The Pellucid Perspective - June 2016 - (Page 13)

MARKET FOCUS Minneapolis high on golfers, even higher on courses Minneapolis, MN Metro Core Business Statistical Area (CBSA) I n this monthly section we profile one of the Top 25 US Golf Markets based on a Pellucid composite score of the golfer base, supply level and rounds demand. Within that Top 25 universe, we then rank them based on relative health using a Pellucid weighted scoring system of 8 variables ranging from Population Growth to Estimated Profitability-per-Available Round. In this issue, we'll profile the 22nd healthiest market, the Minneapolis Metro Core Business Statistical Area (CBSA). Home to a city completed connected by people "habit trails" between buildings and parking meters you plug your car into during the winter, in the (relatively short) summer this city is a hub of golf activity with an abundant golfer base and ample supply providing proximity and multiple choices for those coveted summer rounds. It's also the home market for some innovative golf programs like GroupLooper, a social media application for golf that connects golfers in their chosen networks and encourages them to get out and play more. Under complete disclosure, GroupLooper is one of Pellucid's partners in the Internet Golf Database (IGDB) initiative which is democratizing the golf facility database and providing a better product and more flexible use in the US golf facility database vs. current options which are more dictatorial and restrictive. If you currently attempt to maintain a facility database or have interest in being part of the client "co-op," contact us at jimk@pellucidcorp.com and we'll provide information and pricing for members. By rounds demand (one of our 3 selection criteria for initial inclusion in the Top 25 list), the Minneapolis CBSA ranks 8th among US markets with facility-reported annual demand of just over 6M rounds. (That facility-reported tally counts both local and tourist play). Looking at the golf consumer base, we see that it's home to a healthy local golfer base of roughly 0.4M golfers (ranking 4th in the US, remember this is only local, resident population, doesn't count any tourists that trickle into the city for business meetings or the summer tourist base). That golfer base is served by a reasonable supply amount of 191 18hole equivalents (EHE), producing a healthy ratio of roughly 2.3K local resident golfers per EHE, well above the national average. The supply mix vs. the national distribution across Pellucid's five access/value/usage segments is fairly well-balanced compared to the US average. The Private vs. Public access balance is 20%/80% which skews heavily to Public access vs. the national average of 27%/73%. The balance of Value-added golf supply (Private & Public-Premium) vs. Value golf (PublicValue, Price and Learning & Practice) is 47%/53% which tilts www.PellucidCorp.com Private PublicPremium PublicValue PublicPrice Learning & Practice Minneapolis, MN CBSA Golfer Base - Est. # of Golfers (Ks) - # of 18 Hole Equivalent Facilities - Golfers per 18-Hole Equiv. Supply Mix - Private - Pub-Prem - Pub-Val - Pub-Price - Learn & Prac Supply/Demand Balance - '00-'13 Cume Supply Growth/Decline* - '00-'13 Cume Rds Demand Growth/ Decline* - '00-'13 Cume Mkt Supply Dilution (-)/Absorption (+) Level* ** - Avg Ann Rds Velocity (Ks per 18-hole vs. ks) (EHE) Rounds & GF Revenue Health - % Utilization Rate - Avg. Ann. Rev. per Public Regulation EHE ($Ks) - Revenue per Available Round (RevpAR) Future Facility Tot US Index vs. US 433.7 22,900 191 14,672 2,271 1,561 145 20% 27% 31% 12% 10% 27% 23% 28% 16% 6% 74 118 110 75 166 7% -27% 9% -12% 71 233 -34% -21% 163 27.8 26.7 104 61% 56% $965 $1,155 $21 $19 109 84 111 * Inverse index, lower is better ** Period % Chng in Rds vs. Period % Chng in Supply Above average level vs. US (Index >105) Average level vs. US (Index 95-104) Below average level vs. US (Index <95) The Pellucid PersPecTive 13 http://www.PellucidcorP.com

Table of Contents for the Digital Edition of The Pellucid Perspective - June 2016

TOC
Fair warning to clubs and courses on classifying workers
This SNAG is growing the game, not distracting it
Benchmarking key to industry progress, but needs more components
PGA TOUR leapfrogs golf industry in applying analysis to improve performance
May golf weather impact: Flat nationally; April utilization gains
Minneapolis high on golfers, even higher on courses
Cracking the code on Millennials

The Pellucid Perspective - June 2016