In the service sector, quality is closely related to employee performance. An essential feature of any successful organisation is motivated employees. Therefore, the attitude of an employee towards his/her place of work and the extent to which an employer is able to motivate employees may have a direct effect on the quality of those products offered to tourists. One of the most important challenges facing managers is the creation of a context within which employees feel motivated and will act in order to achieve the goals of the organisation. The internal marketing concept emerged from service marketing and its main concern was to get everyone who was involved in service encounters � the front line or contact staff � to perform better in the interaction with customers. The usage of the concept has extended beyond its traditional field and is now accepted in all kinds of organisations. The overall objective of the internal marketing process is to attract suitable staff members as contact personnel and to managerial positions, to have a high retention rate among the co-workers and to develop motivated and customer-conscious employees. This study is based upon field research carried out in the ski-resort of Åre situated in the northern part of Sweden. Data collection was carried out in the form of in-depth interviews. The sample for the in-depth interviews consisted of managers from four hotels in Åre, which offer both accommodation and food and beverage. The findings of this study show that attracting, developing, motivating, and retaining qualified employees were of primary concern for management and were included in a deliberate company strategy. When working with these parameters, management strongly emphasised customer-consciousness and sales-mindedness. Management of the different companies was aware of the importance of front-line personnel�s immediate effect on customer satisfaction and how important staff autonomy and know-how were for business success. There was also a great amount of understanding for the need of an information process, which were directed from and to every side of the organisation. As a result of this understanding, the companies worked with different kinds of platforms for feedback and information flows. Seasonal fluctuations in demand pose, according to management, the greatest obstacle for working with internal marketing activities. Seasonality has negative effects on the selection, recruitment, retention, training, development, and motivation of employees in the companies included in the study.