Just back from attending (& presenting) at the Golf, Inc. Strategies Summit this week at Hilton Head Island, SC. The event was very well attended (sold out) and as the golf course and club industry continues to thrive in the post-COVID era at least some attendees wondered where we’re headed.
According to the National Golf Foundation, currently 64% of public facilities and 75% of private clubs consider themselves to be at or near capacity. That is a positive sign, but of course represents a national average in a hyper local business. Among the challenges mentioned by management company executives was the cost of both Property/Liability and Health Insurance, which has escalated rapidly.
Troon Golf CEO Tim Schantz emphasized the importance of golf course conditions in the golf experience. He said that you “can’t cut your way to profitability.” He advises clubs to level the number of rounds/members and raise rates. My concern is how far can rates go before discouraging the next generation of golfers, many who seek the instant gratification golf doesn’t provide.
Golf has rarely had a problem attracting players, rather it’s been a “leaky bucket” struggling to keep them. TopGolf CEO David McKillip emphasized customer segmentation when discussing his firm’s role in creating golfers. Single DF course operator Cathy Harbin of Pine Ridge GC in Paris, Texas emphasized “protecting the core and welcoming the new”. People seek a sense of belonging and as we all know, sometimes golf isn’t as welcoming as it could be. In what some call the “K” shaped economy, some don’t feel welcome.
Several speakers mentioned the concept of enhancing the customer/member experience, and creating a comfort level, especially for the new players. It reminds me of the book “Unreasonable Hospitality” which espouses those ideas. Well worth the read.
Two topics of particular interest to me that were discussed were evolving the culture of golf to become more inclusive and the additional uses to which golf courses can be put, without eliminating golf. Golf represents a very inefficient use of land thus it’s incumbent upon owners to find more ways to use the land. Things like concerts, movies winter activities and various uses of building spaces can help to make golf facilities more economically efficient.
Lastly, I moderated two panel discussions on “Measuring the Health of Your Club” with Ben Blake (Kemper Sports) and Jon Last (Sports and Leisure Research Group) and “Sustainable Capital Planning” with Jim Oliver (Heritage Golf), Nate Watkins (Sox Erosion) and Derek Hough (Pembroke Ives). The two overriding concepts discussed were that the health of a club is not JUST measured in dollars and that capital planning needs to be thoughtful and measured. Feel free to ask if you’d like copies of the slide decks from each presentation (Larry@golfprop.com).
