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.

25,574 thoughts on “Revenue Management in the Golf Industry”

  2. Terrific work! This is the type of information that should be shared around the net. Shame on the search engines for not positioning this post higher! Come on over and visit my website . Thanks =) car storage near me

  3. Terrific paintings! That is the kind of info that are meant to be shared across the web. Shame on search engines for no longer positioning this post higher! Come on over and discuss with my website . Thank you =) van mots

  4. I do enjoy the way you have framed this specific difficulty plus it does supply me personally some fodder for consideration. Nevertheless, from what I have observed, I simply just wish when other feed-back stack on that folks continue to be on point and not start on a soap box involving some other news du jour. All the same, thank you for this superb piece and although I can not really go along with this in totality, I respect your perspective. facial peels london

  6. Great blog here! Also your site loads up very fast! What web host are you using? Can I get your affiliate link to your host? I wish my website loaded up as quickly as yours lol oven repair

  7. I read the actual write-up along with totally go along with You. Your own reveal is wonderful and I will probably reveal the item along with my friends along with fb connections. Only has a website in your area of interest I would provide you with a link exchange. Your content need more coverage along with trust my own bookmarking can help you get more traffic. Great write-up, again ! ! storage unit

  9. Hello, i believe that i saw you visited my web site so i came to “return the prefer”.I’m attempting to to find things to improve my web site!I guess its adequate to use a few of your ideas!! AI chat for adults

  13. hey there and thank you for your information – I have definitely picked up something new from right here. I did however expertise several technical issues using this website, since I experienced to reload the site lots of times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I am complaining, but sluggish loading instances times will often affect your placement in google and can damage your quality score if advertising and marketing with Adwords. Anyway I am adding this RSS to my e-mail and could look out for a lot more of your respective exciting content. Ensure that you update this again very soon.. Adult-themed AI interaction

  14. I have learned newer and more effective things by means of your blog. One other thing I’d like to say is that newer personal computer operating systems are inclined to allow extra memory to get used, but they likewise demand more memory simply to function. If a person’s computer can’t handle extra memory and also the newest computer software requires that memory increase, it could be the time to buy a new Laptop. Thanks assignment 代做

  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. assignment 代做

  18. Please let me know if you’re looking for a author for your site. You have some really good posts and I believe I would be a good asset. If you ever want to take some of the load off, I’d really like to write some content for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Regards! assignment 代做

  19. That is the right web site for everyone who wants to find out about this area. You realize that much its almost difficult to disagree with you (not that I actually would…Lol). You certainly put a completely new spin on a matter thats been discussed for a long time. Great stuff, terrific! assignment 代做

  21. This is really interesting, You are an excessively skilled blogger. I have joined your rss feed and look ahead to in the hunt for extra of your great post. Also, I’ve shared your website in my social networks! assignment 代做

  23. 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. assignment 代做

  25. Nicely I undoubtedly enjoyed reading through this. This particular tip provided by a person is actually very useful with regard to correct preparing. fyp 代做

  26. Youre so cool! I dont suppose Ive read anything in this way before. So nice to discover somebody with a few original thoughts on this subject. realy appreciation for beginning this up. this web site is something that is required over the internet, a person with a little originality. useful job for bringing something new to the web! fyp 代做

  27. You made a few good points there. Used to do searching on the issue as well as identified practically all individuals goes together with along with your blog. fyp 代做

  28. I am typically to blogging i really appreciate your posts. Your content has really peaks my interest. My goal is to bookmark your blog and maintain checking for first time information. fyp 代做

  31. whoah this blog is magnificent i love reading your articles. Keep up the great work! You know, a lot of people are hunting around for this info, you could help them greatly. 代寫

  33. I was just looking for this information for a while. After six hours of continuous Googleing, finally I got it in your web site. I wonder what is the lack of Google strategy that do not rank this kind of informative websites in top of the list. Normally the top websites are full of garbage. 代寫

  34. I’m not sure exactly why but this website is loading extremely slow for me. Is anyone else having this issue or is it a issue on my end? I’ll check back later and see if the problem still exists. 外籍老師一對一香港

  37. You can certainly see your enthusiasm within the work you write. The arena hopes for more passionate writers such as you who are not afraid to mention how they believe. Always go after your heart. 外籍老師一對一香港

  38. One important thing is that when you’re searching for a student loan you may find that you’ll want a cosigner. There are many scenarios where this is correct because you could find that you do not have a past credit score so the loan provider will require that you’ve got someone cosign the credit for you. Good post. 外籍老師一對一香港

  40. Following analyze several of the website content on your own internet site now, and I in fact like your way of running a blog. I book marked that to be able to my save web site listing and can be examining back again shortly. Please attempt my own website as effectively as well as let me know what you believe. 外籍老師一對一香港

  42. Thank you for your beautiful content; your writing is so clear I understand. Visit Phimax Consulting Services for Expert SAP Consulting Services, project management, logistics consulting, and ABAP development to streamline your processes and optimize your operations.

  43. Hi there! This post could not be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing! Adult AI chat

  44. I’m happy with exactly how you have dealth with this subject matter in such a exact method. I discovered your web-site although searching by means of Google and I’ll need to admit that I’ve subscribed to it already. Adult-themed AI interaction

  47. İzmir Escort ve İzmir Rus Escort kızları bulacağınız en doğru adrestesiniz. En kaliteli İzmir VIP Escort bayanlar sizleri bekliyor. Daha önce yaşamadığınız mutluluğu yaşayacaksınız. Çılgın eğlence ve zevk dünyasına davetlisiniz. izmir escort

  50. This article hits the green on maximizing profits for golf courses! Understanding customer behavior and pricing strategically is key.

    Of course, legal issues can arise on any course. If you face a contract dispute or unexpected hazard, rely on Top Criminal Lawyers in penrith to navigate the legal rough.

Leave a Reply

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