is an umbrella term for a broad variety of service industries including, but not limited to, hotels, restaurants and casinos. Hotel is often referred as a “Home away from home” (Le Na, 2010).
Merriam-Webster dictionary defines accommodation as a place where travelers can sleep
and find other services or a place where people can live, stay or work (Merriam-Webster 2014). Meanwhile, the National Institute of Statistic and Economic Studies (NISES) goes further by making references to time in its definition of accommodation. According to the institution, an accommodation is any facilities that provide lodging for tourists either on a regular or occasional basis, particularly for short-term, holiday and vacation. (NISES 2014.)
According to A.M. Sheela, the author of the book “Economics of Hotel Management”, hotel is the place where the tourist stops being the traveler and become a guest. Hotel usually offer a full range of accommodations and services, which may include suites, public dinning, banquet facilities, lounges and entertainment facilities. It is considered as an industry whose main aim is also to make profits for the hoteliers, though this may change at times. Hence a hotel should provide food, beverage and lodging to travelers on payment and has in turn the right to refuse if the traveler is drunk, not follow the rule of hotels or not pay the service fee. Traditional hotels provide rooms, banquets and restaurants. Additional hotels get revenues also from telephone call services, laundry services, travel services, internet services and recreational, entertainment activities in the hotels.

Hotel industry. The hotel industry is one of the most important sectors in the tourism and hospitality industry. The World Tourism Organization (UNWTO) stated that the global market size of the global hotel industry has grown the retail value from 430.6 billion USD to 495,2 billion USD between 2014 to 2016 and the figure is expected to increase by the end of 2020. (Diagram 1)
Diagram 1. Market size of the global hotel industry from 2014 to 2016 (in billion U.S. dollars)
Source: UNWTO, 2017
The growth in the hotel industry has been identified as one of the major facilitators in the development of Tourism and hospitality industry as a whole. No wonder the governments of some countries give incentives to hotel developers and owners in order to further enhance their country’s tourism sector (Page 2009, 259). Of all the various types of accommodation available to the tourist,
the hotel is the biggest and most visible sub-sector. It is usually viewed traditionally as an establishment, which provides accommodation, food and beverage services on a pay basis to guests who are only for a short stay. However, the modern perception of a hotel is more complex than this because not all of the hotels provide services such as food and beverages, at the same time, some hotels even offer additional services such as conference rooms to their guests. (Cooper et al. 2008, 343-346.)
At this point, due to the variations in what is considered to be a hotel in different countries, it is necessary to give a simple definition of a hotel in this research work. Perhaps, the definition proposed by the European Commission is suitable for this study. According to the Commission (Eurostat 2013), a hotel is a unit, which provides stays for visitors, typically on a daily or weekly basis, principally for short stays.

Hotel Classification Systems. The grouping together of hotels providing a given range of services and facilities is an inexact science. The distinction between availability and quality is often blurred. Early hotels and inns were little more than an available bed and something barely palatable to eat. The emergence of tourism in the latter half of the 19th century brought with it an improvement of the standards of the early inns. Some pressure was placed on these facilities to offer some minimum standards where the consumer was able to identify a property with specific amenities. The rating system emerged out of efforts by the Automobile and cycling clubs in Europe, who in their tour books displayed hotels, which they recommended to their membership, based on the guaranteed facilities which these hotels/inns offered. This led to the establishment of rating systems such as the Automobile Association (AA). Source: Research Department of the Caribbean Tourism Organization (2002)
There are two ways to categorize hotels: by types or by star ratings. By types, hotel has been classified into several types as follows:
Commercial hotel A chain of hotels which have standardized service and amenity structures
Economy hotel Small to medium-sized hotel establishments that offer a very limited number of on-site amenities and often only offer basic accommodations with little to no services.
Resort hotel A hotel caters primarily to vacationers and tourist and typically offers more recreational amenities and services in a more aesthetically pleasing setting, than other hotels. These hotels are located in attractive and natural tourism destinations and their clientele are groups and couples that like adventure with sophistication and comfort. The attractions vary depending on the region and some might offer golf, tennis, scuba diving and, depending on the natural surroundings, may arrange other recreational activities.

Airport hotel Hotel near the airport but it does not have to be connected or adjacent to the airport (although some are); it could be located up to five miles away. Most airport hotels have a shuttle to and from the terminals (Charlyn Keating Chisholm)
Conference center A specialized hotel (usually in a less busy but easily accessible location) designed and built almost exclusively to host conferences, exhibitions, large meetings, seminars, training sessions, etc. A conference center often also provides office facilities and a range of leisure activities
Suite hotel A hotel in which every rooms has an attached living room and/or kitchen
Residential hotel A serviced apartment complex uses a hotel-style booking system. It is similar to renting an apartment, but with no fixed contracts and occupants can ‘check-out’ whenever they wish
Casino hotel A business establishment combines a casino and a hotel or a building that houses both a hotel and a casino.

Table 1. Hotels classifications by functions.

