by

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.

19,884 thoughts on “Revenue Management in the Golf Industry”

  5. Buy Weed Online at Legit Drugs, we deliver quality buds, Sativas, Indicas & Hybrids, Concentrates, Edibles, and mushrooms. Best Online Dispensary for Mail Order Marijuana products. buy weed wholesale

  8. world of water , the Water Institute of Southern Africa provides a forum for the exchange of information and views to improve water resource management in southern Africa

  12. I love your article so much and I appreciate your thought and views. This is really great work. Thank you for sharing such a useful information here on the blog.

    for More Information Visit Here:- Change Roadrunner Password

  20. سئو با من در بخش سئو سایت حرفه ای خدمات ویژه ای دارد.همچنین شرکت سئو با من غیر از سئو سایت به همراه تیم حرفه ای جهت تولید محتوا ، در طراحی سایت نیز فعالیت گسترده ای دارد؛ که می توانید با مشاوره رایگان با کارشناسان ما از مزیت ها و دیگر خدمات شرکت آشنا شوید

  31. SUPERSLOT เครติตฟรี สล็อตตรง ทางเข้าเล่นsuperslot สมัครแล้วเล่นได้หมด SLOTXO JOKER ASKMEBET PGSLOT สมัครใหม่รับเพิ่ม 150% superslot

  33. میلگرد بستر از سیم های فولادی در ضخامت های چهار میلی متری تولید می شوند. فایف محصول مذکور حالتی آج دار داشته تا بتواند بهتر با بتن یا ملات تماس برقرار نماید. با توجه به اینکه فولاد به مرور زمان در مجاورت رطوبت محیط، دچار فرسایش می شود پوششی از جنس روی سطوح محصول را فرار می گیرد این قابلیت ضد زنگ موجب افزایش طول عمر و جلوگیری از فرسایش زود هنگام شده در نتیجه کیفیت محصول نهایی ارتقاء می یابد.

  37. For the global correction of excess skin of the face, the way of approach (incision) is done in the temporal area, as well as the preauricular one (in front of the ear), behind the ear, allowing concealment of scars. Many doctors cut a small incision inside the mouth to help in adequate elevation. The incision starts just above the ear, and continues along the hairline behind both ears, allowing the surgeon to peel back the facial skin to detach it from the muscle and fat beneath. The surgeon will elaborate on all these terms are terms while discussing re sculpturing a persons facial features. Depending on the method, the plastic surgeon will make sutures along the hairline to perform the face lift surgery. It will make you look younger but no surgeon can accurately say it will make you look 10 or 20 years younger. You can feel it working as it dries as your skin tightens.
    ایندکس

  38. Your writing is perfect and complete. However, I think it will be more wonderful if your post includes additional topics that I am thinking of. I have a lot of posts on my site similar to your topic. Would you like to visit once? keonhacai

  39. I’ve been searching for hours on this topic and finally found your post. 슬롯사이트 , I have read your post and I am very impressed. We prefer your opinion and will visit this site frequently to refer to your opinion. When would you like to visit my site? kol

  41. Thanks for putting in much effort for this information.
    My name is Jenifer Low, and I am here to share with you my project – BazooCam International(https://callmechat.com), hope you will be interested in. Its the best USA social network with members around the world and is now available in 80 countries.
    The best search system for specific purposes. Improved tools for creating individual profile,
    researching and maintaining contacts. High resolution audio and video transmission in real time.
    If you looking for promoting your idea in big social area you must check it now to make more free offers for new users!

  42. Gras online kaufen 2022. Kaufen Sie noch heute Cannabis online beim vertrauenswürdigsten Cannabis-Verkäufer in Deutschland und Europa. Cannabis online kaufen, Ganja online bestellen, Weed im Internet kaufen, buy cannabis online

  46. This is very interesting, You’re an excessively skilled blogger I have joined your feed and sit up for in quest of extra of your wonderful post. Also, I’ve shared your site in my social networks.
    파워볼분석

Leave a Reply

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