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How Weather Guarantees maximize revenue for theme parks and attractions
For guests visiting theme parks and attractions, few things are more disappointing than rainy days ruining the magic. Kids' faces fall, parents question whether the pricey trip was worth it, and revenue drops.
By Blair Staunton
July 24, 2024
For guests visiting theme parks and attractions, few things are more disappointing than rainy days ruining the magic. Kids' faces fall, parents question whether the pricey trip was worth it, and revenue drops.
These weather disruptions hurt even more when money is tight. With inflation still hovering around 3.5% and households watching their budgets carefully, a washed-out $500 theme park visit is a big deal for guests. Combine that with summers becoming hotter and stormier, and you have a major challenge for parks trying to maximize revenue.
Disney itself emphasized in its 2023 Annual Report how declining economic conditions reduced guest spending at its parks. “Recent inflationary conditions increased certain of our costs,” the company said. “The current economic conditions could also have the effect of reducing attendance at our parks and resorts.” The park also noted the threat of, “adverse weather conditions arising from short-term weather patterns or long-term climate change, including longer and more regular excessive heat conditions, catastrophic events or natural disasters.”
To keep guests coming, parks need to make rainy days less of a gamble. That's where Weather Guarantees help. They protect parks' bottom lines while giving families the confidence and security to book their dream vacations.
Drives advance bookings
Theme park guests can be hesitant to book tickets in advance because the weather is unpredictable. With pricey park admissions, people worry about wasting their money if the weather sours their visit.
Weather Guarantees address this concern by giving guests confidence in their purchase. Booking ahead is risk-free because guests are guaranteed a reimbursement if the visit is rained out. As one guest with a Guarantee said, "I was very comfortable with spending the price that we did knowing that should our day be cut short due to weather, we would be able to recoup some of the funds.”
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This peace of mind is apparent in data about our Guarantees at Sensible Weather. One of our partners, Gulf Islands Waterpark, saw a 27% attach rate for weather guarantees in the 2023 season. This rate rose to 43% for bookings made over a week out.
Our 2023 Customer Survey data similarly shows how much Guarantees reassure guests. Of the consumers we spoke with, 76% said they felt more confident booking because they could purchase a Weather Guarantee.
Prevents attendance drops after lousy weather
Bad weather doesn't just deter bookings initially. It can also discourage future visits after major weather events, like storms and wildfires. Guests worry they'll experience similar weather during their visit, leading to prolonged attendance and revenue drops.
SeaWorld felt this cyclical effect last year. The park reported a 149,000 drop in attendance for the first half of 2023 compared to 2022, "primarily due to significantly adverse weather."
This trend isn’t unique to SeaWorld. For example, the journalist Price Atkinson describes in the Orlando Sentinel how his family avoids Disney in August because of the month’s record heat in recent years.
“Instead of building trips to Walt Disney World around the parks’ crowd levels, we are prioritizing the time of year and likely weather patterns we’ll feel over the wait times in line,” said Atkinson.
With Weather Guarantees, guests like Atkinson don’t have to restrict their bookings to certain times of the year. They know the park will reimburse them if extreme rain or heat occurs during their visit, so they don’t need to worry about weather advisories.
Many guests are happy to go this route since the weather can also be unpredictably good. For example, Atkinson and his family lucked out on a 2023 Labor Day weekend Disney trip when Orlando experienced a cold front.
Eliminates refund and cancellation costs
Some theme parks offer their own weather-related refund or cancellation policy. But when parks build these policies in-house, they have to cover reimbursement costs out of their own pockets when bad weather occurs.
With a Weather Guarantee partner like Sensible, the merchant doesn’t pay anything. The Guarantee provider fully covers guest reimbursements and handles all support inquiries related to Guarantees.
TLDR: Merchants don’t incur any operational or financial costs by offering Weather Guarantees.
After implementing Guarantees, the Gulf Islands’ team noticed far fewer weather-related support issues and reimbursement requests—a clear bottom-line boost.
Encourages in-park spending
Traditionally, if a park issues its own weather reimbursements, it often takes weeks or even months for guests to receive that money back. Guests have to submit claims within a short window after their visit, and the park then reviews and approves those requests over an extended period before eventually issuing reimbursements. With this process, guests can’t use that money at the park because they’ve already left.
For example, the theme park Busch Gardens only accepts weather-related claims that are submitted within a week of a guest’s visit. The company manually reviews each guest's request and issues reimbursements weeks after their visit.
Weather Guarantee providers like Sensible give guests instant reimbursements. So if your park stays open during bad weather, guests can use that reimbursement money toward indoor amenities—like dining, arcades, and shows. This spending is likely considering that 86% of guests with Guarantees continue with their planned activity, even after receiving a reimbursement.
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Weather Guarantees keep revenue flowing, rain or shine
Weather Guarantees help parks sail smoothly through any conditions. They encourage early bookings by removing weather risks for guests, and parks don’t incur costs since Guarantee providers cover reimbursements. As a plus, parks enjoy extra revenue when guests treat themselves to indoor amenities with their instant reimbursement cash.
Ready to implement Guarantees at your park? Contact sales today.
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