The Pellucid Perspective - August 2018 - 16

MARKET FOCUS

The average facility has throughput of roughly 28K rds/yr, slightly
better than the national average before factoring in climate and daylight
influences (but not bad given its latitude and climate zone).
slightly better than the national average before factoring in climate and daylight influences (but not bad given its latitude and
climate zone). The more accurate measure is the market's 61%
Utilization Rate which slightly exceeds the Top 25 US Golf
Markets' average (56%). This means that, after factoring in a
significantly shorter-than-average season, the market's average
golf "factory" runs at higher throughput vs. its Top 25 US Golf
Markets peer group. On the annual Golf Fees Revenue productivity side, the market generates roughly $1.0M per public
regulation-length EHE which significantly trails the Top 25
Markets average (this suggests that affordable golf is alive and
well in Minneapolis). As we move down the waterfall of health
metrics, the combination of the leading Utilization and lower
Revenue per EHE combines to produce a slightly above average
RevpAR result that beats 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 cost-of-living markets to more reasonable ones) is
$4 which is well below the national average of $9, so the market
doesn't get any significant gains in the cost to produce a round

of golf (which surprises slightly in that they only have to operate 9 months/yr?). 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, Minneapolis is far from its '90s glory but has a
solid golfer base (due in part to Minnesota's industry-leading
Participation rate), good volume and distribution of supply and
healthy velocity. Due to their higher-than-average velocity,
it appears they're driving revenue more on volume than rate
(which can work). On the other side of the ledger, the rounds
demand trendline is pretty ugly at -2% so something's got to
change to get that long-term average to go up. It would appear
that there might also be an opportunity to marginally increase
rates to get the Revenue per Public Regulation number moving higher as well. If GroupLooper and other social activation
tools and platforms can get more of them networked and on the
course and the operators consider a strategic path to modestly
higher rates, it could be good times in Minneapolis golf once
more before the next decade arrives.
n

"Clear Solutions to
Golf 's Business Issues"

Visit our website and register for more information and free sample reports at www.pellucidcorp.com.
Or, contact Jim Koppenhaver to discuss your unique needs at jimk@pellucidcorp.com or 847.808.7651
(See Hispanic Golf on page 14)

16 The Pellucid PersPecTive

August 2018


http://www.pellucidcorp.com

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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