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PLAYING the NUMBERS GAME with Engagement Numbers Decreasing What Can We Do to Help Grow This Great Game?

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PLAYING the NUMBERS GAME with Engagement Numbers Decreasing What Can We Do to Help Grow This Great Game? BACK 9: CARR GOLF THE FUTURE OF CLUBS PLAYING THE NUMBERS GAME With engagement numbers decreasing what can we do to help grow this great game? hile blessed with over 400 by the Confederation of Golf in W courses, many ranked Ireland (CGI) and The R&A. among the world’s best, the The numerical X-ray – A business of golf in Ireland is all Satellite Account for Golf in about the numbers, especially the Republic of Ireland – was post-recession as the free conducted to evaluate golf’s spending ways of the Celtic Tiger economic value as well as golf boom subsided and mere sleuthing out where the money survival was paramount in the is spent. The top three spots for Alex Saul of aftermath. With the doom and consumer golf expenditures were Carr Golf gloom in the rearview mirror a €94 million on club membership bit, golf is still holding its own fees, €46 million on food and employed in the golf sector on weeks. Consumer spend per adult economically. beverage in clubs and €39 million the Emerald Isle, with 6,800 golfer in the Republic of Ireland Case in point, total consumer on golf equipment. That isn’t in the Republic itself. As far as reaches a healthy average of spending on the ancient game in small potatoes. participants with clubs in tow, the €1,350 per year. the Republic of Ireland is a hefty The research, compiled by the Republic has 281,000 adult golfers A quick look back on the €379 million and €540 million on Sport Industry Research Centre with 103,000 the tally in Northern fiscal carnage is a good idea, the island as a whole according at Sheffield Hallam University, Ireland. Of these, 160,000 play especially as many golf clubs went to a 2017 report commissioned counted 9,030 people are directly the game at least once every four barebones and lowered green 118 / www.IrishGolfer.ie / April 2018 BACK 9: CARR GOLF we offered golf maintenance services for clubs. By expertly managing and maintaining their courses, our clients were in a stronger position to offer an outstanding playing experience, in a cost-effective way. A golfer’s experience on the course has a direct effect on membership and green fee sales, and our clients, past and present such as Royal Curragh, Ballykisteen and Hard at work at Elmgreen Castleknock Golf Club, reaped the Golf Club benefits on the revenue side.” Finding viable solutions remains a constant struggle in today’s market, but golf clubs now must shed practices that weren’t helping their viability. “Golf clubs were spitting out the same membership as they had done in the boom years. Some had even raised their subscription to try fill the void of lost revenue post Celtic Tiger, which forced Charlesland Golf Club Charleslandin County Wicklow Golf Club Marty Carr golfers to move away in search of a better deal. The flip side of fees and memberships almost to deteriorate and it takes a long of World Golf Hall of Famer Joe, that saw golf clubs selling their the brink of closure. time to get out of that hole,” he Carr Golf was set up in the 1980’s green fees for 10 or 15 euros, or “Things were great in the continued. The financial hole to assist local authorities to two for €29 – which is completely boom days and the industry was perhaps an unavoidable develop golf courses on council unsustainable. You can’t maintain became complacent, not a whole trap. Clubs were faced with the owned land banks. The company a golf course charging those lot of emphasis was placed on the prospect of finding a balance over time steadily expanded its prices,” says Pettit. business side of the golf club,” between having satisfactory reach into three core areas – club “These challenges meant recalls Alex Saul, chief revenue playing conditions, setting management, course maintenance there was a natural progression officer at Carr Golf, Ireland’s reasonable member subscriptions and golf travel & events. Today to our relationship with clients leading provider of management and competitive green fees. Many they are the largest golf course whereby our services expanded services to golf clubs. clubs undervalued their product operator in Ireland and the travel from course maintenance to Saul has long been successfully in a rampant race to the bottom. business is firmly established full management of certain driving revenues for sporting The time is now ripe to right the in international markets as a properties, and in the last organisations with successful ship and sail ahead. leading luxury golf tour operator, eighteen months we have stints with Connacht Rugby and receiving a best international golf responded to the increasing Welsh Rugby Union. He now GETTING BACK ON THE tour operator