The tourism and hospitality sector faces challenges related to stagnant labor productivity and relatively low wages. A key issue lies in the lack of a clear understanding of productivity in services and in tourism specifically. However, the ongoing digitization is transforming the industry. On one hand, technology has the potential to enhance efficiency of processes and systems at an operational level. On the other hand, it provides essential data for systematic productivity measurement and management. This data-driven approach offers valuable insights into optimizing resource allocation (including land, capital, and labor) at a strategic level. Companies can refine process designs and business models by optimizing the deployment of skilled labour, technological tools, and self-service options. Looking ahead, tourism and hospitality enterprises should leverage real-time data to benchmark and enhance their productivity.