Sensible Weather has always been in the business of protecting its partners’ bottom lines. By providing peace of mind against adverse weather conditions during checkout, the Weather Guarantee increases shopping cart conversion and AOV, while decreasing cancellations and providing a phenomenal customer experience. The Weather Guarantee indirectly mitigates revenue impacts of adverse weather by encouraging guests to book ahead and attend their stays and activities, despite what mother nature serves up.

But we can do more. Today, Sensible Weather is introducing its suite of Demand Analytics software focused on hospitality merchants and operators. Powered by advanced machine learning algorithms, Sensible Weather’s Demand Analytics ties daily business metrics to weather conditions anywhere in the world, past-present-and-future, in order to help businesses understand and predict both top-line and bottom-line financial weather impacts. Decades worth of weather scenarios can be evaluated to understand the inherent financial volatility of outdoor hospitality businesses, while forward-looking projections can be used to optimize operational expenditures, capital improvements, and inform M&A. 

Hospitality, attractions, and experience businesses can now derive insights about how their daily financials – revenue, operating profit, RevPaR, visitation, and so on – are impacted by site-specific weather conditions.

• Rain and snow
• Temperature
• Humidity
• Wind speed
• Snow depth
• Cloud cover
• And more…

…can all have quantifiable financial impacts to outdoor hospitality businesses, and now we are able to measure them. Using the same Climate Engine powering its Weather Guarantees, Sensible Weather has developed an adaptable suite of analytics software that ties business performance directly to the weather conditions that impact it. Using one or more sets of historical, daily financial KPIs provided by the merchant and/or their booking software provider, Sensible Weather’s algorithms automatically determine which weather variables drive consumer demand and how.

This analytics suite quantifies the impacts of both individual weather variables – like wind speed – or of a combination of variables – like temperature and precipitation together, making weather-impacted consumer demand both understandable and predictable. 

Using decades worth of hourly historical data through to current observations, businesses can understand how weather has impacted their businesses over time, which conditions lead to demand destruction, cancellations and/or closures (as well as which conditions lead to peak days!), and the implicit volatility their businesses face from mother nature. These insights can help to optimize CapEx and M&A decisions in the face of weather uncertainty and unpredictability. At the same time, these models, using forward-looking weather forecasts and probabilistic projections, can provide insights into how to optimize OpEx and evaluate financial risk in the face of both boom and bust days on the horizon. Finally, for owners and operators of a portfolio of individual businesses, metrics can be analyzed in aggregate to evaluate correlations, diversification, and black swans, all contributing to overall portfolio risk. 

If your business is interested in a limited beta-test, please contact us!