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.

24,013 thoughts on “Revenue Management in the Golf Industry”

  5. I’ve been exploring for a little for any high quality articles or blog posts in this sort of space . Exploring in Google I eventually stumbled upon this site. Bein888

  7. I’m writing on this topic these days, but I have stopped writing because there is no reference material. Then I accidentally found your article. I can refer to a variety of materials, so I think the work I was preparing will work! Thank you for your efforts.22balllive

  8. I’ve been reading all the articles related to 22hotmovie for the past hour, but I don’t know why I saw this post now. It seems like very useful information.

  12. Thanks for your article. I would also love to comment that the very first thing you will need to carry out is determine if you really need credit improvement.
    안전놀이터

  14. Thanks for Your article…It gives us immense knowledge. Body massage gives you ultimate relief to your body. I would like to recommend each and everyone go for massage once in a week for ultimate relief. it will not only gives you relief but also increase your productivity.
    토스카지노

  15. I used to be suggested this website by way of my cousin. I am no longer certain whether this publish is written by means of him as no one else realize such special approximately my problem. You are amazing! Thank you!
    바카라사이트

  17. After working for more than two decades of his professional career in beauty markets in New York libur lebaran City, Mr. Bathily has chosen to curate a sanctuary for Black women in his own country.

  19. I read this article very well. I will visit you often in the future. Thank you, my friend. I hope everything goes well주소

  20. The story of tiff’s treats coupon is quite fascinating and motivating at the same time when an idea from someone turns into an evergreen business and the best part is that you have always loved cooking and baking.

  22. car repair in Noida
    plumber service in delhi
    electrician in noida
    water purifier repair in noida

  23. Are you in need of skilled carpenter services in Noida? Look no further! HelloMistri’s carpenters in Noida are dedicated to delivering exceptional craftsmanship and personalized solutions for all your woodworking needs. Whether you require custom furniture, home renovations, or intricate woodworking projects, our highly experienced carpenter has the expertise and attention to detail that you can rely on. From precise measurements to impeccable finishes, we take pride in transforming your vision into reality. With a commitment to professionalism, timeliness, and customer satisfaction, HelloMistri’s carpenter in Noida is ready to bring your carpentry projects to life. Contact us today and let us enhance your space with expert carpentry services in Noida.

  26. ماشین‌های صنعتی برای کارهای خود نیاز به کنترل و مدیریت دارند. یک شرکت معروف در این زمینه شرکت زیمنس است. به عنوان یک کارگردان صنعتی معتبر، این شرکت انواعی از تجهیزات و نرم‌افزارهای اتوماسیون صنعتی را ارائه می‌دهد. اتوماسیون صنعتی زیمنس امکان کنترل و پایش هوشمندانه‌تری را برای خطوط تولید و سیستم‌های صنعتی فراهم می‌کند.

  27. The post addresses revenue management in the golf industry, highlighting the fixed pricing structure and the challenge of controlling duration. It mentions various additional revenue opportunities within golf courses, such as golf ranges, pro shops, professional services, and food and beverage outlets. It also suggests creative ideas to generate additional revenue using the available space, such as hosting events, outdoor cinemas, and summer camps.
    Business setup consultants in Dubai

  28. This is very educational content and written well for a change. It’s nice to see that some people still understand how to write a quality post! Reiki

  29. Wow, what an insightful blog post on revenue management! As a small business owner, I’ve always struggled with finding effective strategies to optimize my revenue streams, so this article really caught my attention. I found the practical examples and real-world scenarios you shared to be incredibly helpful in understanding how revenue management can be implemented in different industries.

    One aspect that particularly resonated with me was the emphasis on data analysis and forecasting. It’s true that having access to accurate and up-to-date data is crucial for making informed decisions. The way you explained how revenue managers leverage data to identify trends, forecast demand, and adjust pricing strategies was eye-opening. It made me realize that I need to invest more in data analytics tools to gain a better understanding of my customers’ behaviors and preferences.

    La Vacanza Travel

  30. Wow, what an insightful blog post on revenue management! As a small business owner, I’ve always struggled with finding effective strategies to optimize my revenue streams, so this article really caught my attention. I found the practical examples and real-world scenarios you shared to be incredibly helpful in understanding how revenue management can be implemented in different industries.

    One aspect that particularly resonated with me was the emphasis on data analysis and forecasting. It’s true that having access to accurate and up-to-date data is crucial for making informed decisions. The way you explained how revenue managers leverage data to identify trends, forecast demand, and adjust pricing strategies was eye-opening. It made me realize that I need to invest more in data analytics tools to gain a better understanding of my customers’ behaviors and preferences.

    La Vacanza Travel

  31. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. strawberry milk body cleanser

  42. Indulge in a myriad of world-class facilities and services provided by fujairah hotels and resorts
    Dive into pristine swimming pools surrounded by lush gardens or unwind on private beaches with panoramic views of the Arabian Sea. Treat yourself to rejuvenating spa treatments and wellness experiences that will leave you feeling refreshed and revitalized. Stay active at state-of-the-art fitness centers equipped with the latest exercise equipment.

  44. Discover a world of unparalleled luxury and comfort in the vibrant city of Dubai. Our apartment hotel in dubai
    offer a unique blend of sophistication and convenience, providing spacious and fully furnished accommodations that feel like a true home away from home. Enjoy the privacy of separate living areas, indulge in gourmet meals prepared in your own kitchen, and experience the highest level of personalized service. With access to top-notch amenities and a prime location near Dubai’s iconic attractions, our apartment hotels are the epitome of indulgence and relaxation. Embark on an unforgettable journey and make Dubai your temporary haven of luxury.

  46. Riyadh, Saudi Arabia – Vapers in Saudi Arabia now have access to a wide range of vaping products with the launch of فيب, the leading online vape shop in the country. فيب

  50. GlucoTrust

    GLUCOTRUST – BEWARE! – GlucoTrust Review – GlucoTrust Supplement Review – GlucoTrust Blood Sugar

    #glucotrustreview #glucotrustreviews #glucotrustsupplementreviews

Leave a Reply

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