The Pellucid Perspective - January 2017 - 4

GOLF
PARTICIPATION

opposed to weekends. This simply adds support to the "revenue
roadblock" we have to overcome.
The above trends indicate both short term and long term
challenges that face the golf industry. In the short term, we advise our clients to look very closely at "senior rates" in relation
to the spread of the discounts and the age levels at which these
discounts are given. We also advise looking at the spread between weekday and weekend rates for everybody in light of the
drop in weekend utilization.
For those who worry about chasing seniors away with slightly
higher prices, there are some demographic support points that
need to be considered. In spite of what is widely cited in current
political discourse, the economic circumstances of baby boomers who have retired and will be retiring over the next decade are
considerably better than they were for the previous generation.
In 2015, we assisted the Southwest Florida Water Management District in analyzing the demand for golf in their
16-county service area through 2035. One of the major findings
was that the fastest growing Income group was in the $150,000
+ segment. Given that this growth was also concentrated in the
older age segments 55+, we were somewhat surprised to see the
results.
In light of the common perception that these statistics were
a product of "snowbirds" flocking to the Sunshine State in retirement, we decided to test these higher income and age cor-

DISCOV ER

relations on a national basis to see if Florida is simply an anomaly. The encouraging fact is that the entire US is going to see
the same growth in the highest Income segment and that this
growth is concentrated in the 55+ Age Group who are currently
the healthiest segment for golf participation.
These various data points encourage us to forecast relatively
stable rounds demand for the next decade. However, that does
not mean golf course owners/operators can relax. In the short
term, rates will require careful attention and adjustment in order to preserve revenue levels.
The data also underlines the serious problems with participation in the younger Age Groups. In the long term, it means that
we have a decade of relative stability to fix problems that current
grow the game initiatives have not successfully addressed. It's
time to get to work.
Jim and I will be digging into these issues in much more
detail in our State of the Industry presentations in Orlando at
the PGA and GIS Shows. We encourage our readers to attend
in person if possible or via our webcast. For those who cannot,
there will be a "show special" which will also be made available
to Perspective readers to purchase the presentation slides for
$100 by going to www.pellucidcorp.com and clicking on the
SoI special.
Attendance is by reservation only - to reserve your spot, click
here.
n

THE TROON EXPERIENCE

YOUR CLUB, OUR PASSION. YOUR SUCCESS, OUR PROMISE.
At Troon,® every member of the Troon Privé® team brings a competitive passion
for enhancing the success of our private clubs. By utilizing the professional
expertise of our team and collaborating with our clients, we reinvigorate private
club communities, making them relevant, healthy, and sustainable, resulting in
membership retention and growth. To learn more, contact the Troon business
development department at 480.606.1000, or visit TroonMGT.com.

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The Pellucid Perspective

January
2017
1/6/17 1:10
PM

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Table of Contents for the Digital Edition of The Pellucid Perspective - January 2017