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.

29,505 thoughts on “Revenue Management in the Golf Industry”

  1. Rest room marketing techniques you pertinent query previous to building. Will probably be quick to write down remarkable write-up because of this. mpogoal

  8. For pain relief from the Golf resort, my go to source is and always will be Gabapentin. Smart thing to do is buy Gabapentin India online, its safe and fast delivery from Sunny Pharma. Its totally worth it and affordable. The pain from my golf swing at the resort was negligible from Gabapentin pain relief meds.

    Sunny Pharma has allowed me to save 100s if not 1000s of dollars on HIV treatment, hep C treatments and pain relief meds as well.

  9. For pain relief from the Golf resort, my go to source is and always will be Gabapentin.

    Smart thing to do is buy Gabapentin India online, its safe and fast delivery from Sunny Pharma. Its totally worth it and affordable. The pain from my golf swing at the resort was negligible from Gabapentin pain relief meds.

    Sunny Pharma has allowed me to save 100s if not 1000s of dollars on HIV treatment, hep C treatments and pain relief meds as well.

  13. Do you ever wonder where you can find the finest organic herbal plants and natural products? Look no further than Digi Attar
    ! One of Digi Attar’s remarkable attributes is its global product export capability. This organic apothecary ships its high-quality organic herbal and natural products to a wide range of countries, including Europe, the Arab world, China, India, and even several African nations. This global market diversity reflects Digi Attar’s commitment to quality and its expertise in sourcing organic medicinal plants and natural items.

  20. Thank you for some other informative blog. Where else could I get that type of information written in such an ideal means? I have a mission that I’m just now working on, and I have been at the look out for such information. 토토

  29. I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight. 토토

  30. The hot summer is passing by. The weather is getting cold. You’ll have to pay attention to health care. It will be very painful to catch a cold. There are many things to care about in order not to get sick.https://mukboan.net

  32. VPS Sale signifies a special offer or promotion related to Virtual Private Servers. This can involve discounts, bundled services, or other incentives to encourage users to choose VPS hosting solutions. A VPS sale provides an excellent opportunity for individuals or businesses to acquire high-quality virtual server resources at a reduced cost, making it an attractive option for cost-conscious users.

  34. A virtual private server Canada provides users with a dedicated portion of server resources, allowing them to have more control, privacy, and flexibility compared to shared hosting. It offers a reliable and secure hosting solution specifically tailored for customers targeting a Canadian audience or requiring a Canadian hosting location

  35. The Wrap of the Day at McDonald’s UK changes every Monday and Thursday. It is usually one of the four standard wraps, which are:

    The Caesar & Bacon Chicken One
    The Sweet Chilli Chicken One
    The BBQ & Bacon Chicken One
    The Spicy Veggie One
    However, the Wrap of the Day can also be a special limited-time offer. For example, in the past, McDonald’s has offered the Garlic Mayo Chicken One and the Chipotle Chicken One as part of the Wrap of the Day promotion.

    To find out what the Wrap of the Day is, you can check the McDonald’s UK website or app. You can also ask at your local McDonald’s restaurant.v

    Wrapoftheday

  36. Спасибо, интересно узнать что-то новое о том, чем я обычно не интересуюсь. Нужно будет обязательно попробовать, как только позволят происходящие вокруг меня события https://www.giantbomb.com/profile/sobytiya/.

  42. Nice to be visiting your blog again, it has been months for me. Well this article that i’ve been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share. 놀이터

  43. Windows cheap VPS refers to a cost-effective Virtual Private Server solution based on the Windows operating system. These VPS plans are designed to offer Windows-based hosting services at affordable prices. While being budget-friendly, they still provide the essential features and functionalities needed to run Windows applications, websites, and services.

  44. friseurstühle are the chairs available for clients in a hair salon. They are designed to be comfortable and allow the hairdresser easy access to the client’s hair.

  45. Unlock the full potential of your online presence with BSNS Consulting’s services of Digital Marketing Pakistan. Our result-driven approach utilises the latest digital marketing strategies to elevate your brand’s visibility, engage your target audience, and drive meaningful conversions. Stay ahead of the competition and achieve your business goals with our expert digital marketing solutions.

Leave a Reply

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