Source: J.K. Krishan, “Dictionary of Tourism”, (2005)
By stars, hotel has been classified into several types as follows:
One-Star Hotels: Hotels in this classification are likely to be small and independently owned, with a family atmosphere. The owner and family on an informal basis may provide services. There may be a limited range of facilities and meals may be simple. Lunch, for example, may not be served. Some bedrooms may not have a suite bath/shower rooms. Maintenance, cleanliness and comfort should always be of an acceptable standard. (“Hotel Glossary of Terms”, Marsh)
Two-Star Hotels: In this classification, hotels will typically be small to medium sized and offer more extensive facilities than at the one-star level. Some business hotels come into the two-star classification and guests can expect comfortable, well-equipped, overnight accommodation, usually with a suite bath/shower room. Reception and other staff will orient for more professional presentation than at the one-star level, and offer a wider range of straightforward services, including food and drink. (“Hotel Glossary of Terms”, Marsh)
Three-Star Hotels: At this level, hotels are usually of a size to support higher staffing levels, and a significantly greater quality and range of facilities than at the lower star classifications. Reception and the other public rooms will be more spacious and the restaurant will normally also cater to non-residents. All bedrooms will have a suite bath, shower rooms, and offer a good standard of comfort and equipment, such as a hair dryer, direct dial telephone and toiletries in the bathroom. Besides room service, some provisions for business travelers can be expected. (“Hotel Glossary of Terms”, Marsh)
As an independent hotelier, you offer some things that big guys can’t: personality, and a personal touch. That is why, even though the big chains such as Hyatt and Marriott continue to swallow up market share around the world, it is still good to be a boutique hotel manager. (Dan Taylor, 2017)
Four-Star Hotels: Expectations at this level include a degree of luxury as well as quality in the furnishings, decor and equipment, in every area of the hotel. Bedrooms will also usually offer more space than at the lower star levels, and well-designed, coordinated furnishings and decor. The bathrooms will have both bath and fixed shower. There will be a high enough ratio of staff to guests to provide services like porterage, 24-hour room service, laundry and dry-cleaning. The restaurant will demonstrate a serious approach to its cuisine. (“Hotel Glossary of Terms”, Marsh)
Five-Star Hotels: Here you should find spacious and luxurious accommodation throughout the hotel, matching the best international standards. Interior design should impress with its quality and attention to detail, comfort and elegance. Furnishings should be immaculate. Services should be formal, well supervised and flawless in attention to guests’ needs, without being intrusive. The restaurant will demonstrate a high level of technical skill, F&B production to the highest international standards. Staff will be knowledgeable, helpful, well versed in all aspects of customer care and combining efficiency with courtesy. (“Hotel Glossary of Terms”, Marsh)
The star rating system is everywhere across the globe, most travelers and hotel guests prefer making inquiries about hotels in relation to their stars despite the fact that the criteria for the star rating of hotels varies from one country to another. Star rating is useful in hotel industry for many reasons; at the national level it provides the customers, the opportunity of finding a hotel that really conforms to their desired standard. Additionally, hotel management also benefit from the rating because it helps to improve the quality of the product being offered to the guests. (Brody 2009, 71.)
1.2. Small Hotels Features
Throughout the years, numerous researchers have strived to make an all around settled upon definition for small hotels. Shockingly, these experiments have not been productive in accomplishing its objective. A survey of writing on this point in any case, uncovers normal measurements among characterization of small hotels. Fundamental measurements specified incorporate smaller non-chain upscale property with an attention on the trade amongst guests and hotel workers. These tasks give exceptionally customized benefit in an enjoyable and private condition that generally incorporates unique design or cultural component. Location of the property is likewise essential to a hotel’s success and ability to deliver a unique experience to guests. (Aggett, 2007; Lim ;Endean, 2007; van Hartesvelt, 2006; Sarheim, 2010).

To be viewed as a small hotel, numerous analysts and industry experts show the property may just have a maximum number of 100 rooms. Comparing to medium hotels, which include – from 100 to 300 rooms, large hotels – from 300 to 1000 rooms (Aggett, 2007; Henderson, 2011; Mintel 2011). It should be noted that, depending on the country, the figures in parentheses can vary significantly. The purpose behind determining a maximum room number is to address the capacity of small hotels to give customized benefit, and to guarantee the respectability of trades amongst guests and employees (Henderson, 2011). The controversy for this announcement is that it is basically unrealistic for bigger lodging properties to convey a similar level of personalized service perceived at a boutique hotel as bigger properties compares to bigger staffing numbers, effectively reducing the measure of interaction between every individual guest and worker. Along these lines, adversely influencing how well a worker can get to know the guest. In general, this reduces the ability of lodging staff to customize a visitor’s stay. Besides, the point of major chain associations to standardize service over properties with rough operation policies has historically been a factor preventing them from operating boutique hotels.

Large organizations lack the flexibility and degree of employee empowerment required to deliver the high level of personalized and intimate service recognized in a small hotel (Henderson, 2011). Boutique hotels include an interesting item separating itself from others, and set the subsector separated from whatever is left of the hotel segment. Their wellspring of separation is usually associated with the design, artistic, cultural or historic appeal, prestige and exclusivity of a property (Lim & Endean, 2009; Sarheim, 2010). This picture of prestige related with numerous small hotels and their reference groups is progressively turning into a fundamental pull factor for guests (Hartsvelt, 2006; Pricewaterhouse Coopers, 2005).

Another characteristic of small hotels mentioned in literature is the location of the property. Small (boutique) hotel areas are characterized into city and resort destinations. City destinations are chosen for the “popularity” of the zone, though resort areas are colorful, little and private (van Keulen, Vinot and Hoh, 2002). However, generally, most properties are in urban or downtown areas (Lin and Endean, 2007). Location provides the context for which the unique experience of staying in a boutique hotel occurs by contributing to the atmosphere at the property. A passionate association amongst visitors and the property, is also mentioned throughout literature, identified with characterizing a small hotel, demonstrative of its significance to boutique activities (Mclntosh and Siggs, 2005; van Hartesvelt, 2006).

The tasks of transforming most of the cities into a major international tourist center are especially relevant given the increase in the volume of tourism and the provision of modern standards of quality of tourist services and require the expansion, modernization and restructuring of the city’s hotel base. One of the promising approaches in this direction is the creation of a network of small hotels, which, supplementing large and medium-sized hotels, form the business and tourist attraction of the city, contribute to the development of small business, the creation of new jobs in services, and municipal budgets. (D. Bowen, 2003)
Requirements for the comfort and attractiveness of a small hotel (C. Fletcher, 2008):
1. The hotel building must fit organically into the environment, without disturbing the characteristics of the urban, rural or natural landscape.

2. The structure of the building must take into account the natural and climatic factors: temperature and humidity, the proximity of the sea and other water bodies, wind speed and direction, and other factors.

3. The planning of the hotel building should ensure the economy of operation with a rational combination of current and one-time costs.

4. The facade of the hotel for advertising purposes should emphasize the prestige and brand of the hotel, and the building itself should correspond to the aesthetic, ecological, technical and sanitary-hygienic standards.

5. The capacity and the amount of the floors of the hotel building should depend on the destination, operating mode – year-round or seasonal.

