The Pellucid Perspective - March 2023 - 17

added vs. the US average of 47%/53%. 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).
Within Public-Regulation golf, the distribution between Premium/Value/Price
is 33%/42%/25% which skews to the PublicValue
segment at the expense of Public-Price vs. the national
distribution of 32%/35%/32%.
Looking at the productivity of the average facility in
the market using our proprietary velocity measure (Annual
Rounds per 18-hole equivalent), shows a moderate ~35K
rounds per year which indexes at 109 vs. the national average
of 32K. Applying our industry-exclusive Utilization measure
(played rounds/capacity rounds), we see that, after weather
adjustment, the average facility productivity is 59%, slightly
higher than the national average of 54% or a 108 Index.
In summary, there's considerable momentum building for
golf in Dallas through a combination of historical right-sizing
of supply, growth in the golfer base and, with it, growth
in rounds. What little visibility we have to Golf Revenue
(through our several GMRC monthly data participants) indicates
that GRev is also expanding at a slightly higher rate
than the rounds demand so that's another green check on the
market health checklist. The balance of supply could use some
attention both leveling out the Private/Public ratio and the
availability of more affordable golf within the Public Regulation-length
segment. We generally find that Private clubs
expand to the " club-able " market size and right now private
golf is on a roll. We don't expect that to self-contract anytime
in the near future so either public golf will have to expand or
re-balance itself or some combination of both. We'll see how
it plays out and we guess it's a nice problem to have for this
market which is getting a considerable, favorable economy/
population tailwind. While we're not sure the PGA folks
could've seen this coming 5-7 years ago when the Frisco move
and development were planned, they certainly made a smart
bet the way things are unfolding.
As we've said repeatedly, market analysis is a cornerstone
of both golf operations, assessment of what golf management
contracts firms may or may not want to pursue and obviously
as a component of any change of status (redevelopment/closing)
or control event (buying/selling) Pellucid continues to offer
the gold standard in this discipline via two offerings:
* Single location Golf Local Market Analysis
* 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
17

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The Pellucid Perspective - March 2023

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