The hospitality industry, shaped by decades of relative climate stability, now faces a new, unpredictable reality. Destinations built for optimal conditions in previous decades are grappling with rapidly changing weather patterns, from unexpected heatwaves to unseasonal storms.

We're witnessing a perfect storm brewing. Climate change, evolving consumer expectations, and traditional business models are colliding, creating both challenges and opportunities for savvy operators. 

Our latest report digs deep into these trends, revealing why a guest-first approach to weather challenges isn't just smart. It's essential for survival in this new climate era.

Extreme weather is the new normal

If you think the weather is getting weirder, you’re not alone. The NCEI’s 2023 Climate Report shows that regions throughout the U.S. are experiencing more frequent and intense weather events, like heavy rain and extreme heat, that disrupt travel. 

Here are a few notable precipitation data points: 

• Fort Lauderdale, FL recorded its wettest year in 2023 with 113.61 inches of precipitation, breaking the previous record set in 1947.
• Maine recorded its fifth wettest year on record. 
• Vermont and Connecticut recorded their sixth wettest years on record. 

Some areas experienced extremely dry weather, like Louisiana, which recorded its eighth driest year. While lack of rainfall might seem good for hospitality, many of these dry areas dealt with record heat temperatures that kept travelers indoors. 

Here are a few other notable heat trends:

• 2023 was the fifth warmest year on record for the contiguous U.S., with an average temperature of 54.4°F—2.4°F above the 20th-century average.
• Roughly 65 million people were affected by record heat during 2023.
• Several cities experienced one of their top five warmest years on record—including Mobile, AL, Key West, FL, Miami, FL, Orlando, FL, Richmond, VA, and Raleigh-Durham, NC.
• Phoenix, AZ recorded an average temperature of 102.8°F in July 2023—the hottest month on record for any major U.S. city.

These heat and precipitation trends are disrupting travel plans and impacting guest experiences, putting additional pressure on hospitality providers to adapt their offerings and policies.

Weather is a top concern for hospitality companies

Sensible conducted an internal 2024 survey with hospitality leaders to uncover how they feel about the impact of the weather on their businesses. This data reveals that weather issues are at the forefront of their minds: 

• 66% of hotels report weather has negatively impacted their business in the last year
• 20% of hotels have looked into weather coverage solutions
• Hotels are more likely than non-hotels to have considered weather coverage (20% vs. 9%)

Hospitality leaders are increasingly considering the weather because they know how much their guests care about sunny days on their trips. In fact, 53% of consumers in our 2023 survey reported that weather is the most crucial factor when picking a travel destination, and 67% said outdoor adventures are the most critical element. 

The combination of consumer weather concerns and more rainy and hot days is forcing hospitality companies to reconsider their operations. Leaders are looking for ways to meet evolving customer expectations without incurring significant costs. 

How hospitality companies are adapting to the new climate reality

The increasing frequency of extreme precipitation and heat events presents both challenges and opportunities for the industry. Hospitality businesses must evolve to address the growing impact of changing weather patterns on travel experiences. 

Some companies are rising to the challenge by diversifying their offerings. Destinations are expanding their range of indoor and weather-resistant activities to ensure guest satisfaction regardless of outdoor conditions.

Hotels and resorts are also enhancing their weather information systems to keep guests informed and help them plan their activities accordingly. For example, the Hilton Hawaiian Village uses digital signage and guest room TVs throughout its property to update its guests on weather developments. 

Another approach many hospitality companies are taking is offering their guests Weather Guarantees in the booking process via a provider like Sensible. Guests who purchase these Guarantees receive an instant reimbursement from Sensible if heavy rain or extreme heat is predicted during their trip. Sensible covers the cost of these reimbursements and handles any support requests relating to the Guarantees. 

Our 2023 customer survey shows how much travelers value the peace of mind that comes with Weather Guarantees.

• 91% of customers who purchased such guarantees felt more confident in their booking decisions.
• 55% reported higher satisfaction with their experience provider due to the availability of these guarantees.
• 89% felt that the guarantee was worth the price they paid.
• 76% would consider purchasing a similar guarantee for future travel.

This data suggests that travelers are increasingly seeking ways to protect their investments and ensure enjoyable experiences, regardless of weather conditions.

Make your hospitality business weather-resilient by staying flexible

Hospitality companies can turn rain and heat setbacks into opportunities for enhanced guest satisfaction and loyalty by adapting their strategies to fit current weather trends. As the industry continues to innovate, travelers will ideally have more options to enjoy their trips, come rain or shine. While hospitality businesses selling Weather Guarantees earn revshare on every transaction, the indirect benefits to hoteliers are even greater:

• 5-19% booking conversion lift
• 5-8% increase in booked revenue
• 2% increase in average order value

To learn more about how your hospitality business can navigate weather-related challenges and enhance guest experiences, contact us today. Our team will walk you through how Weather Guarantees work and how you can offer them at no cost to your guests.