6. The interior of the hotel should be comfortable and have aesthetic expressiveness.

7. Hotel services must be equipped with automated booking and reservation systems, computerized management systems.

8. Customer safety must be provided through various surveillance systems, in-house electronic safes, electronic locks and other security features.

1.3. Organizational Structure and Functions of Small Hotels
The hotel is an enterprise created to provide the general segments of the population with basic, additional paid and free services in accordance with the current legislation. In this way, a hotel enterprise is an independent economic entity that supplies its product to the services market on the basis of the freely developing demand for these services from their consumers. The main service or accommodation service is considered as a specific hotel product that is bought by the hotel clientele through exchange transactions that do not involve possession, but only access to it and its use at a certain time and place. (E. James, 2008)
13335013519150Each hotel contains a complex, a system of premises and services that ensure the reception and accommodation of the clientele, their meals, the organization of leisure and personal services. Therefore, speaking about the hotel, the hotel industry, we often mean that it is a hotel complex, which includes residential and office space, engineering systems, as well as the territory adjacent to the hotel buildings and facilities. All buildings of the hotel complex are organized in such a way that it is easier to serve the clientele, to provide them with a variety of high-quality services. This cannot be achieved without a prepared and fully trained service staff, selected according to the regulations developed by the hotels.

Chart 1. Organizational chart of small hotel.

Source: Created by author.

Managers of all departments of the organization report to the general director (general manager). Large departments of the organization can be divided into smaller sub-departments.

When considering the structure of management of hospitality industry enterprises, it is necessary to take into account that the correct structural division of functional powers between different departments of the organization plays an extremely important role in the effective operation of this enterprise. This leads to the achievement of goals, the development of an individual image, which entails an increase in the level of popularity among customers. (Edward James, 2008)
Every hotel, whether it is big or small, needs an organizational structure to carry out its daily operations. It is used to help divide tasks, specify the job for each department, and delegate authority within and among departments. Effective job specifications will increase work productivity and efficiency. Each hotel organizes workforce in different ways. It was segmented into six divisions: finance, front office, human resources, food and beverage, sales and logistics. (Nancy K., 2015).

Here shows a small size hotel organizational structure:
Financial. The financial department’s role is to record financial transactions, prepare and interpret financial statements, and deal with cost accounting and cost control.

Front Office. The front office (room management) department handles customer service including front desk service, reservation, laundry, concierge, telephone, and housekeeping service. A hotel’s front office is where guests are greeted when they arrive, where they are registered and assigned to a room, and where they check out. It is almost the most important department as it often offers contact with customers.

Human Resources. The human resources department is given the responsibility to handle employee recruitment, arrange staff training, make promotion and disciplinary decisions, and check staff attendance.

Food ; Beverage. The food and beverage department is responsible for all of the dining rooms, restaurants, bars, kitchen, clean up services, etc. We divide F/B department into two parts: kitchen and restaurant. Kitchen department is responsible for food preparation including main food, dessert, side food, and beverage. Restaurant department’s role is to provide dining room operation, waiter service, food runner, and clean up service.

Sales. The responsibility for sales department is to sell the hotel facilities and services to individuals and groups. They sell rooms, food, beverage or special services such as massage and laundry to potential customers through advertising or direct contacts.

Logistics. The logistics department is responsible for tracking for daily supplies, purchasing appliances, and keeping security.

The management structure in hotels is standard:

2015490115570Functional structure
Functional structure

203454085090Subsidiary structure
Subsidiary structure

Scheme 1. Management structure
Source: D.A. Osipov. The Basics of the Hospitality Industry, 2011
In Scheme 1, the management is the head (general manager).

Functional structure is the departments that ensure the normal functioning of the management (administrator, accountant, etc.).

The subsidiary structure is the departments that ensure the normal operation of the functional units (personnel department, waiters, repair service, etc.).

Managers of all departments of the organization are subordinate to the general manager (general manager). Large departments of the organization can be divided into smaller sub-departments:
– general manager or director – is the legal representative of the hotel, oversees the work of staff, deals with strategic planning, concludes agreements on cooperation with tourist intermediaries, accepts staff for work, etc.

– administrator – the second person in the hotel: coordinates the activities of staff, reports the productivity of staff, acts as general manager in his absence, organizes corporate events, directs other services of the hotel;
– accountant – prepares financial and economic operations and submits reports to the regulatory bodies;
– managers – lead the management of the middle level of different areas, for example, personnel management, marketing, cultural and entertainment services, technical services, restaurants, etc.;
– performers – those who are directly engaged in the service of tourists (waiters, personnel, housekeepers etc)
When considering the structure of management of hospitality industry enterprises, it is necessary to take into account that the proper division of functional authority between different departments of the organization plays an important role in the effective operation of this enterprise. This leads to the achievement of goals, the development of an individual image, which entails an increase in the level of popularity among customers. (D.A. Osipov, 2011)
1.4. Problems and Challenges of Small Hotels
Small hotels play an important role in the tourism industry. The needs of tourists give the opportunity to develop new types of mini-hotels along the way to meet the needs and requirements of the guest, providing him with a decent level of comfort and services. In this case, a small hotel should be designed for consumers with different levels of income, staying at the hotel for different purposes.

Today, mini-hotels accept a wide variety of visitors:
– participants in rallies, all kinds of congresses, conferences, fairs;
– citizens who arrived on business trips, businessmen;
– tourists who come to rest or travel inland or from abroad.

Market economy and competition in the modern hotel business lead to the need to expand the range of approaches in the provision of hotel services. It requires more flexible and quick adaptation to the changing needs of the client, because the number of people who prefer small hotels increases every day, where they are guaranteed an individual approach, combining comfort, quality service and the cost of settlement for any size of wallet.

Currently, the hotel business, although is developing actively, but still remains not fully formed. This is due to the fact that there are certain problems in the management of this business, the full use of management and marketing as a tool for performance, addressing the issues of booking automation, supply and maintenance, training of personnel, improving the class of the hotel.

An independent way out of this situation, as a rule, is limited by small financial possibilities of small hotels, therefore, they do not have enough capital for the fast promotion of the product on the market. Therefore, the most important task is to find solutions to these problems in order to fully meet the growing demand.

