• A reduction in capacity
• strategic reduction of up to 50 golf courses
• coordinated amalgamations on a regional basis
• Return to growth in golf club affiliations
• once a golfer, always a golfer
• develop a national infrastructure to encourage growth
• Appropriate pricing strategies adopted by the industry
• below cost pricing to be resisted
• Golf businesses working together on a regional basis
• businesses cooperating to broaden the offering & improve promotion
• Existing representation of stakeholders is fragmented
•
GUI, ILGU, PGA, GCSAI, GCOA, IGTOA & CMAE are examples
• A national body representing the industry, specifically businesses is required
• other industry bodies include IHF, LVA, RAI, IBEC, SFA Childcare
• Such an organisation can lobby on behalf of its members
•
JLC regulations and rates
• Fáilte Ireland / Tourism Ireland
• VAT regulations
• local authority rates
• facilitate group purchasing schemes
• chemical usage
• Strong Management
• Broadening the Consumer Base and Revenue Streams
• Increasing Revenue & Yield Management
• Maximising Efficiencies & Controlling Costs
• Profitable golf businesses need more than administrators
• strong front of house qualities are essential
• must understand hospitality management
• ability to communicate clearly and affectively
• marketing / promotional skills are necessary
• must be capable of selling
• Management Structure must be streamlined
& efficient
• effective decision making is critical
(cont’d)
• Golf businesses must adopt a strategic plan
• less than two in every three clubs have a plan
• 64% of clubs with a plan reported increasing membership numbers
• 3 rd party assistance may be required
• Golf businesses require full time management
• owners / members must work closely with management
• businesses without a manager should appoint one or outsource to a company
• Committees have their place but professionals are required
•
Broaden the membership offering to attract new customers
• Provide different experiences and develop consumer choice
• Bundle products & services more effectively
• Exploit all facilities to develop new revenue streams
• Work within the community to develop new opportunities
• Invest in sales & marketing initiatives
• recruit experienced professionals or outsource
• improve the ability of the business to capture & build databases
• know your customers & align your offering to suit
• exploit online sales tools
• work together within groups and with competitive set
• implement a differentiated promotional campaign to specific consumer groups
• Implement membership retention initiatives
• recruiting new members is 5 times the cost of retaining an existing member
• develop programmes for integrating new members
• enhance communication between the club and its members
• provide benefits of membership that add value
• improve customer service, the members experience & the product
cont’d
• Implement membership growth strategies
• broaden the membership base to attract new customers
• add value to the membership
• clearly communicate the membership offering
• clearly define the sales process and instill a sales focus
• monitor performance at generating and converting leads
• Embrace technology & online booking engines
• provides a platform to drive green fee revenue
• allows for implementation of yield management initiatives
• provides the ability to adapt quickly to changing consumer demands
• 58.1% of clubs have reduced their costs
• Examples of the highest paid people within the club made redundant
• Service levels and the product are suffering
• Cost savings should be achieved through efficiencies, rationalisation and a better managed business
• Cuts imposed on promotion, management and services levels should be assessed as part of an overall plan
Key Considerations
•
Participate in group buying schemes to assist in reducing costs
• materials, inputs, direct costs & services
•
Share assets such as course machinery with other golf businesses
•
Consider outsourcing various aspects of the operation
• management
• course maintenance
• sales & marketing
• clubhouse maintenance, food & beverage, merchandise
•
Adjust resource structure to reflect seasonality of the business
• change in working conditions, less full time staff, centralise certain functions