The Pellucid Perspective - May 2023 - 17

either dodged or have corrected the premium, pristine, penal
and real estate-supported wave during the early 2000s that
" unbalanced " many of the other US markets.
Looking at the productivity of the average facility in
the market using our proprietary velocity measure (Annual
Rounds per 18-hole equivalent), shows a healthy ~39K rounds
per year which indexes at 120 vs. the national average of 32K.
Applying our industry-exclusive Utilization measure (played
rounds/capacity rounds), we see that, after weather adjustment,
their throughput is even better both in the absolute
(78% Utilization) and relative to the national average as represented
by the 143 index on this measure.
In summary, it's easy to see the several factors working in
the Denver market which have aided its ascent to the top position
over the last 5 years of observation: A healthy golfer
base supported by a reasonable amount of supply which is
well-balanced across private/public and the value spectrum
within public and healthy throughput as measured by high
Utilization. It's a blueprint for other markets which are having
to navigate historical imbalances which will take time,
market forces to work properly (i.e. don't save or overpay for
failing golf courses for one) and a little bit of luck (like the
COVID demand surge which is persisting and fixing some of
those problems just by increased demand and modest pricing
power). As a relatively liberal state, I'm guessing also that the
operators in Denver have been more accepting and adopting
of the " just have fun " approach to attracting and keeping golfers
(weed on course anyone?) which is something that other
markets would do well to observe and emulate to retain our
COVID golfers as well as make it more fun for our veteran
golfers which begets higher frequency which drives the Golf
Revenue flywheel. All hail Denver, the new leader in our Top
25 Major US Golf Markets Health Ranking. If you're interested
in having all the facts and scores for future reference, the
best way to do that is subscribe to the Pellucid Publications
Membership-National. In addition to the latest Top 25 scorecard
you get the annual State of the Industry presentation, the
monthly Regional Weather Impact tracker and the monthly
Outside the Ropes newsletter, all for just $495 annual.
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 for
those in need of market analysis & insightss:
* 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 - May 2023

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