The Pellucid Perspective - July 2018 - 12

MARKET FOCUS

Pittsburgh is a sports town, they
love challenges and they've been
trend-setters in several areas (i.e.
the emoticon was invented here by a
Carnegie Mellon computer scientist)
and all those things fit the golf
mentality so all we have to do is get
them to better connect those dots
going forward, right?

runs at lower throughput vs. its Top 25 US Golf Markets peer
group. On the annual Golf Fees Revenue productivity side, the
market generates roughly $0.7M per public regulation-length
EHE which significantly trails the Top 25 Markets average
(unusual given the slight skew to higher-priced Public golf, this
may indicate considerable discounting present). As we move
down the waterfall of health metrics, the combination of the
lower Utilization and Revenue per EHE combines to produce
a lower Revenue per Available Round (RevpAR) result, $13,
than the Top 25 Markets benchmark. As a final measure for
the Top 25, the Golf Fee Profit-per-Available Round estimate
(designed to equalize the equation when comparing high costof-living markets to more reasonable ones) is $6 which is well
below the national average of $9 so the market doesn't get any
significant gains after factoring in the estimated cost to produce
a round of golf (which surprises slightly in that they only have
to operate a fraction of the full 12 month year). For more detail on what this means and how it's calculated, see Jim's article
in the October '14 Perspective edition (or send us an email at
jimk@pellucidcorp.com and we'll fill in the blanks).
In summary, on the positive side of the ledger they're closer to supply equilibrium than the average market in our Top
25 but, no one is spared, they still have to either shed supply
more quickly or get the annual rounds demand engine revved
up and in positive territory. On the negative (opportunities?)
side of the ledger they could use some grow-the-game initiative success and increasing the consumer base for the existing
supply. There is opportunity to increase throughput for existing
facilities (could be either new golfers or increasing frequency
among "the faithful" for the 9 months that are golf-able) as well
as generating higher revenue for those rounds (this could either
be shifting the mix to higher-rate times like more primetime
golf or in minimizing discounts which could be rate card pricing (like Srs, Jrs, residents etc.) or more intelligent price promotion strategies and discipline among operators to not panic
discount). Pittsburgh is a sports town, they love challenges and
they've been trend-setters in several areas (i.e. the emoticon was
invented here by a Carnegie Mellon computer scientist) and
all those things fit the golf mentality so all we have to do is get
them to better connect those dots going forward, right? While
not a slam-dunk currently for existing owner/operators, it's not
a bad market but it needs to pick up the pace on a couple of

12 The Pellucid PersPecTive

Private

PublicPremium

PublicValue

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

PublicPrice

Learning
& Practice

Pittsburgh, PA
CBSA

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

191.6 22,900
146 14,672
1,312 1,561

84

28%
25%
30%
13%
4%

27%
23%
28%
16%
6%

104
107
109
79
68

5%
-4%

9%
-12%

57
33

-9%

-21%

44

25.5

26.7

95

47%
56%
$694 $1,155
$13
$19

84
60
68

* 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)

fronts to find its way from "viable" to "desirable" for our sport
and industry. It's in the Top 25, let's see if the Pittsburgh spirit
can enable operators to claw their way up the list and at least
beat Cleveland for the #23 spot at the end of '18!
n
July 2018



Table of Contents for the Digital Edition of The Pellucid Perspective - July 2018

TOC
Golf course resurrection: Go big or go home in Salt Lake City UT
We’re missing the boat on Match Play
Golf’s landscape changes
June golf weather impact: Winning streak stops at 1
Pittsburgh, steely in its resolve to climb the top 25
The Pellucid Perspective - July 2018 - TOC
The Pellucid Perspective - July 2018 - Golf course resurrection: Go big or go home in Salt Lake City UT
The Pellucid Perspective - July 2018 - 3
The Pellucid Perspective - July 2018 - 4
The Pellucid Perspective - July 2018 - We’re missing the boat on Match Play
The Pellucid Perspective - July 2018 - Golf’s landscape changes
The Pellucid Perspective - July 2018 - June golf weather impact: Winning streak stops at 1
The Pellucid Perspective - July 2018 - 8
The Pellucid Perspective - July 2018 - 9
The Pellucid Perspective - July 2018 - Pittsburgh, steely in its resolve to climb the top 25
The Pellucid Perspective - July 2018 - 11
The Pellucid Perspective - July 2018 - 12
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