Why SMS is Making a Comeback - Hotel Guest Communication & CRM

With messaging apps like WhatsApp Messenger from Meta, iMessage, Telegram, X, WeChat, and others, the landscape of communication channels is ever-expanding. Should you chase every new trend and app, or is there a more pragmatic approach? Here’s a practical perspective:

All messaging services require users to have the corresponding app installed on their smartphone or tablet. The prevalence and usage of these apps vary significantly based on the target audience’s age and geographic location. For instance, while WhatsApp dominates in Europe with an average usage rate of nearly 85%, it’s virtually non-existent in the USA. Conversely, WeChat is indispensable for reaching Asian customers. Privacy-conscious users and "conspiracy theorists" might shun these apps in favor of alternatives like Telegram.

However, let’s focus on WhatsApp, which many hotel managers in Europe currently prioritize. Yet, anyone who uses WhatsApp is familiar with the incessant stream of messages. Who hasn’t felt overwhelmed by a deluge of unread messages in their chat inbox? In 2022 alone, approximately 100 billion messages were sent daily on WhatsApp. It’s no surprise that such volume diminishes the visibility and quality of this channel as a message transmitter.

The Communication Dilemma: Why SMS Outperforms WhatsApp in Hotel CRM

The Revival of SMS: A Reliable Channel for Effective Guest Communication and CRM

Effective communication starts with ensuring that a message is noticed by the recipient. Only then can the desired reaction occur. Different channels vary significantly in their effectiveness, a factor often overlooked by many marketers today. An alternative to WhatsApp could be an old but reliable friend: the SMS. Peaking over a decade ago, with nearly 60 billion SMS messages sent annually in 2012, SMS usage declined sharply to just 7 billion messages in 2020, leading many to consider it obsolete. But the trend is reversing, with a significant increase in SMS usage since 2021. Banks, airlines, and online travel agents prefer SMS over WhatsApp for good reasons. In Germany alone, SMS usage rose by 800 million to 78 billion in 2021.

Why the SMS Revival?

Is this resurgence of SMS a mere coincidence, or a nostalgic trend? Not at all! The unbeatable advantage of SMS is its universal reach. Anyone with a mobile phone can receive an SMS, regardless of the phone’s age or internet access. This reliability makes SMS the go-to choice for critical communications like weather alerts.

Also many other industries trust SMS for their communications. For instance, OpenTable uses SMS for reservation confirmations, and airlines rely on it for flight updates and boarding information. This widespread adoption highlights SMS's effectiveness and reliability.

The SMS Advantage: Privacy, Cost Efficiency, and Simplicity in Hotel CRM & Guest Communication

SMS as a Secure Alternative for Hotel Communication

One reason for the SMS comeback is privacy. Unlike WhatsApp, which is owned by Meta and known for "exploiting" user data, SMS offers a more secure option. Consumer privacy is increasingly important; whether or not you’ve read an SMS remains your secret, unlike with messenger services where your online status and message read status are visible to others unless manually disabled—a step few users take.

The Financial Benefits of Using SMS in Hotel CRM

Cost is another factor in SMS’s revival. WhatsApp was free for many years, but with the introduction of business accounts, this advantage over SMS has diminished.

Why SMS is Ideal for Hotel Marketing Campaigns & Guest Communications

One key to successful consumer marketing is making it easy for message recipients. Consider why QR codes initially failed: they were too cumbersome to use, requiring a separate app and high-quality cameras. Similarly, messaging via apps can be overly complicated. Hence, it might be time to reconsider and pivot back to simpler methods like SMS.

45%

Studies show that SMS campaigns can achieve conversion rates of up to 45%. This high efficiency is partly due to the 160-character limit, which forces marketers to be concise and enables recipients to quickly grasp and respond to messages. It’s said that "one SMS can achieve more attention than 20 emails."

How SMS Can Boost Your Hotel's Guest Communication and CRM

Airlines set the precedent by offering downloadable tickets via SMS, yet few hotels do the same. Sending reservation confirmations via SMS should be standard practice today. Reservation staff we spoke to for this article confirmed an increasing demand for this service.

SMS is also ideal for sending important notifications and emergency communications. It’s effective for in-stay communication, such as post-check-in messages and satisfaction surveys. For security, two-factor authentication often legally requires SMS.

Dailypoint supports SMS for sending reservation confirmations and updates via the Booking Manager, as well as direct guest communication through the Message Center. Automated actions and marketing campaigns can be sent via SMS, with prioritization options for target groups. Dailypoint also ensures global mobile number validation for reliable SMS delivery.

Note that not every provider can send SMS to every location. Local providers are necessary in some countries, which is why Dailypoint offers various SMS providers on its Marketplace and Integration Platform.

Revitalizing Hotel Communication Strategies with SMS

Stand at the Peak of Hotel Tech & Embrace the SMS Renaissance with dailypoint™

"Just as email isn’t dead, neither is SMS. On the contrary, SMS is experiencing a renaissance, prompting businesses to rethink their communication strategies and channels. With dailypoint™, your hotel can harness the power of SMS to enhance guest communication and CRM, ensuring messages are delivered reliably and effectively."

Dr. Michael Toedt
CEO & Founder

SMS – The Better Alternative? Hyped, Dead, and Now Back?

Enhancing Hotel CRM and Guest Communication with SMS