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.

30,433 thoughts on “Revenue Management in the Golf Industry”

  2. Hello! I’ve been reading your web site for some time now and finally got the bravery to go ahead and give you a shout out from Humble Tx! Just wanted to say keep up the good job! 토토사이트

  6. 이벤트 정보:

    최소 10,000원 이상 입금하시면 송금시 보너스를 신청하실 수 있습니다.
    회원으로 가입한 Bet8 카지노 게임 플레이어는 1일 1회 최대 20만원을 받을 수 있습니다.
    신청 방법:

    입금 후 송금을 시작할 때 보너스 코드를 입력하기만 하면 됩니다.
    최근 1시간 이내에 10,000원 이상 입금하셔야 결제가 진행됩니다.
    잔여 잔액이 최소 배팅 금액 미만인 경우 고객 서비스를 통해 보너스를 취소할 수 있습니다.
    이 제안은 다른 새로운 환영 보너스 또는 일일 첫 입금 보너스와 결합될 수 없으며 리베이트가 적용되지 않습니다.
    입금액과 보너스 금액에 대한 롤오버 조건을 충족하면 베팅을 철회할 수 있습니다.

    벳8카지노 오픈 이벤트!

  11. احساس 8171 ویب پورٹل
    ویب پورٹل فارم 8171حکومت پاکستان کی جانب سے احساس پروگرام کے حوالے سے ایک نئی اپ ڈیٹ ہے کہ وہ لوگ جنہیں ابھی بھی احساس پروگرام میں رجسٹریشن کروانا ہے وہ اس بار نئے طریقہ کار کے ذریعے رجسٹر ہوں اور اگر وہ آن لائن ہیں تو اس پروگرام میں اپنی اہلیت حاصل کریں۔ اگر آپ اپنی آن لائن رجسٹریشن کرنا چاہتے ہیں تو یہ طریقہ آپ کو اس وضاحت کے ساتھ بتایا جائے گا کہ اگر آپ اپنی آن لائن رجسٹریشن کرنا چاہتے ہیں تو ہم اس پروگرام میں آپ کی آن لائن رجسٹریشن کیسے کر سکتے ہیں
    click the link recive the money 25000
    https://ehsaasprogrames.com/

  13. Well… I discharge up district on a like issue, paying silly weirdo to I never visited your blog. I added it to populars in like manner i’ll be your authentic starter. cartoonze

  14. Nice to be visiting your blog once more, it has been months for me. Well this article that ive been waited for therefore long. i want this article to finish my assignment within the faculty, and it has same topic together with your article. Thanks, nice share. 놀이터

  15. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. 먹튀검증

  17. Our SEO experts optimize your website’s structure, content, and off-page factors to increase visibility and rankings on search engines like Google. We also conduct keyword research, competitor analysis, and data-driven strategies to ensure your target audience can find your website.

    Our top-notch Keyword SEO services will boost your local business’s online exposure and traffic. We use intelligent keyword optimization to boost your business’s local search rankings when people search seo company near me.

  28. 먹튀없는 배팅사이트 벳8[BET8]은 유명 해외배팅사이트 계열의 자회사로 200억 이상의 규모를 자랑하며, 한번의 가입으로 스포츠/카지노/슬롯/사다리 그외 미니게임을 즐길 수 있는 글로벌 멀티플렛폼 사이트 입니다. 한국인의 입맛에 맞는 10벳, 피나클, 에볼루션카지노, 게임플레이 등 많은 제품을 풍성한 프로모션과 함께 제공합니다. 피나클 런칭 , 에볼루션 런칭 해외배팅사이트 벳8 [BET8]에서는 맥스뱃 / 10벳(텐벳) / CMD / 벳레이더 가상스포츠 / 피나클 스포츠 제품을 한번의 가입으로 모두 이용가능합니다. 스포츠 관련 프로모션으로는 첫입금 / 매입금 / 재입금 / 리베이트 / 믹스팔레이 캐시백 등이 있습니다. 메이저사이트 등 타사이트 와 비교 불가한 자본력을 가지고 있는 안전해외배팅사이트 벳8 [BET8]에서는 에볼루션카지노 / 게임플레이 카지노 / 마이크로게이밍 / 플레이텍 / 프로그라마틱 슬롯 외 1만개의 슬롯 제품을 한번의 가입으로 모두 이용가능합니다. 슬롯 카지노 관련 프로모션으로는 첫입금 / 매입금 / 재입금 / 리베이트 / 프리미엄 보너스 등이 있습니다. 먹튀없는 안전한 배팅사이트 벳8 [BET8]에서는 사다리 / 키노&로또 / 낚시 / 복권 / P2P카지노 / 슈퍼볼 등 다양한 미니게임 제품을 한번의 가입으로 모두 이용가능합니다. 사다리&미니게 관련 프로모션으로는 웰컴보너스 / 친구추천 보너스 등이 있습니다.

    해외배팅사이트

  29. TalktoFoodLion – Welcome to the Food Lion Customer Survey 2023! We at Food Lion are dedicated to providing our customers with the freshest and highest … talktofoodlion

  30. Wir bieten umfassende Reinigungsdienstleistungen für Privat- und Geschäftskunden in Göttingen und Umgebung. Von Büroreinigung bis hin zu Gebäudereinigung und Fassadenreinigung – wir sind Ihr zuverlässiger Partner. Gebäudereinigung Göttingen

  31. “parabeen is a reputable name in the construction chemical industry, dedicated to delivering high-quality solutions. With over 15 years of experience in producing and developing construction chemical products, we specialize in stone and tile adhesives, stone wax, and various colors. Our focus is on quality and international standards, and we take pride in contributing to the construction industry’s improvement. Join us and experience reliability and quality in every product we offer.”

  38. Trust BSNS Consulting as your reliable Taxation Services Provider. With our in-depth understanding of tax laws and regulations, we ensure accurate and timely tax compliance for your business. Our proactive tax planning approach aims to minimise tax burdens and maximise savings, allowing you to focus on driving your business forward.

  41. I treated myself to the Luxury Desert Safari Tour , and it exceeded all my expectations. The attention to detail in every aspect of the tour, from the plush seating to the gourmet cuisine, was impressive. I felt like royalty in the heart of the desert.

  42. It is my first visit to your blog, and I am very impressed with the articles that you serve. Give adequate knowledge for me. Thank you for sharing useful material. I will be back for the more great post. 먹튀검증

Leave a Reply

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