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.

20,418 thoughts on “Revenue Management in the Golf Industry”

  2. An intriguing discussion will probably be worth comment. There’s no doubt that that you simply write regarding this topic, it will not certainly be a taboo subject but usually consumers are not enough to communicate on such topics. An additional. Cheers video bugil

  3. Thanks for another informative web site. Where else could I get that kind of information written in such an ideal way? I’ve a project that I’m just now working on, and I have been on the look out for such information. video bokep indonesia

  6. Have you ever wondered who posts some of this stuff that you come across? Recently it seems to have become an epidemic, although it seems to be changing for the better. Do you agree? bokep asia

  7. Have you ever wondered who posts some of this stuff that you come across? Recently it seems to have me an epidemic, although it seems to be changing for the better. Do you agree? bokep asia

  9. Hello! I’m quite sure I’ve been to this lol beans website before lol beans but I’m not entirely sure. earlier, but after reading through some of the other postings, I understood that it was something I had never experienced before. Regardless, I am really delighted I came across it, and I have book-marked it and will be coming back frequently!

  13. Experience the epitome of serenity in Apartments in Haridwar. Nestled amidst the spiritual aura and scenic beauty, our homes offer a perfect blend of modern living and tranquility. Whether you seek a riverside view or a peaceful retreat on the outskirts, our apartments in Haridwar cater to diverse preferences.

  15. Haridwar, located in the state of Uttarakhand, is renowned for its spiritual and cultural significance, making it an increasingly popular choice for property investment. The real estate market in Haridwar offers a diverse array of properties, including residential apartments, independent houses, and commercial spaces. The city’s proximity to the sacred Ganges River and its tranquil environment make it an attractive destination for both investors and homebuyers. The keyword “Property in Haridwar” reflects the growing interest in real estate opportunities in this spiritually significant city, where the market continues to evolve, providing diverse options for those seeking a harmonious lifestyle.

  16. ซุปเปอร์สล็อต
    ซุปเปอร์สล็อต トップオンラインスロットサイトには多くのゲームキャンプがあります。ご存知のように、pgslotゲームキャンプは、ユーザーのトランザクションを高速化するために、さまざまなキャンプのスロットゲームの自動化のソースであることは避けられません。古い作業システムのようにスタッフが答えるのを待つ必要はありません。現在、ほとんどのウェブスロットの自動入出金システムは、自動入出金取引を行っています

  17. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! keep up the good work sell osrs gold

  21. There are some interesting deadlines in this article but I don’t know if I see all of them heart to heart. There is some validity however I’ll take hold opinion till I look into it further. Good article , thanks and we want more! Added to FeedBurner as effectively https://poker-pelangi.online/

  22. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. DJI MINI

  24. Thanks for another informative web site. Where else could I get that kind of information written in such an ideal way? I’ve a project that I’m just now working on, and I have been on the look out for such information. video bokep indonesia

  26. Have you ever wondered who posts some of this stuff that you come across? Recently it seems to have become an epidemic, although it seems to be changing for the better. Do you agree? bokep asia

  29. Effectieve meta-beschrijvingen voor websiteoptimalisatie in Enkhuizen en West-Friesland! Meta-beschrijvingen spelen een cruciale rol in het optimaliseren van je website. Ze moeten beknopt, informatief en relevant zijn, met de juiste zoekwoorden om hoger te scoren in zoekmachines. Als het gaat om het optimaliseren van je meta-beschrijving, is het belangrijk om het perspectief van een SEO-expert in gedachten te houden. Bij Httpmarketing bieden we handige tools die je kunnen helpen bij het vinden en gebruiken van de meest effectieve zoekwoorden voor jouw meta-beschrijving. Onze tools analyseren de websites van je concurrenten en geven je waardevolle ideeën die je ranking en zichtbaarheid in zoekmachines zoals Google en Bing kunnen verbeteren. Daarnaast hebben we de Meta Tag Builder, waarmee je automatisch geoptimaliseerde meta-beschrijvingen kunt genereren op basis van je content. Hiermee kun je snel aan de slag met websiteoptimalisatie. Onderschat niet de kracht van een goede meta-beschrijving; het optimaliseren ervan met de juiste zoekwoorden kan een positieve invloed hebben op je SEO-ranking resultaten. Met de tools van Httpmarketing kun je in een mum van tijd effectieve en geoptimaliseerde meta-beschrijvingen maken. We hebben al veel ondernemers in Enkhuizen geholpen om beter te scoren in Google. Ontdek vandaag nog hoe wij jou kunnen helpen! ڈچ شہریوں کے لیے سعودی ویزا

  31. There are definitely a number of details like that to take into consideration. That is a nice level to convey up. I offer the ideas above as general inspiration but clearly there are questions just like the one you deliver up the place an important thing shall be working in sincere good faith. I don?t know if finest practices have emerged round issues like that, but I am positive that your job is clearly identified as a good game. Each girls and boys feel the affect of just a second’s pleasure, for the remainder of their lives. Jun88

  36. Congratulations on having Hands down the most sophisticated blogs Ive come throughout in most time! Its just incredible how much you can detract from a thing mainly because of how visually beautiful it’s. Youve put collectively a very good blog space -great graphics, videos, layout. This really is undoubtedly a must-see weblog! becoming a credit card processor

  44. You made some first rate factors there. I appeared on the internet for the difficulty and found most individuals will go together with together with your website. tylebongda

  46. You have the absolute coolest physics blog ever. The only thing is, I don’t understand the high level of physics this is talkinga about. I find it fascinating though. tylebongda

  48. Just desire to say your article is as astounding. The clearness in your post is simply excellent and i could assume you are an expert on this subject. Well with your permission allow me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please keep up the enjoyable work. tylebongda

  49. I loved as much as you’ll receive carried out right here. The sketch is tasteful, your authored subject matter stylish. nonetheless, you command get bought an shakiness over that you wish be delivering the following. unwell unquestionably come more formerly again since exactly the same nearly very often inside case you shield this increase. tylebongda

Leave a Reply

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