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.

29,049 thoughts on “Revenue Management in the Golf Industry

  1. Teak Furniture Malaysia operates as a specialist importer of best quality teak furniture KL solid wood furniture, indoor furniture, Garden Furniture and outdoor furniture . Visit Our Showroom Kuala Lumpur KL and Shah Alam Selangor Malaysia.

  2. Impressive content! I actually taken pleasure in all the analyzing. I’m hoping to share a good deal more from your website. You will find you got impressive look and additionally ideas. I’m now very shocked in this particular information and facts. 500ml Water Bottles

  3. pgslot พีจีสล็อต เป็นเว็บไซต์สล็อตออนไลน์ที่ดีที่สุดและน่าเชื่อถือที่สุด เนื่องจากให้บริการที่ดีที่สุดและเป็นเกมที่สมบูรณ์แบบที่สุดในบรรดาเว็บไซต์อื่นๆ ทั้งหมด

  4. joker123 สล็อตโจ๊กเกอร์ คือผู้ให้บริการเว็บไซต์สล็อตออนไลน์อย่างเป็นทางการที่ใหญ่ที่สุดและน่าเชื่อถือที่สุดในเอเชีย ซึ่งให้บริการตลาดสล็อตออนไลน์ที่สมบูรณ์แบบที่สุด

  5. I just couldn’t depart your site prior to suggesting that I extremely enjoyed the standard information an individual provide for your visitors? Is gonna be back frequently in order to inspect new posts a course in miracles

  6. After study many of the websites on the web site now, we genuinely much like your means of blogging. I bookmarked it to my bookmark internet site list and will also be checking back soon. Pls consider my web site at the same time and inform me what you consider. 총판커뮤니티

  7. Hey there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Superb blog and wonderful design. 총판커뮤니티

  8. Hi there, You have performed a great job. I will certainly digg it and in my opinion recommend to my friends. I am confident they will be benefited from this site. 총판

  9. Thank you for your site post. Velupe and I happen to be saving for just a new book on this subject and your article has made us all to save money. Your opinions really responded all our issues. In fact, above what we had thought of ahead of the time we came across your great blog. I no longer nurture doubts including a troubled mind because you totally attended to each of our needs here. Thanks 토토총판

  10. Today, taking into consideration the fast life style that everyone is having, credit cards get this amazing demand throughout the economy. Persons coming from every area are using the credit card and people who are not using the credit card have made up their minds to apply for even one. Thanks for sharing your ideas on credit cards. 토토총판

  11. I would also love to add that when you do not currently have an insurance policy or maybe you do not take part in any group insurance, you might well make use of seeking the aid of a health insurance broker. Self-employed or people who have medical conditions generally seek the help of any health insurance broker. Thanks for your blog post. 총판

  12. Medical insurance for enterprises is a crucial aspect of corporate welfare, designed to provide comprehensive health coverage for employees. This type of insurance encompasses an array of medical services, including routine check-ups, emergency care, and specialized treatments, ensuring that the workforce remains healthy and productive. By investing in robust االتأمين الطبي للمنشآت insurance plans, enterprises not only comply with legal obligations but also demonstrate a commitment to their employees’ well-being. This, in turn, fosters a positive work environment, improves job satisfaction, and enhances overall organizational efficiency.

  13. Good post here. One thing I’d like to say is most professional areas consider the Bachelor’s Degree just as the entry level requirement for an online certification. Even though Associate Qualifications are a great way to begin with, completing the Bachelors starts up many opportunities to various jobs, there are numerous online Bachelor Diploma Programs available by institutions like The University of Phoenix, Intercontinental University Online and Kaplan. Another issue is that many brick and mortar institutions offer Online versions of their degree programs but generally for a drastically higher price than the providers that specialize in online degree programs. 총판커뮤니티

  14. Just desire to say your article is as amazing. The clearness in your post is just great and i can assume you’re an expert on this subject. Fine with your permission let me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please keep up the gratifying work. 총판구인구직

  15. This is exactly what I was looking for.. really simple to install, totally free just had to register to download, thanks sdtoto

  16. I am interested in looking for more of such topics and would like to have further information. Hope to see the next blog soon. sdtoto

  17. Thanks for the tips on credit repair on this particular site. Some tips i would offer as advice to people would be to give up this mentality they can buy right now and pay out later. As a society most of us tend to make this happen for many things. This includes holidays, furniture, and items we’d like. However, it is advisable to separate a person’s wants from all the needs. While you are working to boost your credit score you have to make some sacrifices. For example you are able to shop online to economize or you can click on second hand shops instead of expensive department stores pertaining to clothing. sdtoto

  18. It’s essential to approach escort services responsibly, ensuring that all interactions are consensual, legal, and respectful. If you have any specific questions or concerns, feel free to ask!

