The Pellucid Perspective - October 2017 - 14

MARKET FOCUS

Like the Sox, Boston course
owners need better pitching
Boston MA Core Business Statistical
Area (CBSA)

n this monthly section we profile one of the Top 25 US Golf
Markets based on a Pellucid composite score of the golfer
base, the supply level and rounds demand. Within that Top
25 universe, we then rank them based on relative health using a
Pellucid weighted scoring system on 8 variables ranging from
Population Growth to Estimated Profitability-per-Available
Round. In this issue, we'll profile the 15th healthiest market,
the Boston MA Metro Core Business Statistical Area (CBSA).
With its baseball season hopes recently ended by the Astros,
there should be "slightly" less competition for golf while still recognizing that the Patriots are the dominant Fall force in Beantown. The other hot topic relating to Boston and golf is why
there isn't a TopGolf facility there yet. For an interesting take
on that, see this GolfConWith its baseball tent.com article by Brandon
Wilfore. We should probseason hopes
ably help Brandon out with
recently ended by his stats though because
is much higher
the Astros, there Boston
ranked in golf development
should be "slightly" than the 44th figure that
cites from Golf.com.
less competition he
(So much for the publishfor golf while still ing folks as statisticians,
sure that's probably
recognizing that we're
ranked on something as
the Patriots are the sophisticated as number of
or holes per capita,
dominant Fall force courses
etc., etc.). At any rate, what
we're really interested in is
in Beantown.
whether it's a good/bad/indifferent place to be a golf course owner/operator. Let's dive into
the figures and see what it shows.
By rounds demand (one of our 3 selection criteria for initial
inclusion in the Top 25 list), the Boston CBSA ranks number 7
among US markets with facility-reported annual demand of just
under 7M rounds. (That facility-reported tally counts both local
and tourist play). Looking at the golf consumer base, we see
that the Boston CBSA is home to a healthy local golfer base of
roughly 509K golfers (5th ranking in the US, remember this is
only local, resident population, doesn't count the tourist crowd).
That golfer base is served by a reasonable supply amount of 183
18-hole equivalents (EHE) producing a healthy ratio of roughly
2.8K 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 skews to Private at 33% of total

14 The Pellucid PersPecTive

Private

PublicPremium

PublicValue

PublicPrice

Golfer Base
- Est. # of Golfers (Ks)
- # of 18 Hole Equivalent Facilities
- Golfers per 18-Hole Equiv.

Learning
& Practice

Miami, FL
CBSA

Supply Mix
- Private
- Pub-Prem
- Pub-Val
- Pub-Price
- Learn & Prac

Tot US

Index
vs. US

508.8 22,900
183 14,672
2,788 1,561

179

33%
17%
27%
15%
9%

27%
23%
28%
16%
6%

123
73
95
91
151

17%
-10%

9%
-12%

186
89

-27%

-21%

131

29.3

33.8

54%
56%
$1,368 $1,155
$25
$19

96
118
132

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

* 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)

holes compared to the national average of 27%. The Private vs.
Public access balance is 33%/67%, differing from the national
average of 27%/73%. The balance of Value-added golf supply
(Private & Public-Premium) vs. Value golf (Public-Value, Price
October 2017

http://www.golfcontentnetwork.com/business/boston-needs-topgolf/ http://www.golfcontentnetwork.com/business/boston-needs-topgolf/ http://www.Golf.com

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