Small hotels operate in the same price range with medium and large hotels. Prices dictated by the market, which is unique for kids and for giants. Prices depend only on the class of mini-hotels. However, a small number of rooms is pushing the owners of small hotels to maximize the average selling price. However, this does not always promote business development. After all, in the hospitality business, it is very important to keep a balance between cost and quality of service.

But, although small hotels are the subject of numerous studies, their status is still uncertain. First, there is no consensus on what a small hotel is, and secondly, in terms of logistics, the range of services and quality of service, a small hotel very often does not fit into the classification of hotels. For example, a small hotel with 25 rooms in a separate small building, even fully satisfying all the requirements for a four-star hotel for technical equipment and comfort, will never be officially classified into four stars if it does not have a hairdresser, a business center and a hall for cultural events. After all, no matter how you try, no matter how you decorate the rooms with exclusive furniture and expensive equipment, they cannot get more than three stars, because there is no beauty salon and a second elevator.

The formulation of the problem in the development of a small hotels network is based on the following fundamental principles:
– Small hotels should be an organic part of the town-planning, business and cultural image of the town. To be as close as possible to its most important business centers, objects of international significance, to areas of increased tourist interest and the purpose of visiting it;
– The functioning of small hotels should be carried out on the basis of modern management and taking into account the features of work and technology in the small hotel business;
– the formation of a common infrastructure, the conduct of a single price, advertising and other policies, the centralization of other management functions should ensure that small hotels are highly competitive in comparison with other segments of the hotel market, while ensuring high quality of service and solving issues in each segment.

The problem with the staff is typical for the hotel business in general, and not just for small hotels. This is because an insufficient number of specialists are trained in educational institutions; in many respects, they approach formal training. In small hotels, the staffing problem is aggravated by the need for a specialist who could work as an administrator, bring breakfast to the room, and sometimes perform the functions of a maid. On the one hand, such universalism is not taught in any educational institution, and on the other hand, a graduate does not always want to perform “black” work. (Alexei Musakin, board member of the hotel association, 2008)
The problem of staff turnover in hotels is extremely acute. In most cases, the reason for this phenomenon is not the low salary and hard working conditions, but the incorrect attitude of the management to the staff, the lack of the necessary level of professionalism among managers of hotel enterprises. Incompetence of employees of management services leads to the violation of all processes occurring in the hotel, which reduces the utilization factor of the enterprise and significantly reduces the quality of service for tourists.

Therefore, the issue of personnel selection and training is extremely relevant for small hotels, as in these institutions there should be a special atmosphere of home comfort and coziness and, of course, the possibility of individual approach to each guest, which is the immediate duty of the staff.

Studies show that in large cities there is a shortage of small hotels. Constraints are often the need for serious capital investment, difficulties in dealing with housing and communal services, lack of support from the city authorities. The development of small hotel business is inhibited by a real estate. There are two problems. First of all, its cost. Overstated prices of the real estate market do not give the opportunity to develop consistently. So it turns out that hotels are inexpensive – it means that they will not be in the center and away from tourist routes. But even if the investor manages to resolve these issues, an unrealistic deterrent is the re-enlistment of such land. Typically, in order to save, an investor buys inexpensive communal or old housing stock, and the official reissue of such facilities in hotels requires high costs, a lot of time and leads to a significant tax burden on the business, as the laws treat it on the same way as with large hotels.

The hotel services market is one of the most attractive and dynamically developing type of activity. The development of tourism directly depends on the development of the hotel infrastructure and it is one of the most important factors determining the amount of incoming tourists. The development of small hotels, accessible at a price level, will provide an increase in the flow of tourists, the number of those wishing to get acquainted with natural beauties, take advantage of climatic advantages or enjoy the cultural richness of any region: historical past, antiquities, modern attractions and entertainment.

2.1. Data collection methods. Research data instrument – Interview
Data Collection Methods. Data collection is a process of collecting information from all the relevant sources to find answers to the research problem, test the hypothesis and evaluate the outcomes. Data collection methods can be divided into two categories: secondary methods of data collection and primary methods of data collection. (John Dudovskiy, January 2018)
Secondary Data Collection Methods. Secondary data is a type of data that has already been published in books, newspapers, magazines, journals, online portals etc. There is an abundance of data available in these sources about your research area in business studies, almost regardless of the nature of the research area. Therefore, application of appropriate set of criteria to select secondary data to be used in the study plays an important role in terms of increasing the levels of research validity and reliability. These criteria include, but not limited to date of publication, credential of the author, reliability of the source, quality of discussions, depth of analyses, the extent of contribution of the text to the development of the research area etc.

Primary Data Collection Methods. Primary data collection methods can be divided into two groups: quantitative and qualitative.

Quantitative data collection methods are based in mathematical calculations in various formats. Methods of quantitative data collection and analysis include questionnaires with closed-ended questions, methods of correlation and regression, mean, mode and median and others. Quantitative methods are cheaper to apply and they can be applied within shorter duration of time compared to qualitative methods. Moreover, due to a high level of standardization of quantitative methods, it is easy to make comparisons of findings.

Qualitative research methods, on the contrary, do not involve numbers or mathematical calculations. Qualitative research is closely associated with words, sounds, feeling, emotions, colors and other elements that are non-quantifiable. Qualitative studies aim to ensure greater level of depth of understanding and qualitative data collection methods include interviews, questionnaires with open-ended questions, focus groups, observation, game or role-playing, case studies etc.

Your choice between quantitative or qualitative methods of data collection depends on the area of your research and the nature of research aims and objectives. (John Dudovskiy, January 2018).

Qualitative research – interviews.

