The Pellucid Perspective - April 2022 - 19

ture of 39%/37%/24%. Remember also that we establish the
Premium/Value/Price segments by individual market so that's
factoring in differences in cost of living/cost of golf as we cross
markets (unlike NGF where Manhattan NY has the same
price segmentation as Manhattan KS, go figure).
Using our methodology for calculating Supply/Demand
equilibrium and how the picture has changed from '00-'20
based on rounds demand change vs. supply change, you can see
in the table above that Supply contracted 4% over that period,
below the national average of -8% (which represents a Compound
Annual Change Rate (CACR) of roughly 0.5%). On
the facility-reported rounds demand side of the equilibrium
equation, that declining supply picture was accompanied by a
similar rounds decrease over the '00-'20 period of 5%, which
significantly trails the benchmark US level (+6%). The confluence
of these two factors results in an unchanged relationship
between supply and demand for the period (-1%) which significantly
trails the national benchmark of +14% supply absorption
during this period (fueled largely by the Played Rounds
surge in '19-'20 due to COVID). This suggests that Los Angeles
is relatively in balance vs. the '00 benchmark but is not fully
participating in the COVID rebound we see in most all other
US golf markets.
Looking at the productivity of the average facility using
our proprietary velocity measure shows throughput of ~51K
rounds per year, well above the national average of ~31K. Applying
our industry-exclusive Utilization measure (played
rounds/capacity rounds), we see that, after weather adjustment,
the market is merely average in " productivity " with a 59% Utilization
Rate (101 index). This is exactly the reason we created
weather impact, to sort out absolute (the things we can control
as operators) vs. relative (things we can't) performance.
In summary, Los Angeles is a solid and consistent Top 10
US golf market due to the strength of the golfer base relative
to supply, strong rounds demand and a reasonable amount of
supply. The most notable observation is that Los Angeles was
in a slightly deeper hole than the average market going into
COVID and it didn't get quite as much of a lift (yet) out of the
COVID surge as many of its Top 25 counterparts.
We'd have even better visibility to document Los Angeles'
strength and " COVID bounce " if we could convince
some number of market owner/operators to participate in the
GMRC during the '22 season. You can get more info on the
GMRC and instructions on how to subscribe for our current
promotion bundle (GMRC + Cognilogic historical weather
impact + Foresight 60 day Capacity Rds forecast + Outside
the Ropes + the State of the Industry presentation for $500/yr,
wow!) in one of two ways:
* Read the 2-page Program Overview:
* View the 18-min recorded demo of the tool and
program plans/pricing etc. (fill in your name and email
and it will open the video link; you're not signing up
for anything)
If you'd like more detailed Golf Local Market profiling
there are 3 ways to get it:
* Single location Golf Local Market Analysis
* Top 25 US Golf Markets Ranking Scorecard
* Golf Local Market Analyzer software license (unlimited
analyses, web-delivered, 24/7)
" 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 847.612.6717
www.PellucidcorP.com
The Pellucid PersPecTive
19

https://www.pellucidcorp.com/gmrc-overview https://register.gotowebinar.com/recording/7458806921132082700 https://www.pellucidcorp.com/purchase-reports/GLMA-Data-workbook-p235238751 https://www.pellucidcorp.com/purchase-reports/Top-25-US-Golf-Markets-Scorecard-c60114161 https://www.pellucidcorp.com/purchase-reports/GLMA-annual-license-Basic-edition-p235240900 http://www.pellucidcorp.com http://www.PellucidcorP.com

The Pellucid Perspective - April 2022

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