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.

30,368 thoughts on “Revenue Management in the Golf Industry”

  10. Our 300 words double spaced, specialists guide you and help you with your homework and different assignments. They additionally mentor you with respect to how to finish them to score better. Our services are always very reasonably priced.

  12. 토토사이트 메이저사이트 안전사이트 배터가 이용하기에 아주 안전한 모든 사이트들이 다 모여있는 곳 바로 TOTOSITE 입니다. 지금 이용해보세요. 메이저사이트

  13. I came to this site with the introduction of a friend around me and I was very impressed when I found your writing. I’ll come back often after bookmarking! keo nha cai

  14. Need help sorting the multiple academic prescriptions of your tutor? Accounting Assignment Help promptly undertakes all your academic commitments and promises to deliver them on time without fail. Besides, the prices are very affordable and quality is unmatched!

  15. همه چيز درباره بدليجات همه ما نام بدليجات به گوشمان خورده و کم و بيش با آن آشنايي ضمني داريم اما اطلاعات دقيقي درباره جنس بدليجات، نحوه استفاده از آن‌ها و موارد ديگر نداريم. در گذشته‌هاي دور زماني که صحبت از بدليجات مي‌شد، کسي علاقه چنداني نشان نمي‌داد زيرا قيمت طلا و نقره انقدر بالا نبود و معمولا همه به سمت فلزات قيمتي مي‌رفتند، اما در سال‌هاي اخير که قيمت طلا و ديگر فلزات قيمتي افزايش چشمگيري داشته، بازار بدليجات رونق بسيار زيادي پيدا نموده و مردم براي زيباتر شدن به سمت بدليجات سوق داده شده‌اند. بدليجات انواع و اقسام مختلفي دارد که جنس متفاوتي دارند و بسته به کيفيت و جنس آن‌ها قيمتشان متفاوت است. بدليجات استيل قطعا با اين موضوع برخورد داشته‌ايد که هنگام خريد بدليجات، فروشنده در پاسخ به سوالي که شما درباره جنس بدليجات پرسيده‌ايد بگويد که جنس اين زيورآلات استيل است و به همين دليل از کيفيت بالايي برخوردار است. استيل يک فلز با کيفيت و مقاوم است که در کنار اين دو خاصيت فوق‌العاده، درخشندگي بالايي نيز دارد. در کنار هم قرارگرفتن اين خواص به خودي خود مي‌تواند دليل استفاده از استيل در بدليجات باشد اما اين همه ماجرا نيست و اين فلز کاربردي خواص مهم ديگري نيز دارد. به طور مثال استيل از آن دسته فلزات است که کمترين حساسيت پوستي در اثر تماس آن با بدن انسان ايجاد مي‌شود.بدليجات تيتانيوم پس از استيل تيتانيوم يکي ديگر از فلزاتي است که براي ساخت بدليجات کاربرد بالايي دارد. تيتانيوم نيز مانند استيل خواص فوق‌العاده خوبي دارد. به طور مثال تيتانيوم يکي از درخشنده‌ترين فلزات است که در ظاهر شباهت بسيار زيادي به طلاي سفيد دارد و اگر شما از آن استفاده کنيد شايد کمتر کسي متوجه تفاوت اين دو بشود. محصولات متعددي با استفاده از تيتانيوم توليد مي‌شوند که به دليل تنوع بالايي که دارند بدليجات زوديکا مي‌توانند يکي از انتخاب‌هاي مناسب براي زيورآلات باشند اما نسبت به استيل يک تفاوت بزرگ در تيتانيوم ديده مي‌شود و آن هم اين است که استفاده از اين فلز در زيورآلات و بدليجات ممکن است براي بعضي از پوست‌ها حساسيت ايجاد کند و همين موضوع باعث مي‌شود تا قابليت همه‌گيري تيتانيوم کاهش پيدا کند.بدليجات از جنس برنج برنج يکي از فلزاتي است که از قديم‌الايام در تهيه ظروف از آن استفاده مي‌شده و يکي از بهترين گزينه‌ها براي تهيه بدليجات است. برنج فلزي است که قابليت انعطاف‌پذيري بالايي دارد و به همين دليل مي‌توان در اندازه‌ها و اشکال مختلف از آن بدليجات تهيه نمود. اين فلز همچنين درخشندگي فوق‌العاده خوبي دارد و اگر از آن به خوبي مراقبت شود مي‌تواند تا سال‌ها درخشندگي خودش را حفظ نموده و ظاهر خود را مانند روز اول به همان زيبايي حفظ کند. تنها موردي که اين فلز را نسبت به استيل متمايز مي‌کند اين است که در مقياس کمتر نسبت به تيتانيوم مي‌تواند باعث ايجاد حساسيت‌هاي پوستي براي برخي افراد شود.اگر بخواهيم به يک جمع‌بندي در مورد جنس فلزي که در بدليجات استفاده مي‌شود برسيم بايد بگوئيم، استيل از ميان تمام فلزاتي که براي ساخت و تهيه زيورآلات استفاده مي‌شود، بهترين کارايي و بالاترين درخشندگي را دارد و حساسيتي هم براي استفاده کننده ايجاد نمي‌کند.

  20. Please keep us informed like this. Thank you for sharing. Feel free to visit my website; Please keep us informed like this. Thank you for sharing. Feel free to visit my website;

  24. Sweet blog! I found it while browsing on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you invest in seo

  25. SUHUSLOT88 situs judi online terbaik, slot777 terpercaya yang menyediakan game judi slot online terlengkap, slot88 gampang menang dan gacor 2022. judi slot

  29. HENGJING168 สุดยอดเว็บพนันออนไลน์ คาสิโนออนไลน์ อันดับ 1 ของคนไทย บาคาร่าออนไลน์ สล็อตออนไลน์ สมัคร ฝาก-ถอน ผ่านระบบออโต้ ภายใน 30 วินาที สล็อตออนไลน์

  36. Hello ! I am the one who writes posts on these topics safetoto I would like to write an article based on your article. When can I ask for a review?

  37. Your article has answered the question I was wondering about! I would like to write a thesis on this subject, but I would like you to give your opinion once 😀 casinocommunity

  39. The more you play, the more you will be addicted แบนigoal877 There are many types of online gambling games that can win real money, whether it is online baccarat. Online fish shooting games, roulette, online slots, dice, tiger-dragon, online lottery, there are also betting in the form of sports, such as online boxing. Online football betting, car racing, etc.

  45. This blog is definitely rather handy since I’m at the moment creating an internet floral website ? although I am only starting out therefore it’s really fairly small, nothing like this site. 카지노사이트

Leave a Reply

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