Using Technology to Manage Greens Fee Revenue

from Asian Golf Monthly Magazine

March 2010 issue

www.asiangolfmonthly.com

Revenue Management is a business tool that enables a golf facility to maximize its profitability by managing the price of its fixed and perishable tee time inventory.  It’s a business practice developed in the 1980s by the international airline industry in an effort to maintain profitability in the face of growing low-cost competition and raising operational costs. Later been adopted by the lodging and car rental industries, RM can be successfully applied through technology for managing and improving greens fee revenue.

In short, the use of RM in golf is the selling of the right tee times, to the right golfers, at the right prices, and at the right time.  It provides the ability to match tee times with the golfer’s ability or willingness to pay.  RM also provides the opportunity to mitigate the effects of bad pricing decisions or unexpected downturns in golf course utilization.

Integrating tee times to external systems can also significantly enhance revenues.  Sites such as travel websites (airlines, tourist boards), social networking (Twitter and Facebook), and sms/text messaging portals allow the course to cost effectively notify golfers of tee time availability. 

Most golf facilities will recognize that the demand for tee times vary during the course of a week.  During some periods, demand for tee times greatly exceeds the supply, while other times demand can be moderate or even excessively low.

Using proper data on course demand, golf management can set pricing strategies to manage demand at each level. In times when demand is strong, prices would be increased to bring demand more in-line with supply. Most commonly that would involve tee times on weekends and in the mornings.  In time-slots where demand is relatively low, management can set pricing a bit lower, to encourage golfers to utilize the course on weekdays and in afternoons. Using these two strategies will allow the facility to maintain the higher yield during peak periods, while increasing play during weaker demand periods.

Sample RM Pricing Model:

In this sample case, certain data will be scaled back to simply the presentation.  These however, are the assumptions to be used:

ž            Golfer Classifications

Member

Resort Guest

Local Guest

ž            Date Seasons

Peak Season 1 May – 30 September

Off Season  1 October – 30 April

ž            Time Periods

Weekend Mornings (Peak Season)

Weekend Afternoons (Peak Season)

Weekday Mornings (Peak Season)

Weekday Afternoons (Peak Season)

Weekend Mornings (Off Season)

Weekend Afternoons (Off Season)

Weekday Mornings (Off Season)

Weekday Afternoons (Off Season)

For many golf facilities, the pricing of greens fees for members is either at no cost, or fixed at a relatively low cost without limitations on when they can play.  In most cases, the application of Revenue Management will need to work around the current privileges provided to club members.  Their simple pricing table will commonly look like this:

Golfer Type:  Member
Date Periods	Time Periods	Pricing	Advanced Booking Period
No Restrictions	No Restrictions	No Cost	90 days advance booking

Other than Members, Resort Guests are generally allowed the largest advance booking period in which to reserve tee times.  This is because their golf normally coincides with corporate or personal travel requiring many months of advance planning.

Resort Guests are also the golfers most able or willing to pay higher greens fee rates for premium tee times.  For that reason, greens fees can be structured to charge higher rates during the facility’s peak season and peak time periods, such as weekend morning and holidays.

Generally speaking, the traveling golfer will likely plan their travel to a resort facility when weather and conditions are at their best.  Therefore, golf management can expect to charge the Resort Guest more on Weekend Mornings during Peak Season than at other playing times.

In the table that follows, a Resort Golfer will be expected to pay $180 for a Peak Season Weekend Morning, but only $65 for an Off Season Weekday Morning.   This may encourage some budget conscious travelers to modify their plans to travel during the Off-Season.  The facility’s profitability will increase as the pricing discrimination allows the course to remain at full capacity with higher prices during the Peak Season, while maintaining a sustainable rate and capacity during the Off Season.

