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<p id="p1">The COVID-19 pandemic posed severe challenges to the Hungarian hotel industry, including a drastic drop in revenues, business closures, loss of skilled labor, and declining service quality. Although governmental support and the lifting of restrictions enabled a gradual recovery, the sector continues to face difficulties in achieving sustainable and profitable operations. Labor shortages and digitalization have emerged as critical factors in post-pandemic resilience. This paper presents a qualitative study examining how digital transformation and labor market shifts influence hotel operations in Hungary. The research involved a questionnaire survey conducted in 2024 among employees in managerial positions at 50 hotels&mdash;each with at least 100 rooms and a minimum four-star rating&mdash;resulting in 45 completed surveys, of which 40 were suitable for analysis. This was complemented by 13 in-depth interviews with general managers. Findings show that AI-based tools and automation are increasingly used to cut costs and enhance guest experience, though skill shortages and implementation costs remain significant barriers to digital sustainability.</p>

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