Raising the Bar on Revenue in the Golf Industry

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Revenue Management Introduction Over the last several decades, the golf industry has been going through tremendous ups and downs. This is from changes in income levels and consumer tastes are leading to shifts in the popularity of the sport. For example, in 1988 the total number of private clubs peaked at 4,898. There are currently 4,415 private clubs who are serving 2.1 million members. These are similar figures that were seen in the late 1920s. (Beditz, 2008) This is when golf peaked and went through a decline until the 1950s. It is at this point that interest grew in the sport until the late 1980s. Since that time, there has been a shift in player psychology. What is happening is most people are moving away from private clubs and instead are utilizing public facilities. This is because these locations are charging their members less and they are offering greater flexibility. (Beditz, 2008) Evidence of this can be seen in the below table (which is showing annual golf related spending at these courses). Annual Golf Related Spending for Private versus Public Facilities Category Amount Public $634.00 Private $2,057.00 (Beditz, 2008) These figures are causing more golfers to use public facilities. However, there is a certain demographic of affluent and higher earning cliental that private clubs are catering to. This means that they have been able to withstand these shifts from focusing on specialization. To fully understand how private and public

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