Hospitality Marketing: How to Determine If SMS is Right for your Business

Hospitality Marketing How to Determine If SMS is Right for your Business

In today’s fast-paced digital environment, hospitality marketing requires more than just a beautiful website or a polished social media presence. Guests expect instant communication, personalised service, and convenience at every stage of their journey. As a result, SMS (short message service) marketing has gained significant traction across the hospitality industry. But is it the right strategy for your business?

In this blog post, we’ll explore what SMS marketing is, its advantages and limitations, and how to evaluate whether it aligns with your hospitality marketing goals. Whether you manage a boutique hotel, a restaurant chain, or a travel service, this guide will help you make an informed decision.

What is SMS marketing in hospitality?

Before diving into whether it suits your business, it’s important to understand what SMS marketing involves. SMS marketing refers to sending promotional or transactional messages via text to customers who have opted in. These messages may include booking confirmations, promotional offers, event reminders, and feedback requests.

In the hospitality industry, SMS marketing has grown in popularity because it offers a direct and personal way to engage with guests. Unlike emails that can get buried in inboxes or social media posts that are easily missed, text messages have a much higher open rate. According to various studies, SMS open rates can be as high as 98%, with most messages read within three minutes of being received.

Why SMS marketing appeals to the hospitality sector

There are several compelling reasons why hospitality businesses consider SMS marketing:

  1. Instant communication

When time is of the essence, SMS provides a reliable way to connect with guests instantly. For example, hotels can send booking confirmations, check-in instructions, or last-minute updates via text. Similarly, restaurants can use SMS to confirm reservations or notify customers when their table is ready.

  1. High engagement rates

SMS messages are short, direct, and delivered to a device that most people carry with them all day. This makes them highly effective for guest engagement. Because of the immediate nature of SMS, it’s particularly useful for time-sensitive offers or urgent communications.

  1. Personalised guest experience

Using guest data, you can tailor SMS messages to deliver a more personalised experience. For instance, you can send a birthday discount, a special offer for returning guests, or a reminder to book during a customer’s preferred travel season.

  1. Cost-effective marketing channel

Compared to traditional advertising or even paid digital ads, SMS marketing can be cost-effective. With low overhead and high ROI, it’s an attractive option for businesses looking to maximise their marketing budgets.

  1. Supports other marketing channels

Rather than replacing other channels, SMS works best when integrated with your broader hospitality marketing strategy. For example, you might use SMS to prompt customers to check their email for a special deal or to follow you on social media for more updates.

Challenges to consider before implementing SMS marketing

Despite its many advantages, SMS marketing is not without its challenges. Understanding these can help you decide whether it’s suitable for your business.

  1. Strict compliance requirements

SMS marketing is subject to legal regulations, including GDPR, CAN-SPAM, and the Telephone Consumer Protection Act (TCPA). These laws require businesses to obtain clear consent from users before sending messages, offer an opt-out option, and handle customer data securely.

  1. Message length limitations

With a standard SMS capped at 160 characters, crafting effective messages requires concise communication. This limitation can make it difficult to convey complex offers or detailed instructions.

  1. Risk of overuse

If overused, SMS can become intrusive. Unlike email, which users expect to receive frequently, SMS should be used sparingly to maintain its effectiveness. Sending too many messages can lead to unsubscribes or negative brand perception.

  1. Not Ideal for all audiences

While SMS works well for many demographics, it may not be effective for all. Older audiences may prefer email or phone calls, while younger audiences might lean more towards social media or app-based messaging.

How to know if SMS marketing is right for your hospitality business

Now that we’ve looked at both the pros and cons, how do you determine if SMS fits into your hospitality marketing strategy? Here are some key factors to evaluate:

  1. Understand your audience

Start by analysing your target audience. Are they likely to respond well to text messages? Do they prefer instant updates and mobile communication? If your guests are digitally savvy and value convenience, SMS could be an excellent fit.

  1. Assess your goals

What do you hope to achieve with SMS marketing? Whether it’s increasing bookings, reducing no-shows, or enhancing the guest experience, your goals will help shape your decision. SMS is particularly effective for:

  • Booking confirmations and reminders
  • Last-minute promotions
  • Event invitations
  • Guest feedback and reviews
  • If these align with your business objectives, SMS is worth considering.
  1. Review your current marketing stack

Consider how SMS will integrate with your existing tools. If you already use a CRM or a marketing automation platform, check whether it supports SMS functionality. Seamless integration is key to delivering consistent and automated communication.

  1. Evaluate your resources

While SMS is relatively simple to set up, it still requires time, strategy, and monitoring. You’ll need someone to manage campaigns, track performance, and ensure compliance. If your team is already stretched thin, you may need to outsource this function or delay implementation until resources are available.

  1. Consider timing and frequency

When implementing SMS, timing is everything. Messages sent at the wrong time or too frequently can irritate your audience. To avoid this, plan a well-thought-out SMS calendar that complements your email and social media strategies.

Best practices for effective SMS campaigns in hospitality marketing

If you decide to move forward, following best practices will help ensure success:

  • Always get permission. Make sure recipients opt in before sending texts.
  • Keep it short and clear. Respect the 160-character limit and get straight to the point.
  • Include a call to action. Encourage users to take the next step, whether that’s booking a room or clicking a link.
  • Add value. Every message should offer something useful or interesting to the recipient.
  • Test and optimize. Monitor performance and adjust your messaging based on what works best.
  • Respect time zones. Send messages at appropriate times based on where your customers are located.
  • Make unsubscribing easy. Always offer a clear way to opt out and honour that request promptly.

Conclusion

SMS marketing can be a powerful tool in your hospitality marketing toolkit, but it’s not a one-size-fits-all solution. It requires a clear understanding of your audience, your goals, and your internal capabilities. If done well, SMS can elevate your guest experience, drive bookings, and improve retention.

However, before jumping in, weigh the benefits against the challenges and make sure it complements your broader marketing strategy. When used thoughtfully and strategically, SMS can add a personal touch to your communication efforts and help your hospitality brand stand out in a crowded market.

By considering all these factors, you’ll be better equipped to decide whether SMS marketing is the right step forward for your hospitality business.

Ready to take your hospitality marketing to the next level? Start exploring SMS solutions today and see how personalised, real-time communication can transform your guest experience. Not sure where to begin? Contact us and we’ll help you find the strategy that fits your brand best.

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