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.

20,043 thoughts on “Revenue Management in the Golf Industry”

  5. ขายส่งบุหรี่ไฟฟ้า น้ำยาบุหรี่ไฟฟ้าและอุปกรณ์เสริมของบุหรี่ไฟฟ้าทุกชนิด การันตีสินค้าราคาถูกกว่าที่อื่น นำเข้าจากต่างประเทศ 100% บุหรี่ไฟฟ้าราคาส่ง นึกถึงเรา ขายส่งบุหรี่ไฟฟ้า

  16. “Upgrade YourBathroom with a 48 Inch Vanity: A Guide to Style and Functionality Are you looking to upgrade your bathroom and add a touch of elegance and functionality? A 48 inch bathroom vanity might be just what you need. A 48 inch vanity is a great choice for those looking to add a touch of sophistication to their bathroom while also maximizing space. With a wide variety of styles and designs available, you can find the perfect 48 inch
    vanity to suit your taste and needs. One of the great things about a 48 inch vanity is that it can be a perfect fit for any bathroom. Whether you have a small bathroom or a
    larger one, a 48 inch vanity can be the perfect choice. It is also a great
    option for those looking to add a double vanity to their bathroom. A 48 inch
    double vanity can provide ample storage and counter space while also creating a
    cohesive look in the bathroom. When it comes to style, a 48 inch vanity can add a touch of elegance to any bathroom. You can choose from a wide variety of finishes, such
    as wood, metal or stone, to match your bathroom decor. You can also choose from
    a variety of sink options, including undermount, vessel or top mount sinks, to
    suit your needs.
    ” 48 bathroom vanity

  20. This write-up is basically a fascinating prosperity of useful useful That could be exciting and really nicely-penned. I commend your exertions on this and thanks for this specifics. I understand it exceptionally correctly that if Absolutely everyone visits your web site site, then he/she will definitely revisit it over again. สมัครslotpg

  23. It’s too bad to check your article late. I wonder what it would be if we met a little faster. I want to exchange a little more, but please visit my site casinosite and leave a message!!
    s

  26. Hello. Thank you Bye. See you again Hello. Thank you See you again. When the morning sun rises, when the morning sun rises, you start another tomorrow with the same people every day. Thank you카지노사이트

  27. joker gaming Hot online game of the year 2023, easy to play, deposit and withdraw quickly. There are staff to take care of you 24 hours a day with service. try playing slots Allowing a variety of bettors, there are many สล็อต to choose from to play unlimitedly.

  29. Untuk mulai bermain Slot idn PLANET88, Anda semestinya mendaftar secara khusus dahulu. Anda patut memasukkan nama pengguna, pin angka, dan kata sandi Anda. Setelah Anda melaksanakan pendaftaran, Anda akan dapat masuk ke akun Anda. Setelah itu, Anda wajib mengonfirmasi kata sandi Anda. Saat Anda melakukan deposit, Anda akan bisa mendapatkan bonus cashback. Misalnya, seandainya Anda menyetor minimal, Anda akan menerima 10%+100% dari deposit Anda di tahun berikutnya. Di tahun yang sama, Anda juga bisa menikmati promo PLANET88 Slot. Salah satu website Slot paling populer merupakan PLANET88 IDN Slot. Ini menawarkan pemain Slot terbaik, bmm testlabs, dan berjenis-jenis permainan Slot. Web PLANET88 memiliki live chat 24 jam sehingga Anda dapat berkomunikasi dengan customer service jika Anda membutuhkannya. Selain itu, Website PLANET88 menyediakan layanan pelanggan untuk menerima setoran. IDN Slot merupakan Web Kumpulan yang menawarkan banyak hal. Anda dapat memainkan beraneka permainan seperti domino IDN dan Texas online. Laman IDN menawarkan bermacam-macam bonus web PLANET88.

  36. I found your this post while searching for some related information on blog search jokerbola Its a good post..keep posting and update the information.

  38. “lava slot เว็บคาสิโนออนไลน์ Lavagame สล็อตออนไลน์ ครบวงจร ถอนได้ตลอด 24 ชม. lava slot
    มองหา เว็บพนันออนไลน์ ครบวงจร มั่นคง ปลอดภัย ไว้วางใจได้ ต้องเข้ามาเล่นที่ lava slot Lavacomplex900.com”

  40. The weather suddenly got cold these days. You should be careful not to catch a cold in this weather. This cold is so powerful that it suffers a lot. Let’s be prepared for a cold wave.https://envoytoken.io

  41. It’s the same topic , but I was quite surprised to see the opinions I didn’t think of. My blog also has articles on these topics, so I look forward to your visit. safetoto

  42. Bila Anda bukan anggota SAKURA303 agen bola Online, Anda mungkin bertanya-tanya bagaimana cara memulainya. Pertama, Anda harus membuat akun. Nama pengguna dapat berupa apa saja, seperti nama atau ID Anda sendiri, atau Anda dapat menggunakan kata sandi. Setelah Anda menyiapkan akun, Anda dapat masuk dan bermain SAKURA303 sbobet. Kalau Anda yakni anggota https://178.128.57.139/sakura303/ agen bola, penting untuk memahami peraturannya. Saat Anda menjadi anggota, Anda patut mematuhinya. Misalnya, Anda patut memahami ketentuan setoran dan penarikan. Penting juga untuk mengetahui semua risiko yang Anda hadapi. Selain itu, Anda seharusnya memahami rake dan resi taruhan. Apabila Anda adalah anggota, Anda juga mempunyai hak mendapatkan bonus SAKURA303 agen sbobet. Ini yaitu macam promosi yang ditawarkan oleh agen sbobet, yang memberi Anda kans untuk memenangkan hadiah. Biasanya, SAKURA303 agen sbobet menawarkan bonus 2X, artinya Anda bisa mendapatkan uang dua kali lipat. Selain itu, Anda juga bisa menikmati berjenis-tipe permainan. SAKURA303 termasuk Cat Kingdom yang terkenal, yang memungkinkan Anda bermain untuk mendapatkan bonus. Anda juga dapat memilih dari permainan Triple Dadu atau Sic Bo.

Leave a Reply

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