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.

29,505 thoughts on “Revenue Management in the Golf Industry”

  1. The opposite of courage in our society is not cowardice, it is conformity” -Rollo May · Bloodstone Tattoo Collective (est. 2017) Tattoo and piercing studio. Tattoos Lurgan

  6. Decent data, profitable and phenomenal outline, as offer well done with smart thoughts and ideas, bunches of extraordinary data and motivation, both of which I require, on account of offer such an accommodating data here 토토사이트
    cc

  15. 안전놀이터 The moment “Smile Jumper” Woo Sang-hyuk first won the “World Champion” title, it was “Idol” Stephen Holm who gave him a medal. Woo Sang-hyuk said, “I saw Holm interviewed before the competition.

  16. 먹튀검증 So I was just wondering, but the medal winner was Holm,” he said adding, “I was really moved.” Woo Sang-hyuk won the men’s high jump finals at the 2022 World Indoor Athletics Championships held at

  17. 먹튀검증커뮤니티 Belgrade Stark Arena in Serbia on the 20th. Woo Sang-hyuk is the first Korean track & field athlete to win a “major tournament” such as the Olympics, world championships, and world indoor championships.

  18. 안전놀이터 After the game, Woo Sang-hyuk said in a phone call with Yonhap News Agency, “It hasn’t hit me yet. However, it was thrilling to stay at the end after confirming the championship and challenge the 2m37

  19. 안전놀이터순위 “There are so many honorable things.” Woo Sang-hyuk, the only 12 players to pass the gold medal by passing the 2m34 mark, challenged the 2m37 mark, which is higher than his Korean record.

  20. 먹튀검증커뮤니티 Woo Sang-hyuk touched the bar in the first and second rounds and gave up his third challenge. Kim Do-kyun, coach of Korea Athletics, said, “Competition for rankings is more important in such a big

  21. 먹튀검증커뮤니티 After Woo Sang-hyuk confirmed his victory, I think he was a little less nervous,” he said adding, “So I only played until the second round and finished the game.” Although he failed to achieve a new Korean

  22. Looking at this article, I miss the time when I didn’t wear a mask. 오공슬롯 Hopefully this corona will end soon. My blog is a blog that mainly posts pictures of daily life before Corona and landscapes at that time. If you want to remember that time again, please visit us. kis

  23. I am very jubilant to observe this. This is the form of manual that requires to get hold of and now not the desultory wrong records that is on the opportunity blogs. john Dutton Yellowstone jacket Appreciate your sharing this first-class posting.

  26. Pretty useful article. I merely stumbled upon your internet site and wanted to say that I’ve very favored learning your weblog posts. Any signifies I’ll be subscribing with your feed and I hope you publish once additional soon. 메이저사이트
    xx

  32. Tangtem168 สล็อตออนไลน์ บาคาร่า อันดับ1 มีเกมพนันให้เล่นเยอะที่สุด รวมคาสิโนออนไลน์ บาคาร่าทุกค่าย ครบจบในเว็บเดียว สล็อตแตกง่าย ระบบล้ำ ฝาก-ถอนรวดเร็วผ่านระบบออโต้ บาคาร่า

  33. บาคาร่าออนไลน์ Sa gaming คาสิโนออนไลน์ สล็อตออนไลน์ บาคาร่า เสือ มังกร แทงขั้นต่ำ 20 บาท ดาวน์โหลด Sagame ผ่านมือถือ ระบบออโต้ ฝากถอน 30 วิ sa gaming

  38. boswin88 situs dewa slot 777 raja88 slot gacor judi bola88 online , daftar sbobet88 qq slot dan happy slot88 resmi hoki slot 4d pragmatic play deposit pulsa terbesar di asia dan indonesia. raja slot88

  40. I have been exploring for a little bit for any high-quality articles or blog posts on this sort of area . Exploring in Yahoo I at last stumbled upon this website. Reading this info So i’m happy to convey that I’ve a very good uncanny feeling I discovered just what I needed. I most certainly will make sure to do not forget this web site and give it a glance regularly. I am typically to blogging and i actually appreciate your content regularly. Your content has truly peaks my interest. I am going to bookmark your web site and maintain checking for new info. After study a number of the blog posts in your site now, i really such as your technique of blogging. I bookmarked it to my bookmark web site list and will be checking back soon. Pls take a look at my web site likewise and make me aware what you believe. best-proxies.ru

  41. I am incapable of reading articles online very often, but I’m happy I did today. It is very well written, and your points are well-expressed. I request you warmly, please, don’t ever stop writing.
    카지노사이트

  42. While remote work can unlock massive opportunities for your business such as access to high quality talent, lower salaries, reduced overheads and improved productivity, hiring & employing remote full-time employees can be challenging. Remote Hiring

  44. วิเคราะห์บอล เว็บวิเคราะห์บอล ติดตาม วิเคราะห์ฟุตบอล ข้อมูลฟุตบอล สถิติฟุตบอล วิเคราะห์ก่อนเกม หลังเกม ได้ที่ 7m.live เว็บวิเคราะห์บอล

  45. SOCCERSOCIETY | ข่าวฟุตบอล ข่าวบอลวันนี้ ข่าวฟุตบอลย้อนหลัง รวดเร็ว ส่งตรงข้อมูลจากขอบสนามด้วยทีมงานที่มีคุณภาพ ครบถ้วน ตลอด 24 ชั่วโมง. เว็บข่าวบอล

  46. SOCCERSOCIETY | ฟุตบอลไทย อัพเดตข่าวสารวงการฟุตบอลไทย ลูกหนังแดนสยาม ครบถ้วน รวดเร็ว สดใหม่ จากทีมงานมากความสามารถ ตลอด 24 ชั่วโมง. ข่าวฟุตบอลไทย

  47. Kapıda Mı Kaldınız ? Sizi Bahçeşehir Çilingir Anahtarcı Olarak Kilitli Kapılarınızı Açarak Evinize Kavuşturuyoruz. Biz Bu Işi Uzun Süredir Yapmaktayız. 7/24 Çilingir Hizmeti Vermekteyiz. Evden Anahtarını Almadan Mı Çıktın Veya Yeni Eve Taşındın Veya Kapın Kilit Mi Kaldı? Böyle Durumlarda Işini Bileni Çağırmak En Doğru Tercihtir.

  48. SOCCERSOCIETY | TOP 10 FOOTBALL การจัด 10 อันดับเรื่องราวต่าง ๆ ในแวดวงของโลกฟุตบอล ทั้งสถิติต่าง ๆ มูลค่านักเตะ จำนวนการยิงประตูที่เกิดขึ้น. 10อันดับนักฟุตบอล

Leave a Reply

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