Golfer Type:  Resort Guest
Date Periods	Time Periods	Pricing	Advanced Booking Period
Peak Season	Weekend Morning	$180	9 months
Peak Season	Weekend Afternoon	$150	9 months
Peak Season	Weekday Morning	$120	9 months
Peak Season	Weekday Afternoon	$90	9 months
Off Season	Weekend Morning	$110	9 months
Off Season	Weekend Afternoon	$75	9 months
Off Season	Weekday Morning	$65	9 months
Off Season	Weekday Afternoon	$50	9 months

A restriction usually placed on the Resort Guest is that they must have a verifiable hotel reservation at the facility’s lodge.  A cancellation at the lodge could result in a cancellation of the reserved tee time.

Yet another Golfer Classification is the Local Guest, a group that can be used to fill last-minute course vacancies.  They generally will not be willing to pay as much for greens fees, nor will they be providing the facility with hotel occupancy or the higher food and beverage sales associated with Resort Guests.  The Local Guest however, can be encouraged to pay a reduced greens fee (filling last minute vacancies) to enhance the course’s profitability.

In the table below, the Local Guest can reserve a tee time three weeks in advance for the same greens fee rate given to the Resort Guest.  For instance, both the Resort Guest and the Local Guest can pay $180 for a Weekend Morning during Peak Season.  The Resort Guest is given a nine-month advance booking period, while the Local Guest is given only a three-week advance booking period.  The difference is that the Resort Guest has also confirmed a room at the Lodge.  (The Local Guest can upgrade their classification to Resort Guest by reserving a room at the lodge).

In this sample, there is a price-break given to the Local Guest if they book their tee time less than two days in advance.  This discount is offered to fill any open slots on the facility’s short-term tee sheet.

To book and confirm a Weekend Morning tee time during Peak Season, the Local Guest has three options:

•  Book the full list price ($180) up to nine months in advance as a Resort Guest (with hotel room),
•  Book the full list price ($180) up to three weeks in advance (no need for lodging commitment),
•  Book the discounted rate ($120) up to two days in advance.  With this the Local Guest takes the chance that no time slots will remain open.

Golfer Type:  Local Guest
Date Periods	Time Periods	Pricing	Advanced Booking Period
Peak Season	Weekend Morning	$180	3 weeks
Peak Season	Weekend Morning	$120	2 days
Peak Season	Weekend Afternoon	$150	3 weeks
Peak Season	Weekend Afternoon	$95	2 days
Peak Season	Weekday Morning	$120	3 weeks
Peak Season	Weekday Morning	$75	2 days
Peak Season	Weekday Afternoon	$90	3 weeks
Peak Season	Weekday Afternoon	$70	2 days
Off Season	Weekend Morning	$110	3 weeks
Off Season	Weekend Morning	$70	2 days
Off Season	Weekend Afternoon	$75	3 weeks
Off Season	Weekend Afternoon	$65	2 days
Off Season	Weekday Morning	$65	3 weeks
Off Season	Weekday Morning	$50	2 days
Off Season	Weekday Afternoon	$50	3 weeks
Off Season	Weekday Afternoon	$40	2 days

Off Load Last Minute Tee Times.  Loyal local golfers provide the best opportunity for the golf course to sell tee times left open later in the day or for the coming day or two.  Filling the day’s remaining vacant tee times further allows the course to maximize the club to maximize revenues.   This can be achieved through an email blast or sms to registered golfers to notify them of a reduced greens fee for the last minute tee time.  Use of social networking sites such as Twitter or Facebook provide yet another outlet to notify golfers of the special pricing for last minute times.

Other Revenue Management options can also be considered when building the facility’s greens fee pricing structure.  For instance,

ž            Pricing discounts for groups of two, three or four players.  Using the example of a full rate at $180, the course may offer the second, third and fourth golfers rates of $170, $150, $120 if they make the booking together.  A single golfer would remain at $180, two golfers at $350, three golfers at $500 and four golfers at $620.  This would encourage a group of golfers to make a commitment all at one time.

ž            Cancellation fees can be another way to increase profitability while opening the tee time to a new reservation.  This could be structured to provide multiple levels of cancellation fees.  Once example would be:

ž           30% cancellation fee if within four weeks of the tee time,

ž           50% cancellation fee if within two weeks,

ž           100% cancellation fee if not cancelled more than two weeks out.

