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.

20,411 thoughts on “Revenue Management in the Golf Industry”

  6. شبا (شماره حساب بانکی ایرانيان)، به منظور تسهیل و استانداردسازی مبادلات بین بانکی و بین‎المللی بانک‎های کشور، توسط بانک مرکزی جمهوری اسلامی ایران مطابق با استاندارد 13616-ISOطراحی شده است. با این که هم اینک از این شماره صرفاً در برخی از مبادلات بین بانکی استفاده می شود، ولی طبق اعلام بانک مرکزی به زودی در همه سامانه‎های پرداخت بین بانکی منحصراً از این شماره حساب استفاده خواهد شد.شماره شبا یک شناسه منحصر به فرد tabdil24 برای هر حساب بانکی در جهان است که با رعایت قواعد “شماره حساب بانکی بین‌المللی (IBAN)” شامل 26 کاراکتر به شرح زیر تولید می‎شود. این ساختار شماره‎گذاری با این که مستقل از ساختار شماره‎گذاری داخلی هر بانک است؛ با این حال، هر شماره حساب بانکی در جهان، در چارچوب زیر، قابلیت تبدیل به یک شماره شبا منحصر به فرد را دارد.

  7. قیمت سرور hp
    دانستن یه کانفیگ خوب و انتخاب یک کانفیگ خوب برای سرور خیلی تاثیر زیادی در هزینه خرید سرور دارد چونکه امکان دارد شما قطعاتی را برای سرور انتخاب کنید که قیمت سرور را بالا میبرد

  8. hp سرور
    فرم استعلام قیمت سرور HP برای سهولت در انتخاب و جمع آوری قطعات یک سرور اچ پی تهیه شده تا شما نیازهای نرم‌افزاری و سخت‌افزاری خود را اعلام کنید
    قیمت سرور و قطعات شما را راهنمایی کنند. همچنین برای مشاهده قطعات مورد استفاده در سرور اچ‌پی یا دیگر سرورها و همچنین اطلاع از جدیدترین سرور hp می‌توانید به بخش محصولات سرور hp مراجعه کنید.

  9. An interesting discussion might be priced at comment. I do think that you should write more about this topic, it might not become a taboo subject but normally everyone is too few to talk on such topics. Yet another. Cheers camarillo pool construction

  10. Dave & Buster’s Customer Satisfaction Online Survey is fully organised by Dave & Buster’s restaurants. The noble cause behind this Take Dave & Buster’s Online Customer Survey is to welcome the actual feedback and suggestions from existing and happy customers.

    Dave & Buster’s Customer Survey

  13. Global Ammunition Market carries ammo for sale and only offers in stock cheap ammo – 100% guaranteed. Whether you are looking for rifle ammo, handgun ammo, rim-fire ammo, or shotgun ammo, you’ve come to the best place on the Internet to find it all in stock and ready to ship! gunpowder

  14. It’s really great. Thank you for providing a quality article. There is something you might be interested in. Do you know majorsite ? If you have more questions, please come to my site and check it out!
    123

  15. As such, I find a href=”https://pabriksepatutangerang.com/sepatu-sneakers-branded/”>Sepatu Sneakers Branded myself wandering new neighborhoods almost every week

  19. Train with the Global Ambassador & Key Opinion Leader for Allergan – Dr Ash Labib. Join Live Workshops & Expert Lectures for facial aesthetics training courses Ash Labib

  22. This particular papers fabulous, and My spouse and i enjoy each of the perform that you have placed into this. I’m sure that you will be making a really useful place. I has been additionally pleased. Good perform! large magnum rifle primers

  23. Kamagra 50mg or Kamagra 100mg contains the active ingredient sildenafil in corresponding strength, which belongs to a group of drugs called phosphodiesterase type 5 (PDE5) inhibitors. It works by helping to relax blood vessels in the penis, allowing blood to flow into a man’s penis during sex.
    Therefore, the main effect of Kamagra is as a treatment for adult men with erectile dysfunction. This is a condition when a man is unable to achieve or keep a proper erection for penetration sexual intercourse inside a woman’s vagina.
    https://kamashop.kr

  25. صبا پروفیل، تخصصی ترین مجموعه فعال در زمینه تولید و تامین و صادرات لوله و پروفیل صنعتی، به پشتوانه بیش از ۳۵ سال سابقه فعالیت دراین حوزه ،اکنون افتخار همکاری با بیش از ۲۵۰ کارخانه و کارگاه را دارد. این مجموعه علاوه بر فروش لوله و پروفیل به شکل خام، مجهز به بزرگترین کارگاه برش PLC لوله و پروفیل، ۳ خط کشش سرد (فرمینگ) لوله و همچنین کارگاه پلیش اوربیتالی لوله است، تا بتواند در جهت رضایت هر چه بیشتر مشتریان گرامی تا حد ممکن فرایند های پیش تولید آنها را نیز به عهده گیرد.
    https://sabaprofile.com/

  30. Each house will have a different number of members in the house. Including the existence that is definitely not the same But one thing that every home must have is home cooking which will do more or less do whatever What every home must have is kitchen utensils because they are indispensable for cooking รินไน

  36. We provide you effective website design services at the right price; from domain name to web hosting, from graphic design to SEO, from small business web design to ecommerce in Doha Qatar. We are here to help you succeed. Try our professional services today, your satisfaction is guaranteed. website design qatar

  37. Mostly female creators and male audiences use only Fan. It is very popular with both men and women on OnlyFans. The trend for female creators’ success has been clear: 69% to 331% of female followers on Instagram. onlyfans

  38. I offer you to visit my site to change your outlook on life
    카지노사이트 ACE21에서 안전한 카지노 사이트만을 추천합니다.카지노, 바카라, 온라인카지노, 순위 , 라이브카지노, 해외카지노, 사설카지노, 호텔카지노 등 각종 인터넷 게임을 제공하는 신뢰할 수 있는 통합사이트와 함께 다양한 이벤트에 참여하세요!” />

    https://8mod.net/

  39. there are many things you want to try in life if you want to know it visit my site
    카지노사이트 게임토크에서 각종 온라인 바카라, 슬롯머신, 룰렛, 스포츠토토, 바둑이, 릴게임, 경마 게임 정보를 제공합니다! 안전한 카지노사이트추천 과 각종 이벤트 쿠폰을 지급합니다!” />

    https://main7.net/yes/

  42. I will give you a good deal as long as you enter my site
    카지노사이트 ACE21에서 안전한 카지노 사이트만을 추천합니다.카지노, 바카라, 온라인카지노, 순위 , 라이브카지노, 해외카지노, 사설카지노, 호텔카지노 등 각종 인터넷 게임을 제공하는 신뢰할 수 있는 통합사이트와 함께 다양한 이벤트에 참여하세요!” />

    https://8mod.net/pharaoh/

  43. Do you want to enjoy anyway and try to enter my site
    카지노사이트 게임토크에서 각종 온라인 바카라, 슬롯머신, 룰렛, 스포츠토토, 바둑이, 릴게임, 경마 게임 정보를 제공합니다! 안전한 카지노사이트추천 과 각종 이벤트 쿠폰을 지급합니다!” />

    https://main7.net/

  48. Ortho-K (Orthokeratology) or Eye Braces is a non-surgical procedure that gently shapes the curvature of the cornea to improve vision with the help of a customized contact lens ortho k singapore

  50. سرور اچ پی
    HPE Green Lake برای مدیریت عملیات محاسباتی و مشاهده معیارهای مصرف انرژی در محیط مورد استفاده سرور اطلاع می دهد.

Leave a Reply

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