There are three fundamental types of research interviews: structured, semi-structured and unstructured. Structured interviews are, essentially, verbally administered questionnaires, in which a list of predetermined questions are asked, with little or no variation and with no scope for follow-up questions to responses that warrant further elaboration. Consequently, they are relatively quick and easy to administer and may be of particular use if clarification of certain questions are required or if there are likely to be literacy or numeracy problems with the respondents. However, by their very nature, they only allow for limited participant responses and are, therefore, of little use if ‘depth’ is required. (P. Gill, 2008)
The purpose of research interviews.
The purpose of the research interview is to explore the views, experiences, beliefs and/or motivations of individuals on specific matters (e.g. factors that influence their attendance at the dentist). Qualitative methods, such as interviews, are believed to provide a ‘deeper’ understanding of social phenomena than would be obtained from purely quantitative methods, such as questionnaires.1 Interviews are, therefore, most appropriate where little is already known about the study phenomenon or where detailed insights are required from individual participants. They are also particularly appropriate for exploring sensitive topics, where participants may not want to talk about such issues in a group environment. (K. Stewart, 2018)
When designing an interview schedule it is imperative to ask questions that are likely to yield as much information about the study phenomenon as possible and also be able to address the aims and objectives of the research. In a qualitative interview, good questions should be open-ended (i.e., require more than a yes/no answer), neutral, sensitive and understandable. It is usually best to start with questions that participants can answer easily and then proceed to more difficult or sensitive topics. This can help put respondents at ease, build up confidence and rapport and often generates rich data that subsequently develops the interview further. (B. Chadwick, 2008)
2.2. Presentation of the “Sayyoh” Hotel.

Hotel “Sayyoh” is a completely renovated building, ready to welcome over 40 guests at any time. The company employs about 28 people. As a socially responsible company, Sayyoh Hotel supports children and young people in the field of sports, art and education, creating preferential accommodation for children under 16 years old, arriving in Tashkent for competitions, festivals, reviews and competitions, gaining a colossal experience of accommodation and event management in national and international levels.

The hotel has 26 rooms (3 floors), which are divided into several categories:
•Single room
•Single Comfort
•Double Room
The cozy rooms are equipped with everything you need – telephone, TV, fridge / minibar, safe, air conditioning, bathroom with shower. The cost of accommodation for all categories of rooms includes breakfast buffet.

The services. In “Sayyoh” Hotel, guests can additionally take advantage of transport services and transfers, travel agency services, domestic and medical services and on-site entertainment.

Upon prior request (additional payment), the hotel staff will meet you at the airport or train station. The administrators of the accommodation and booking service will accept the booking and organize any trip.

• “Sayyoh” hotel car partner – “City taxi”. • Order of a taxi, group passenger transportation
• Internet Wi-Fi (Internet access on the basis of Wi-Fi technology in the hall, cafe)
• Automobile, guarded parking lot. Parking is free of charge. Own security service. CCTV.

• Monetary operations
• Payment by credit cards Visa, Visa Electron, MasterCard.

• Baggage storage room. Valuable and large items you can leave in the storage camera, which is located on the first floor.

The hotel is located in a large area of Tashkent – convenient transport interchange, city-forming, educational and medical establishments of the region, park zone, fountains, cafes and cinemas. – You will know our city in all its splendor. Hotel address: Chilanzar, st. Al-Khorazmiy, quarter 16, 4 1, 100002 Tashkent, Uzbekistan.

2.2.1. Analysis of the organizational structure of the hotel.The process of management and execution of works in the hospitality industry of the “Sayyoh” hotel takes place within the framework of a typical organizational structure of a hotel, restaurant or other hospitality enterprise. The hotel has a linear-functional structure. The structure is a model of the relationship between the positions in the hospitality industry company and between its employees. The structure determines the scheme of commands and orders, through which the company’s activities are planned, organized, sent and controlled. Consequently, the structure gives some form (outline) to the hotel and provides it with a suitable base for the organizational process and the performance of work.

The distribution of tasks, the definition of powers and responsibilities, as well as the relationships between employees of the hotel are built due to the organizational structure through which interpersonal relations are divided and coordinated.

In the organizational structure of the “Sayyoh” hotel there are two main operating divisions: the accommodation service and the food and beverage production service. This is mainly due to the fact that all hotels, in particular ours, offer their guests two main services – safe and comfortable accommodation, selling rooms and delicious food, selling different dishes and drinks. Other units are given the role of supporting the main activities of the hotel.

But in fact, the “Sayyoh” Hotel is divided into five functional administrative departments: a room management service; food production; marketing and sales; staff; accounting. The directors of all five departments are accountable to the general manager of the hotel. Each department in turn is divided into small organizational units. Each unit reflects additional subtleties of work, as well as knowledge and skills of people in each unit.

Advantages and disadvantages of the linear-functional structure. Advantages and disadvantages of the linear-functional structure depend on the effective functioning of each department. Specialization of departments and units is carried out at the request of senior management, which also coordinates the activities between departments. The hotel needs strong leadership at the highest level of organizational structure.

In inference, the favorable role of various committees and commissions in coordinating the functions of departments established in the hospitality industry. One of them is an executive committee consisting of the general director of the organization and his deputies, the directors of departments directly subordinate to the general director. This committee usually develops a forecast for congestion or attendance (for a restaurant in a hotel), expected revenues, profits for each year. Depending on the tasks assigned and on certain factors, the committee may have an advisory capacity for the CEO or even resolve a number of issues. The role of the executive committee is especially strengthened when it is necessary to carry out changes in the organization and is reduced with a strong general director. It should be noted that regular meetings of the members of the committee, of course, teach a lot new things on lacking experience of directors or managers. Also, the committee helps create a sense of shared responsibility, build trust between members of senior management.

In the “Sayyoh” Hotel, the committees form a formal part of the organizational structure. The structure of the committees, where the responsibilities of each group are presented and the dates of meetings are approved by the CEO. The hotel annually hosts 30-45 scheduled meetings with the participation of the general director.

Despite the positive aspects, such an organizational chart has its shortcomings, the main one of which is static, and also that it does not depict the difference in the positions of the same level, the delegation of responsibilities from the manager to the subordinate, the relationship between line managers and functional personnel, third-party contacts, etc.

2.2.3. Analysis of internal and external environment
Analysis of the external environment. Let’s start with the analysis of the external environment, for this we need to analyze the micro- and macro environments.

When analyzing the microenvironment (“near” environment), we should analyze such components as:
– Consumers;
– Suppliers;
– Competitors;
– The labor market;
For this we will compile tables reflecting the significance and position of each factor.

