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.

31,760 thoughts on “Revenue Management in the Golf Industry

  1. We stumbled over here by a different web page and thought I should check things out. I like what I see so now i’m following you. Look forward to looking over your web page yet again. https://mtline9.com

  2. I recently had the pleasure of staying at one of the hotels in al barsha, and it exceeded all my expectations. The level of comfort, impeccable service, and attention to detail truly made my experience unforgettable. Al Barsha is undoubtedly a hotspot for hotels, with a diverse range of options to cater to every traveler’s needs. Whether you’re seeking a luxurious getaway or a cozy budget-friendly stay, hotels in Al Barsha have got you covered. Don’t miss out on the incredible hospitality and convenience that this vibrant neighborhood has to offer

  3. Dewata88 sebagai situs judi slot gacor resmi di Indonesia telah mengalami perkembangan yang pesat dalam beberapa tahun terakhir. Muncul dengan berbagai tawaran menarik untuk para pemain slot gacor

  4. Fryd Extracts Buy Fryd extracts live resin and Liquid Diamonds Online SHOP NOW About Fryd Extracts Fryd extracts is a new vape brand that broke into the scene at the beginning of 2023. We have quickly become one of the most sort after brands comparing with industry giants such as Jeeters. Fryd extracts is the … Fryd disposable 2 gram

  5. Trackobit is a leading provider of cutting-edge vehicle GPS tracking software. Their powerful solution offers real-time tracking, monitoring, and fleet management capabilities, enabling businesses to optimize routes, enhance driver safety, and increase operational efficiency. With advanced features and intuitive interfaces, Trackobit revolutionizes vehicle tracking for improved productivity and cost savings.

  6. I wanted to reach out and let you know how much I enjoyed your recent blog post. Your writing style is engaging and informative, and I appreciated the insights you shared on topic.
    Your post really resonated with me, and I found myself nodding along as I read through it. I especially appreciated your idea and the way you presented it.
    Thank you for taking the time to create such valuable content. Your blog is always a go-to resource for me, and I look forward to reading more of your work in the future.
    mejores abogados de accidentes de moto

  7. The name ‘TeachersBadi’ reveals the nature of the site. A dedicated Team for teachers, students, and educators is launching and running the site. We enjoy sharing primarily educational material and employee teachersbadi.in and teacher-related content in the educational area. TeachersBadi is a website dedicated to education, students, and teachers.

  8. An interesting discussion is worth comment. I do believe that you should write more on this topic, it might not become a taboo subject but typically persons are inadequate to communicate on such topics. Yet another. nova carts Cheers.

  9. Prostadine

    PROSTADINE REVIEW Is It the Best Prostate Supplement Check Reviews Before Buying

    #prostadinereview #prostadinereviews #prostadinesupplementreviews

  10. Golf offers numerous Healthy Benefits , including physical exercise, stress reduction, and social interaction. It promotes cardiovascular fitness, improves flexibility and balance, and contributes to overall well-being and enjoyment.

  11. Haley, the Super Asian Model: A Captivating Blend of Beauty and Talent

    Introducing Haley, a super Asian model who effortlessly embodies grace, elegance, and unparalleled talent. With her captivating presence and striking features, Haley has captivated the fashion world and established herself as a true icon. From the runways of Paris to the glossy pages of top fashion magazines, her magnetic charm and versatile style continue to leave a lasting impression.

    Haley’s beauty is a mesmerizing fusion of Asian heritage and global appeal. Her flawless complexion, expressive eyes, and graceful physique make her a natural standout in the industry. Whether she’s donning haute couture gowns or edgy streetwear, Haley effortlessly embraces each look, bringing it to life with her unique flair.

    Beyond her stunning appearance, Haley’s talent shines through in every aspect of her work. She possesses a remarkable ability to embody the essence of a concept, effortlessly transitioning from fierce to ethereal, from playful to sultry. Her versatility as a model allows her to seamlessly adapt to various styles and aesthetics, making her a sought-after presence on both the international and Asian fashion scenes.

    Haley’s dedication to her craft is unmatched. Her tireless work ethic, professionalism, and commitment to perfection have earned her the admiration of renowned designers and photographers. She approaches each project with unwavering passion and a genuine love for the art of modeling, ensuring that every frame captures the essence of the vision.

    Off the runway, Haley’s warm and down-to-earth personality shines through. She exudes an infectious positivity and a genuine appreciation for her fans and supporters. Her relatability and approachability have garnered her a loyal following, who are drawn not only to her beauty but also to her authenticity and humility.

    Haley’s impact extends beyond the fashion industry. As a super Asian model, she has become an influential figure, breaking barriers and challenging traditional beauty standards. Her presence serves as a source of inspiration for aspiring models of Asian descent, encouraging them to embrace their heritage and embrace their unique beauty.

    In the world of fashion, Haley is a true trailblazer, leaving an indelible mark on the industry. With her exceptional talent, timeless beauty, and unwavering dedication, she continues to redefine the notion of beauty and elevate the representation of Asian models on a global scale. As Haley graces the stages and pages of the fashion world, she stands as a testament to the power of diversity and the limitless possibilities that lie ahead for aspiring models of all backgrounds.
    Haley: Professional Model

  12. E ticaret ile ilgili en doğru ve en güncel bilgileri öğrenin E ticaret nedir, e ticaret nasıl yapılır, e ticaret sitesi nasıl açılır hemen öğren

    e-ticaret

  13. situs fafaslot merupakan provider slot online viral dan sering dimainkan para bettor Indonesia karena bisa mudah menang maxwin dengan cepat.

  14. E ticaret Sitesi, e ticaret sitesi kurmak, e ticaret sitesi kurmak için gerekenler, e ticaret sitesi fiyatları, hazır e ticaret sitesi için hemen tıkla

    e-ticaret sitesi

  15. I had no idea about these tips and tricks before. Your article opened my eyes to a whole new level of understanding. Thanks! Feel free to visit our website for more helpful resources.

    trendyol kargo ücreti

  16. Wow, this information is gold! Thank you for sharing such valuable insights. I’m definitely bookmarking this page. And hey, check out our website if you’re interested in similar content!

    hasta yatağı kiralama

  17. This is an incredibly well-written piece. The content flows smoothly, and the ideas are presented in a logical manner. Kudos to the writer! If you have a moment, please check out our website for more engaging content.

    hasta yatağı

  18. Thank you for shedding light on this topic. It can be quite confusing, but your explanation made it much clearer. Keep up the fantastic work! Don’t forget to visit our website for more in-depth articles.

    hasta karyolası

  19. This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. It is the old what goes around comes around routine. Leak Repair in Friendswood

Comments are closed.