What would you pay for a green fee?
How much is a tee time worth at your club? Are some tee times more valuable than others? Do you price your green fee accordingly?
A lot of courses have three or four prices for green fees:
- Day ticket
You could also add in prices with members. This is based on green fee yield, whether you realise it or not.
What is Yield management?
“a variable pricing strategy, based on understanding, anticipating and influencing consumer behaviour in order to maximise revenue or profits from a fixed, perishable resource”
Now that’s a lot of fancy words. In golf club terms:
Weekday green fees are cheaper because the demand is higher at weekends
Twilight times are cheaper because a golfer might not get in a full round
Can it be segmented further? The reality is that it already is. It is seen across the golf industry by clubs who barter their tee times for other services. Those tee times will never be sold at full rate because there simply isn’t the demand. It’s harder to sell a tee time at 2pm on a Tuesday afternoon that 9am on a Saturday morning. And the appeal of a tee time can vary by the hour.
For example – for a golfer who works in the afternoon, starting at 1pm, an 8.30am tee time may be ideal but a 9.30am one could be of no use.
What influences Green fee yield?
It could be as simple as the time but other factors to consider are:
- Day of the week
- School holidays
- Time of year
- Existing bookings
- Group size
to name a few.
By looking at these factors and applying them to tee time availability it is possible for a golf club to establish a range of prices which will appeal to the target market on any given day and time.
This gives golf clubs control of their pricing structure and encourages clubs to focus on maximising their key asset of tee times.
For more ideas, go to the golf club marketing resource website.