Page 44 - GBC Spring 2017 eng

CREATE A SpECIfIC STRATEGy
& GoAl
You have a budget and goals in place for all other revenue and expenses. So, why do most courses disregard managing online tee time revenue the same way? Too many golf clubs are haphazardly adjusting their online rates without any specific goals or strategies in mind, which causes many of them to fall short of their online revenue expectations When developing your strategy, keep in mind the following 4 factors:
Determine the rate
1 types that you are
willing to offer.
Set a goal for the
2 number of rounds
you expect to sell from each distribution channel.
• Facility Website • Golf18 Network • GolfNow
• TeeTimes.com
• TeeOff.com
Define the expected
3 conversion rates from
each distribution channel.
Determine your projected RevPatt (revenue per avail- able tee time) &
APR (average rate per round) from each distribution channel.
USE KEy METRICS
The backbone of revenue management is centered on using statistical information to determine how you will make rate adjustments. It is imper- ative for you to have access to historical data and live future variables each time you change prices. Here are a few of the key metrics that you must review each time you apply price updates:
Weather: Forecasting playable rounds based on fluctuating weather patterns is vital in determining the demand of your tee times. You will also need access to a 7 day forecast broken down by identifying the most important weather variables for your facility.
“Forecasting playable rounds based on fluctuating weather patterns is vital in determining the demand of your tee times.“
Tee Sheet Utilization: Tee sheet utilization demonstrates what sort of demand is happening during any given time period based upon daily and hourly activity. We suggest breaking your tee sheet down into one hour time blocks to determine each tee time’s specific demand index.
You can then create a matrix to determine what pricing adjustment will be made based upon the number of days in advance as well as the percentage utilized. The general rule is to have your more advanced and higher utilized periods priced higher and closer to liquidation, and lower utilized periods priced lower.
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Golf Business Canada