The Triangle Effect: Aligning Marketing, Sales, and Revenue Management to Identify Total Guest Value

Author: Avanti Joglekar

As customer acquisition costs rise and competition continues to grow, it’s harder than ever for hotels to attract and retain their most valuable guests. With such incredible levels of effort and resources being required to drive bookings and build loyalty, it’s important for hotels to focus their energy toward guest segments that yield the highest return on their investment. To do that effectively, Marketing, Sales and Revenue Management must work hand in hand. Together, they form a triangle of integrated knowledge, dependent upon one another, that acts as the foundation to build a strong total guest valuation strategy.


Any hotelier will tell you that some guests add more value than others. Revenue managers use data to determine who those guests are and how to attract them more frequently. Total Guest Value (TGV) is an algorithmic scoring method used to determine the profitability of a particular guest segment. A critical metric, the TGV will dictate nearly every directive that the revenue manager enacts, from a property's targeted guest segments to their promotions. Room availability and rates are also largely based on the potential overall value and profit of each guest.

To determine an accurate guest valuation, it's a total team effort. A close relationship between marketing, sales, and the revenue management team is essential to making the valuation process as efficient and accurate as possible. Cross-functional communication is key.


Each one of these groups goes hand in hand. If you need more demand in the group segment, many times the sales team needs to get involved to provide insights on attracting that type of business. Or, when ancillary numbers are low, marketing can help devise new offers and incentives that drive on-property spend.

When these teams have strong partnerships, it ensures that cross-functional decisions are optimal. A solid TGV strategy will ensure that your property is giving preference to the right segments at the right time.

We’ve partnered up with Tambourine and hotel experts to create an eBook, The Hotel Power Couple, delving into the topic of how to align revenue management and marketing to unlock profitability. Featuring sections like The Big Eight: Revenue Management Has It, Marketing Needs It, and What Marketers Need to Share with Revenue Managers, download the eBook today to drive revenue together by creating a powerful, cross-functional revenue optimization team!

The Hotel Power Couple eBook

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