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The multi-course operators all participate in these NGCOA Canada surveys in addition to their internal benchmarking advantages. In addition, the NGCOA Canada’s Golfmax Purchasing Program offers national account pricing primarily to benefit the independent operator’s supplier agreements.
Sylvain Beaudet, CEO of Groupe Beaudet’s golf courses agrees with the MCO advantage of leveraging data. “For starters, I consider our marketing to be a critical advantage, beginning with our ability to acquire a large database of golfers.
“In Quebec, golfers are leaving the traditional membership formula in order to play a variety of golf courses. We can offer loyalty programs and multi-membership across our network of clubs.
“We have also been the first in our market to offer a mobile app with GPS, scoring, live leaderboard, online booking, and a yield man- agement platform that generates rates based on the offer-demand principle. The client experience begins with booking a tee time, but who wants to visit five or six web- sites to find what they are looking for. We have it all centralized to meet their needs, while leveraging their loyalty.”
InCreASeD OPerAtIOnAL eFFICIenCIeS
All multi-course operators state their operational efficiencies and systems as big advantages. Typically, they implement centralized financial reporting systems transmitted to the head office server on a daily basis. That enables continuous analysis by departmental reports across all properties. Usually there are head office management fees apportioned to each individual golf course, at a fraction of what an independent operator would incur in labour cost.
“We have also been the first in our market to offer a mobile app with GPS, scoring, live leaderboard, online booking, and a yield management platform that generates rates based on the offer- demand principle.”
Similarly, equipment can be shared across multiple courses for those that are clustered within a reasonable distance. A centrally managed machinery and shipping schedule allows access to better equipment and higher levels of internal maintenance.
Sylvain Beaudet adds, “The value of our economies of scale on mainte- nance can actually be transferred to our client giving them access to a bet- ter golf experience at a cheaper price.”
When asked about the future, most multi-course operators are fairly optimistic. In the short term, a survey of all Canadian MCO showed that 90% of them are projecting increased revenues for 2016, the majority of those being greater than 5% increase. 50% of them intend to acquire more golf courses in 2016.
Long term, most Canadian MCO stated their expectation of acquiring significantly more golf courses over the next 10 years. The only exceptions in Canada appear to be related to reduction in courses due to development plans to repur- pose some courses for highest and best use.
the Future IS DynAmIC
No doubt there will also be new players entering the MCO market, and perhaps some consolidating of the consolidators. And, there may
be some interesting new business models for multi-course-operations in the future. As noted at the outset, the models themselves are indeed a moving target. The tradi- tional franchise model from other industries, for example, is being researched now in the USA golf market.
The service delivery by golf courses may shift further in tandem with evolving lifestyles. Golf club restaurants have really undergone a major shift to casual dining in recent years, even at the most prestigious private clubs. Similar shifts are likely to be applied to other elements of the golf experience and these may alter the leading edge strategies and positioning of some multi- course operators.
As Edge Caravaggio says, “I think the future of golf itself is very buoyant and multi-course operators will be well positioned to take advantage of that rebound. Young professionals, retired boomers, and second-generation immigrants may well drive another boom.
“There will always be an important role for both the inde- pendent operator and the MCO. They actually coexist very well and are not antagonistic. One does force the other to compete on a higher service and professional level, improving the golfer experi- ence, the image of golf, and the overall industry bottom line.
“For those circumstances where MCO do acquire additional independent golf courses, those transactions normally occur because everybody wins. There is considerable upside to this discussion in the future.”
Golf Business Canada
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Golf Business Canada