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.

20,447 thoughts on “Revenue Management in the Golf Industry”

  3. مجموعه لیتوس با بیش از دو دهه تجربه در ساخت کلیشه ژلاتینی با بروزرسانی تجهیزات و جذب نیروی متخصص گامی بلند در هرچه بهتر نمودن صنعت چاپ فلکسو در کشور برداشته است و امروز با استفاده از دانش روز دنیا و تجهیزات مدرن آماده همکاری با صنایع بسته بندی ممتاز کشور می‌باشد.
    از گذشته تا به حال فرآیند چاپ کردن پیشرفت های زیادی داشته است. در ادامه با ما همراه باشید تا بدانیم کلیشه ژلاتینی چیست و قیمت انواع کلیشه را بدانیم و با جنس های مختلف آن آشنا شویم:

    در گذشته بیشترین موارد استفاده از چاپ در صنعت روزنامه و کتاب بوده تا بتوانند با سرعت بالایی تعداد بسیاری روزنامه و کتاب را چاپ کنند.

    امروزه صنعت چاپ پیشرفت های چشم گیری دارد و علاوه بر چاپ روزنامه و یا کتاب می توان انواع طرح ها و عکس ها و یا نوشته های دلخواه را بر هر سطوحی مانند پارچه، نایلون، کاغذ و غیره چاپ کرد.

  4. طراحی، تولید و ساخت مبلمان منزل، مشاوره و چیدمان منزل و بازسازی و طراحی داخلی کلاسیک از جمله کارهای اصلی گروه طراحان دیمان است
    در این بخش با ما همراه بمانید تا ویژگی های سبک دکوراسیون مدرن کلاسیک بیشتر آشنا شوید.
    هنگامی که زمان انتخاب طراحی داخلی خانه شما فرا می رسد، ممکن است خود را تحت تأثیر بسیاری از انتخاب های دکوراسیون موجود قرار دهید!
    هنگامی که دقیقاً متوجه شدید که آیا می خواهید یک طراحی دکوراسیون کلاسیک تر یا مدرن تر داشته باشید، سپس می توانید بر اساس انتخاب خود تصمیم بگیرید، که به طور قابل توجهی زمینه را محدود می کند و ممکن است در نهایت تصمیم بگیرید که تلفیقی از این دو سبک طراحی دکوراسیون را به کار ببرید و یک دکوراسیون مدرن کلاسیک برای منزل خود ایجاد کنید.
    این سبک از طراحی داخلی منزل را می توان به عنوان دکوراسیون داخلی مدرن 2022 معرفی کرد که ویژگی های منحصر به فردی داشته و باعث خلق فضایی فوق جذاب برای منزل شما خواهد شد.

  5. بازسازی ساختمان‌های مسکونی
    طراحی داخلی (مسکونی، اداری و تجاری)
    طراحی نما و معماری
    طراحی ویلا و محوطه

    ما در این بخش، به چند روش عالی و کاربردی برای طراحی فضای سبز در بالکن کوچک اشاره کردیم که می توانید با ایده گرفتن از انها، بهترین طراحی فضای سبز در بالکن کوچک خود را انجام دهید و در هر ساعت از روز و شب، از فضایی که در اختیار دارید، لذت ببرید.

  6. شرکت علی والا با هدف ارائه خدمات تخصصی مشـاوره بازرگانی ، انبـارداری در مبـدا ، خرید از چین ، واردات از چیـن ، حمـل هوایی و حمـل دریایی کالا و همچنین ترخیص کالا با سابقه و تجربه طولانی در خدمت دوستان هستیم. در طی این سال‌ها ما توانسته ایم سهم عمده ای در بازار خدمات واردات در صنایع گوناگون از جمله تجهیزات و دستگاه آلات، قالب و هر گونه کالایی را داشته باشیم
    اگر تصمیم دارید خرید عمده از چین انجام دهید و یا واردات عمده از چین داشته باشید، بهترین پیشنهاد این است که از خدمات کارگو برای حمل بار و محموله خود به کشور خود استفاده نمایید. در ادامه این بخش با ما همراه بمانید تا اطلاعات بیشتری در رابطه با خرید مطمئن از چین و خدمات کارگو برای واردات عمده از چین کسب نمایید.