The purpose of the cancellation fee is to protect the facility’s profitability from a golfer’s changing schedule or the whim’s of their changing desires.   The facility has provided them with the convenience of booking and confirming tee times in advance, and as the tee time approaches it becomes more difficult for the course to fill the time slot with a higher paying client.

The preceding examples are a simplified version of what a golf club goes though to develop a full working RM model.  There will likely be more than three golfer classifications and more than one discount rate for several of those classifications.

Revenue Management does increase the level of complexity in creating greens fee rates, and requires significant research and planning prior to implementation.  Industry studies however, indicate that well-planned RM models provide at least a 2% increase in corporate revenue.

RM模式下的果岭收入 - Revenue Management in Golf

RM模式下的果岭收入 【引言】 收入管理（Revenue Management，简称RM）是通过对数据库中打球预定的定价管理，实现高尔夫场所利益最大化的一种商业工具。20世纪80年代，为了应对低价竞争和不断上升的运行成本，国际航空业已经开始使用这种管理模式。后来，住宿和汽车租赁行业也开始采纳这种管理模式。通过使用科技，RM可成功管理并提高果岭费用的收入。 在高尔夫中应用RM就是在适当的时间、以适当的价格向适当的高尔夫球手出售打球时间。它可以提供与球手支付能力和意愿相匹配的打球时间。RM也可以降低由于不当定价或球场利润出现非预期衰退所产生的不利影响。 打球时间与外部系统相融合可以大量增加收入，比如旅游网站（航空线、旅游局）、社会网络（Twitter和Facebook）以及短信等都可以有效地提醒高尔夫球手打球时间的相关事项。 多数高尔夫球场所认为每周打球时间的需求各不相同。有时，打球时间供不应求，有时又一般，甚至需求非常低。 通过球场数据分析，高尔夫管理可以设定价格策略，分级别管理需求。需求旺盛时，提高价格，使供需相适应。大多数情况下，周末和早晨打球比较多。需求变少时，可以降低价格，鼓励高尔夫球手在周内或下午打球。这样不仅能保证旺季的高收益率，而且能够增加淡季的打球率。 RM定价案例 在本案例分析中，有些数据进行了比例缩减。总结如下： 高尔夫球手分类 · 会员 · 度假游客 · 当地游客 季节分类 · 旺季   5月1日——9月30日 · 淡季   10月1日——4月30日 时间段 · 周末早晨 （旺季） · 周末下午 （旺季） · 周内早晨 （旺季） · 周内下午 （旺季） · 周末早晨 （淡季） · 周末下午 （淡季） · 周内早晨 （淡季） · 周内下午 （淡季） 会员+度假游客  球场的主要收入来源 大多数高尔夫球场针对终身会员是不收取果岭费的，对会员收取固定低价（不附加任何限制）。在大多数情况下，应用收入管理需要在会员享受的优惠条件上做文章，简单的普通定价表如下所示： 日期段 时间段 定价 提前预定时间 没有限制 没有限制 免费（或低价） 90天高级预定时间 与会员不同的是，度假游客一般都有最长的提前打球预定时间。因为高尔夫也和公司或私人旅游预定一样，需要提前几个月预定。 