Consumers;Characteristic The manifestation of the factor Development trends
1 2 3
The main consumers of the proposed service can be: individuals, children’s institutions, government organizations, travel companies, etc. Persons visiting the city are interested in a quality and comfortable place to stay and stay;
A person with an average income and above can choose a number from several categories. Company needs further development and expansion. This will give an opportunity to gain a competitive advantage.

Socio-psychological characteristics.

The consumer reserves a room and stipulates the conditions that result in the conclusion of contracts and some other acts. Provision of further services.

Requirements for quality and price. The quality is excellent, this is confirmed by the certification of the hotel in 3 stars, but the price is the same as the competitors who do not have this status. The desire to improve the quality of service and the status of the hotel, customer orientation.

Suppliers;Characteristic The manifestation of the factor Development trends
1 2 3
The hotel offers the services of only trusted partners who are old and reliable. The quality of the service directly depends on the customer’s satisfaction.

Also from the timely provision of services not only to the hotel, but also to its partners. Promotion of the expansion of the range of services / products of suppliers. Attracting new partners.

Socio-psychological characteristics. The conclusion of a contract in which the obligations of the parties are indicated, basically this is already included in acts of residence. Providing further services, and further cooperation with companies.

Requirements for quality and price. To ensure that this product / service meets our expectations and satisfied completely with the consumer. Striving to improve the quality of the products offered. Expanding the range of services.

Competitors;Characteristic The manifestation of the factor Development trends
1 2 3
The main competitors are:
“Aster Hotel Group”, hotel “Sharq”, “Crown Hotel” and others. The hotel is characterized by an effective policy of using its resources, and also maintains the status of a 3 star hotel. Competition with each time is growing more and more, the existing main competitors are expanding, and also claim to raise the status of the stars.

Socio-psychological characteristics. Individual work with clients, approach to each customer. Also the provision of additional and business services. The difference from competitors is the advantage of any organization. The hotel can offer additional services (business center), price / quality ratio, official confirmation of the certificate, experience of hosting international events, experience from European countries.

Requirements for quality and price. The price must meet the requirements of consumers, which, undoubtedly, will be an advantage over competitors, also improving the quality of available services and expanding the list of services. Striving to improve the quality of the proposed service.

The labor market;Characteristic The manifestation of the factor Development trends
1 2 3
Main positions occupied: receptionists, waiters, maids, security. For normal and stable operation, many workers at grassroots levels are required. Professional training, promotion on a career ladder.

Socio-psychological characteristics. Employees should contribute to customer satisfaction, find an individual approach to each and also perform their work qualitatively. Professional training, increasing motivation.

Requirements for quality and price. The quality of customer service by employees must comply with international standards. The desire to improve the professional level of workers.

The analysis of the macroenvironment includes the analysis of the following factors:
• Economic;
• Legal;
• Political;
• Social;
• International;
• Scientific and technical
Analysis of the internal environment of the organization. The internal environment of the organization is the source of its life force. It contains the potential that enables the organization to function, and thus to exist and survive in a certain period of time. But the internal environment can also serve as a source of problems if it does not provide the necessary functioning of the organization.

– objectives
– tasks
– technologies
– org. structure
– people
Goals and objectives:
The main objectives of the Sayyoh Hotel are:
• profit-making;
• economic growth through mutual benefit for the hotel and consumers, suppliers and partners;
• fair competition in the market;
• participation in the management of all employees of the enterprise.

Strategic Objectives:
• improvement of conditions for providing additional paid services;
• expansion of the number of rooms;
• increasing of the number of clients coming to the hotel;
• cooperation with travel companies in the Tashkent region;
• ensuring competitiveness in conditions of market saturation with alternative means of accommodation;
• creation of conditions for the professional development of highly qualified specialists, ensuring safe working conditions, providing employees with competitive remuneration and social benefits in accordance with the volume and quality of their work;
• compliance with Uzbek and international standards, introduction of new technologies.

The main task of the hotel is to provide temporary accommodation. To do this, you need to consider the needs and requirements of the guests. All arriving guests need:
– clean comfortable rooms;
– properly functioning equipment;
– polite, professional and friendly service;
– safe and secure accommodation
Organizational structure
“Sayyoh” Hotel, as mentioned earlier, has a linear-functional management structure.

For effective work, the management must distribute among the employees all those tasks that are necessary to achieve the enterprise goal.

Like all hotels, the “Sayyoh” hotel has various types of equipment to provide services to guests, as well as for the convenience of staff.

In the accountant’s office there is a computer with all the necessary office equipment.

As the hotel has a restaurant where guests are prepared food, it is equipped with various professional equipment. All dishes are prepared according to a certain technology.

For the comfort of the guests the rooms are equipped with TV, alarm system, sanitary equipment, Wi-Fi and an electric kettle.

The hotel staff is the face of the hotel. People who work in the hotel, form the attitude towards it at the client no less than the interior or menu. The number of posts presented in the hotel includes: waiters, maids, technicians, receptionists, accountant, duty administrators, cleaners and others.

Total number of staff: 28 people.

Today the “Sayyoh” hotel is stable and profitable.

Modernization of the enterprise, the acquisition of modern technology and the introduction of the latest technologies dictate their conditions, which only qualified specialists can cope with. Therefore, the “Sayyoh” hotel is faced with the need to spend substantial funds for the training of its specialists.

Many current specialists have a lot of motivation for further training and development. A huge selection of special literature on their profile, and magazines contribute to the development of professional skills and knowledge. A specialist with a broad outlook will always have authority in the team and further career growth is assured.

The system of labor remuneration in the enterprise does not need to be improved, which helps motivate the employees of the enterprise to improve the quality of work and the pursuit of career growth.

2.2.4. SWOT analysis of the “Sayyoh” hotel.

1. Convenient location of the hotel (green area, good traffic intersection)
2. High level of security and tranquility. “Sayyoh” Hotel pays special attention to security system: 24-hour video recording, reliable security and electronic access to rooms, a luggage room, a depository and an individual safe for storing valuables. And for guests arriving by private transport, there is parking area for more than 40 seats.

3. Highly appreciated hotel, quality of services and services of which is officially confirmed by the certificate “Three stars”. guests receive high quality service, as the hotel strictly follows the quality standards of the hospitality industry.