  8. فروش سرور HP
    نصب سرور HP ، راه اندازی و کانفیگ این برند سرور و همچنین کلیه قطعات سخت افزاری (رم (Memory) ، هارد دیسک (HDD) یا (SSD) ، پردازنده (CPU) ، منبع تغذیه (Power) و خدمات فنی اعم از اسمبل قطعات ، رید کردن هاردها (RAID)، نصب سیستم عامل (ویندوز و هر سیستم عامل دیگری) و ساخت تخصصی ماشین های مجازی (VM) فعال است.

  10. شرکت سئو با من در زمینه تولید محتوا با استاندارد قوانین سئو و طراحی سایت ارزان در خدمت شما می باشد. سئو سایت حرفه ای
    بهینه سازی وب چیست؟

    بهینه سازی وب یک استراتژی بلند مدت است که بر روی شیوه های بهینه سازی موتور جستجو (SEO) تمرکز دارد.

    برای بهینه سازی سایت، از تکنیک‌های مختلفی استفاده می‌شود تا اطمینان حاصل شود که وب‌سایت شما زمانی که مشتریان شما در حال تایپ کلمات کلیدی شما در موتورهای جستجو مانند Google و Bing هستند، قابل مشاهده است که به محصولات و/یا خدمات شما مربوط می‌شود.

    اول از همه کلمات کلیدی خاصی که محصولات/خدمات شما را توصیف می کنند باید در وب سایت شما گنجانده شوند.

  19. This would be the right weblog for anybody who wishes to discover this topic. You realize a great deal of its almost tough to argue along with you (not too When i would want…HaHa). You actually put a brand new spin using a topic thats been written about for decades. Wonderful stuff, just fantastic! Best Spa In Karachi

  21. I’ve proper selected to build a blog, which I hold been deficient to do for a during. Acknowledges for this inform, it’s really serviceable! Buy Ladder

  23. 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
    ^^

  30. We are one of the Best Facility Management Companies in Chennai. We have a fast growing facility management service, safety and security service , and Specialized project services.Casa Grande PropCare gets a rich encounter of industry specialists who are hands on gathering client’s prerequisites with the tailor made arrangements.

  32. That is a good tip especially to those new to the blogosphere. Brief but very accurate info… Many thanks for sharing this one. A must read article!
    카지노

  35. RATUBOLA rekomendasikan 12 daftar situs judi slot online terpercaya dan terbaik di tahun 2022 dengan game judi online terlengkap seperti judi bola serta live casino online terbesar di Indonesia yang online24jam. slot online

  37. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. ohmondieu

  38. Very efficiently written information. It will be beneficial to anybody who utilizes it, includiing me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. ohmondieu

  42. Although sports betting is legal and allowed in many states, there are some risks. It is best to use money you can afford to lose when placing wagers on sports. There are other benefits of sports betting. Here are some. It’s never too late to place bets. You shouldn’t place bets that are too big or you could lose a lot of your money. For those who have almost any inquiries concerning where by and how you can make use of 먹튀커뮤니티, you possibly can email us from our own page.

  44. As I am looking at your writing, I regret being unable to do outdoor activities due to Corona 19, and I miss my old daily life. If you also miss the daily life of those days, would you please visit my site once? My site is a site where I post about photos and daily life when I was free.keonhacai

  47. Let us get you free and real likes from users that are genuinely interested in your posts. Never pay again for real likes by using Likezoid. Free for OSX and PC. Under 2 minutes setup. Easy To Use. No credit card required. No Surveys. Types: Real, Instant, Genuine.
    Buy instagram views

  50. Thanks for sharing nice information with us. i like your post and all you share with us is uptodate and quite informative, i would like to bookmark the page so i can come here again to read you, as you have done a wonderful job. https://167.99.216.225

Leave a Reply

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