度假游客通常都有能力并愿意在旅游旺季时支付知名球会高价果岭费，比如周末早晨和节假日。然而旅行球手通常会选择最好的天气和最适宜的条件出行。因此，高尔夫管理有望在旺季周末对度假游客收取较高费用。 如下表所示，度假高尔夫球手在旺季周末早晨需支付180美元；淡季周内早晨，只需支付65美元。这就会促使一些预算意识较强的旅行者改变计划，选择在淡季出行。使定价有所区分就能保证在高价的旺季游客不断，在淡季也有可持续发展率和收益能力。这样高尔夫场所的收益就会不断增加。 季节 时间段 价格 提前预定时间 旺季 周末早晨 $180 9个月 旺季 周末下午 $150 9个月 旺季 周内早晨 $120 9个月 旺季 周内下午 $90 9个月 淡季 周末早晨 $110 9个月 淡季 周末下午 $75 9个月 淡季 周内早晨 $65 9个月 淡季 周内下午 $50 9个月 “通过分析适当的球场需求数据，高尔夫管理可以设定价格策略。分级别管理需求。需求旺盛时，提高价格，使供需相适应。” 通常对度假游客的限制是：他们必须预定高尔夫场所的注册酒店。取消住宿预定将一并取消打球时间的预定。 当地游客  填补球场最后的空白 当地游客通常不愿意支付高果岭费，也不会在酒店住宿或者享用高级食品和饮料。但是，可以鼓励他们支付少量果岭费用（填充最后一分钟的空白），以加强球场的利润。 如下表所示，当地游客可以提前三周以度假游客的果岭价格预定打球时间。例如，度假游客和当地游客都可以在旺季周末的早晨预定180美元的打球时间。度假游客有提前9个月的预定时间，但是当地游客只有提前三周的预定时间。另外，度假游客还在住宿区预定了住宿房间。（当地游客可以通过在住宿区预定房间升级为度假游客）。 在这个案例中，如果当地游客不能提前2天预定打球时间，就会有一个价格分段。提供这种折扣主要是为了填充场所中短期打球的空白。 为了在高峰期的周末早晨预定打球时间，当地游客可以进行如下三项选择： · 以度假游客的身份提前9个月预定全价票（180美元） · 提前三周预定全价票（180美元）（无需预定住宿） · 提前2天预定打折票（120美元） 这样，当地游客就可以填补空白。 季节 日时间段 价格 提前预定时间 旺季 周末早晨 $180 3天 旺季 周末早晨 $120 2天 旺季 周末下午 $150 3天 旺季 周末下午 $95 2天 旺季 周内早晨 $120 3天 旺季 周内早晨 $75 2天 旺季 周内下午 $90 3天 旺季 周内下午 $70 2天 淡季 周末早晨 $110 2天 淡季 周末早晨 $70 2天 淡季 周末下午 $75 2天 淡季 周末下午 $65 2天 淡季 周内早晨 $75 2天 淡季 周内早晨 $50 2天 淡季 周内下午 $50 2天 淡季 周内下午 $40 2天 忠诚的当地高尔夫球手为球场一天的空缺时间、或者未来一到两天的剩余打球时间提供了机会。这种方案实现了球场利益的最大化。可以通过发邮件、Twitter 、Facebook或者发短信的方法通知注册球手空余时间果岭费用的打折信息。 收入管理确实增加了果岭费用率的复杂程度，他要求在执行计划之前，进行详细的调查和计划。 其他收入管理方法 果岭费定价体系的建立，应当考虑到以下因素： · 为两个、三个或者四个球员提供折扣价。以全价为180美元为例，如果球手同时预定，球场可能给第二个、第三个、第四个球手分别提供170美元、150美元和120美元的价格。或者单人180美元，两人350美元，三人500美元，四人620美元。这样就能鼓励球手们集体预定。 · 取消费用是增加收益的另一种方法。它还可以用于新的预定。该计划将提供取消费用的多个级别。例如： ----  打球时间的4周内取消预定，30%的取消费用 ----  2周内取消，50%的取消费用 ----  2周以后取消，100%的取消费用 取消费用的目的是保护场所收益，预防高尔夫球手临时改变计划。场所给他们提供了方便的提前预定和确认时间，随着打球时间不断临近，球场卖出高价票的可能性也在不断减小。 以上的例子是运用RM模式发展的一个举例。也许不只有三种高尔夫球手分类，而且对于这些分类，也不是只有一种打折率。 收入管理确实增加了果岭费用率的复杂程度，他要求在执行计划之前，进行详细的调查和计划。但是行业研究表明，精心设计的RM模式至少增加了公司2%的收入。（文/Bill Healey） Bill Healey从事高尔夫娱乐系统市场，具有世界范围内的高尔夫球场顾问经验。他除了给亚洲高尔夫商讯供稿外，还是拉斯维加斯游戏娱乐技术杂志的编辑。