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.

29,078 thoughts on “Revenue Management in the Golf Industry”

  2. سئو سایت حرفه ای
    توضیحات متا شما همچنین به موتورهای جستجو کمک می کند تا زمینه صفحه شما را درک کنند و شما را در نتایج جستجوی مرتبط رتبه بندی کنند.

  4. Situs togel online hadiah 10 juta deposit pulsa tanpa potongan terbesar di seluruh daerah maupun di indonesia, situs togel4d yang kami berikan sudah sangat teraman dan terpercaya. Hadiah Togel

  6. I needed to thank you for this phenomenal read!! I unquestionably adored each and every piece of it. I have you bookmarked your site to look at the new stuff you post. Quality Content

  7. Добро пожаловать на портал минусовок as-sol.net. Здесь вы можете бесплатно и без регистрации скачать гитарные минусовки тысяч песен. В настоящее время в коллекции насчитывается более ста тысяч минусовок.

  8. gclub88888 จีคลับ888 รวมเกมสล็อตบาคาร่า เกมสล็อต บาคาร่า ออนไลน์ใหม่ปี2023 รวมเกมสล็อต บาคาร่า ที่ดีที่สุดคนเล่นเยอะ มาไว้ใน ค่ายเกม gclub จากสถิติผู้เล่น สล็อต บาคาร่า คืนยอดเสีย 10% ทุกวันจันทร์

  9. ไปกับการละเล่นมากมาย มีครบทุกค่ายดัง ที่เปิดให้บริการเล่น ตลอดเวลา 24 ชั่วโมง ไม่ว่าจะเป็นระบบเกมของ SA Gaming , Royal Gclub, Sexy Baccarat และอื่นๆ อีกหลากหลายค่ายพร้อมให้บริการคุณ

  11. I came to this site with the introduction of a friend around me and I was very impressed when I found your writing. I’ll come back often after bookmarking! slotsite

  15. รีวิวเว็บสล็อตออนไลน์ใหญ่ๆ เกมสล็อตมากมาย เล่นง่ายทำเงินได้จริง ทางเข้ารีวิวเว็บสล็อตออนไลน์ใหญ่ ๆ และ รีวิวเว็บสล็อตออนไลน์ใหญ่ ๆบนมือถือ เว็บสล็อตออนไลน์ใหญ่ ๆ

  18. เว็บบาคาร่าออนไลน์อันดับหนึ่ง คุ้มค่ามากที่สุดในการลงทุน เพราะเราให้ได้มากกว่า ได้เงินชัวร์ ตัวจริงเรื่องค่ายเกมดัง ไม่มีอั้น กำไรเน้น ๆ เว็บบาคาร่า pantip

  19. ทางเข้าเว็บบอลออนไลน์ ufabet เล่นบนมือถือได้ 24 ชม. บอลเต็ง บอลสเต็ป ขั้นต่ำ 10 บาท ค่าน้ำ 4 ตังค์ ค่าคอม 0.5% มีให้เลือกเล่น ครบทุกลีก 2023 เว็บบอลออนไลน์ ufabet

  29. Poker88 merupakan agen judi poker, idn slot online indonesia terpercaya dengan uang asli, poker88 asia judi online sejak tahun 2008 populer hingga sekarang poker88 asia

  30. TrackoBit took birth when two friends eager towards innovation came together back in 2017. They were looking to bring forth their creativity which took the shape of a B2B SaaS startup model as an infallible Fleet Management Platform With our mission being reconstruction of the logistics sector by mitigating industry issues via automation, we aim to use geospatial analytics efficiently.

  33. Marilynn James blog website is where visitors can purchase books written by evangelist, book author, life coach and trainer, motivational speaker Marilynn James. Marilynn James best seller book titled Fully Persuaded Faith, is available to purchase on this website, or from online stores Amazon, BAM Books, and Barnes & Noble. Marilynn James also post weekly blogs giving life lessons in relation to God. Looking for strategies for prayers to God, visit this site to learn more. Book Author Marilynn James

  34. 【サジェスト対策プロ】サジェスト対策をすることでGoogle 検索をする際、ユーザーが検索窓にキーワードを入力すると同時に候補一覧の中にあなたのお店の名前を表示させることができます！ サジェスト対策プロ WEB集客

  35. UltimateParrots.org website is home to the best green-cheeked conure parrots for sale – these parrots are known for their friendly and social personalities. Not only are they filled with personality, but these parrots also have beautiful bright colored feathers. green-cheeked conure lifespan

  36. Why is OnlyFans so dangerous? The platform has become increasingly popular for people who have become unemployed during the pandemic, but it is also popular among sex workers . With a subscription, anyone can find and view sex workers. onlyfans

  37. The idea that all sex workers make a lot of money is not true—or that we’re just simply just showing our bodies and we have no integrity and we have no brain behind us. It’s really so much more than that. We’re all people.” Which celebrities use OnlyFans? While sex workers make up a large portion of OnlyFans’ base of users creators. onlyfans

  38. Onlyfans have over 50 million subscribers in the past year. OnlyFans creators can publish various types of content aiming at a specific audience. onlyfans

  40. Really interesting and one of a kind post. I like such things as making more research, developing writing skills, as well as related things. These kinds of secrets help in being a specialist on this topic. This post is very helpful to my family because people like you devoted time to learning. Regularity is the key. But it is not that easy, as has been made out to be. I am not an expert like you and lots of times I feel like giving it up. Looking at a person like me, your posting is of good assistance and booster. Thank you for sharing. renting impresoras Valencia

  42. The manufacturing process of ibogaine for sale begins with the extraction of the alkaloid from the root of the Tabernanthe iboga plant. The plant root is first harvested, dried, aged, and ground into a powder. The powder is then mixed with a solvent such as ethanol or methanol and heated until the ibogaine for sale alkaloid is extracted. The extract is then filtered and purified to create a solution of Ibogaine HCl.

    Once the Ibogaine HCl solution is produced, it must be further purified and concentrated. This is done through a series of distillations and crystallizations. The final product is a pure, crystalline form of Ibogaine HCl.

  43. Peyote cactus has a long history of use in Native American cultures. It is believed that the use of peyote dates back over 5,000 years and was used for spiritual, medicinal, and recreational peyote for sale
    purposes. The Huichol people of Mexico have a rich history of using peyote in their religious rituals and for medicinal purposes. The cactus is believed to have many physical and psychological benefits such as improved mood, reduced anxiety, improved sleep, and enhanced creativity.

  49. 정품 비아그라,비아그라구매,비아그라구입,처방전없이 초간편주문.합리적인가격.비아그라 퀵배송,비아그라온라인약국,시알리스.각종 발기부전치료제 판매 전문 온라인스토어 13년동안 단 1건도 가품판매에 관한 스캔들이 없는 믿을수 있는 스토어 입니다.

Leave a Reply

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