In the rapidly evolving landscape of Australia’s hospitality industry, effective communication with customers has become more crucial than ever. This need for connection has led to the rise of new marketing methods, with SMS marketing emerging as a particularly promising option. SevenRooms, a global hospitality tech platform, has recently introduced its Text Marketing platform to the Australian market, enhancing SMS marketing capabilities for local operators. This advent comes on the back of impressive statistics from the United States, where text messaging campaigns have demonstrated a high open rate of 94%, with a significant 37% of Gen Z consumers expressing a preference for this marketing channel. Australians are no strangers to text messaging, a tool used daily by millions, yet the hospitality sector still finds itself on the cusp of fully embracing this powerful method of guest engagement.
Allison Page, co-founder and chief product officer at SevenRooms, underscores that SMS marketing is not just an option, but a burgeoning necessity in the hospitality industry. Speaking at the recent Shift 25 summit in Sydney, Page emphasized SMS as a crucial channel for venues looking to maintain a personal connection with their guests. However, despite an exceptional launch in the U.S. market in 2024 – where an average text marketing campaign generated USD $1800 and delivered an ROI of 24x – only 38% of Australian operators intend to prioritize SMS marketing by 2025. This disparity highlights a significant opportunity for growth and innovation within the industry, as operators gradually recognize the potential benefits of adopting SMS marketing as part of their broader communication strategies.
Integrating SMS Marketing in Hospitality
The reluctance within parts of the hospitality industry to embrace SMS marketing is gradually waning, due in part to the proven success of early adopters. Research indicates that combined email and text campaigns can be up to seven times more effective than email-only campaigns. This indicates a strong potential return on investment for businesses willing to integrate text messaging into their marketing efforts. The versatility of the Text Marketing platform introduced by SevenRooms allows operators to send one-time campaigns via SMS and WhatsApp. These campaigns can be deeply personalized, leveraging data from guest profiles, bookings, and even spending behavior to craft messages that are instant and highly targeted. For hospitality operators, this means an enhanced ability to highlight upcoming events, new menu items, last-minute availability, or other timely pieces of news that could interest their guests.
The platform’s design is tailored specifically with restaurant operators in mind, offering the ability to send customizable messages that are more likely to convert. Integrated with point-of-sale systems and a CRM, the platform ensures that each interaction can be measured for ROI, helping restaurants to refine their approaches and enhance the guest experience. The seamless integration offers an advantage by providing a comprehensive understanding of how marketing efforts directly impact sales and customer satisfaction. Consequently, operators can make more informed decisions about their marketing strategies, maximizing their effectiveness and ensuring that every campaign resonates well with its intended audience.
The Role of Technology in Hospitality Transformation
The introduction of such advanced tools, complemented by other new products unveiled by SevenRooms at the Shift summit, represents a significant shift in how technology can elevate customer interaction in hospitality. Alongside Text Marketing, SevenRooms has also rolled out enhanced email marketing features, AI Reviews for gathering customer feedback, and tools for managing private event sales. Future releases are set to include a suite of innovative tools such as an AI Marketing Assistant, a customer login feature for saving profiles, dynamic pricing for private event management, a Voice AI reservations solution, and an app designed for operators to engage more readily with VIPs and regular guests.
During a panel session at the summit, SevenRooms’ co-founder and CTO Kinesh Patel highlighted an important facet of this technological evolution. He noted that while technology, including AI, will not replace the essential human interactions in hospitality, it will provide professionals with more time to focus on customer-facing roles. Patel referred to this as ushering in “the Superhuman” age of hospitality, where technology and human service seamlessly combine to create an optimal guest experience. By supporting staff with tools that streamline operations and enhance communication, the industry can achieve a higher standard of service and efficiency.
Paving the Way for a Connected Future
In Australia’s evolving hospitality industry, customer communication is crucial, leading to the rise of new marketing tactics like SMS marketing. SevenRooms, a global hospitality tech platform, recently launched its Text Marketing platform in Australia, boosting SMS marketing for local operators. This is inspired by impressive U.S. statistics, where text messaging campaigns have a 94% open rate and 37% of Gen Z consumers prefer this channel. Australians use text messaging daily, yet the hospitality sector is just beginning to embrace this effective customer engagement tool.
Allison Page, co-founder and chief product officer at SevenRooms, highlighted SMS marketing as essential for the hospitality sector at the Shift 25 summit in Sydney. Despite a strong U.S. launch in 2024, where average SMS campaigns generated $1800 and delivered a 24x ROI, only 38% of Australian operators plan to prioritize SMS marketing by 2025. This gap indicates a significant growth opportunity, as more operators recognize the benefits of incorporating SMS marketing into their broader communication strategies.
