About a month ago I stayed at the Paris Hotel in Las Vegas. When I arrived at the hotel around 9pm on a weeknight, I was expecting the usual long line of people waiting to check in. And, unsurprisingly, that’s what I found. But I also found something else, something surprising.

When checking in, I noticed that where there used to be a dozen “customer service” agents behind the desk, there were now only kiosks in front of the desks. Guests keyed in their confirmation number, inserted their driver’s license, and a room key was spat out after a few moments of verification.

A cost reduction operation? For sure. These machines will bring a good return on investment to the hotel once guests get used to their presence and the hotel no longer has to pay salaries, health care and other benefits. But the machines represent something else: a pivot towards the ‘shrinkflation’ that the entire hotel industry cleverly practices.

You’ve heard of shrinking before, haven’t you? It’s when you pay the same price for a bag of Doritos that once weighed 9.75 ounces but now weighs 9.25 ounces. Or when you pay the same price for a roll of paper towels, toilet paper or Hefty bags but get less product. Shrinkflation is nothing but an upset price hike. It keeps the price constant while offering fewer products and services.

And that’s exactly what the hospitality industry does. I know because I travel a lot, and I’ve seen it. It is a silent, subtle, almost imperceptible change. But it’s still a change. And that helps the industry get through this period of higher costs. So what does he do?

For starters, the lobbies and areas where the general public can view are still mostly spotless. No expense is spared. But I noticed more room service trays and other debris in the hallways that tend to linger longer than before. Not many people see this stuff, so hotels have reduced the number of times they clean everything.

Rooms are cleaned less often and in many cases only on request. There are fewer towels in the bathrooms. Oh, and I notice that more and more hotels are replacing those individualized shampoo and shower gel bottles with industrial-sized bottles that other guests share. If you forget your toothbrush, you may be able to get one for free from reception…or, depending on the hotel, you have to pay for it at the shop.

I’ve noticed that hotel restaurants have reduced their food and drink offerings, reduced their opening hours, and pretty much ditched their menus instead of contactless systems and QR codes. The fitness center hours have been restricted and fewer staff can be found to help out.

Is this in all hotels? No, it’s mostly in the chains I frequent that serve business travelers. I’m sure five stars are always five stars. Is this just a temporary pandemic? No it is not. It’s a matter of inflation. And while the industry is expected to recover this year, don’t expect things to change anytime soon as costs rise. We used to get this stuff for the price of the room. Now we get less for the same price. As long as customers are willing to let this happen, there is less incentive to change these practices.

The hospitality industry – like so many other smart operators – practices shrinkage. They charge the same for a room but offer fewer products and services. Of course, that’s not great for their employees, especially hourly workers who do housekeeping and service. Hotels can reduce their hours and hire fewer people. But all this is certainly good for their shareholders. And as long as they get by in a way that doesn’t bother their customers, they can maintain their margins in this time of inflation and high costs.

Small and medium business owners should watch out for these big brands and copy them. Do you really think Anthony Capuano, Christopher J. Nassetta and Mark Hoplamazian – the CEOs of Marriott, Hilton and Hyatt, respectively – are going to let a little thing like inflation eat into their earnings and impact the market capitalization of their businesses?

Of course not. They cut costs and raise prices like everyone else, but they do it in a more discreet way. They implement shrinking tactics. None of this is really unethical or immoral. It’s just a smart management strategy, and smart business people see it and do the same. Good for them.

Gene Marks is the founder of The Marks Group, a small business consulting firm. He frequently appears on CNBC, Fox Business and MSNBC.