Page 14 - GBC summer ENG 2023

Average rates per round had been improving in 2022 and are forecast to rise further in 2023, although at a slower pace. Semi- private clubs are budgeting a 4.0% increase and public courses up 3.4%. Private clubs are projecting average rate per guest fee round to increase 5.5%.
The outlook of demand for golf memberships for 2023 remains high. 87% of private clubs current- ly have wait lists and are expecting to remain full. Membership rates when combining all categories are forecasted to increase by 6.4%, and total membership revenues to be up 4.3%. Attrition rates are expect- ed to weaken slightly. Overall number of members aggregates to an increase of 2.5%.
F&B revenues for 2023 are being budgeted at an additional 9.3% average increase beyond the large rebound in 2022. Semi-private
and public facilities are expected to outperform private clubs on this metric, with privates projecting a 4.4% increase.
Tournament revenues, which showed a large rebound of 24.8% in 2022, are projected to further increase another 7.5% this golf season. Semi-private and public courses are anticipating consider- ably higher growth in this segment than private clubs.
In the golf shop, consumer surveys show that 37% of golfers expect to spend more on equip- ment and apparel than last year, and 43% to spend the same as in 2022. Mark Seabrook, owner of the Canadian Golf & Country Club and one of the largest green grass retailers noted, “We just had the highest March equipment sales we have ever done”, so the early indicators may be confirming this trend.
GOLF SIMULATORS
The golf simulator business onsite at golf courses has been expanding rapidly with the popularity of off-course golf and technology solutions. There are now 40% of Canadian golf courses operating at least one simulator, led largely by the private clubs.
Unless operating several simulators, most courses seem to be positioning their simulator business as year-round customer engagement strategies and staff retention for a few key positions, more so than significant direct profit centres.
“NO SHOW” RATES
The increased demand for golf since the pandemic, and related tightening of tee time booking policies, have reduced the lost revenues from excessive “no show”
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Golf Business Canada