Golf Inc - August 2008 - (Page 26)

state industry He said the underlying economic factors indicate there will be a split between the haves and have-nots. “The haves will be able to create revenue, build growth which has been lacking for five, if not 10, years, increase yields and maximize customer loyalty to demonstrate both rounds and revenue growth,” he said. DeLozier said larger op erators may have the resources and expertise to offset the rising costs of doing business that affect all operators. And they are able to increase revenues through increased marketing, customer loyalty programs or sheer presence in the marketplace. EAGLE Golf President Joe Munsch, one of the in dustry’s largest operators, said that rising costs are a fact of life that are particularly vexing because, unlike some commodities, golf ’s costs cannot be passed on to the consumer. “There’s no question we’re in a difficult time, but the whole country’s in a difficult time,” Munsch said. “There’s a lot of upward pressure in our costs — fuel, fertilizer, sand, food — and we’re having to dig in really deep to keep things under control.” Un l i k e s i n g l e - c o u r s e operators, Munsch sees varying impacts across the regions where the company’s more than 80 properties are located. Even though costs are consistently up regardless of location, he said weather traditionally has the biggest impact on the performance of EAGLE courses. “We really haven’t seen a huge impact from the economy overall,” Munsch said. “In Texas, where the weather has been good, we’ve been performing pretty well, but in the Midwest, we’ve been getting killed by the weather. In states like Ohio, we’re seeing some pullbacks in outings and corporate spending, and there’s been some of that in Texas, but not so much.” The NGCOA’s multi-course owners summit — perhaps because they are more ex perienced, perhaps because they have more overhead, perhaps because they have both high and low producers in their portfolios— produced more cautious forecasts than the industry-wide Golf Inc. survey. Most of the large players (67 percent) said they think their business will either remain flat or decline as much as five percent in the second half of 2008. The area most mentioned by those attendees (50 percent) was outing business or corporate spending. Both Munsch and DeLozier also reported that multi-course owners complained that private club membership sales of the 70 % of respondents are even more optimistic about the coming year, rating their business prospects either good, very good or excellent. “In Texas, where the weather has been good, we’ve been performing pretty well, but in the Midwest, we’ve been getting killed by the weather. In states like Ohio, we’re seeing some pullbacks in outings and corporate spending, and there’s been some of that in Texas, but not so much” -Joe Munsch 26 Golf Inc. August 2008

Table of Contents Feed for the Digital Edition of Golf Inc - August 2008

Golf Inc - August 2008 Contents Editors Column Around the Industry: Big Green in Arizona Data Collectors Combine Forces GPSI Hires Chessler, Files Suit Americas Europe/Africa Asia/Australia Machrihanish Dunes Draws on the Past to Make History Again in Scotland Innovative Superintendent Finds Way to Keep the Nation's First Totally Organic Course Green Latest Clubhouse Designs Reflect Changing Lifestyles: It's All About Casual Camelback Conference Brochure More Operators Embracing Initiatives Aimed at Bringing Families Together on the Golf Course State of the Industry 2008 Muni Maddness? The Last Word

Golf Inc - August 2008

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