The Pellucid Perspective - August 2018 - 14

MARKET FOCUS

MN operators doing well against tough odds
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-perAvailable Round. In this issue, we'll profile the 22nd healthiest
market, the Minneapolis Metro Core Business Statistical Area
(CBSA).
Home to business colleague Mike Dickoff of GroupLooper,
IGDB and Quick.Golf fame as well as legendary owner/operator Tom Abts of Deer Run Golf Club, Minneapolis is home
to a sizeable, dedicated group of avid (some might say rabid
during the roughly 7 months of play annually) golfers which
support the local golf economy (and the modest number of

Minneapolis is home to a sizeable,
dedicated group of avid (some
might say rabid during the roughly
7 months of play annually) golfers
which support the local golf
economy (and the modest number
of tourists who venture north
during the summer months).
tourists who venture north during the summer months). The
market has struggled on the demand front through 6 months
(down 14% according to Golf Datatech figures) but Pellucid
rides to the rescue with our weather-adjusted Utilization which
shows that Golf Playable Hours (GPH) are down nearly 20%
meaning Minneapolis is actually posting better Utilization (or
throughput after factoring out weather) so it's not necessarily
the marketing programs or golf operations, although there's always room for improvement there in the majority of markets we
observe or work in.
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

14 The Pellucid PersPecTive

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)

August 2018



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

TOC
Real estate golf supply contraction: Someone’s gotta’ pay
Municipal golf: What’s in a number?
We can do better at welcoming new golfers
Golf - easy to be hard?
July golf weather impact: Solidly sideways
MN operators doing well against tough odds
Back surgery recovery is Tiger’s greatest achievement
The Pellucid Perspective - August 2018 - TOC
The Pellucid Perspective - August 2018 - Real estate golf supply contraction: Someone’s gotta’ pay
The Pellucid Perspective - August 2018 - 3
The Pellucid Perspective - August 2018 - 4
The Pellucid Perspective - August 2018 - Municipal golf: What’s in a number?
The Pellucid Perspective - August 2018 - 6
The Pellucid Perspective - August 2018 - 7
The Pellucid Perspective - August 2018 - We can do better at welcoming new golfers
The Pellucid Perspective - August 2018 - 9
The Pellucid Perspective - August 2018 - Golf - easy to be hard?
The Pellucid Perspective - August 2018 - July golf weather impact: Solidly sideways
The Pellucid Perspective - August 2018 - 12
The Pellucid Perspective - August 2018 - 13
The Pellucid Perspective - August 2018 - MN operators doing well against tough odds
The Pellucid Perspective - August 2018 - 15
The Pellucid Perspective - August 2018 - 16
The Pellucid Perspective - August 2018 - Back surgery recovery is Tiger’s greatest achievement
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