Revenue Management in the Golf Industry

 

Golf Industry Overview 

Golf is a great sport! Why? Because it is one of the few sports that you don’t have to be in shape to play it and play it well! Just google John Daly and you’ll know what I mean. Golf is a very popular sport because it’s social and it requires as much mental ability and concentration and it does physical.

There are more than 35,112 (http://en.wikipedia.org/wiki/Golf) golf courses worldwide and many of them are located in resorts and tourist hot spots. Half of all golf courses are located in the United States and it probably has to do with the abundance of real estate in the country. But of course, like everything else in the world, the next big thing is golfing in China, which has exploded in popularity since its introduction to the country in 1984.

The National Golf Foundation (http://www.ngf.org/) and Golf Digest (www.golfdigest.com) offer plenty of information about the golf industry and its latest news.

Golf is popular amongst both men and women and there are plenty of professional tours around the world. The PGA and LPGA tours and the most popular for male and female professional golfers and they have some of the biggest prize purses in the industry. I think golf is the greatest sport in the world and I am biased because I’ve been playing it since I was four years old. But this is how I convinced a friend: I told him that if I was a famous professional athlete of any sort I would pick golf. Why? Because it’s the only sport where your professional career could last as long as a regular job. I can be a professional golfer until I’m retired! And after that I can even join the Senior PGA tour where I can still make a great living. Just ask Lee Trevino of Chi Chi Rodriguez.

The problem with golf and revenue management is that it usually charges a fixed price and it’s hard to control duration, which places it in Quadrant 3 of the RM levers. Since it is a social sport and depending on the size of the group, type of course and weather, it is very hard to estimate how long it’ll take a group to finish a round of golf.

Space in golf is pretty fixed and it is defined

This is how a round of golf is usually priced:

–       The golfer pays a “green fee” that allows him/her to play a round of 18holes

–       The time it takes to finish the 18 holes varies greatly depending mostly on the size of the group

–       It is categorized as a “gentlemans” sport and it’s considered rude to hurry other players

 

Space

The golf industry defines space implicitly in that they are in charge of the space and they do not require to sell a specific part of that space but the whole course or golf range.

Golf courses divide their space up in different types, duration and distance for their holes. They also add other types of spaces like golfing ranges where they can get additional revenue from customers that don’t necessarily want to play a full round of golf.

 

They can also use the space to generate additional revenue, for example:

–       They have the golf range that serves the golf course

–       A golf pro shop to generate retail sales

–       Professional services like gripping clubs

–       Professional lessons (might not take space but generate additional revenue)

–       Bars (19th hole)

–       Other F&B outlets like restaurants

 

 

Some creative solutions to generate additional revenue using the space could be:

 

 

–      Offer spa and sauna services in their locker facilities if they have them

–       The space could also be rented out for events, such as weddings and outdoor concerts

–       They could do outdoor cinemas at night

–       They could have summer camps at night for kids

 

 

 

 

Time

The golf industry uses time implicitly because it is very hard to know how long it will take a group to finish a round of golf and it is very hard to control it without annoying customers. There are things that can be done, for example:

–       Discount if the group is done before X amount of time

–       Charge for time and not for rounds (problems with slow foursomes)

  • Slower ones must be willing to let faster ones go through

–       Charge different prices based on weather forecasts (a discount for a potentially rainy day, give they sign  a disclaimer)

–       Older people have to be 3 or less per group

–       Field marshals to help ease the time pressures

–       Use ball finders in certain holes to make finding the ball easier (reducing time). This could be very helpful in markets where labor is inexpensive

–       Caddies for bigger foursomes (time controllers and sell them as free caddies or charge)

–       Charge higher for “professional caddies” who will make play faster

 

Price

There are several rate fences that can be used in golf in order to charge different prices at different times or level of service. Some of them were mentioned in the previous point because they go hand in hand with time, but some additional examples are:

–       Charge different prices

  • Morning vs afternoon
  • Weekday vs weekend

–       Golf cart to have fences for bundling and other services

–       Charge for time and not for rounds (problems with slow foursomes)

  • Slower ones must be willing to let faster ones go through

–       Advanced payment to reduce no-shows and determine overbooking levels too

–       Cancellation Fees for no-shows

–       Booking curves in order to determine which days are the ones with the most demand

–       BUNDLING

–       Daily traffic curves to determine what time of days are the best tees (every half hour?)

