European Journal of Service Management

The paper examines the development of Bulgarian hospitality industry after the changes in 1989, followed by substantial investment in reconstruction of privatized hotels and the construction of new modern hotel facilities with interesting architecture, exterior and interior design. Based on analysis of statistics, mainly for the period 2008-2015, it outlines the main issues regarding this development, namely, seasonality in the use of the hotel superstructure, low average income of nights spent, excessive construction of big seaside and mountain tourist complexes, relatively low quality of hotel services. It emphasizes the importance of international hotel chains entering the market, their influence on the Bulgarian hotel industry concerning applying best practices and new technology in hotel services. The result being enhanced quality and competitiveness of Bulgarian hospitality industry. The emergence of Bulgarian hotel chains and brands is indicated as a positive trend. The paper addresses the small family hotel business, and its trends of positive development. The advance of small family-owned hotel businesses is an important prerequisite for the development of alternative types of tourism in Bulgaria. The article examines the regulatory framework of categorization of accommodation establishments in the Republic of Bulgaria and the problems that arise in the process of categorization underlining the ineffecient government control over the quality of the hotel product. The strengths and weaknesses of the national hotel product are outlined and possibilities for improving its quality and competitiveness are suggested