  19. I’m impressed, I must say. Actually rarely do I encounter a blog that’s both educative and entertaining, and without a doubt, you could have hit the nail about the head. Your thought is outstanding; ab muscles an element that insufficient everyone is speaking intelligently about. My business is happy which i came across this during my hunt for something about it. sdtoto

  20. Several friends have understood that their marriage was annulled, some even transmit information blog interposed. sdtoto

  21. Excellent website. Plenty of useful info here. I’m sending it to several friends ans also sharing in delicious. And of course, thanks for your sweat! sdtoto

  22. Thanks for your submission. Another factor is that just being a photographer requires not only issues in capturing award-winning photographs but in addition hardships in getting the best photographic camera suited to your needs and most especially challenges in maintaining the standard of your camera. This is very correct and obvious for those photography lovers that are into capturing the particular nature’s eye-catching scenes : the mountains, the particular forests, the particular wild or maybe the seas. Going to these daring places undoubtedly requires a photographic camera that can surpass the wild’s nasty areas. sdtoto

  23. Really Curious site this is.. I really Enjoy a lot reading your Blog.. I will Bookmark your site for more remark. sdtoto

  24. Thanks for taking the time to talk about this, I feel fervently about this and I take pleasure in learning about this topic. Please, as you gain information, please update this blog with more information. I have found it very useful. sdtoto

  25. Thanks for your post. Another element is that to be a photographer entails not only problems in capturing award-winning photographs but also hardships in acquiring the best camera suited to your requirements and most especially issues in maintaining the standard of your camera. It is very genuine and clear for those photographers that are in to capturing the particular nature’s fascinating scenes : the mountains, the actual forests, the wild or maybe the seas. Visiting these exciting places unquestionably requires a digicam that can live up to the wild’s unpleasant surroundings. sdtoto

  26. I needed to write you that little bit of remark to help give many thanks once again with your striking solutions you’ve featured on this website. It was certainly extremely open-handed of you to grant publicly what exactly most people would have made available as an e-book to generate some profit for themselves, specifically seeing that you could have done it if you considered necessary. Those solutions in addition acted like a fantastic way to realize that some people have similar interest similar to mine to know good deal more related to this condition. I am certain there are some more enjoyable moments ahead for individuals who scan through your site. sdtoto

  27. Thank you for sharing excellent information. Your website is very cool. I am impressed by the info that you?ve on this website. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. sdtoto

  28. Thanks for your post. Another element is that to be a photographer entails not only problems in capturing award-winning photographs but also hardships in acquiring the best camera suited to your requirements and most especially issues in maintaining the standard of your camera. It is very genuine and clear for those photographers that are in to capturing the particular nature’s fascinating scenes : the mountains, the actual forests, the wild or maybe the seas. Visiting these exciting places unquestionably requires a digicam that can live up to the wild’s unpleasant surroundings. sdtoto

  29. I was looking through some of your blog posts on this website and I conceive this site is very informative! Keep putting up. sdtoto

  30. I must say this information was very interesting. I stumbled onto you using a google search and was rather thankful for your rank for this article. sdtoto

  31. Good day! I just want to give a huge thumbs up for the great info you might have here on this post. I will be coming again to your weblog for extra soon. sdtoto

  32. Oh my! an incredible article man. Thanks a lot Unfortunately I am experiencing issues with ur rss . Don’t know why I am struggling to subscribe it. Perhaps there is somebody getting identical rss issues? Anyone who can help kindly respond. Appreciate it sdtoto

  33. I need saying thanks to you because of this great read!! I definitely enjoying every little it smile Concerning you bookmarked to see new items post. ecm repair parts

Leave a Reply

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