Earlier quoted context omitted.
I also hadn't heard of it, but I feel like it's kind of a corollary of the whole, "what's measured is managed" idea or maybe the Streetlight effect ( https://en.wikipedia.org/wiki/Streetlight_effect ). It's easy to measure a doorman's cost, but hard to measure their impact. Few, if any, guest are likely to mention the impact of a doorman on their stay except in the exceptional case. That means when budgets start to g…
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?
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.