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.

29,403 thoughts on “Revenue Management in the Golf Industry”

  1. “Solar quotes should be comprehensive documents that not only outline the financial aspects but also provide detailed information on system components, warranties, and expected performance,” Aron Ware advises.

  3. Tunggu apa lagi? Mari kita bergabung di lapak 303 dan nikmati keseruan bermain game online. Temukan pengalaman bermain yang tak terlupakan, hadapi pemain-pemain handal, dan raih kemenangan besar bersama komunitas kami.

  7. 온라인 카지노 사이트 회원들이 선정한 최고의 카지노 사이트를 소개합니다 그 어느 사이트보다 안전하고 빠른 충환전을 자랑하고, 다양한 카지노 게임을 보유하고 있는 사이트만 엄선하여 추천하는 카지노 사이트 목록입니다 사이트 선정 기준 및 카지노 사이트 이용 방법과 팁도 알려드립니다 광고문의 텔레그램 chamusiktoto.

    카지노사이트

  8. Sebagai agen game WAKTOGEL online gacor yang terbaik dengan winrate paling tinggi di Indonesia. Agen slot gacor terbaik serta terpopuler di saat ini, Kami berupaya membagikan penawaran dalam permainan game slot online terbaik. Pada tiap Pemain game online ataupun siapapun yang sah bergabung dengan Kami. Tidak terdapat di spensasi ataupun perbeda-an dalam servis, seluruh orang bakal memperoleh jasa yang serupa.informasi lebih jelas bisa kunjungin diwebsite kami WAKTOGEL merupakan situs game online terbesar se asia yang memberikan jackpot
    besar setiap hari.

  12. I may need your help. I’ve been doing research on gate io recently, and I’ve tried a lot of different things.
    Later, I read your article, and I think your way of writing has given me some innovative ideas, thank you very much.
    Best Hair Transplant in Turkey

  13. WAKTOGEL akan memberikan pengalaman bermain judi online yang sangat menyenangkan kepada semua membernya. Tak heran jika member yang sudah bergabung di dalam situs yang satu ini tak terhitung jumlah nya. Jika kalian masuk kedalam situs ini, kalian akan di suguhkan dengan tampilan situs yang bagus dan menarik. Serta berbagai macam fitur yang bisa kalian gunakan dan akan menambah kepuasan kalian dalam bermain game judi online.informasi lebih jelas bisa kunjungin diwebsite kami WAKTOGEL merupakan situs judi online terbesar se asia yang memberikan jackpot
    besar setiap hari.

  14. I have a mission that I’m just now running on, and I’ve been at the glance out for such info in your post.
    Thank you for the post you share.

    Please Visit My Link : Please Visit My Link : Agen Situs Slot Gacor Hari Ini Terpercaya Maxwin Besar Tahun 2024

  15. )Shop our men’s leather jackets and coats. Buy real leather jackets and coats for men with custom-made to-measure options. Free shipping in USA & worldwide.

  18. PROMO WAKTOGEL akan memberikan pengalaman bermain judi online yang sangat menyenangkan kepada semua membernya. Tak heran jika member yang sudah bergabung di dalam situs yang satu ini tak terhitung jumlah nya. Jika kalian masuk kedalam situs ini, kalian akan di suguhkan dengan tampilan situs yang bagus dan menarik. Serta berbagai macam fitur yang bisa kalian gunakan dan akan menambah kepuasan kalian dalam bermain game judi online.informasi lebih jelas bisa kunjungin diwebsite kami PROMO WAKTOGEL merupakan situs judi online terbesar se asia yang memberikan jackpot
    besar setiap hari.

  21. I’ve been contemplating composing an extremely tantamount post in the course of the last couple of weeks, I’ll most likely keep it straightforward and connection to this rather if thats cool. Much obliged login tridewi

  22. WAKTOGEL akan memberikan pengalaman bermain judi online yang sangat menyenangkan kepada semua membernya. Tak heran jika member yang sudah bergabung di dalam situs yang satu ini tak terhitung jumlah nya. Jika kalian masuk kedalam situs ini, kalian akan di suguhkan dengan tampilan situs yang bagus dan menarik. Serta berbagai macam fitur yang bisa kalian gunakan dan akan menambah kepuasan kalian dalam bermain game judi online.informasi lebih jelas bisa kunjungin diwebsite kami WAKTOGEL merupakan situs judi online terbesar se asia yang memberikan jackpot
    besar setiap hari.

  23. Banyak sekali tipe serta jumlah game yang ada di situs Agen game DORAHOKI online terpopuler terbaik buat kalian. Yang tidak bebas dari kerjasama dengan penyedia game atau penyedia game sah dari semua Dunia. Lumayan login serta melaksanakan deposit, Pemain game online bisa menikmati game gampang serta terbaik di situs Agen game DORAHOKI online terpopuler kami dari penyedia terpopuler ataupun penyedia permainan terbanyak semacam di bawah ini. informasi lebih jelas bisa kunjungin diwebsite kami DORAHOKI merupakan situs game online terbesar se asia yang memberikan jackpot
    besar setiap hari.

  24. WAKTOGEL akan memberikan pengalaman bermain judi online yang sangat menyenangkan kepada semua membernya. Tak heran jika member yang sudah bergabung di dalam situs yang satu ini tak terhitung jumlah nya. Jika kalian masuk kedalam situs ini, kalian akan di suguhkan dengan tampilan situs yang bagus dan menarik. Serta berbagai macam fitur yang bisa kalian gunakan dan akan menambah kepuasan kalian dalam bermain game judi online.informasi lebih jelas bisa kunjungin diwebsite kami WAKTOGEL merupakan situs judi online terbesar se asia yang memberikan jackpot
    besar setiap hari.

  25. Damasco Innovations offers top-tier web solutions in Vero Beach, FL, specializing in ADA compliant websites, e-commerce platforms, and custom web development services. With a dedicated team of skilled professionals, we tailor website design and development to meet the unique needs of businesses in Vero Beach and beyond.

    ADA Compliant Websites Vero Beach FL

  26. SUKABET menawarkan berbagai fitur unggulan seperti tampilan yang menarik, layanan pelanggan 24/7, dan keamanan data yang terjamin. Situs slot gacor terpercaya hadir dengan fitur-fitur menarik seperti bonus jackpot besar, tampilan grafis yang memukau, dan fitur bonus tambahan di https://architecturalengineeringpe.com/

  37. 토토사이트 사이트 중 가장 안전한 사이트를 모아 놓은 토토 순위 사이트입니다 사용자들이 안전하고 빠른 충환전을 경험 할 수 있는 사이트들만 엄선했습니다.

    토토사이트

  41. There are many types and numbers of games on the most popular online MGGSLOT game agent site for you. Which is not free from collaboration with game providers or legitimate game providers from all over the world. Just log in and make a deposit. Online game players can enjoy the easy and best games on our most popular online MGGSLOT game agent site from the most popular providers or the most game providers as below. For clearer information, you can visit our website MGGSLOT is the biggest online gaming site in Asia which provides big jackpots every day.

Leave a Reply

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