The Pellucid Perspective - August 2012 - (Page 2)

PRIVATE CLUB REINVENTION Private clubs: A time for change ClubCorp and others “reinventing” themselves to stay relevant By Jim Dunlap he face of America is changing, and in some ways at least, those bastions of tradition that are America’s private golf and country clubs are changing with it. Dallas-based ClubCorp, which proudly bills itself with some justification as “the world leader in private clubs,” recently distributed a press release touting its “reinvention” of the private club model. Although some other private club operators are quick to respond that they too have rewritten club policies and upgraded their clubs’ facilities and program offerings to match the lifestyles of current or prospective new, younger members, the scope of ClubCorp’s commitment to their “reinvention” program (and the $60 million they’ve spent thus far on it) indicates that even the “world leader” sees the need to change with the times. The thrust of most of the changes is to make club membership more welcoming, relevant and, in many cases, affordable for the young professionals and their families who will determine whether clubs remain vibrant (and private) or wither away as their core of older members do likewise. Whether it’s relaxed dress code and cell phone usage policies, more casual dining options and ambience, expanded fitness facilities, special activities and facilities for kids, free or nearly free golf instruction for juniors and beginning players, or introductory membership programs at a reduced rate, today’s clubs are definitely eyeing the tail end of the generational alphabet. ClubCorp did not spend that kind of “reinvention” cash on a whim. CEO Eric Affeldt said the company invested almost $1 million with market survey researchers including IA Collaborative of Chicago to identify what current or prospective club members were looking for in terms of ways to spend their time and money. Those survey results sparked ClubCorp’s decision to add small office spaces called “Touchdown Rooms” or “Communal Tables” offering iPad access in a number of their golf and city clubs, among other changes to both facilities and programming. “We are dedicating space in our clubs for ‘work space,’” Affeldt said. “I know that’s anathema in some parts of the golf industry, but in our clubs where we have added the new ele- T ments, our a la carte business is up over 30 percent across the board, and in several cases their event business was already at 100 percent of budget for the year by August 1st.” Jamie Walters, ClubCorp’s EVP for Sales and Marketing, specifically cited Las Colinas Country Club in Dallas, where ClubCorp poured $2.5 million into a major clubhouse renovation, in addition to adding fresh and diverse programming, including revamped golf game improvement areas and beginner teaching programs. Again heeding the survey results, ClubCorp properties are offering more casual dining areas and menus, including in many cases, such as Las Colinas, outdoor decks with fire pits for dining, cocktails or just enjoying some fresh air. The bottom line? Walters said that since the new clubhouse reopened in November, Las Colinas has netted 100 new members, three-fourths of which were in the golf category, which he noted “bucks the industry trend” in that regard. ClubCorp is certainly not the only private club operator making changes to accommodate society’s changing tastes. Georgia-based Sequoia Golf Group has created a custom Smart Phone application which enables members to book tee times or sign up for events at any of the 30 Canongate golf properties. Clubhouse design and décor themes are trending more toward casual comfort, and many offer special dedicated areas for children, in addition to allowing kids to play golf free when accompanied by a parent. Troon Golf is addressing not only the wants and needs of younger members, but golf ’s participation problems. Rob DeMore, vice president of Troon’s Prive division, said that the Troon-managed Brinwood Country Club in Westchester County, N.Y. offers free lessons to members and their families who are taking up the game. The club also has the Mac Lounge for the connection-addicted as well as a vibrant pool scene. Heritage Golf Group CEO Bob Husband said that Heritage was one of the first multi-course ownership groups to install computer centers in their clubs, and Heritage properties are heavily involved in adding new programming for women and new activities for children at the clubs. The thrust of most of the changes is to make club membership more welcoming, relevant and, in many cases, affordable for the young professionals and their families who will determine whether clubs remain vibrant (and private) or wither away as their core of older members do likewise. 2 The Pellucid PersPecTive August 2012

Table of Contents for the Digital Edition of The Pellucid Perspective - August 2012

The Pellucid Perspective - August 2012
Contents
Private clubs: A time for change
Mobile-optimize or die
Rare fiscal sanity: No new golf
A kinder, gentler approach to speeding pace of play
Golf July weather impact: Up slightly but hot!
Sacramento golf (somewhat) better off than California finances
O’Meara pleads guilty in Running Horse wire fraud, money laundering case
The not-so-terrible 2s

The Pellucid Perspective - August 2012