As hotel owners and operators navigate rising labor costs, margin pressure and evolving guest expectations, many are looking to technology and AI to drive efficiency without losing the human touch that defines hospitality. Michael Cheng, dean and professor in the Chaplin School of Hospitality & Tourism Management at Florida International University, believes the industry's biggest opportunity lies in using AI to eliminate low-value tasks while empowering employees to focus on the moments that matter most to guests.
Ahead of The Hospitality Show 2026 in Miami Nov. 2-4, Cheng, an advisory board member of the show, shares his perspective on profitability, productivity, guest service and the role AI will play in shaping the future of hotel operations.
1. What’s the biggest threat to hotel profitability right now, and what’s the biggest opportunity?
The biggest threat is margin compression. Hotels can still generate revenue, but labor, insurance, utilities, technology, distribution and other operating costs continue to rise. AHLA’s 2026 outlook makes that clear: guest spending is growing, yet rising operating expenses have kept hotel profitability below pre-pandemic levels. We experienced this at our 2026 SOBEWFF.
The biggest opportunity is productivity without commoditization. Hotels have an enormous opportunity to use technology and AI to remove unnecessary work, make better decisions and lower the cost of routine transactions. But the winners won’t simply automate more. They’ll take those savings and reinvest them in the moments where people actually create value. Automate the predictable so you can humanize the exceptional. That is where I think the next competitive advantage lies.
2. What’s the one thing your FIU's Chaplin School is doing today to optimize operations, improve efficiency or drive better returns?
At FIU’s Chaplin School, we are building what we call the Hospitality Advantage. The idea is that AI should not simply make people faster. It should free people to spend more time doing the things humans are uniquely good at: exercising judgment, showing empathy, building relationships, adapting in the moment and creating memorable experiences.
We’re applying that thinking to how we educate the future workforce as well as how we operate ourselves. The question we continually ask is: What should technology do, and what should remain intentionally human? That distinction is becoming increasingly important.
3. What guest expectation has changed the most, and how are hotels adapting without sacrificing margins?
Guests increasingly expect two things that almost sound contradictory: frictionless convenience and highly personal service. They don’t want to wait in line, repeat information or deal with unnecessary transactions. But when something matters, they want a real person who understands them.
That is why I’m interested in the idea of humanizing the exceptional. Eliminate friction that adds no value, but don’t automate away the human interaction that makes hospitality special. Let technology handle check-in details, routine questions and transactions so employees have more capacity for recognition, problem-solving and genuine connection.
4. Where do you see AI delivering the most tangible value in hotel operations over the next few years?
I think some of AI’s biggest gains will actually be behind the scenes, particularly revenue management, forecasting, staffing, purchasing, scheduling and operational decision-making. Those are areas where AI can process far more information than a person can and help managers make faster, better decisions. AI is already being integrated into hotel systems for pricing, staffing, personalization and operational efficiency.
But I would add an important distinction: AI should augment judgment, not replace it. The real breakthrough comes when a manager gets better information and then applies context, experience and human judgment to it. That combination is much more powerful than either one alone.
5. Why is The Hospitality Show valuable to you personally, and how does it benefit FIU's Chaplin School?
For me, its value is proximity to the people actually running the industry. The Hospitality Show is specifically centered on hotel operations and technology, which makes it especially relevant to the questions we are working on at FIU.
As a dean, I need to understand not just where hospitality is today, but where operators believe it is going. Those conversations influence our curriculum, research, partnerships and ultimately how we prepare our students. It also allows us to connect industry leaders with our faculty and students. If we want to educate the future leaders of hospitality, we need to stay very close to the people building its future.