The hospitality industry is expected to ramp up in 2023, but not without challenges. Rising energy prices, labor shortages and increased competition means hoteliers need to be proactive in optimizing their operations. Artificial intelligence (AI) and machine learning can help optimize efficiency, cut costs and enhance the guest experience. For example, AI chatbots and virtual assistants can help respond to basic guest inquiries, reducing the need for staff to answer and allowing them to focus on more critical tasks. AI-powered smart room technology can also help minimize energy usage while effectively managing maintenance. Predictive analytics can be used to predict demand and occupancy trends to take advantage of potential revenue opportunities. As more guests rely on their smartphones for hotel bookings, mobile apps can be used to ease staffing issues, reduce workload for front desk employees, and improve profitability while building greater connection with guests. Application Programming Interfaces (APIs) are becoming increasingly important for connecting software and applications, particularly with the growth in hotel tech stacks; a connected hotel requires systems that communicate with each other. Rate parity is back as the accommodation sector approaches pre-pandemic demand norms; enhanced routes to direct booking like Google’s Hotel Ads product provide OTAs with aggressive pricing. Hospitality trend for 2023 is sustainability, which can help cut running costs and reduce energy intake, a particular concern for environmentally conscious guests. Investing in sustainability can reduce overheads and boost profitability through smart systems that monitor energy usage in hotels.