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.

29,183 thoughts on “Revenue Management in the Golf Industry”

  10. Slot Trung tâm cá cược trò chơi slot trực tuyến mới nhất cung cấp nhiều lựa chọn trò chơi trực tuyến hay nhất với cơ hội chiến thắng cao

  11. Revenue management in the golf industry involves strategically pricing tee times, memberships, and services to optimize revenue while considering factors like demand, seasonality, and competitor pricing. Utilizing data analytics and dynamic pricing strategies can help unlock all premium video editor, maximizing profitability and ensuring efficient resource allocation across courses and amenities.

  12. AfaTogel Adalah Situs Bandar Togel Online, Slot IDN Asia Terbaik & Terpercaya, Afa Togel Keluaran Singapure, Sydney, Hongkong & Thailand. afatogel

  15. NS2121 merupakan situs judi Ns 2121 Live online terbesar & terpercaya di Indonesia, daftar & login ns2121, link alternatif ns2121 terbaru. ns2121

  18. Adhd Coaching supports individuals in setting and achieving goals independently. In Canada, where coaching lacks regulation, research training and specialties. Try a free session to find a compatible coach, like AdultADHDCentre.

  20. schlüsseldienst düsseldorf urdenbach steht Ihnen rund um die Uhr für schnelle Hilfe bei Türöffnungen, Schlossreparaturen und -austausch zur Verfügung. Mit jahrelanger Erfahrung hat sich unser Team intensiv auf die Bereiche Einbruchschutz und Sicherheitstechnik konzentriert. Kontaktieren Sie uns jederzeit für schnelle Hilfe.

  21. MAIN55 telah mendarat sebagai pionir dalam dunia perjudian daring, menghadirkan peluang bagi para penggemar slot online untuk mengarungi lautan taruhan yang tak tertandingi. Dengan koleksi game yang menggiurkan, MAIN55 adalah destinasi terbaik untuk mengejar jackpot dan keseruan.

  23. The blog glorifies golf’s popularity and longevity, emphasizing its appeal and global presence. However, it overlooks challenges in revenue management, citing fixed pricing and difficulty in controlling duration. While passionate about golf, it fails to delve into solutions or deeper analysis of the industry’s financial strategies.My profile

  24. The blog celebrates golf’s allure and inclusivity but overlooks revenue management challenges. It acknowledges the sport’s global presence and gender inclusivity but fails to explore effective revenue strategies. Ignoring the complexities of pricing and duration control limits the discussion’s depth on sustaining golf industry profitability.My bio page

  26. swin บาคาร่าออนไลน์ สล็อตสล็อตPG , เว็บตรงสล็อตPG คาสิโนออนไลน์ PG Slot เว็บใหญ่ , เว็บ ตรง เรารับประกันว่าคุณจะไม่ผิดหวัง

  28. The pace of real wage growth last year was “significantly dampened” by inflation. The inflation rate in 2022 was 6.1 per cent, higher than the 2.3 per cent recorded the preceding year. 메이저사이트추천

  40. Thanks for taking the time to discuss this, I really feel strongly about it and love learning extra on this topic. If attainable, as you achieve experience, would you thoughts updating your blog with additional data? It is extremely useful for me. 에볼루션카지노 가입

  47. A well written article, I just passed this onto a workfellow who was doing somewhat analysis on this. And he indeed purchased me dinner because I discovered it for him…. .. therefore let me reword that: Thnkx for the treat however yeah Thnkx for spending the time to talk about this, I feel strongly concerning it and love reading more on this topic. If doable, as you gain expertise, would you mind updating your blog with more details? it is extraordinarily useful on behalf of me. massive thumb up for this blog 에볼루션카지노 가입

  48. Thanks a lot for being our mentor on this niche. I enjoyed your current article very much and most of all cherished how you really handled the aspect I considered to be controversial. You are always quite kind to readers much like me and let me in my everyday living. Thank you. 에볼루션카지노

Leave a Reply

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