Inter-team rivalry is a prevalent phenomenon in the hospitality industry, where multiple teams within an organization compete for resources and recognition. This research aims to explore the concept of inter-team rivalry, it’s drivers in the hospitality industry and its impact on performance and productivity. The study was conducted through primary data and statistically tested through descriptive statistics, regression, and moderation analysis. The findings reveal that inter-team rivalry has a substantial positive link with both performance and productivity. Furthermore, productivity moderates the association between inter-team rivalry and performance. The study finally reveals that interaction effect between performance and productivity is substantial and this implies that the influence of performance on inter-team competition is reliant on productivity levels. The implications of these findings for hospitality organizations are discussed, and recommendations for managing inter-team rivalry in a productive manner are provided.