–       Pay extra to pass a slow “foursome”

–       Charge different prices based on weather forecasts (a discount for a potentially rainy day, give they sign a disclaimer)

 

When it comes to Golf Ranges, which could be an add-on to a golf course or free standing, has a lot of RM opportunities too:

–       Different prices for the bucket at different times based on Curves by time and day of week (with length of stay too)

–       Offer unlimited balls for a pre-determined LOS instead of charging by the bucket… This way we know exactly how long they will last.

–       Offer different quality of balls and charge more or less for them (makes hard to sort them but could be worth the effort)

–       Charge more at night or day depending on demand

–       Offer virtual ranges

–       Time and price could also be enhanced by having some kind of set path:

  • 10 shots at three different distances with three different clubs

–       Be able to reconfigure the range and/or the booths where the players shoot the balls

 

There are many things that can be done with golf revenue management. But the most important thing to do before rolling out RM initiatives is to test it first. A new RM strategy might sound exciting but it could be a potential source of dissatisfaction with the customer and reduce revenue instead of improving it.

19,092 thoughts on “Revenue Management in the Golf Industry

  1. It is easy to understand why the player’s height in basketball is so important. In a sport where players are expected to make massive jumps and defend themselves against opposers in the air, height offers tremendous benefit. Naturally, skill obviously goes far and the arms and hand distances are sometimes just as important, but the height has always its advantages. The NBA player’s average height is about 6 ft 7 inches (for the sake of comparisons, the average American male height is about 5 ft 9 1⁄2 inches) but some of the tallest NBA players ever.

  2. fitness türkiye
    Fitness Türkiye, Türk sporcuların Fitness ve Vücut Geliştirme sporunda bilinçlenmesi ve gelişmesi için kurulmuş gönüllü bir topluluktur. En iyi Türkçe Fitness Rehberi olmayı hedefleyen kuruluşumuz; Antrenman, Yağ Yakımı, Beslenme, Supplementler ve aklınıza gelebilecek her türlü konu için makaleler sunmaktadır.

  3. Apa anda sering mengalami kekalahan dalam memainkan permainan Poker, Casino dan Slot Online. Jika ingin mendapatkan kemenangan pada permainan tersebut, disarankan untuk memainkan dengan menggunakan Aplikasi Hack Judi Online 100% yang tersedia di Situs APKMods.
    http://165.22.53.77

  4. Antalya yat kiralama Uygun fiyatlı kiralık yatlar, motoryatlar, tekneler ve guletler. En fazla seçenekler, en uygun fiyatlar için bize ulaşın. En fazla seçenek. En uygun fiyatlar. En güncel tekneler. En hızlı hizmet. Türler: Standart Motoryat, VIP Motoryat, Ahşap Tekne, Gulet.

  5. عرفی کامل سمساری در تهران را داریم. بدین منظور نیاز  به آشنایی کامل با مراحل راه‌اندازی  یک سمساری خوب و خدماتی که در آن ارائه می‌شود، داریم. با ما همراه باشید علاوه بر لوازم دست دوم در سمساری تهران، لوازم دیگری مانند عتیقه جات، چینی جات، بلوری جات و … نیز به فروش می‌رسددر مورد راه‌اندازی سمساری در تهران یا سمساری در کرج و یا هر نقطه دیگر در ایران باید گفت هر کسی نمی‌تواند به تجارت کالاهای دست دوم وارد شوددر واقع درست به همین دلیل است که کالاهای دست دوم سمساری تهران یا سمساری کرج دارای قیمت مناسب‌تری نسبت به نمونه دست اول خود خواهد بود.