4. Value for money. ?an exceptionally professional approach to how to guarantee the guest the high quality of services and to provide safe accommodation for an amazingly low price. The cost of accommodation will save you a FREE room reservation fee.

5. A wide range of additional services. Guests do not have to worry about how to store their belongings and where to leave their luggage, how to book tickets for a train or plane, where to withdraw cash, or how to travel around the city. For services of visitor’s there are restaurant, excursion and tourist service, household, recreational and business services (outside of hotel).

6. Flexible system of proposals. Depending on the days of the week, the season and the dates of stay, the Hotel “Sayyoh” is pleased to offer you a large selection of specially designed rates, promotions and offers for all occasions. 1. Statiness of the organizational structure.

2. Lack of normal parking
3. Sluggish organization of management (non-operative management, inability to react actively to changes in the consumer’s desires regarding quality and service level)
4. Staff turnover, lack of graduates.

5. Weak advertising campaign.

6. The need to update some hotel facilities.

7. Unsatisfactory knowledge of foreign languages by service personnel.

1. Expansion of the range of services provided
– Inclusion of the hotel in the global reservation network.

2. Increase the efficiency of the hotel through innovation:
– Improving the quality of services provided
– Staff development
– Attraction of regular guests
3. Creating a better parking area
4. Possibility of carrying out internal management reforms.

5. Training of personnel
– Exchange of employees with other hotels
– Improvement of classification
– Projecting of foreign experience on personnel
6. Expanding the range of cooperation (with various travel agencies and tour operators)
7. Improving the level of service 1. Strengthening the positions of competitors (Increasing competition from the more quickly adapting to changes in consumer preferences of rivals)
2. The exacerbation of the “turnover” of the personnel (especially the executive-level staff)
3. Deterioration of “feedbacks” (not only from the consumer, but also from the partners)
4. Instability of socio-economic and political situation.

5. Low incomes of the majority of the population.

6. Escalation of competition.

7. Price changes for services used by the hotel.

It can be seen from the SWOT analysis that the hotel has sufficiently stable financial resources that allow it to carry out both internal repair and reconstruction and internal staff management reform. It is clear that the hotel is going to improve its reputation by attracting new partners. At the same time, the organization of top management does not allow the hotel to react quickly to the ever-changing demands of consumers of hotel services. It is also clear that there is a huge turnover of staff, which is not very good for the hotel.


3.1 Practical recommendations for creating a system for regulating the activities of small hotels.

The mini-hotel is one of the most versatile hotel formats. Small areas, the possibility of “embedding” both in non-residential and residential housing, placement in historic neighborhoods of cities or, conversely, away from megacities, outside the city or in the countryside. One of the advantages of the format is small investments: a significant part of such facilities are built with the involvement of private capital, and the dynamics of segment development is explained by the high activity of private entrepreneurs. Often, small hotels come to markets with large tourist flows, before networks, providing the missing number of rooms. They are optimal for those cities where it is difficult to find a property or a place for the construction of large hotels.

It is also a definite way out for markets where demand has a pronounced seasonal character, which makes the opening of large hotels inexpedient. To close a small hotel for a low season is easier than stopping the work of a large object. (Business magazine “Modern Hotel” ? 5, 2011)
All small hotels in Tashkent, which have a minimum set of services, were awarded the “three stars” category for certification. But most of them very restrict the list of their services, which include only: restaurant, bar, hairdresser, currency exchange. If you pay attention to architecture, the huge dark buildings of these hotels do not attract attention and do not cause the desire to live in them.

Most hotels in the four-star category are new or restored buildings. These hotels attract attention by exterior and interior decoration, design. In most of them, the capital of foreign companies is involved, management is also usually carried out by foreign specialists. They offer a broader range of services than those in the three-star category, and are approaching international standards. As a rule, they all have a sauna, less often a swimming pool, small conference halls and business centers, restaurants, bars, beauty salons and other services, individual for each hotel. These enterprises constitute the overwhelming majority among the hotel enterprises of our city.

The new hotel industry in the country is characterized by the predominance of expensive high-class hotels, with almost no modern hotels of the category “two or three stars”, which work as mass hotel companies in foreign practice.

In Tashkent, most hotel companies of the “two-three-star” class are old hotels, which, due to the fact that they were built very long time ago and have not been restored, cannot claim a higher category. To such enterprises included such hotels as: hotel «Star hotel»; hotel «Grand Orzu hotel».

The services of such hotels would be enjoyed by foreign businessmen, who are at the moment, due to the underdevelopment of our domestic market of hotel services, are forced to pay prohibitive prices for accommodation in the hotels of the city.

Marketing research shows that the demand for hotels of lower class, namely hotels of the “two-three stars” is active and will grow. After all, the guests of our city are not only the rich people. If we want to attract foreign tourists, then the network of such hotels is simply necessary for the city.
right669925Hotels and similar accommodation (NACE Rev.2, I, 55.1) by size class: number of establishments
In the table above it is shown that in most European countries the amount of small hotels is increasing or decreasing. It is because big hotel chains are coming and pushing out small hotels business. But in opposite, it makes sense for implementing small, independent hotels in Uzbekistan because it’s promising a stable position in Uzbek market. There are just a few international hotel chains. It is very hard to enter to Uzbek market from abroad. That’s why, there is no any competition, that can interrupt the potential interest in establishing small hotels.
Currently, the government of the city of Tashkent is trying to implement a program for the development of small hotels of the “two-three-star” class in the old and cozy buildings of the city. Such hotels are very popular in the West. Inexpensive and very cozy hotels could receive guests from the city who cannot afford to live in a high-class hotel for a long time, such as, for example, City Palace or International.

Also, it should be noted that in Europe, hotel-type facilities in the buildings of ancient buildings are very popular. This is precisely what the capital’s mayors were looking for. Tashkent also decided to implement a network of such hotels. The benefit of the Uzbekistan’s capital city is that it is one of the oldest and most beautiful cities in Asia and in the world. Restructuring and restoration of ancient mansions and castles will give work to a large number of people. New jobs will be created. A chain of two-three-star hotels will be expanded.

