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Email & SMS Automation for Guest Retention and Upselling (Canada 2025 Guide)

In Canada’s competitive hospitality landscape, acquiring a new guest can cost up to five times more than retaining an existing one. That’s why, in 2025, smart hoteliers and resort operators are shifting their focus from one-time stays to long-term loyalty—and they’re doing it with email and SMS automation.
This guide dives deep into hotel retention marketing, highlighting the strategies, tools, and message flows that turn first-time guests into repeat visitors and upsell opportunities into new revenue streams.
Why Email and SMS Automation Is a Game-Changer for Hospitality
In a digital-first world, guests expect hotels to offer more than just a room. They want:
- Personalized, timely communication
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- Special offers relevant to their travel habits
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- Easy rebooking and loyalty perks
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- A reason to return (and refer friends)
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That’s where email automation for hospitality and SMS upselling strategies come in. Done right, these channels:
- Increase guest lifetime value (LTV)
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- Reduce reliance on OTAs
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- Boost direct bookings
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- Strengthen brand affinity
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Get our guest retention toolkit and start building smarter, automated loyalty flows.
1. The Value of Repeat Guests in 2025
Guest loyalty isn’t just nice to have—it’s essential for profitability. According to industry research:
- Repeat guests are 3x more likely to book direct
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- They’re more receptive to upsells and premium room types
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- They refer others through reviews and word-of-mouth
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- They cost less to re-engage than new leads
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The best part? Automated email and SMS systems allow you to scale personalized communication without increasing your marketing workload.
2. Start With a Guest-Centric CRM and Segmentation Strategy
Before you build automations, you need to segment your guests. A hospitality CRM (like Revinate, Guestfolio, or Salesforce for Hospitality) makes it easy to categorize by:
- Stay history (first-time vs. repeat)
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- Room preference and spend level
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- Travel purpose (business, couple, family)
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- Check-in season
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- Region or city of origin
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With smart segmentation, you can send tailored emails and SMS messages that feel personal—not generic.
3. Essential Email Automation Flows for Hotels
Let’s break down the must-have email sequences every Canadian hotel or resort should implement in 2025:
1. Welcome Flow
- Triggered post-booking
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- Includes confirmation, local tips, upsells (e.g., spa, parking)
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- Builds anticipation and reduces no-shows
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2. Pre-Arrival Series
- Sent 3–5 days before check-in
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- Offers local guides, dining reservations, upgrade options
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- Encourages on-property purchases
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3. Post-Stay Thank You
- Sent within 48 hours of checkout
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- Requests reviews (Google, TripAdvisor)
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- Invites guest to join loyalty list
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4. Re-Engagement Campaign
- Triggered 90+ days post-stay
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- Offers special “welcome back” pricing
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- Includes tailored suggestions based on past behavior
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5. Birthday & Anniversary Series
- Celebrates milestones with personalized offers
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- Encourages off-season bookings
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Keep your branding consistent, use high-quality visuals, and always include a clear CTA (“Book now,” “Upgrade your stay,” “Claim offer”).
4. How to Use SMS for High-Converting Upsells
SMS is powerful because it’s immediate, personal, and has open rates over 95%.
Here’s how to use SMS upselling strategies for hospitality brands in Canada:
Pre-Check-In Upsell
“Hi Sarah! Want to upgrade to a lake-view suite for just $50/night? Tap to reserve: [link]”
Onsite Experience Promos
“Enjoy a complimentary glass of wine with dinner at our bistro tonight. Show this message to your server!”
Last-Minute Extension Offers
“Extend your stay another night and get 20% off. Offer ends at 4 PM today. Click to confirm: [link]”
Loyalty Invitations
“Thanks for staying with us, Alex. Join our loyalty program and unlock exclusive member-only perks: [link]”
Compliance tip: Always collect express consent before sending SMS and include an opt-out option (e.g., “Reply STOP to unsubscribe”).
5. Combine Email and SMS for a Full-Funnel Retention Strategy
Together, email and SMS cover every stage of the guest journey:
Stage | SMS | |
Booking | Confirmation, welcome | Quick access to reservation details |
Pre-Arrival | Upsells, itinerary tips | Reminder messages, upgrade prompts |
On-Site | Spa/menu guides | Event alerts, concierge access |
Post-Stay | Thank you, reviews | Discount codes, rebooking nudges |
Loyalty | Member content | Birthday offers, flash sales |
Pro tip: Use tools like Klaviyo, Twilio, or Act-On to integrate email + SMS into one automated workflow.
6. Content Tips That Convert in 2025
Automation isn’t just about sending—it’s about saying the right things. Here are copy and content tips to make your hospitality emails and SMS irresistible:
Use Personalization
- Include the guest’s name, room type, or past stay location
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- Suggest new stays based on behavior (“Loved Whistler? Try Jasper this winter.”)
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Create Urgency
- “Only 2 suites left at this rate”
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- “Book before midnight for free breakfast”
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Add Visual Appeal
- Use room photos, scenic shots, and icons
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- Keep SMS short, but email visually rich
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Focus on Experience, Not Just Price
- “Relax by the fire with a local wine”
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- “Reconnect with nature on our private trails”
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Make every message feel like a personal concierge—not a bulk promo blast.
7. Track Key Metrics to Measure Success
If you don’t track it, you can’t improve it. Here are the KPIs that matter most for hotel email and SMS automation:
Email Metrics
- Open rate (industry average: 20–25%)
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- Click-through rate (CTR)
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- Unsubscribe rate
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- Booking conversion rate
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SMS Metrics
- Delivery rate
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- Link click rate
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- Response rate (if two-way enabled)
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- Direct revenue generated
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Regular A/B testing on subject lines, offers, and timing will help refine performance over time.
8. Real-World Use Cases from Canadian Hotels
Here’s how real hotels are leveraging automation in 2025:
Boutique Resort in British Columbia
- Pre-arrival emails include curated itinerary options and yoga retreat upsells
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- 15% increase in on-site purchases through SMS event reminders
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Urban Hotel in Toronto
- Email re-engagement campaigns target business travelers with weekday rates
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- 32% rebooking rate within 6 months
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Beachside Inn in PEI
- Birthday email flows generate seasonal bookings with family-friendly packages
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- 20x ROI on loyalty email automation program
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Automation allows even small teams to drive big retention wins.
9. How Zrafted Helps Hospitality Brands Automate Growth
At Zrafted, we specialize in building automated retention systems for Canadian hotels and resorts. From choosing the right CRM to writing email flows and integrating SMS, we provide:
- Guest segmentation strategy
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- Email/SMS workflow setup
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- Loyalty campaign development
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- Copywriting + design
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- Performance tracking + A/B testing
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Get our guest retention toolkit and start building smarter, automated loyalty flows.
Let us help you unlock the full value of every guest you’ve already earned.
Final Thoughts: Retention Is the Smartest Growth Strategy
In 2025, the most profitable hospitality brands in Canada won’t be the ones spending the most on ads—they’ll be the ones nurturing existing relationships with precision and personalization.
Email and SMS automation offers a high-ROI, low-effort way to build loyalty, boost upsells, and turn happy guests into repeat customers.
Now is the time to implement retention strategies that work while you sleep.
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