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.

21,345 thoughts on “Revenue Management in the Golf Industry”

  4. เว็บผลบอล On the away side of Erik Ten Hag, they chose to use a 4-2-3-1 plan as well, placing Rasmus Hojlund as the striker to attack along with Antoni and Bru. No Fernandes and Alejandro Carnacio

  6. live22 แจ็คพ็อต
    แจ็คพ็อตเป็นรางวัลใหญ่ที่สูงของเกมสล็อตเว็บตรง มันสามารถเพิ่มขึ้นเรื่อย ๆ จนกว่าจะมีผู้ชนะ การแตกหนักแจ็คพ็อตเป็นโอกาสที่น่าตื่นเต้นและมีความฝันในการชนะรางวัลใหญ่

  9. Revenue management in the golf industry involves strategic optimization of tee times, events, and memberships to maximize profit and player satisfaction. Mastering this requires understanding market dynamics and customer behavior, forming the foundation of a successful business strategy.Conducción Imprudente Abogado Condado Essex

  10. Iran Charter is Iran’s first charter and plain ticket online purchase systemIran Charter, as the first comprehensive online ticket service provider of charter airline tickets,seeks to provide easy and convenient services to customers for easy purchase of airline tickets,so we believe that the first principle of e-commerce is ease of operation, Therefore with a contract As a ticket supplier,We have made it easy for you with charter companies and different airlines. خرید انلاین بلیط

  17. Anda bisa langsung membuktikannya sendiri dengan hanya memainkan satu user ID saja di situs gacor Bigo88 sekarang. Gratis bocoran slot gacor untuk setiap pemain setia sehingga hanya bermain beberapa putaran saja sudah bisa mendapatkan maxwin serta scatter yang banyak.

  18. Cukup bermain dengan minimal deposit saja pun Anda sudah bisa mendapatkan kemenangan yang besar, sering juga situs Bimaspin membagikan berbagai macam bonus dan hadiah spesial lainnya. sudah banyak yang membuktikan slot games kami dan membawa kemenangan yang besar.

  20. Kunjungi situs resmi Madu88 sekarang untuk melakukan pendaftaran akun gacornya. Anda akan langsung dipandu untuk mengupgrade akun menjadi ke tingkat VIP sehingga sangat mudah untuk mencapai kemenangan maksimal.

  21. It’s really great. Thank you for providing a quality article. There is something you might be interested in. Do you know 토토커뮤니티 ? If you have more questions, please come to my site and check it out!

  22. Raden138 menjadi situs slot paling modern dan paling praktis sehingga sangat mudah untuk dimainkan. Kemudahan akses situs Raden138 ini menjadikan kami sebagai situs yang paling banyak digemari oleh masyarakat.

  25. Online crash games leverage advanced graphics and physics engines to create a remarkably realistic gaming environment. The attention to detail, from the way vehicles crumple upon impact to the sound of screeching tires, enhances the immersion, making players feel like they are right in the middle of the action.

  27. Chumba is a haven for digital nomads, providing a serene space with high-speed internet and a menu designed to fuel productivity while enjoying the comforts of a vibrant cafe. Chumba

  28. PERDANA138 sudah menerima lisensi resmi sehingga Anda tidak perlu khawatir akan kualitas situs kami. Sebagai situs yang telah populer di Indonesia, situs Perdana138 berkomitmen memberikan pelayanan terbaik. PERDANA138 layak untuk menjadi situs terbaik di Indonesia karena rating kemenangannya yang tinggi.

  29. PERDANA138 adalah agen slot online yang sudah sangat populer bagi pecinta slot online, dikarenakan sistemnya yang canggih dan proses transaksi deposit dan withdrawal juga dilakukan dengan cepat. Daftar & Login PERDANA138 Slot Online untuk mendapatkan promo menarik.

  30. PERDANA138 menjadi favorit oleh pecinta slot di kalangan masyarakat, dalam bertransaksi pun hanya membutuhkan waktu yang singkat. 24 jam online dan siap untuk melayani Anda kapan saja dan dimana saja karena PERDANA138 telah bekerjasama dengan bank lokal untuk mempermudah proses transaksi Anda.

  31. PERDANA138 menjadi situs yang mudah menang dan untung hanya bermain dengan satu user ID saja, Anda bisa langsung klaim akun gacor mudah menang tanpa biaya apapun, semuanya gratis dan bisa langsung bermain. Dapatkan pula promo BONUS NEW MEMBER 100% yang bisa langsung Anda klaim di depan.

  38. Event Space & Outdoor Tents Solutions and Reliable Temporary Structures Manufacturing at SHELTER — Large Tent, Frame For Tent, Warehouse Tents, Army Tents, Shelter Covers, and more. ✓ Easy Setup ✓ Fast Response ✓ Customization Design ✓ Value For Money wedding tent

  41. I’ve read some good stuff here. Definitely worth bookmarking for revisiting. I surprise how much effort you put to create such a great informative website.
    업소알바

  45. NOKIAGAMING merupakan situs penyedia Platform game online terlengkap di indonesia. Bekerja sama dengan berbagai server terkemuka dan terpercaya di tahun 2023. nokia gaming

  46. A Canon printer is a perfect choice for printing and scanning functions. These devices deliver high-quality printouts of images, text, or anything you want to print. The best thing is you can expect high-quality results at budget-friendly prices. Canon brand brings in printers that you can connect wirelessly or through a wired connection. However, whether you are connecting the device via USB, Bluetooth, or Wi-Fi connection, you will be required to install the right driver and software and set up the printer. Go to ij.start.canon and get started with the setup process. It will make your printer work and print whatever you want.

  47. Sekabet canlı bahis sitesinin yeni mobil sayfasına sitemiz üzerinden giriş yapabilirsiniz. Sekabet'e giriş yaparak, üyelik oluşturabilir ve takipte kalabili sekabet

Leave a Reply

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