Comment by consp
14 hours ago
Isn't the hard data the loss of the hotel a few years down the road due to being noncompetitive due to declining customers caused by the penny pinching?
14 hours ago
Isn't the hard data the loss of the hotel a few years down the road due to being noncompetitive due to declining customers caused by the penny pinching?
How do you map the exact reason, though. A hotel could have gone down years down the road due to Covid, some war that influenced existing clientele, general drop of tourism, change in weather patterns that made summer less attractive, competition from AirBnb, being bought by someone totally inept, spread of remote work instead of business trips, aging population that does not like to travel anymore, or combination of all those factors etc.
That's the heart of the issue: insufficient accounting.
You can't plan any better than your models, and if your models are insufficient then your decision making will be inherently flawed. Penny pinching is good until it's not, and the data to see when the transition occurred isn't on the balance sheet until maybe it's too late. At the point you're pinching the penny of the doorman, you don't have the data about the impending customer decline.
But doormen became a thing, so the value was understood. We have now lost that knowledge.
I suppose it's like enshittification. It's presented as a progression to a new worse thing when it's more of a Dark Age of 'soft' knowledge.
Labour was cheaper back then. Even valuable jobs can stop making sense if the costs outweigh them. That's the difficulty with automation making other sectors more efficient, wages get driven up while your productivity stays the same.
4 replies →
It's difficult to tie changes in customer retention to not having a doorman in a "hard data" way. Ideally you'd want to do an A/B test of doorman vs non-doorman, but you'd need multiple hotels for that to work.
1) Failing can be (mis)attributed to many things particularly if the cause and effect are separated significantly by time, and 2) most businesses want to stay way ahead of the realization they're noncompetitive as by that point often the barn door is open and the horse is gone.