award from Golf demand for specialist marketing, leads a new progressive team RIGHT FISCAL TRACK Digest USA in each of the last sales and revenue services. We within Carr Golf providing expert “At Carr Golf, we are committed 3 years. Places at their annual have made huge commitments in insight, technology, and data to getting Irish golf clubs back on World Invitational Father & Son technology and people to grow analytics to golf clubs. the right track. We have spent Tournament in Waterville are this side of the business, so we “When things soured, people years investing and refining our coveted across the globe. can offer a cost-effective service were no longer willing to pay golf course maintenance solutions From a golf services model to drive revenue. We know for golf club membership and more recently we have perspective, the offering this is the way forward and we’re and that revenue line quickly invested heavily in the talent and developed by identifying the excited to see how this approach declined. That loss wasn’t picked resources to support clubs on the key attributors to the industry’s will develop,” Pettit added. up by demand for casual golf business side of their operations. suffering over the last number and clubs began to chase the It’s about improving efficiencies, of years. Carr have honed their REVENUE TELLS THE TALE market through discounts. Many exacting the operating model and expertise in this arena to give For Saul, the key for success is didn’t invest in their courses or driving revenue through great clubs an alternative way out. a laser-focus on revenue. “A key their equipment, and without marketing and great customer Ed Pettit, Managing Director of part of the services we provide is investment a golf course cannot experiences”, said Saul. the services division explains the revenue management; analysing develop. If anything, they Founded by Marty Carr, son evolution of the offering; “Initially and understanding a tee sheet to April 2018 / www.IrishGolfer.ie / 119 BACK 9: CARR GOLF maximise the revenue potential that figure had fallen to 135,000 of every line. You must believe at the beginning of last year. It’s in the product and the golfing a worrying decline Carr Golf is experience you offer. We’ve determined to counter. found that club managers and “We place a big emphasis on committees have lost some getting to understand the needs of that belief, and because a and wants of our members competitor has slashed prices, in each club. We run regular they have too.” surveys and recently we held Although Carr Golf extensive focus group sessions acknowledges that members are across several clubs. This insight the cornerstone of any golf club, enables us to refine and shape the understanding and accepting product mix and to improve user the value that societies and experience. You’d be surprised corporate business brings to a by the amount of ‘low-hanging golf course is a large component fruit’ there is. It’s just that club of their success. managers don’t have time to “We can review green fee focus on this insight,” said Petit. pace and pick-up on a weekly A report, commissioned by basis, to give us early visibility the Confederation of Golf in on demand to know where the Ireland (CGI) and undertaken pressure points lie. With early by Dr. Pete Lunn and Dr. Elish Charlesland Golf Club visibility, there are ways and Kelly of the Economic and Social The flip side of that saw golf clubs selling their green fees for 10 or 15 euros, or two for €29 – which is completely unsustainable. You can’t maintain a golf course charging those prices Ballykisteen Golf Club means to change pricing and Research Institute (ESRI), found A BLUEPRINT FOR GOLF hole academy on the grounds last remarket those times to new that participation numbers have CLUB SUCCESS year, resulting in 40 new junior customer segments to fill space. declined in recent years primarily “Twenty-seven-years ago the members. The timing was ideal Group business brings a certain because fewer people under the Evans family started construction as Charlesland celebrated its 25th yield in each month and that age of 55 playing the game. What’s on what used to be a farm on site year in business in September, base revenue enables tee sheet going to suit the 25-55-year-old in Greystones, Co. Wicklow and in with owner Lance Evans delighting managers to position the pricing golfer until they have time to play 1992 they opened the golf club”, in the progress of his beloved of other time slots accordingly. 60 times a year? The enemy of explains Pettit. “It was very much club as it reached the impressive This foundation offers dynamic the golfing industry is no longer a family run business.” milestone: pricing opportunities and a a crippled economy but most After a series of discussions, “We are proud to be 25 years flexibility to adapt,” continued everyone’s premium on time.
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