GolfConvergence.com

Good article by Stuart Lindsay of Edgehill that is worth the read. Stuart is one of the industry’s most forward thinking individuals.

Amid the increasing “din” of clients asking our opinion on this topic, weekly GolfNow press releases and the intensifying discussion thread on NGCOA’s Listserv on the topic, Stuart Lindsay (Principal of Edgehill Golf Advisors and an ongoing consultant to Pellucid) and I felt compelled to once again weigh in on this topic. Given the broad industry interest and what’s at stake in getting it “right” the first time (unlike the airline and hotel industries), I’m distributing this edition of Outside the Ropes free of charge to a wide range of industry stakeholders and service providers numbering roughly 15,000. My intent is twofold: 1) Inform and educate as many as possible about the pros and cons of the current trajectory of 3rd party tee time distribution programs in golf and 2) Hopefully entice some number of you to subscribe to the newsletter at some point in the future based on our rigor and balance in reporting the facts about the situation rather than the current opinions across the media and industry trade organizations that this business practice evolution is “pure evil” or “the next coming.”

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Golf Course Operators Place Blame

J. J. Keegan, Managing Principal – Golf Convergence

The Gauntlet Now Thrown

At the 2010 PGA Show, the leading industry research firms, the National Golf Foundation, Golf Datatech, and the PGA of America confirmed that in 2009, rounds and revenue had decreased 1% and 6% respectively, and that up to 1,000 courses may close in five years.

In searching for answers, many cite the uncontrollable factors of the economy, our time-crunched culture, and the oversupply of golf courses as the primary reasons contributing to the malaise. Others cite software firms—particularly third-party tee time providers—as the culprits.

In a February, 2010 Golf Business article titled, “The Flip Side,” Michael Tinkey, Deputy Director of the National Golf Course Owners Association wrote,

“I have an idea for a way we can all make more money…: Let’s build additional golf courses … and charge below the market rate to drive more demand and play. Read the rest of this entry »

by Curt Walker

Barter agreements (pledging a few tee times a day to a to a third-party marketing organization) have been likened to “building” another golf course in your own market area. The terrible results of a market capitulation can be seen in the experiences of Phoenix and Orlando. Under the guise of freedom to withdraw from an agreement, owners are sometimes told no contract is necessary between parties——-Nuts! An “opt out” clause is common in contracts and provides plenty of flexibility if either party wishes to leave.

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