However, it should be noted that Tashkent is a relatively prosperous city, from the point of view of the conjuncture of the hotel and restaurant services market. In the regions, things are a little more complicated, but there is a huge flow of tourists to Samarkand as well. Thus, opening a small hotel in Tashkent, after starting to get revenue, why not to open its network in Samarkand?
3.2 Methodological recommendations for creating a mechanism for the operation of small hotels in Tashkent.

Organizational potential is the aggregate capabilities of employees of small hotels, expressed in the amounts and types of work that hotel management can perform.

The main components of the potential of the organizational structure of the management of small hotels are the resources of management personnel, technical equipment of managerial work and information support. The totality of these resources, characterized by productivity, economy, adaptability and reliability is designed to meet production goals.

First of all, the leader must first develop his own opinion, a personal conceptual model of managing small hotels. The initial stage of this work is the setting personally by the head the goal of the strategic development of the hotel, taking into account the effective use of its potential.

External conditions determine the managing the resources goals of the organizational structure, due to the changing social needs and the need to interact with other systems of the external environment: higher organizations, regional bodies, banks, suppliers and consumers.

Internal conditions for the functioning of the production system determine the objectives of managing the resources of the organizational structure, due to the need to ensure the effective management of all the resources of the production system: technical, technological, personnel, etc. If the operating conditions of some units differ from the conditions of other divisions, then their structures should also differ. Unites such unit’s unity of goals, which is an element of both the planning process and the organization and does not allow the business units to “pull” it in various directions, to diffuse forces and abilities to achieve the overall goals of the hotel.

The necessity of the marketing service is conditioned by the fact that the adaptation of small hotels to constantly toughening conditions of competition with domestic and foreign hotels requires the improvement of forms and methods of market research and product advertising. The development of the marketing function is adequate to the new challenges facing hotels. Many years of experience of foreign companies and the emerging domestic experience shows that the degree of risk for those hotels that use modern management methods, there are services of strategic development and marketing, which is significantly reduced. The fair introduction of marketing should not be reduced to the creation of a new department of plant management with a modern name, it should be a real revolution in the management of the enterprise.

Thus, noting the need for an integrated approach, we will outline the main steps in developing a project to improve the organizational structure of the management of small hotels:
1. Development of the evolution concept of the small hotels organizational management.

2. Analysis of the existing structure or organizational structures of similar hotels.

3. Forming the initial version of the goals structure and management system functions.

4. Forming a list of changes in the functions of the existing management system.

5. Modeling the processes of performing the basic functions of the management system and determining the characteristics of the organizational structure.

6. Selection and justification of the option in improving the existing organizational structure.

7. Development of a program for project implementation.

8. Regulation, specification of the project.

The development of the project implementation program includes the development of a program to transfer the system from the existing state to the project state, the implementation of the program.

Regulation, refinement of the project includes a conformity check of the system state to the project, as well as regulation, then – again an analysis of the existing state of the system and the design of a solution for its further improvement.
Based on the foregoing, we can formulate the following recommendations to the head of the mechanism for the functioning of small hotels in Tashkent:
Part 1. Form the organizational and methodological prerequisites for the development and implementation of change.

*Set a goal.

*Carry out a strategic diagnosis of the organizational potential of small hotels.

*Develop your own concept of change, determine what strategy is necessary to achieve the goal.

*Based on this, determine the desired type of organizational structure.

*Choose a method for designing organizational improvement.

*Organize the involvement of consultants and designers to develop activities to improve the organizational structure.

*Identify the composition of employees, which it is advisable to include in the group of designers as responsible executors from the firm in certain areas of project development.

*To clarify with the designers the pre-formulated goal, strategy and tactics of its implementation.

*Provide material, labor and financial resources for project development.

*Monitor the results of each stage of project development and implementation.

Part 2. Plan the implementation of the project.

*Ensure the implementation of the project in the shortest possible time, create an enterprise implementation and adaptation group at the enterprise.

*Organize work on information, advocacy and mobilization of the team to support innovations.

*Check for compatibility and forward-looking dynamics team of higher and secondary management of small hotels.

*Identify the core set of beliefs, values ??that employees will be committed to in the new environment.

*Determine what people are needed, what should be their features, in addition to functional abilities.

*Ensure the selection of missing staff, training and retraining of employees, based on new tasks, ahead of completion of design developments.

*Reward for successful strategic activities.

*To organize a system of flexible management and control.

*Determine the direction of the most effective use of expected income.

The qualitative implementation of these stages contributes to obtaining a calculated effect from the introduction of the developed innovations in a timely manner and with the observance of the project cost level.

The measures considered are of a strategic nature, require significant capital investments and implementation deadlines. They are able to bring the expected effect in the future.

Nowadays, small hotels have become the leader of specialized programs and marketing research. Today in Uzbekistan a hotel with a capacity of 10 to 50 rooms is considered as a small.

The main clients of small hotels are middle class people. As a rule, these clients need moderate comfort, good food, cleanliness and safety, and they find all this in small hotels. There are added reasonable prices and a special atmosphere of coziness, which is difficult to create in the hotel giants.

In conclusion, it should be noted that in this paper, all tasks set at the beginning of the task were considered and studied, problems and prospects of small hotels were analyzed on the example of the hotel in Tashkent, recommendations for improving the regulation system and the mechanism for the functioning of small hotels were suggested.

The relevance of the topic under consideration is due to the dynamically developing tourist, and hence restaurant and hotel business in Tashkent. And also the strong influence of this industry on the economy of the country as a whole.

In the process of writing the thesis, the following was done:
The concept of small hotels among various types of hotel enterprises is disclosed, practical suggestions are given on improving the regulation system and the mechanism of functioning of small hotels;
• foreign experience in the development of the hotel industry, as well as in Uzbekistan, in particular in the capital, was considered;
• methodological recommendations have been developed, including a set of computational approaches and practical proposals for the development and improvement of small hotels in the modern market.

A number of provisions of this work have been implemented in the form of recommendations for use in federal tourism management structures, including proposals to include in the package of projects national priorities – programs for the development of the tourism and social tourism industry in Uzbekistan.

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