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This issue brief, drawing in part on findings from the European Accommodation Barometer series since 2022, explores ways to enhance the competitiveness of small and medium-sized enterprises (SMEs) in the European travel and tourism sector. It focuses on the central role of digital technology adoption and examines the drivers and barriers to uptake – from access to finance to the skills gap – and highlights the structural disadvantages faced by SMEs compared with larger, better-capitalized hotel chains.