  6. eNama video sharing service, is a service for free sharing of movies, series and audio files.
    This service has been set up to support the production and publishers of content.
    In this site, everyone will be able to earn money.
    All they have to do is upload their own video here and make money from the number of views of the videos.
    for free sign up click the link below:
    free join to eNama

  7. یکی از راه‌های درآمدزایی از سایت اینما، تشویق دوستان و آشنایان برای استفاده از سایت اینما، از طریق لینک معرفی به دوستان است.
    برای این کار اینما یک لینک معرفی به دوستان، مختص به خودت، در اختیارت میذاره که می‌تونی این لینک رو در شبکه‌های اجتماعیت، علی الخصوص استوری اینستاگرامت به اشتراک بذاری. حتی می‌تونی این لینک رو در واتس اپ و یا تلگرامت برای دوستات بفرستی و یا حتی می‌تونی به هر کارفرمایی که برایش سایتی طراحی کردی، این لینک رو بفرستی تا از طریق این لینک در اینما ثبت نام کنه و خودش ویدئوهاشو در اینما بارگذاری کنه.
    درآمدزایی از اشتراک ویدئو

  8. Alanya yat kiralama Uygun fiyatlı kiralık yatlar, motoryatlar, tekneler ve guletler. En fazla seçenekler, en uygun fiyatlar için bize ulaşın. En fazla seçenek. En uygun fiyatlar. En güncel tekneler. En hızlı hizmet. Türler: Standart Motoryat, VIP Motoryat, Ahşap Tekne, Gulet.

  9. Uluslararası nakliyatta geniş hizmet ağı sunulması ve gerekli olan araçlara sahip olunması gerekir. Firmamız tüm bu araçlara sahip bir şekilde profesyonel alt yapıyı size sunar.Türkiye’den İngiltere’ye evden eve nakliyat işlemini sağlıklı bir şekilde sonuçlandırabilirsiniz.Hizmet almak istediğinizde kurumsal müşteri hizmetlerimiz ile iletişim kurabilir ve destek alabilirsiniz.

  10. By Using eNama video sharing Service you can watch thousands of movies and videos and fill your free time
    In addition, you can earn money in the web application.
    All you have to do is make money by installing the app and sharing your videos on social media and other web sites.
    You can download this application from the Google Store by clicking on the link below.

    🌎 google play

  11. فروشگاه اینترنتی گیلان کشت
    تولیدی برنج گیلان کشت برای راحت تر کردن فرایند خرید برنج ( خرید برنج گیلان کشت ) اقدام به راه اندازی فروشگاه اینترنتی خود کرده است. گیلان کشت با ماشین آلات و دانش به روز و بسته بندی زیبا سعی در خلق تجربه ای زیبا برای مشتریان خود دارد همچنین در فروشگاه در کنار خرید برنج هاشمی ( قیمت برنج هاشمی ) , خرید برنج صدری , خرید برنج قهوه ای و خرید برنج دودی میتوانید اقدام به خرید برنج قهوه ای و خرید سبوس برنج کنید. در بخش وبلاگ سایت می توانید با دستور پخت غذاهای گیلانی , دستور پخت برنج ایرانی اطلاعات کامل در مورد انواع برنج ایرانی مثل برنج هاشمی آشنا شوید

    همچنین گیلان کشت با تکیه بر توان تولیدی بالای خود آماده تامین کالا برای مشتریانی که درخواست خرید عمده برنج , خرید عمده سبوس برنج , خرید عمده پوسته برنج , خرید خاکستر پوسته برنج , خرید عمده نیم دانه برنج دارند می باشد
    https://gilankesht.ir/wholesale-rice/

  12. I wanted to thank you for this excellent read!! I definitely loved every little bit of it. I have you bookmarked your site to check out the new stuff you post. new slots

Leave a Reply

Your email address will not be published. Required fields are marked *